SWIFT Common Message Type List with examples

Posted on 3rd Apr 2024 76 views

SWIFT offers a range of FIN standards - also called Message Types (MTs) - to initiate credit transfers and direct debits.

A related set of standards is available to handle status reporting (rejections) and deal with exceptions and investigations.

There are also standards that provide account related information exchanged between an account owner and an account servicing institution for cash management and reconciliation purposes.

MT 101 Requests for Transfer

Scope

The MT 101 is sent by the corporate to the financial institution. It is used to move funds from the ordering customer’s account, serviced at the receiving financial institution or at the account servicing institution.

Usage

The MT 101 can contain one or more payment transactions. The sender of the MT 101 can ask for batch booking (one single debit entry) or transaction booking (one debit entry per transaction included in the MT 101). The MT 101 can be used to order the movement of funds, either domestically or internationally:

• Between ordering customer accounts

• In favor of a third party

The account servicing bank can be the receiver of the message (see direct scenario), or can be a party further in the payment chain (see relay scenario):

Direct scenario

A customer orders its bank to instruct a payment from its account with that bank

Relay scenario

A customer orders its bank to instruct a payment from its account with a second bank:

The receiving bank forwards the MT 101 to the account servicing institution. This institution will debit the customer’s account and initiate a credit transfer (in its books or by forwarding an MT102/103 or local credit transfer message).

MT 104 Direct Debit and Request for Direct Debit

Scope

The MT 104 is sent by the corporate to the financial institution. It is used to request the direct debit of the debtor's account in the receiver's country and subsequently to credit the creditor's account maintained by the receiver or one of its branches.

Usage

The message must be used in a “request for debit transfer” scenario. A customer orders its bank to start a direct debit and credit its account with him, or, a customer orders its bank to instruct a direct debit and credit its account with another bank. The account is owned by the customer.

The receiving bank would forward the MT 104 cross-border, or start a domestic direct debit collection.

MT 199 Free Format Message

Scope

This message type is normally used by financial institutions to send information for which another message type is not applicable.

Usage

It can be used as a status message to report reasons for a transaction instruction not being executed or as a message to reject a transaction.

Message usage guidelines

This is a free format message.

MT 192 Request for Cancellation

Scope

This message type is sent by the corporate to the financial institution. It can be used to request to consider cancellation of the SWIFT message identified in the request.

Usage

An MT 192 can be sent to request the cancellation of one single transaction contained in the MT 101 or to request cancellation of the complete MT 101. The request for cancellation always requires a response. This can be done through MT 196, or through MT 199 subject to bilateral agreement. It is up to the receiving bank to define its cancellation policies.

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category n, Common Group Messages, n92 Request for Cancellation contains full field specifications and network validated rules that must be adhered to.

No specific message usage guidelines have been defined.

MT 195 Queries and MT 196 Answers

Scope MT 195

This message type can be sent by the corporate to the financial institution. It can also be sent by the financial institution to the corporate. It is used to request information or clarification relating to a previously sent message, or to one or more transactions contained therein.

A query may also be sent to request that an amendment be made to a previous message.

Usage

MT 195 must not be used to reject a previous message. MT 199 must be used for this purpose.

The MT 195 always requires a response. This can be done through MT 196, or through MT 199 subject to bilateral agreement.

Scope MT 196

This message type can be used to respond to an MT 192 Request for Cancellation or MT 195 Queries message.

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category n, Common Group Messages, n95 Queries and n96 Answers contains full field specifications and network validated rules that must be adhered to.

No specific message usage guidelines have been defined.

MT 999 Free Format Message

Scope

This message type is normally used by financial institutions to send information for which another message type is not applicable.

Usage

It must only be used for scenarios pre-agreed between a corporate and its financial institution.

MT 900 Confirmation of Debit

Scope

This message type is sent by an account servicing institution to an account owner (or a party authorized by the account owner to receive the information). It is used to notify the account owner of an entry which has been debited to its account. The entry will be further confirmed by statement.

