Mt High Level Info Sr2012

Standards

Standards MT November 2012

High-Level Information

This document describes the requested changes for the next Standards MT Release. These requests must still be validated by a maintenance working group and some may be modified or rejected. Country user groups must still vote the approved requests and the Board must ratify those that are accepted by the country vote. This document also includes other technical changes that are foreseen for implementation at the same time as the Standards MT Release. The purpose of this document is to help technical implementers and operational users of the Standards MT messages to evaluate the impact of changes on interfaces and applications.

18 July 2011


2 High-Level Information

Table of Contents Table of Contents ........................................................................................................................ 2

Preface .......................................................................................................................................... 3

1 Introduction .......................................................................................................................... 4

2 Schedule for SR 2012 .......................................................................................................... 5

3 Impact Levels of the Change Requests ............................................................................ 6

4 Evaluation of the Impact on Interfaces and Applications ............................................... 7

5 Overview of Changes per Category................................................................................... 8 5.1 Impact on Category 0 FIN System Messages ............................................................ 8 5.2 Other Technical Changes ........................................................................................... 9 5.3 Impact on Category 1 Customer Payments and Cheques ....................................... 10 5.4 Impact on Category 2 Financial Institution Transfers ............................................... 11 5.5 Impact on Category 3 Treasury Markets ................................................................... 12 5.6 Impact on Category 4 Collections and Cash Letters ................................................ 14 5.7 Impact on Category 5 Securities Markets ................................................................. 15

5.7.1 All category 5 messages modification .......................................................... 15 5.7.2 Trade Initiation and Confirmation.................................................................. 17 5.7.3 Settlement and Reconciliation ...................................................................... 18 5.7.4 Corporate action ........................................................................................... 21 5.7.5 Collateral Management ................................................................................. 29 5.7.6 Other Category 5 changes ............................................................................ 30

5.8 Impact on Category 6 Treasury Markets-Commodities and Syndications ................ 31 5.9 Impact on Category 7 Documentary Credits and Guarantees .................................. 32 5.10 Impact on Category 8 Travellers Cheques ............................................................... 33 5.11 Impact on Category 9 Cash Management and Customer Status ............................. 34 5.12 Impact on Category n Common Group Messages ................................................... 35

Legal Notices ............................................................................................................................. 36

Preface

18 July 2011 3

Preface Purpose of this document

This document gives an overview of all MT change requests received by SWIFT Standards for the next Standards MT Release. The purpose of this document is to inform the SWIFT community and allow them to start allocating budget and resources for the next maintenance of the Standards MT messages. Technical implementers and operational users of the MT messages can use this document to evaluate the impact on interfaces and applications.

This document is not intended to be final. All change requests need to be validated by a maintenance working group (MWG) and can be subject to modification or rejection. After the MWG decision, user group chairpersons of all countries are able to discuss the change requests in their user group and vote on the acceptance or rejection of individual change requests. The SWIFT Board must ratify the outcome of the country vote.

Intended audience This document is for the following audience: Technical implementers of the Standards MT messages Operational users of the Standards MT messages All other interested SWIFT users



1 Introduction

Warning: This document describes changes that are still requests. These requests must be validated by a maintenance working group and a number of them will be rejected. Country user groups must then vote the approved requests and the Board must ratify those that are accepted by the country vote.

The High-Level Information document is part of the normal standards development and implementation procedures. This document describes the expected or requested changes for Standards MT Release 2012 (SR 2012). SWIFT distributes this document 16 months before the Standards MT Release live date.

The High-Level Information document also includes other technical changes that are foreseen for implementation at the same time as the Standards MT Release, for example, changes to system messages.

The sole purpose of this document is to help technical implementers and operational users of the SWIFT messages to evaluate the impact of changes on interfaces and applications. Consequently, implementers and users can plan resources and budget allocations for the SR 2012 implementation.

As this document describes requests that are not yet validated, a certain number of them will not be implemented or will be implemented differently following the validation process. Readers must therefore use this document for budget and resources planning purposes only.

The Standards MT Release Guide 2012, which SWIFT will publish in December 2011, will fully describe the SR 2012. Approved changes will be effective as of 17 November 2012, the release date on FIN.

Note: This publication is supplied for information purposes only, and shall not be binding nor shall it be construed as constituting any obligation, representation or warranty on the part of SWIFT. The information in this publication is the latest available at the date of its production, and may change.

Schedule for SR 2012

18 July 2011 5

2 Schedule for SR 2012 This timeline describes the schedule for development and implementation of SR 2012.

SR 2012 Timeline

Note: The High-Level Information document, which SWIFT publishes in July, will be removed from the website once the Updated High-Level Information document is published in November.

Note: The Updated High-Level Information document provides details of the changes that are approved by the country voting process.



3 Impact Levels of the Change Requests All change requests contain an evaluation of their impact on interfaces and applications expressed as a number in the range [0 - 3] with or without a +/- sign as in the following table.

