10 Process SWIFT Messages

This topic provides an overview of the SWIFT messages.

SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a member-owned cooperative through which the financial world conducts its business operations with speed, certainty, and confidence. SWIFT enables customers to automate and standardize financial transactions, thereby lowering costs, reducing operational risk, and eliminating inefficiencies from their operations.

SWIFT is solely a carrier of messages. It does not hold funds nor does it manage accounts on behalf of customers, nor does it store financial information on an on-going basis. As a data carrier, SWIFT transports messages between two financial institutions. This activity involves the secure exchange of proprietary data while ensuring its confidentiality and integrity.

There are four key areas that SWIFT services fall under within the financial marketplace. They are Securities, Treasury and Derivatives, Trade Services, and Payments and Cash Management.

SWIFT messages consist of five blocks of data including three headers, message content, and a trailer. They are identified in a consistent manner. They all start with the literal MT which denotes Message Type. This is followed by a 3-digit number that denotes the message type, category, and group. The following are the categories of a message:

Table 10-1 Message Category

Category	Description
Category 1	Customer Payments and Cheques
Category 2	Financial Institution Transfers
Category 3	Treasury Markets - Foreign Exchange, Money Markets and Derivatives
Category 4	Collections and Cash Letters
Category 5	Securities Markets
Category 6	Treasury Markets - Metals
Category 7	Documentary Credits and Guarantees
Category 8	Travellers Cheques
Category 9	Cash Management and Customer Status
Category n	Common Group Messages

Oracle FLEXCUBE Universal Banking interfaces with an external payment system for the generation of Category 1 and Category 2.

The following SWIFT message types are generated for the various transfers that are initiated through the Oracle FLEXCUBE Universal Banking.

• MT 300 Foreign Exchange Confirmation
  This topic describes the MT 300 Foreign Exchange Confirmation messages.
• MT 304 Advice/Instruction of a Third Party Deal
  This topic describes the MT 304 Advice/Instruction of a Third Party Deal.
• MT 305 Foreign Currency Option Confirmations
  This topic describes the MT 305 Foreign Currency Option Confirmations.
• MT 306 Foreign Currency Option Confirmation
  This topic describes the MT 306 Foreign Currency Option Confirmation.
• MT 320 Fixed Loan/Deposit Confirmation
  This topic describes the MT 320 Fixed Loan/Deposit Confirmation messages.
• MT 330 Call/Notice Loan/Deposit Confirmation
  This topic describes the MT 330 Call/Notice Loan/Deposit Confirmation.
• MT 340 Forward Rate Agreement Confirmation
  This topic describes the MT 340 Forward Rate Agreement Confirmation.
• MT 341 Forward Rate Agreement Settlement Confirmation
  This topic describes the MT 341 Forward Rate Agreement Settlement Confirmation.
• MT 350 Advice of Loan/Deposit Interest Payment
  This topic describes the MT 350 Advice of Loan/Deposit Interest Payment
• MT 360 Single Currency Interest Rate Derivative Confirmation
  This topic describes the MT 360 Single Currency Interest Rate Derivative Confirmation.
• MT 361 Cross Currency Interest Rate Swap Confirmation
  This topic describes the MT 361 Cross Currency Interest Rate Swap Confirmation.