Usage

This message type is not normally sent if statements for the account are frequently transmitted.

This message type does not normally result in any bookings. It is a confirmation to the receiver (account owner or party authorized by the account owner to receive the information) of a debit to its account.

MT 910 Confirmation of Credit

Scope

This message is sent by an account servicing institution to an account owner (or a party authorized by the account owner to receive the information).

It is used to notify the account owner of an entry which has been credited to its account. The entry will be further confirmed by statement.

Usage

This message type is not normally sent if statements for the account are frequently transmitted. This message type does not normally result in any bookings. It is a confirmation to the receiver (account owner or party authorized by the account owner to receive the information) of a credit to its account.

MT 940 Customer Statement Message

Scope

This message is used to transmit detailed information about all entries booked to an account, serviced by a financial institution.

Usage

In the bank-to-bank part of the payment chain, the MT 940 is normally sent by an account servicing institution (reporting institution) to a financial institution (forwarding institution) which has been authorized by the account owner to receive it.

In the bank-to-corporate environment, this ‘relay’ scenario is also supported by the MT 940: the forwarding institution forwards the MT 940 to the corporate (the account owner, or the party authorized by the account owner to receive the information).

In a bank-to-corporate environment, however, the MT 940 is also to be used instead of the MT 950 directly between the account servicing financial institution and the corporate (the account owner, or the party authorized by the account owner to receive the information).

MT 941 Balance Report

Scope

This message is used to transmit balance information, reflecting the situation at the identified time in field 13D.

Usage

In the bank-to-bank part of the payment chain, the MT 941 is normally sent by an account servicing institution (reporting institution) to a financial institution (forwarding institution) which has been authorized by the account owner to receive it.

In the bank-to-corporate environment, this ‘relay’ scenario is also supported by the MT 941: the forwarding institution forwards the MT 940 to the corporate (the account owner, or the party authorized by the account owner to receive the information).

In a bank-to-corporate environment, however, the MT 941 can also be used directly between the account servicing financial institution and the corporate (the account owner, or the party authorized by the account owner to receive the information).

MT 942 Interim Transaction Report

Scope

This message is used to transmit detailed and/or summary information about entries debited or credited to the account since the last statement or balance report, or the last interim transaction report (sent in the period since the last statement or balance report).

Usage

In the bank-to-bank part of the payment chain, the MT 942 is normally sent by an account servicing institution (reporting institution) to a financial institution (forwarding institution) which has been authorized by the account owner to receive it.

In the bank-to-corporate environment, this ‘relay’ scenario is also supported by the MT 942: the forwarding institution forwards the MT 942 to the corporate (the account owner, or the party authorized by the account owner to receive the information).

In a bank-to-corporate environment however, the MT 942 is also to be used directly between the account servicing financial institution and the corporate (the account owner, or the party authorized by the account owner to receive the information).

MT 210 Notice to Receive

Scope

This message type is sent by an account owner (or a party authorized by the account owner) to one of its account servicing institutions.

It is an advance notice to the account servicing institution that it will receive funds to be credited to the sender's account.

Usage

This message will typically be used to ensure the account servicing institution is informed in advance of incoming funds in favour of the account owner.

This message will allow the account servicing institution to have an early visibility of the incoming funds; it will help manage its liquidity and ensure the account owner get credited with good value date.

Treasury Markets Standards

MT 300 – Foreign Exchange Confirmation

Scope

This message is exchanged by or on behalf of the institutions or corporate, which have agreed to a foreign exchange contract. It is used to:

• confirm the details of a new contract between the parties

• confirm an exercised foreign currency option

• confirm the details of an amendment to a previously sent confirmation

• cancel a previously sent confirmation

Usage rules

For the actual transfer of funds, other messages outside Category 3 are available, such as the MT 101, Request for Transfer message.

When the sender of the MT 300 is confirming a trade on behalf of another party, this other party must be indicated in field 82a of the message; otherwise, the identification of the sender itself must appear in field 82.

This message can also be used to confirm a currency swap. In that case, two confirmations must be sent: a spot one and a forward one.