Index of impact levels

Level 0 Revision of a message that does not affect the message format: the change is not related to the format of the message. Example: definition of the message scope. This kind of revision is mentioned in this document since it may have an impact on some automated applications.

Level 1

Revision of a message that does not affect the message layout or the FIN validation: the change relates to the usage of the message format. Example: change of a definition or of a usage rule.

Level 1+ Deletion of an existing message type.

Level 2- Revision of a message that slightly affects the message layout and the FIN validation. Example: addition or deletion of field formats, additions or deletion of qualifiers or codes.

Level 2+ Revision of a message that seriously affects the message layout and the FIN validation. Example: addition or deletion of fields, addition or deletion of sequences.

Level 3- Creation of a new message type in a message user group (MUG). Change of an existing message type from a MUG to general use.

Level 3 Creation of a new message type for general use.

Evaluation of the Impact on Interfaces and Applications

18 July 2011 7

4 Evaluation of the Impact on Interfaces and Applications

Impact on interfaces

All changes can have a direct impact on interfaces. This also applies to level 0 and level 1 changes, which may require an update to input screens or help screens or both.

Impact on Applications

Level 0 changes should have no to minimum impact on applications.

Higher level changes will normally have an impact on applications, although the impact may be different for applications sending the message than for applications receiving the message.

Some changes apply to message types (to be) implemented in a Message User Group (MUG). In case of non-registration to the MUG, users can not send or receive message of this type. The impact on any application depends directly on the need or desire to support these message types.



5 Overview of Changes per Category When a change description is not clear without further explanation, a brief business context is sometimes provided to help the readers better understand the reasoning behind the change.

The change request numbers (CR 000nnn) are present to enable the submitters to easily track their requests.

5.1 Impact on Category 0 FIN System Messages The following changes are tentatively scheduled for implementation in SR 2012.

Change requests postponed from Standards MT Release 2011 Message

Types (MT)

Short description of the modification Impact level MUG

MT 074

CR 000147 2+ NA

To make it possible to also add continents, currency areas or market infrastructure services.

Addition of codes to field 304 Regions.

New change requests for Standards MT Release 2012 Message

Types (MT)


MT 074 MT 094

CR 000278 2- NA

Remove the Standing Settlement Instructions (SSI) functionality from the broadcast messages.

With the introduction of the new MT 670 and MT 671 for the distribution of SSI, code /3/ will be removed from the broadcast messages. This change will be sent to country vote for the community to decide whether to implement in 2012 or in 2013.

Overview of Changes per Category

18 July 2011 9

5.2 Other Technical Changes There are no requests for Other Technical Changes for implementation in SR 2012.



5.3 Impact on Category 1 Customer Payments and Cheques

The following changes are tentatively scheduled for implementation in SR 2012.


Types (MT)


MT 103 REMIT

CR 000231 3- Yes

Make the message a general use message.

To allow interoperability/mapping between the new Fedwire CTP format and the MT 103.

MT 103 CR 000253 2+ No

Increase length of field 70 Remittance Information.

To be able to include the invoice details of a large number of invoices in one message.

MT 103

CR 000225 2+ No

Increase size of field 50a Ordering Customer option F and field 59a Beneficiary Customer.

To accommodate AML requirements for originator information, including long names and addresses.

MT 103 REMIT MT 199

CR 000230 2+ Yes Except MT 199

Expand character set for field 77T Envelope Contents.

To include the characters $ _ \ ~ ^ } [ ] and | (vertical bar).

MT 199 CR 000252 2+ No

Increase length of field 79 Narrative to 10000 characters.

To cater for extended Remittance information.

MT 199 CR 000229 2+ No

Increase maximum message length to 10000 characters.

To include extended Remittance information.

MT 103 CR 000224 2+ No

Add a new field to indicate the ordering institution's reference.

To facilitate exceptions and investigations of banks that are involved later in the payment chain want to contact the ordering institution.

MT 103 CR 000227 1 No

Add usage rules for related message references.

To improve consistent referencing in payments messages that are related to an MT 103 sent with the cover method.


18 July 2011 11

5.4 Impact on Category 2 Financial Institution Transfers



Types (MT)


MT 299 CR 000252 2+ No

Increase length of field 79 Narrative to 10000 characters.

To cater for lengthy payment instructions.

MT 202 COV MT 205 COV

CR 000227 1 No





5.5 Impact on Category 3 Treasury Markets The following changes are tentatively scheduled for implementation in SR 2012.


Types (MT)


MT 300 MT 304 MT 305 MT 306

CR 000022 2+ No Except MT 304

Add or modify a network validated rule on currency fields to prevent use of XAU (gold), XAG (silver), XPD (palladium) and XPT (platinum).

To prevent the use of these category 3 messages to trade commodities, when there are specific category 6 messages that should be used, for example, the MT 600 Commodity Trade Confirmation.

