SR 2016 Business Highlights

Transcription

1 Standards Standards MT November 2016 SR 2016 Business Highlights This document provides summarised, high level, business information related to the changes made to FIN (MT) messages as part of Standards Release 2016 (SR 2016). 20 November 2015

2 Standards MT November 2016 Table of Contents Preface Background and Summary Payments: Categories 1, 2, 9 and Common Group Treasury Markets - Foreign Exchange, Money Markets & Derivatives: Category Trade Finance: Categories 4 and Securities: Category Commodities, Syndications and Reference Data: Category Travellers Cheques: Category Legal Notices SR 2016 Business Highlights

3 Preface Preface Purpose of this document This document provides summarised, high level, business information related to the changes made to MT messages as part of Standards Release 2016 (SR 2016). These changes will be implemented on the SWIFT network on 20 November The technical details of the changes are published in the Standards Release Guide (SRG) in December each year and updates to the SRG are published in February, the following year. Both publications are found in the User Handbook Online and can be accessed via the Standards MT Release 2016 timeline and analysed using MyStandards. Also available via the timeline is the Updated High-Level Information document, which is published in November each year and contains details of the underlying business cases for each change. Note Information in this document is subject to change prior to the publication of the Standards Release Guide and the Updated High-Level Information document. 20 November

4 Standards MT November Background and Summary The annual MT standards release ensures that the MT messages exchanged by SWIFT users remain suitable for the business areas in which they are used, by enabling new business functionality and compliance with changing regulations. Because the standard is so widely implemented, it is important that the benefit of each change is balanced against the implementation cost. The SWIFT MT maintenance process ensures that all changes are reviewed and approved by a broad cross section of the SWIFT community (more information about the MT maintenance process can be found in the SWIFT User Handbook online). The standards release for 2016 includes: Changes due to new regulations that require additional information to be transported in the messages Changes to support the requirements of local markets New features to support evolving business processes and new financial instruments Definitions clarified to promote greater consistency in the use of messages and thereby improve automation 4 SR 2016 Business Highlights

5 Payments: Categories 1, 2, 9 and Common Group 2 Payments: Categories 1, 2, 9 and Common Group General: No changes for SR 2016 in category 1, 2, 8 or the common group (category n) messages. The changes in category 9 will facilitate reporting and increase automation/transparency in specific business scenarios. Upcoming removal of free format options from field 50a and field 59a in SR MT 910 Confirmation of Credit: The network validated rule is opened up to permit (but not force) both the ordering customer (field 50) and the ordering institution (52a) when reporting on a commercial payment, where both these fields were present in the original instruction. This can increase transparency. MT 935 Rate Change Advice: An optional subfield Sign is added to field 37H to comply with a new market requirement to report negative interest rates. The subfield will only be used for negative interest rates, meaning no change to the reporting on positive interest rates. MT 900 Confirmation of Debit, MT 910 Confirmation of Credit, MT 940 Customer Statement Message, MT 941 Balance Report, MT 942 Interim Transaction Report: For reporting in a relay scenario, a second format option is added to the mandatory account identification field 25. Senders will now have the choice to indicate only the account number or the account number and the BIC of the account owner. By indicating the BIC it will help the receiver to automatically forward the message to the right account owner. Advance information for a future release: A structured format option is now available for ordering and beneficiary customer (fields 50F and 59F). Free format options for these fields will be removed from the following messages in SR 2020: MT 101 field 50H and field 59 (no letter option) MT 103/103 STP/103 REMIT field 50K and field 59 (no letter option) MT 102/102 STP field 50K and field 59 (no letter option) MT 202 COV/ 205 COV field 50K and field 59 (no letter option) MT 910 field 50K 20 November