Non Deliverable Forward Trades may be confirmed by adding the NDF specific data in field 77D.

The opening of a Non Deliverable Forward Trade contains the original amounts and two elements specific to this type of trade, the valuation date and the settlement currency.

For the closing of the trade, the message has to contain opposite conditions, for example a full amount bought and a full amount sold. The net amount to be settled is calculated by netting the opening and the closing amounts.

MT 320 – Fixed Loan/Deposit Confirmation

Scope

This message is exchanged to confirm a fixed term loan/deposit contract. It is exchanged by or on behalf of the institutions or corporate, who have agreed to a fixed term loan/deposit contract.

Note In some markets, loan/deposit contracts are agreed on floating rates.

The MT320 is not formatted to confirm floating rate contracts but bi-lateral agreements between parties are possible (see Message Guidelines and example).

Usage rules

For the actual transfer of funds, other messages outside Category 3 are available, such as the

MT 101, Request for Transfer message.

When the sender of the MT 320 is confirming a trade on behalf of another party, this other party must be indicated in field 82a of the message, otherwise, the identification of the sender itself must appear in field 82.

MT 305 – Foreign Currency Option Confirmation

Scope

This message is exchanged by or on behalf of the institutions or corporate, which have agreed to a foreign currency option contract. It is used to:

• confirm the details of a new contract between the parties

• confirm the details of an amendment to a previously sent confirmation

• cancel a previously sent confirmation

Usage rules

For the actual transfer of the premium, other messages outside Category 3 are available, such as the MT 101, Request for Transfer message.

The underlying master agreement is by default ICOM but variations of ICOM, or ISDA master agreements may also be specified.

This message must be used to confirm Vanilla, Deliverable currency options with American or European exercise. Barriers cannot be specified.

Securities Standards

SWIFT offers a range of ISO 15022 standards (MTs) to instruct and confirm the settlement of securities trades. A related set of standards is available for corporate action announcement, status, instructions, and confirmations.

There are also ISO 15022 standards for the reporting of pending transactions, settled transactions and holdings. These statements are exchanged between an account servicer and an account owner for reconciliation purposes.

The below section explains the above related MTs, and provides a series of guidelines facilitating the common usage of those message types. A set of business examples is provided at the end of this section.

Settlement, Status and Allegement Messages

The SWIFT User Handbook, Volume Standards Category 5, Securities Markets as well as SMPG

Settlement & Reconciliation Final Market Practices serve as the main documents describing the standards.

MT 540-3 Settlement Instructions

Scope

The MT 540-3 is sent by the corporate to the custodian bank. This message is used to:

• instruct the receipt or delivery of financial instruments free or against payment, physically or by book-entry, from a specified party (the function of the message is NEWM)

• request the cancellation of a previously sent instruction by the account owner (the function of the message is CANC)

• pre-advise of a forthcoming receipt or delivery of financial instruments free or against payment instruction (the function of the message is PREA).

The instruction may be linked to other settlement instructions, for example, for a turnaround or back-to-back or other transactions, for example, foreign exchange deal, using the linkages sequence.

The MT 540 is used for Receive Free Instruction.

The MT 541 is used for Receive against Payment Instruction.

The MT 542 is used for Deliver Free Instruction.

The MT 543 is used for Deliver against Payment Instruction.

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 2, MT 540-3 contains full field specifications and network validated rules that must be adhered to.

No corporate specific usage has been identified. Corporate must comply with the network validated and usage rules published in the User Handbook and to the SMPG recommendations existing for these messages.

On the subject of settlement instructions, the SMPG publications are the following:

• Equity and fixed income settlement global practice

• Securities lending and borrowing settlement

Securities Standards

17 December 2008 57

• Block trades

• Book transfer

• ISO 15022 message function usage

• ISO 15022 linkages usage

• Status reporting

• Pair-off

• Partial settlement

• Physical settlement

• Place of safekeeping

• Place of settlement

• Pre-advice (hold/release process)

• Repurchase agreement settlement

• Sell-buy/buy-sell back settlement

• Settlement instruction linked FX

• Country specific requirements (25+ countries)

MT 548 Settlement Statuses and Processing Advice

Scope

The MT 548 is sent by the custodian bank to the corporate.