This change is approved but will be implemented in SR 2012.


Types (MT)


New MT CR 000330 3 No

Introduce new FX Netting Position Advice message.

To support the communication of a balance as a result of the netting of FX, NDF, options, NDO, and other trades. It will also indicate whether this money is to be paid or received and the settlement parties and accounts for the settlement of the balance.

MT 300 MT 305 MT 340 MT 360

CR 000235 2+ No

Add optional field Independent Amount to increase usability and flexibility of the MT 300, MT 305, MT 340 & MT 360 confirmation messages.

Independent amount is becoming a common element of vanilla trade confirmations and needs to be included in these messages.

MT 305 CR 000243 2+ No

Add field 77H Type, Date, Version of the Agreement and field 14C Year of Definitions and delete field 77D Terms & Conditions.

The MT 305 message does not currently have the appropriate fields to specify the exercise conditions.

MT 300 CR 000219 2+ No

Add optional party field for CCP Name/ID and a reference field for Trade Matcher/ID to permit conformance to a clearing house (central counter-party) approach.

To distinguish between CCP and non-CCP settled transactions.


18 July 2011 13

Message Types (MT)


MT 300 CR 000171 2- No

Modify network validation rule field 77D on presence of SETC if VALD present - so that SETC can be present without VALD. Change to rule in order to align MT 300 NDF usage with the MT 304 NDF usage.

To align with MT 300.

MT 300 MT 304

CR 000232 2+ Yes Except MT 300

Add three optional fields: [1] field (for example, 77H) for Type, Date, Version of Agreement [2] field (for example, 14C) for Year of Definitions [3] Fixing Date. Add usage rule or documentation to indicate specification of Settlement Rate Source (for example, /SRCE/ECB37/0915+0200).

Foreign Exchange NDF and NDO business using the MT 300 and MT 304.

MT 305 CR 000249 2+ No

Add mandatory field in the MT305 for Settlement Rate Source (SRCE) including the rate source and fixing time and time zone.

To allow for Settlement Source to be documented in the MT305.

MT 304 CR 000218 1 Yes

Modify usage rules for fields 56 and 57 so that the account specified in the field is the account owned by the party specified in the field (rather than be an account serviced by that party). Consideration is to be given to changing this rule in all category 3 messages to maintain consistency.

Field 56 and 57 usage rule change re account servicer versus account owner.



5.6 Impact on Category 4 Collections and Cash Letters

There are no requested changes to category 4 Collections and Cash Letters messages for implementation in SR 2012.


18 July 2011 15

5.7 Impact on Category 5 Securities Markets The following changes are tentatively scheduled for implementation in SR 2012.

5.7.1 All category 5 messages modification New change requests for Standards MT Release 2012

Message Types (MT)


Cat 5 CR 000181 2+ NA

Add a new network validated rule.

To prevent the use of a field 97a Account in Other Parties sequences when identifying a stock exchange or a trade regulator. Those parties do not need to be identified with an account in a transaction.

Cat 5 CR 000186 2+ NA

Create new format option J 4!c//35x to be used with qualifier PLIS Place Of Listing in field 94a Place. Delete format option B from qualifier PLIS Place Of Listing in field 94a Place.

To simplify and harmonise the way to represent a place of listing across the whole securities trade lifecycle.

Cat 5 CR 000182 2- NA

Delete qualifier PADI Payment Direction Indicator and PREF Preference To Income Indicator from field 22F Indicator in sequence Financial Instrument Attributes.

This information is no longer considered relevant to identify an instrument.

Cat 5 CR 000185 2- NA

Delete format option A from qualifier POOL Pool Number and LOTS Lot Number in field 13a Number Identification.

To simplify and harmonise the way to represent pool and lot identifiers across the whole securities trade lifecycle.

Cat 5 CR 000304 2- NA

Add one optional non repetitive qualifier XXXX Yield To Maturity to field 92a Rate (sequence to be agreed by the Maintenance Working Group).

To identify the yield to maturity, that is, the rate of return anticipated on a government bond if it is held until the maturity date. This is a critical matching element for government bond transaction in India.

Cat 5 CR 000184 2- NA

Delete qualifier POST Postage Amount from field 19a Amount in sequence Amounts.

This information is no longer considered relevant in a trade.



Message Types (MT)


Cat 5 CR 000187 1 NA

Modify the definition of qualifier VALU Value Date/Time in field 98a Date in sequences E2 (MT 564) and D2 (MT 566) Cash Movement to become Date/time at which cash starts to earn interests in a credit entry or ceases to earn interests in a debit entry. To be discussed by all Maintenance Working Groups whether such a change should apply to all value date fields in all cat 5 messages.

The current definition of Value Date does not help to understand the actual meaning and usage of that field for corporate actions which often leads to misuse.

Cat 5 CR 000183 1 NA

Modify the description of qualifier STEX Stock Exchange Tax in field 19a Amount in sequence Amounts to become Stock Exchange Fee.

