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

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SWIFT 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

MT103

  • 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

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The 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

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Although ISO 15022 message types are different in their structure than the SWIFT MT, the naming convention remains the same.

See also

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  • 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

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  1. ^ McGill, R.; Patel, N. (2008). Global Custody and Clearing Services. Basingstoke, Hampshire: Springer. p. 27. ISBN 9781349282883.
  2. ^ swift.com
  3. ^ "List of all SWIFT Messages Types". Paiementor. Retrieved 2020-01-07.
  4. ^ "List of all SWIFT Messages Types". Paiementor. Retrieved 2020-01-07.