This message is used to:

advise the status of a settlement instruction (the function of the message is INST)
As a reply to a cancellation request previously sent by the corporate (the function of the message is CAST)
report on future settlement, or forward transactions, for example, free receipts for which no instruction is required, which have become binding to the corporate

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 3, MT 548, contains full field specifications and network validated rules that must be adhered to.

On the subject of Settlement Status and Processing Advice, the SMPG publications are the following:

ISO 15022 message function usage
ISO 15022 linkages usage
Status reporting (MT 548, 537)

MT 544-7 Settlement Confirmations

Scope

The MT 544-7 is sent by the custodian bank to the corporate.

This message is used to:

• confirm a delivery or receive of financial instruments against or free of payment (function of the message is NEWM)

• request the cancellation or reversal of a previously sent confirmation (function of the message is CANC or RVSL)

The MT 544 is used to confirm a Receive Free Instruction

The MT 545 is used to confirm a Receive against Payment Instruction

The MT 546 is used to confirm a Deliver Free Instruction

SWIFT for Corporate

62 Standards MT Messages Implementation Guidelines

The MT 547 is used to confirm a Deliver against Payment Instruction

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 3, MT 544-7, contains full field specifications and network validated rules that must be adhered to.

MT 578 Settlement Allegement

Scope

The MT 578 is sent by the custodian bank to the corporate.

This message is used to:

advise the corporate that counterparty has alleged a settlement instruction against the corporate account at the custodian, and that the custodian could not find the corresponding instruction (the function of the message is NEWM)
request the cancellation or removal of a previously sent settlement allegement (the function of the message is CANC or REMO)

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 4, MT 578 contains full field specifications and network validated rules that must be adhered to.

On the subject of settlement allegement, the SMPG publications are the following:

ISO 15022 message function usage
ISO 15022 linkages usage
Settlement allegements (MT 578, 586)

Reconciliation Messages

The SWIFT User Handbook, Volume Standards Category 5, Securities Markets as well as SMPG

Settlement & Reconciliation Final Market Practices serves as the main documents describing the standards.

Reconciliation messages are sent by a custodian bank to a corporate. The choice of statement and the frequency is typically described in a service level agreement. It is however possible

(When this service is offered) to request a statement using the MT 549 Request for

Statement/Status Advice (for info on MT 549 formats, see the SWIFT User Handbook).

MT 537 Statement of Pending Transactions

Scope

The MT 537 is sent by the custodian bank to the corporate. This message is used to:

• provide the corporate with the details of pending transactions at a specified moment in time.

The message may contain details for all, or a selected quantity of securities for a specified safekeeping account. It may also give all, or a selected number of reasons why the transaction is pending.

• The statement may also include future settlement, or forward, transactions which have become binding to the account owner.

• The statement may be sorted per status or per transaction. (The function of the message is

NEWM)

• request the cancellation of a previously sent statement (the function of the message is

CANC)

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 2, MT 537, contains full field specifications and network validated rules that must be adhered to.

On the Statement of Pending Transactions, the SMPG publications are the following:

ISO 15022 message function usage
ISO 15022 linkages usage
Status reporting (MT 548, 537)

MT 536 Statement Transactions

Scope

The MT 536 is sent by the custodian bank to the corporate.

This message is used to:

• provide the details of any increases and/or decreases of holdings, which may have occurred over a specified period of time, for all, or a selected quantity of securities in the safekeeping account which the custodian bank holds for the corporate

• request the cancellation of a previously sent statement (the function of the message is

CANC)

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 2, MT 536, contains full field specifications and network validated rules that must be adhered to.

On the Statement of Transactions, the SMPG publications are the following:

• ISO 15022 message function usage

• ISO 15022 linkages usage

• Statement of Transaction (MT 536 MP)

MT 535 Statements of Holdings

Scope

The MT 535 is sent by the custodian bank to the corporate.