To ensure alignment of terminology across the whole securities trade lifecycle.


18 July 2011 17

5.7.2 Trade Initiation and Confirmation MTs 502, 509, 513, 514, 515, 517, 518, 576, alignment in other messages possible)


Types (MT)


MT 502 MT 513 MT 514 MT 515 MT 518

CR 000181 2+ No



MT 502 MT 513 MT 514 MT 515 MT 518 MT 576

CR 000186 2+ No



MT 502 MT 513 MT 514 MT 515 MT 518 MT 576

CR 000182 2- No



MT 502 MT 513 MT 514 MT 515 MT 518

CR 000184 2- No



MT 502 MT 513 MT 514 MT 515 MT 518 MT 576

CR 000185 2- No



MT 502 MT 513 MT 514 MT 515 MT 518

CR 000183 1 No





5.7.3 Settlement and Reconciliation MTs 508, 524, 535-8, 540-9, 578, 586, (alignment in other messages possible)


Types (MT)


MT 508 MT 524 MT 535 MT 540 MT 541 MT 542 MT 543 MT 544 MT 545 MT 546 MT 547 MT 578 MT 586

CR 000186 2+ No



MT 524 CR 000257 2+ No

Exact nature of the change in ISO 15022 (if any) will be discussed by the Maintenance Working Group.

In the context of the management of pools within the settlement process, Target2 for Securities requires a pool counter to determine the total number of instructions within a given pool.

MT 540 MT 541 MT 542 MT 543 MT 544 MT 545 MT 546 MT 547 MT 578 MT 586

CR 000181 2+ No



MT 508 CR 000204 2- No

Add two optional, non repetitive qualifiers to field 36B Quantity of Financial Instrument in sequence B Intra-Position Details.

To differentiate Securities-to-be-Received from Pledged Securities used to monitor collateral in Japan.


18 July 2011 19

Message Types (MT)


MT 508 MT 524 MT 535 MT 538 MT 540 MT 541 MT 542 MT 543 MT 544 MT 545 MT 546 MT 547 MT 578 MT 586

CR 000185 2- No



MT 536 MT 537 MT 540 MT 541 MT 542 MT 543 MT 544 MT 545 MT 546 MT 547 MT 548

CR 000201 2- No

Add one code ETFT Exchange Traded Fund Transaction to qualifier SETR Type of Settlement Transaction Indicator in field 22F Indicator.

The ASX Settlement Operating Rules outline the mandatory requirement to flag all ETF trades for settlement. ETFs are open-ended listed managed investment funds.

MT 536 MT 540 MT 541 MT 542 MT 543 MT 544 MT 545 MT 546 MT 547

CR 000200 2- No

Move code RPTO (Reporting) from qualifier SETR Type of Settlement Transaction Indicator to qualifier STCO Settlement Transaction Condition Indicator in field 22F Indicator.

To enable the clear identification of the transaction type (pair, repo, etc) and the fact that the instruction is sent for reporting only.

MT 537 MT 548 MT 549

CR 000273 2- No

Add codes to qualifier CAND Cancelled in field 24B Reason.

The inclusion of Target2 for Securities in the chain of participants in the market introduced a new level of actors to be communicated.

MT 537 MT 548 MT 549

CR 000271 2- No

Add codes to qualifier PEND Pending in field 24B Reason.

The inclusion of Target2 for Securities in the market introduced a new level of actors within the chain of settlement participants. This inclusion has introduced new flows, new functionalities and new validations and controls in the incoming message.



Message Types (MT)


MT 548 MT 549

CR 000270 2- No

Add eleven codes to qualifier REJT Rejected in field 24B Reason.

To enable the reporting of new statuses linked to the implementation of new messages flows in relation to Target2 for Securities.


CR 000184 2- No



MT 548 MT 549

CR 000202 2- No

Add one code to qualifier NMAT Unmatched Reason in field 24B Reason.

To indicate that Accrued Interest Amount does not match. In Japan, this is a matching criterion.

MT 508 MT 524 MT 535 MT 540 MT 541 MT 542 MT 543 MT 544 MT 545 MT 546 MT 547 MT 578 MT 586

CR 000182 2- No




CR 000183 1 No




18 July 2011 21

5.7.4 Corporate action MTs 564, 565, 566, 567, 568, alignment in other messages possible)


Types (MT)


MT 565 CR 000119 2- No

Delete qualifier EXER (Exercise Price) from field 90a Price in sequence D Corporate Action Instruction.

To simplify the standard. Redundant with PRPP (Generic Cash Price Paid Per Product).

This change is approved but will be implemented in SR 2012.

MT 564 MT 566

CR 000078 2- No

Delete format option M from field 92a Rate in the sequences E1 (MT 564) and D1 (MT 566) Securities Movement.

