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.

• Treasury Markets - Foreign Exchange, Money Markets and Derivatives
  This topic describes the Swift messages for Foreign Exchange, Money Market, and Derivatives modules.
• CoSecurities Markets
  
• Treasury Markets - Metals