This message is used to:

• Report on the quantity and identification of financial instruments which the custodian bank holds for the corporate at a specified moment in time (the function of the message is

NEWM)

• When the message is sent by a custodian to a customer, the statement must be clearly identified as either custody, or an accounting statement.

The custody statement reports on the availability and/or the location of security holdings, to facilitate trading and minimize settlement issues.

The Accounting Statement provides valuations of the portfolio with details of each security holding, it is not used for trading purposes.

• request the cancellation of a previously sent statement (the function of the message is

CANC)

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 2, MT 535, contains full field specifications and network validated rules that must be adhered to.

On the Statement of Transactions, the SMPG publications are the following:

• ISO 15022 message function usage

• ISO 15022 linkages usage

• Statement of Holdings (MT 535 MP)

MT 586 Statement of Settlement Allegements

Scope

The MT 586 is sent by the custodian bank to the corporate.

This message is used to:

• provide the details of pending settlement allegements, for all or selected securities in a specified safekeeping account, for a given point in time (the function of the message is

NEWM)

• request the cancellation of a previously sent statement of settlement allegements (the function of the message is CANC)

Message usage guidelines

The SWIFT User Handbook, Volume Standards Category 5, volume 4, MT 586, contains full field specifications and network validated rules that must be adhered to.

No corporate specific usage has been identified. Corporates must comply with the network validated and usage rules published in the User Handbook and to the SMPG recommendations existing for these messages.

On the subject of settlement allegement, the SMPG publications are the following:

• ISO 15022 message function usage

• ISO 15022 linkages usage

• Settlement allegements (MT 578, 586)

Asset Servicing Messages Scope

MT 564

The MT 564 is sent by the custodian bank to the corporate.

This message is used to:

• notify a corporate (account owner) with the details of a corporate action event occurring on an instrument that the corporate (account owner) holds (function of the message is NEWM)

• replace a previously sent notification with corrected or additional details (function of the message is REPL)

• inform about the entitlement details to the corporate (function of the message is REPE).

According to the corporate action event type, the MT 564 entitlement calculation will specify the impact to the safekeeping account and/or the cash account based on:

- The number of underlying shares held by the corporate (account owner)

- The payment ratio and the terms of the offer (whether this is in the form of rights, shares, cash or options)

- The option selected by the corporate (account owner)

• remind of a corporate action for which the corporate (account owner) must instruct (the function of the message is RMDR)

• withdraw a notification for an event that will finally not take place (the function of the message is WITH)

• request the cancellation of a previously sent notification that was, for example, sent by mistake (the function of the message is CANC)

MT 565

The MT 565 is sent by the corporate to the custodian bank.

This message is used to:

• provide the custodian with instructions on how the corporate (account owner) wishes to proceed with a voluntary or mandatory (with options) corporate action event. Instructions include investment decisions regarding the exercise of rights issues, the election of stock, or cash, when the option is available, and decisions on the conversion or tendering of securities (function of the message is NEWM)

• request the cancellation of a previously sent instruction that was, for example, sent by mistake (the function of the message is CANC)

Securities Standards

17 December 2008 75

MT 566

The MT 566 is sent by the custodian bank to the corporate.

This message is used to:

• confirm to the corporate that securities and/or cash have been credited/debited to an account, as the result of a corporate action event (function of the message is NEWM)

• reverse a previously sent confirmation (the function of the message is REVR)

MT 567

The MT 567 is sent by the custodian bank to the corporate.

This message is used to:

• advise the status, or a change in status, of a corporate-action-related transaction previously instructed by, or executed on behalf of, the corporate.

This will include:

- The acknowledgment/rejection of a corporate action instruction (function of the message is INST) or

- The acknowledgment /rejection of a request to cancel an outstanding instruction (function of the message is CAST)

- It may also be used to provide the reason a corporate action event has not been completed by the announced payment dates (function of the message is EVST)