The SMPG has demonstrated that quantity information that would be contained in field 92M Rate should be provided in quantity fields such as field 36B Quantity of Financial Instrument, using the code MILT or MIEX.

The change is approved but will be implemented in SR 2012.


Types (MT)


MT 564 CR 000260 2+ No


To indicate that one or more of the rates given for a reported cash or securities movement has been estimated.

MT 564 CR 000206 2+ No

Add format option C to all qualifiers in field 36a Quantity of Financial Instrument in sequences D Corporate Action Details and E Corporate Action Options.

To enable the use of value "Unknown" or "All Securities" with any of the quantities available.

MT 564 MT 565 MT 566 MT 568

CR 000186 2+ No





Message Types (MT)


MT 564 MT 566

CR 000263 2+ No

Add one optional field 94C Place with one qualifier Income Source Country in sequences E1 (MT 564) and D1 (MT 566) Securities Movement and sequences E2 (MT 564) and D2 (MT 566) Cash Movement.

To identify the country of source of income for the distribution resulting from the corporate event in order to define potential tax implications.

MT 564 MT 568

CR 000233 2+ No

Add optional non repetitive field 28E Page Number/Continuation Indicator in sequence A General Information. Add one code to qualifier LINK in field 22a Indicator in sequence A1 Linkages of the MT 564.

To enable pagination of long notifications that cannot fit one MT 564 or one MT 568. To enable forward linking of a MT 564 with its attached MT 568.

MT 564 CR 000216 2- No

Add one optional, non repetitive qualifier XXXX Taxability Indicator to field 22a Indicator in sequences E1 Securities Movement and E2 Cash Movement.

To help characterize the taxability of events and the associated cash and share proceeds that are being paid.

MT 564 CR 000267 2- No

Add one optional, non repetitive qualifier XXXX Suspension Period to field 69a Period in sequence D Corporate Action Details.

Related to the suspension of settlement activity with co-depositories during a corporate action, in order to indicate that settlement activity is temporarily suspended for co-depositories.

MT 564 CR 000256 2- No

Add one optional, non repetitive qualifier Beneficial Owner Processing Indicator to field 22a Indicator in sequence E Corporate Action Options.

An optional indicator is required at the corporate action option level to indicate that processing will be required at beneficial owner level.

MT 564 CR 000207 2- No

Add one optional, non repetitive qualifier XXXX Depot Date to field 98a Date (sequence to be agreed by the Maintenance Working Group).

On some markets (France, Belgium, The Netherlands), there is a deposit deadline for the instructed quantities to the centralizing agent.


18 July 2011 23

Message Types (MT)


MT 564 CR 000261 2- No


Having a specific indicator to further identify the occurrence of corporate action applicable to other corporate action events in addition to dividend or conversion related events will promote greater workflow processing, and eliminate the use of narrative text to convey the information.

MT 564 CR 000262 2- No

Add two optional, non repetitive qualifiers XXXX Filing Date and YYYY Hearing Date to field 98a Date in sequence D Corporate Action Details.

To provide additional important date information to the recipient of the notification (the end investor or other interested party), about the details of the class action.

MT 564 CR 000264 2- No

Add one code to qualifier OSTA Option Status in field 22F Indicator in sequence E Corporate Action Options.

To indicate that the option is temporarily suspended.

MT 564 CR 000266 2- No

Add one optional, non repetitive qualifier XXXX Option Support to field 22F Indicator in sequence E Corporate Action Options.

To indicate that the option is supported by the issuer, or by the sender of the message, or both.

MT 564 MT 565

CR 000193 2- No

Add one optional, non repetitive qualifier to identify the disclosure threshold quantity in field 36a Quantity in sequence D Corporate Action Details in the MT 564. Add one code to qualifier CAOP Corporate Action Option Code Indicator in field 22F Indicator in sequence E Corporate Action Option in the MT 564. Add four codes to qualifier OPTF Option Feature Indicator in field 22F Indicator in sequence E Corporate Action Options in the MT 564. Add one code to qualifier CETI Certification Type Indicator in field 22F Indicator in sequence E Corporate Action Options in the MT 564. Add one qualifier to field 95a in sequence C Beneficial Owner Details in the MT 565. Add options for qualifier ALTE to field 95a in sequence C Beneficial Owner Details in the MT 565. Add optional qualifiers to field 70a of sequence C Beneficial Owner Details in the MT 565.

To enable the standard use of the MT 564 and MT 565 for the disclosure of beneficial owners cross-border process.



Message Types (MT)


MT 564 MT 565 MT 566 MT 567 MT 568

CR 000210 2- No

Add one code to qualifier CAEV Corporate Action Event Indicator in field 22F Indicator.

To identify a new partial redemption type growing in terms of frequency of occurrence.

MT 564 MT 565 MT 566 MT 567 MT 568

CR 000212 2- No

Add one code to qualifier CAEV Corporate Action Event Indicator in field 22F Indicator.