6 Standards MT November Treasury Markets - Foreign Exchange, Money Markets & Derivatives: Category 3 Exotic derivatives: Small updates have been made to enhance the changes implemented as part of SR 2015 in the MT 306 for exotic derivatives. MT 300 Foreign Exchange Confirmation and MT 304 Advice/Instruction of a Third Party Deal: Changes made to align derivative reporting fields and to better support processing of cleared NDFs. MT 350 MT 365: These messages are updated to support negative interest rates. Unique Transaction Identifiers (UTI) two changes: Additional validation to prevent the inclusion of a UTI in free format fields. UTIs must be placed in specific fields that are available. The length of the UTI Namespace/Issuer code fields has been increased, in order to better support ESMA guidance for the inclusion of a UTI prefix. 6 SR 2016 Business Highlights

7 Trade Finance: Categories 4 and 7 4 Trade Finance: Categories 4 and 7 There are no changes to the Trade Finance messages for SR Advance information for future releases: Category 7 messages are undergoing a thorough review and significant changes will be implemented in SR 2018 and SR 2019 as follows: SR 2018 changes to MTs SR 2019 changes to MTs These changes include 8 new messages. Advance information about the changes and the new messages will be published in the first quarter of November

8 Standards MT November Securities: Category 5 Settlement and Reconciliation: New code to indicate that a security transaction is not for accounting Two new reason codes for unmatched statuses Corporate Actions: Functional enhancement to support the following: o Partial put redemption events and for partial defeasance/pre-funding events o Required owner actions for mandatory events o Dividends with reinvestment component o Buyer protection deadline and stock lending instruction deadlines o A new "country of income source" qualifier for distribution events Enhance support of solicitation fees qualifiers Streamline the use of "preliminary status" for dividend rates in dividend events Streamline and clarify the use of withholding tax rates across the whole CA message set Streamline the use of the securities quantity qualifiers for oversubscriptions or instructed securities quantity New qualifiers and codes to support new tax regulation in the US Extend tax exemption type codes and income type codes to securities movements Streamline the use of narrative qualifiers across the whole set of messages Triparty Collateral Management: New code to identify whether proposed collateral movements have settled or not New flag to report settlement status New qualifier to identify the client of party B Common: A new format option L is added so that an LEI can be used to identify a place or a party (with some exceptions such as PLIS, PRIC, VAHA, MEOR, and MERE). This change is not implemented in the set of Corporate Actions messages. The sign character is added to field 90A Price to allow negative values for yields Documentation changes which have no impact on applications 8 SR 2016 Business Highlights

9 Commodities, Syndications and Reference Data: Category 6 6 Commodities, Syndications and Reference Data: Category 6 MT 601 Commodity Option Confirmation: Validation rules are modified to (i) support commodity options in which the premium currency is different from the strike currency and (ii) to prevent misuse of field 23 Further Identification. Unique Transaction Identifiers (UTI) two changes: Additional validation to prevent the inclusion of a UTI in free format fields. UTIs must be placed in specific fields that are available. The length of the UTI Namespace/Issuer code fields has been increased, in order to better support ESMA guidance for the inclusion of a UTI prefix. 20 November

10 Standards MT November Travellers Cheques: Category 8 There are no changes to the Travellers Cheques messages for SR SR 2016 Business Highlights

11 Legal Notices Legal Notices Copyright SWIFT All rights reserved. Disclaimer This publication constitutes advance information only and is not to be considered the final and complete standards documentation for the subject matter published herein. The information in this publication may change from time to time. You must always refer to the latest available version. SWIFT Standards Intellectual Property Rights (IPR) Policy - End-User License Agreement SWIFT Standards are licensed subject to the terms and conditions of the SWIFT Standards IPR Policy - End-User License Agreement, available at > About SWIFT > Legal > SWIFT Standards IPR Policy. Translations The English version of SWIFT documentation is the only official and binding version. Trademarks SWIFT is the trade name of S.W.I.F.T. SCRL. The following are registered trademarks of SWIFT: the SWIFT logo, SWIFT, SWIFTNet, Accord, Sibos, 3SKey, Innotribe, the Standards Forum logo, MyStandards, and SWIFT Institute. Other product, service, or company names in this publication are trade names, trademarks, or registered trademarks of their respective owners. 20 November