6.2.5.1 Generation of the FS Confirmation Message for CLS deals (MT304)

The MT 304 will be generated automatically upon authorization of an FX deal if the following conditions are satisfied:

• The deal is CLS Eligible and the ‘Exclude From CLS’ option is not checked for the deal.
• You have not maintained the SWIFT primary address for the counterparty with message type as ‘FX CONFIRMN’, OR
• The ‘T-Copy Required’ option is not selected at the branch level.

If the above conditions are satisfied, MT 304 is generated in addition to MT 300 (FX Confirmation Message). Depending upon the operation performed, whether you have captured a new deal, amended an existing deal or canceled a deal, one of the following MT304 Message Types is generated.

• FS_FMCONF_NEW – For a new deal
• FS_FMCONF_AMND – When a deal is amended
• FS_FMCONF_CANC – On cancellation of a deal

Note:

If you have not maintained a primary address for the counterparty, the message will be put into repair.

The following table lists the fields that are different between MT300 and MT304. It also identifies the fields that are mandatory for MT304.

Table 6-12 Mandatory Fields for MT304

Fields	MT300	MT304	MT304 Value
94A Codes	Optional AGNT/BILA/BROK	Mandatory ASET/AFWD	ASET
83	Optional	Mandatory	83A:<Sender BIC>
87/82	Mandatory if 94A exists	Mandatory	Same as MT300
24D	<Confirmation Info>	Field not allowed	-
88A	Optional (Broker Id)	Field not allowed	-
72 Codes	-	<Same as 24D + 88A of MT300>	BROKER/PHON/TELEX/ELEC
22C	Mandatory	Field not allowed	-
53	Optional	Mandatory as 'Delivery Agent'	Same as field 57 of Sold Side

The ‘Receiver’ of MT304 will be the BIC of the ‘Settlement Member’ defined for your branch, which is a CLS participant of the ‘Third Party’ type. MT304 will always be sent to this Settlement Member. MT300 will always be sent to your counterparty.

The processing workflow is explained in the Annexure provided at the end of this chapter.