To be able to distribute cash resulting from the sale of CSD non-eligible securities in the market. This is a common practice in the US market.

MT 564 MT 566

CR 000194 2- No

Add one optional, non repetitive qualifier QUOT Quotation Setting Date to field 98a Date in sequences E1 (MT 564) and D1 (MT 566) Securities Movement.

This date was removed in SR 2010 but is needed in the UK for events such as Tender and Schemes.

MT 564 MT 566

CR 000238 2- No

Add one optional, non repetitive qualifier PRPP Generic Cash Price Paid per Product to field 90a Price in sequences E1 (MT 564) and D1 (MT 566) Securities Movement. Move optional, repetitive qualifier OFFR Generic Cash Price Paid per Product in field 90a Price from sequences E (MT 564) and D (MT 566) Corporate Action Option to sequence E1 (MT 564) and D1 (MT 566) Securities Movement. Add three optional, non repetitive qualifier RATE Applicable Rate, CHAR Charges/Fees, FISC Fiscal Stamp and one optional repetitive qualifier TAXC (Tax Credit Rate) to field 92a Rate in sequences E1 (MT 564) and D1 (MT 566) Securities Movement. Add one optional, repetitive qualifier NETT Net Dividend Rate to field 92a Rate in sequences E (MT 564) and D (MT 566) Corporate Action Option.

Finalisation of the Event Interpretation Grid work by the SMPG and corrections of some SR 2011 changes.

MT 564 MT 566

CR 000265 2- No

Add two optional, non repetitive qualifiers XXXX Shortfall of Interest Payment and YYYY Realised Loss to field 92a Rate in sequence D Corporate Action Details.

For mortgage-backed securities: The interest shortfall will provide an indication of the difference between the expected interest payments and the actual interest payments. The realised loss will provide an indication of the difference between the expected capital payments and the actual capital payments.


18 July 2011 25

Message Types (MT)


MT 564 MT 566

CR 000248 2- No

Add code UKWN (Unknown) to qualifier PTSC Percentage Sought in field 92K Rate.

When the Percentage Sought is not yet known at the time of the announcements, it should be possible to inform the users that it is unknown.

MT 564 MT 566

CR 000191 2- No

Add code MRGR (Merger) to qualifier RHDI Intermediate Securities Distribution Type Indicator in field 22F Indicator in sequences D (MT 564) and C (MT 566) Corporate Action Details.

To cover distribution of fractions in case of merger with intermediate securities in Germany.

MT 564 MT 566

CR 000192 2- No

Add one optional, non repetitive qualifier WITF Withholding of Foreign Tax to field 92a Rate in sequences E Corporate Action Options (MT 564) and D Corporate Action Confirmation (MT 566).

According to the German Market Practise, the tax refund for non-German investors is reported with rate qualifier WITF Withholding of Foreign Tax - in the cash option.

MT 564 MT 566

CR 000259 2- No

Add one optional, non repetitive qualifier Fair Market Value to field 90a Price (sequence to be agreed by the Maintenance Working Group).

To support the provision of the fair market value of shares resulting from a corporate action.

MT 564 MT 566

CR 000208 2- No

Add format option K to qualifiers MINP Minimum Price and MAXP Maximum Price in field 90a Price in sequences D (MT 564) and C (MT 566) Corporate Action Details.

MT 564 MT 566 MT 567

CR 000184 2- No



MT 564 MT 567

CR 000190 2- No

Add code INFO (For Information) to qualifier OSTA Option Status in field 22F Indicator in sequence E Corporate Action Options in MT 564. Modify the definition of code INTV (Inactive) of qualifier REJT Reject in field 24B Reason in sequence A2a Reason in the MT 567.

To increase the clarity of the information for tender offer/exchange offer.



Message Types (MT)


MT 564 MT 568

CR 000196 2- No

Add code INFO (Information Event) to qualifier CAEV Corporate Action Event Indicator in field 22F Indicator. Add one new qualifier INFO to field 22F Indicator in sequence D Corporate Action Details of the MT 564.

The INFO event will allow for processing of events for information that will result in no movement of cash or securities (no benefit).

MT 565 CR 000234 2- No

Add one optional, non repetitive qualifier OPTF Option Features to field 22F Indicator in sequence D Corporate Action Instruction. Add one optional, non repetitive qualifier OFFO Offeror Name to field 70E Narrative in sequence D Corporate Action Instruction. Add eight optional qualifiers NETT Net Rate, GRSS Gross Rate, RATE Rate, SOFE Solicitation Fee Rate, ESOF Early Solicitation Fee Rage, TAXC Tax Credit Rate, TAXE Tax Related Rate, TAXR Withholding Tax Rate to field 92a Rate in sequence D Corporate Action Instruction. Delete qualifier OFFR Proposed Rate from field 92a Rate in sequence D Corporate Action Instruction.

