10.1.12 MT 362 Interest Rate Reset/Advice of Payment

This topic describes the MT 362 Interest Rate Reset/ Advice of payment.

This message is exchanged by or on behalf of the financial institutions, Party A and Party B, who have agreed to a single or cross currency interest rate derivative transaction, including caps, collars and floors.

This message may be used to:

• advise the details of the determination of the floating interest rate(s)
• advise the details of the payment of interest at the end of an interest period
• cancel a previously sent reset/advice
• correct errors in a previously sent reset/advice

Maximum Length: 2000

Table 10-96 Format Specifications

Field Tag	Field Name	Format	Mandatory/Optional
15A	New Sequence	Empty field	M
20	Sender's Reference	16x	M
21	Related Reference	16x	O
22A	Type of Operation	4!c	M
94A	Scope of Operation	4!c	O
22C	Common Reference	4!a2!c4!n4!a2!c	M
23A	Identification of the Swap	10a/5a	M
21N	Contract Number Party A	16x	M
21B	Contract Number Party B	16x	O
30V	Effective Date	8!n	M
30P	Termination Date	8!n	M
82a	Party A	A or D	M
87a	Party B	A or D	M
83a	Fund or Beneficiary Customer	A, D, or J	O
29A	Contact Information	4*35x	O
72	Sender to Receiver Information	6*35x	O

Table 10-97 Optional Sequence B Interest Rate/Principal Payable by Party B

Field Tag	Field Name	Format	Mandatory/Optional
15B	New Sequence	Empty field	M
33F	Calculation Notional Currency and Amount	3!a15d	M
30X	Period Start Date	8!n	M
30Q	Period End Date	8!n	O
37G	Reset Rate	[N]12d	M
37J	Cap Rate	12d	O
37L	Floor Rate	12d	O
37R	Spread	[N]12d	M
37M	Total Rate	[N]12d	M
30F	Payment Date	8!n	M
32H	Currency, Interest Amount	[N]3!a15d	O
33E	Currency, Principal Exchange Amount	3!a15d	O
37N	Details of Interest Rate	6*35x	O

Table 10-98 Optional Sequence C (Net) Amount(s) Payable by Party B

Field Tag	Field Name	Format	Mandatory/Optional
15C	New Sequence	Empty field	M
18A	Number of Repetitions	5n	M
30F	Payment Date	8!n	M
32M	Currency, Payment Amount	3!a15d	M
53a	Delivery Agent	A or D	O
56a	Intermediary	A or D	O
86a	Second Intermediary	A or D	O
57a	Receiving Agent	A or D	M

Table 10-99 Optional Sequence D Interest Rate/Principal Payable by Party A

Field Tag	Field Name	Format	Mandatory/Optional
15D	New Sequence	Empty field	M
33F	Calculation Notional Currency and Amount	3!a15d	M
30X	Period Start Date	8!n	M
30Q	Period End Date	8!n	O
37G	Reset Rate	[N]12d	M
37J	Cap Rate	12d	O
37L	Floor Rate	12d	O
37R	Spread	[N]12d	M
37M	Total Rate	[N]12d	M
30F	Payment Date	8!n	M
32H	Currency, Interest Amount	[N]3!a15d	O
33E	Currency, Principal Exchange Amount	3!a15d	O
37N	Details of Interest Rate	6*35x	O

Table 10-100 Optional Sequence E (Net) Amount(s) Payable by Party A

Field Tag	Field Name	Format	Mandatory/Optional
15E	New Sequence	Empty field	M
18A	Number of Repetitions	5n	M
30F	Payment Date	8!n	M
32M	Currency, Payment Amount	3!a15d	M
53a	Delivery Agent	A or D	O
56a	Intermediary	A or D	O
86a	Second Intermediary	A or D	O
57a	Receiving Agent	A or D	M

Processing Incoming MT362

During STP, the system picks up an incoming MT362 message and extracts the following details from Sequence D for auto confirmation:

• The currency and interest amount to be paid (Field 32H)
• The currency and principal to be exchanged (Field 33E)
• The payment due date (Field 30F)

After the above details are extracted, the corresponding interest and principal schedule on that date is compared with the details extracted as mentioned above. The following details are considered for matching:

• The schedule due date
• The amount of the schedule
• The currency of the schedule
• The pay and receive flag of the schedule

If the details match, the schedule will be marked as ‘Confirmed’. The same approach is followed for party B whose details are extracted from sequence B of the message. After the message is processed, the message is marked as ‘Processed’. You can view the message status in the incoming browser. After the corresponding schedules are marked as confirmed, they can be viewed in the contract confirmation screen. After confirmation, ‘Media’ will be updated as ‘SWIFT’ and ‘Authorization Status’ as ‘Auto’ in this screen.

RCON is triggered post confirmation and can be viewed under ‘Contract Online’ screen.