SWIFT message types are the format or schema used to send messages to financial institutions on the SWIFT network. The original message types were developed by SWIFT and a subset was retrospectively made into an ISO standard, ISO 15022. In many instances, SWIFT message types between custodians follow the ISO standard.[1] This was later supplemented by a XML based version under ISO 20022.
Composition of MT number
editSWIFT messages consist of five blocks of data including three headers, message content, and a trailer. Message types are crucial to identifying content.
All SWIFT messages include the literal "MT" (message type/text[2]). This is followed by a three-digit number that denotes the message category, group and type. Consider the following two examples.
Example 1
MT304
- The first digit (3) represents the category. A category denotes messages that relate to particular financial instruments or services such as precious metals (6), treasury (3), or traveller's cheques (8). The category denoted by 3 is treasury markets
- The second digit (0) represents a group of related parts in a transaction life cycle. The group indicated by 0 is a financial institution transfer.
- The third digit (4) is the type that denotes the specific message. There are several hundred message types across the categories. The type represented by 4 is a notification.
A MT304 message is considered an "Advice/Instruction of a Third Party Deal" and it used to advise of or instruct the settlement of a third party foreign exchange deal. [3] For example, an asset manager who executed a FX transaction with a broker would send a MT304 instruction to the custodian bank of the client.
Example 2
- The first digit (1) represents the category. The category denoted by 1 is customer payments and cheques.
- The second digit (0) represents a group of related parts in a transaction life cycle. The group indicated by 0 is a financial institution transfer.
- The third digit (3) is the type that denotes the specific message. There are several hundred message types across the categories. The type represented by 3 is a notification.
A MT103 message is considered a "Single Customer Credit Transfer" and is used to instruct a funds transfer.[4]
Overview of SWIFT MT categories
editThe table below shows the different categories and the message type descriptions.
| Category | Message type | Description | Number of message types |
|---|---|---|---|
| 0 | MT0.. | System messages | - |
| 1 | MT1.. | Customer payments and cheques | 19 |
| 2 | MT2.. | Financial institution transfers | 18 |
| 3 | MT3.. | Treasury markets | 27 |
| 4 | MT4.. | Collection and cash letters | 17 |
| 5 | MT5.. | Securities Markets | 60 |
| 6 | MT6.. | Treasury markets – metals and syndications | 22 |
| 7 | MT7.. | Documentary credits and guarantees | 29 |
| 8 | MT8.. | Traveller's cheques | 11 |
| 9 | MT9.. | Cash management and customer status | 21 |
ISO 15022 MT
editAlthough ISO 15022 message types are different in their structure than the SWIFT MT, the naming convention remains the same.
See also
edit- Delivery versus payment
- ISO 9362 (standard format for SWIFT IDs)
- MT202 COV
- MT940
External links
edit- Message standards supported by the SWIFT network: "Standards MT & MX Equivalence Table" (PDF). SWIFT. 28 July 2017.
- Message types defined in ISO15022 "ISO15022 Data Field Dictionary - Index of Messages". ISO.
References
edit- ^ McGill, R.; Patel, N. (2008). Global Custody and Clearing Services. Basingstoke, Hampshire: Springer. p. 27. ISBN 9781349282883.
- ^ swift.com
- ^ "List of all SWIFT Messages Types". Paiementor. Retrieved 2020-01-07.
- ^ "List of all SWIFT Messages Types". Paiementor. Retrieved 2020-01-07.