The option details available in the Corporate Action Notification are also needed in the Corporate Action Instruction message to allow for the account owner to clearly communicate back to the service provider which option they are choosing while also clarifying the intent of their election.

MT 566 CR 000203 2- No

Add one optional, non repetitive qualifier ESOF Early Solicitation Fee Rate to field 92a Rate in the sequence D2 Cash Movement of the MT566.

To align ESOF Early Solicitation Fee Rate presence with SOFE Solicitation Fee Rate presence in both MT 564 and 566.

MT 564 CR 000258 1 No

Modify the definition of code CAOS (Corporate Action Option Applicability) in qualifier OPTF Option Features Indicator in field 22a Indicator in sequence E Corporate Action Options to become "The option applicability and/or payout are subject to terms defined by the issuer, for example in the case of Equity Linked Notes, Warrants, Rights, or Conversions when the payout is unknown at the time of instruction."

In instances where the outturn of the election is not known at the time of instruction on voluntary or choice events, code CAOS could also be used. The current definition prevents its usage leading to the usage of OTHR (Other) which hinders STP.


18 July 2011 27

Message Types (MT)


MT 564 MT 565 MT 566 MT 567 MT 568

CR 000197 1 No

Modify the definition of code CAPD (Capital Distribution) in qualifier CAEV Corporate Action Event Indicator in field 22F Indicator in sequence A General Information to become "The Corporate event pays shareholders an amount in cash issued from the Capital account. There is no reduction to the face value of a single share. The number of circulating shares remains unchanged."

In such an event, the current indication in the definition that "There is no reduction to the face value of a single share is not appropriate in the ZA market context.

MT 564 MT 565 MT 566 MT 567 MT 568

CR 000198 1 No

Modify the definition of code DVOP (Dividend Option) in qualifier CAEV Corporate Action Event Indicator in field 22F Indicator in sequence A General Information to become "Distribution of a dividend and/or interest to shareholders with a choice of benefit to receive. Shareholders may choose to receive shares or cash. To be distinguished from DRIP as the company creates new share capital in exchange for the dividend rather than investing the dividend in the market."

To be more in line with the Market Practice in ZA.

MT 564 MT 565 MT 566 MT 567 MT 568

CR 000213 1 No

Modify the definition of code WTRC (Withholding Tax Relief Certification) in qualifier CAEV (Corporate Action Event Indicator) in field 22a Indicator to become Certification request process for withholding tax reduction or exemption based on the tax status of the holder.

To allow a wider use of this code and extend it to notifications to advise acknowledgement or expiry of tax certificates.

MT 564 MT 565 MT 566 MT 567 MT 568

CR 000195 1 No

Modify the definition of code SHPR (Shares Premium Dividend) in qualifier CAEV Corporate Action Event Indicator in field 22F Indicator in sequence A General Information to become "This corporate event pays shareholders an amount in cash issued from the shares premium reserve. It is similar to a dividend but with different tax implications. The shareholder may be given the option to receive the distribution in the form of securities."

To allow flexibility to process the Shares Premium Dividend event as a choice event in South Africa.

MT 564 MT 565 MT 566 MT 568

CR 000246 1 No

Modify the definition of MIEX Minimum Exercisable Quantity and MAEX Maximum Exercisable Quantity qualifiers in field 36B Quantity of Financial Instrument to replace the statement that must be exercised by that may be exercised.

When used for elective events, the definitions of those 2 quantities should be amended to specify that those quantities must not necessarily be exercised but may be exercised.



Message Types (MT)


MT 564 MT 566

CR 000189 1 No

Modify the definition of qualifier MQSO Maximum Quantity of Securities, QTSO Minimum Quantity Sought and of code QALL (All Securities) in field 36B Quantity in sequences D (MT 564) and C (MT 566) Corporate Action Details.

To clarify usage and avoid misuse or misinterpretation.

MT 564 MT 566

CR 000187 1 No

Modify the definition of qualifier VALU Value Date/Time in field 98a Date in sequences E2 (MT 564) and D2 (MT 566) Cash Movement to become Date/time at which cash starts to earn interests in a credit entry or ceases to earn interests in a debit entry. To be discussed by all Maintenance Working Groups whether such a change should apply to all value date fields in all cat 5 messages.

The current definition of Value Date does not help to understand the actual meaning and usage of that field for corporate actions which often leads to misuse.

MT 564 MT 566 MT 567

CR 000183 1 No



MT 567 CR 000188 1 No

Modify the definition of code ADEA (Account Servicer Deadline Missed) in qualifier CANP Cancellation Pending in field 24b Reason in sequence A2a Reason to become "Received after the account servicers deadline. Processed on best effort basis".

Alignment of definitions.

MT 564 CR 000205 1 No

Add one usage rule for code CANC (Cancellation) in field 23F Function of the Message.

To clarify the process of cancelling Preliminary Advice of Payment message (when :22F::ADDB//CAPA in sequence D is present).


18 July 2011 29

5.7.5 Collateral Management MTs 503-507, 527, 558, 569, alignment in other messages possible)


Types (MT)


MT 527 MT 558

CR 000199 2+ Yes

Add optional fields and/or modify existing fields (to be discussed by the Maintenance Working Group).

It is a regulatory requirement by the FED to clearly mention, in a tri-party repo trade, the collateral structure type, the minimum notice period for a call, the trade date and settlement date of the repo deal.

MT 527 MT 558

CR 000237 2- Yes

Add two codes to qualifier CINT Collateral Instruction Type Indicator in field 22a Indicator in sequence A General Information.

To be able to instruct the setting of a closing date or a rate change for an exposure, in a distinct manner. Today, the same code DADJ (Data Adjustment) is used.

MT 527 MT 558

CR 000180 1 Yes

Modify the scope of the MT 527 and 558.

To include scenarios where the 527 and 558 is sent or received by parties other than a trading party.



5.7.6 Other Category 5 changes


Types (MT)


MT 500 MT 501 MT 519

CR 000186 2+ No



MT 500 MT 501 MT 519

CR 000185 2+ No



MT 500 MT 501 MT 519

CR 000182 2- No

Delete qualifiers PADI Payment Direction Indicator and PREF Preference To Income Indicator from field 22F Indicator in sequence Financial Instrument Attributes.



18 July 2011 31

5.8 Impact on Category 6 Treasury Markets-Commodities and Syndications



Types (MT)


MT 600 MT 601 MT 604 MT 605 MT 606 MT 607 MT 608 MT 609 MT 620

CR 000240 2+ No Except MT 620

Add conditional rule to ensure correct unit is used when trading Gold.

The introduction of a conditional rule on the use of the correct unit code is to help improve matching rates and STP and so will allow the community to better comply with their regulatory commitments.

MT 604 MT 606 MT 607

CR 000178 2+ No

Delete optional field 56a Intermediary from the MT 604. Add one new optional, non-repetitive field 86a Intermediary to the MT 606 and MT 607. Add one new optional, non-repetitive field 88a Beneficiary of the Commodity to the MT 607.

To align the Category 6 messages in terms of party identification.


Message Types (MT)



Add a new message to confirm a commodity swap transaction.

To meet market demand for commodities swaps. Implementation would be for SR 2013.


Add a new message to confirm a commodity swap price reset/advice of payment.

To meet market demand for commodity swap price reset/advice of payment. Implementation would be for SR 2013.



5.9 Impact on Category 7 Documentary Credits and Guarantees

There are no requested changes to the category 7 Documentary Credits and Guarantees messages for implementation in SR 2012.


18 July 2011 33

5.10 Impact on Category 8 Travellers Cheques There are no requested changes to the category 8 Travellers Cheques messages for implementation in SR 2012.



5.11 Impact on Category 9 Cash Management and Customer Status



Types (MT)


MT 910 CR 000251 2+ No

Add field 58a Beneficiary Institution and 59a Beneficiary Customer.

To provide more information to the receiver for reconciliation purposes and to minimise investigations.

MT 910 CR 000226 2+ No

Remove network validated rule for field 50a Ordering Customer which mandates non-financial institution BICs in option A.

To enable the use of financial institution BICs in this field.

MT 940 MT 941 MT 950

CR 000222 2+ No

Increase the size of subfield Amount in all the balances fields.

To accommodate currencies where balances are typically very large, such as COP in Colombia.

MT 941 CR 000228 2+ No

Add option M to field 62a Closing Balance (Booked Funds).

To enable the use of this message for intraday balance reports.

MT 910 CR 000227 1 No




18 July 2011 35

5.12 Impact on Category n Common Group Messages

There are no requested changes to the category n Common Group messages for implementation in SR 2012.



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Title PageTable of ContentsPreface1 Introduction2 Schedule for SR 20123 Impact Levels of the Change Requests4 Evaluation of the Impact on Interfaces and Applications5 Overview of Changes per Category5.1 Impact on Category 0 FIN System Messages5.2 Other Technical Changes5.3 Impact on Category 1 Customer Payments and Cheques5.4 Impact on Category 2 Financial Institution Transfers5.5 Impact on Category 3 Treasury Markets5.6 Impact on Category 4 Collections and Cash Letters5.7 Impact on Category 5 Securities Markets5.7.1 All category 5 messages modification5.7.2 Trade Initiation and Confirmation 5.7.3 Settlement and Reconciliation5.7.4 Corporate action5.7.5 Collateral Management5.7.6 Other Category 5 changes

5.8 Impact on Category 6 Treasury Markets-Commodities and Syndications5.9 Impact on Category 7 Documentary Credits and Guarantees5.10 Impact on Category 8 Travellers Cheques5.11 Impact on Category 9 Cash Management and Customer Status5.12 Impact on Category n Common Group Messages

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Mt High Level Info Sr2012