SWIFT SR2016 update webinar - which message types are changing?

ANDREW ELMORE

NOVEMBER 19, 2015

SR 2016 CHANGES & IMPACT

STEVE MILLERTHURSDAY 14TH JANUARY 2016

Agenda Standards Release 2015 went live on the SWIFT network last November

Standards Release 2016 is already upon us…

In the next 30-60 minutes, we will:◦ Summarise the key changes between SR 2015 & SR 2016◦ Explain what they mean & what impact they will have, both in general terms and on the C24

library in particular◦ Take Questions

Summary Headlines: SR 2016 introduces changes to:

◦ Category 3 - Treasury Markets - Foreign Exchange, Money Markets and Derivatives◦ Category 5 - Securities Markets◦ Category 6 - Treasury Markets – Commodities◦ Category 9 - Cash Management and Customer Status◦ All other message categories remain untouched by SR 2016 – notably payment messages in

categories 1 & 2 that were significantly affected last year◦ ~40 Change Requests (CRs) affecting 40 individual MTs◦ Majority of changes affect Category 5◦ Some changes to Category 3◦ Minor changes to Categories 6 & 9◦ Overall impact appears relatively low – no new mandatory fields or major changes to message

structure – lots of minor additions/changes to codewords, qualifiers, field formats and validation

Impact We looked at two aspects of ‘Impact’:

1. Impact based on Number of MTs affected by each individual Change Request:◦ The more MTs a CR touches, the greater the potential impact to the firm

2. Impact based on severity of change, and therefore effort required to implement – examined at the level of each individual MT, and presented by Category:

◦ The more CRs a single MT is affected by, the greater the potential impact to the firm that uses that MT

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5

10

15

20

25

30

35

Top 10 CRs by Number of MTs Affected

CR00987 - Allow negative yields in field 90A

CR00987:◦ Allows negative yields in Field 90 when used with Option A◦ Format becomes :4!c//4!c/[N]15d (Qualifier)(Percentage Type Code)(Sign)( Price)◦ Network validation: Sign may only be present if Percentage Type Code is YIEL◦ Network validation: When sign is present, Price must not be zero◦ Affects: MT500, 501, 502, 506, 508, 509, 513, 514, 515, 518, 519, 524, 535, 536, 538, 540,

541, 542, 543, 544, 545, 546, 547, 564, 565, 566, 569, 576, 578, 586◦ Won’t affect you if you don’t want/need to use it on outgoing messages◦ BUT – if you receive any of the above list, you may need to take it into account in any

consuming applications

CR00977 – Remove qualifiers MIEX & MILT, redefine qualifier MINO in Field 36B

CR00977:◦ Generally low-impact because the change to the definition of MINO is in the detailed text

description only & doesn’t affect processing◦ MIEX = Minimum Exercisable Quantity◦ MILT = Minimum Exercisable Multiple Quantity◦ In cases where qualifiers MIEX & MILT are removed (e.g. in the MT564), only impact to you will

be if consuming applications look for Field 36B with these qualifiers, or if producing applications are set up to populate these fields.

◦ Affects: MT500, 501, 502, 513, 514, 515, 518, 519, 524, 535, 538, 540, 541, 542, 543, 544, 545, 546, 547, 564, 565, 566, 568, 576, 578, 586

CR00988 - Allow for an LEI in category 5 messages

CR00988:◦ Allows use of LEIs for Place/Party Identification in Category 5 (ISO 15022) messages◦ New format option L in Fields 94 (Place) and 95 (Party)◦ Option L :4!c//18!c2!n (Qualifier)(Legal Entity Identifier)◦ Often allowed as an additional repetition of the ALTE (Alternate ID) qualifier◦ Network validation: Sign may only be present if Percentage Type Code is YIEL◦ Network validation: When sign is present, Price must not be zero◦ Affects: MT500, 501, 502, 506, 508, 509, 513, 514, 515, 518, 519, 524, 535, 536, 538, 540,

541, 542, 543, 544, 545, 546, 547, 564, 565, 566, 569, 576, 578, 586◦ Won’t affect you if you don’t want/need to use it on outgoing messages◦ BUT – if you receive any of the above list, you may need to take it into account in any

consuming applications

Most Affected MTs per Category Next, we’re going to look at the changes from a different perspective.

In each category, we have assessed the effort to implement the Change Requests affecting each MT.

This results in an estimate in the form of a number of ‘story points’ – essentially a measure of how big a job it is to make the changes required to our SWIFT FIN library. You can think of this as an indication of how intrusive/far-reaching the changes are.

All MTs subject to change in SR 2016 in each category are compared so that you can see quickly which ones are most affected.

We will summarise the impact on the worst-affected MTs in each case.

Category 3 - Treasury Markets - Foreign Exchange, Money Markets and Derivatives

MT300 MT304 MT305 MT306 MT340 MT341 MT350 MT360 MT361 MT362 MT364 MT3650

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2

3

4

5

6

7

8

9

Relative Impact (Effort to Implement) – Category 3

Two clear winners – MT360 &

MT361

MT360 Single Currency IRS Confirmation &MT361 Cross Currency IRS Confirmation

Affected by 3 CRs:

◦ CR00967 – Prevent use of UTI in free format fields – adds a field-level NVR to Field 72: Code must not be UTI, PUTI, USI or PUSI (Error code(s): T49). Outbound messages will be NAK’d if these codes are used. Inbound messages will no longer contain them.

◦ CR00968 – Support negative interest rates in Category 3 messages – changes format (adds optional sign) of fixed, cap & floor rates in Fields 37U, 37J, 37L in both fixed & floating legs. This in turn forces a knock-on change to NVRs C11, C12 & C18 as these fields change to 37M, 37V & 37G respectively. Outbound messages will be NAK’d if fields 37U, J or L are used. Inbound messages will no longer contain them, but may carry 37M, V & G. Rates may have a negative sign.

◦ CR01020 – Increase length of UTI prefix to be ESMA compliant – to instances of Field 22 changed from format 20x to 30x. Inbound messages may carry 30-character UTIs.

Category 5 – Securities Markets

MT500

MT501

MT502

MT506

MT508

MT509

MT513

MT514

MT515

MT517

MT518

MT519

MT524

MT527

MT530

MT535

MT536

MT537

MT538

MT540

MT541

MT542

MT543

MT544

MT545

MT546

MT547

MT548

MT549

MT558

MT564

MT565

MT566

MT567

MT568

MT569

MT575

MT576

MT578

MT5860

2

4

6

8

10

12

14

16



MT361


MT566

MT564 Corporate Action Notification Affected by:

◦ CR00771 – new codeword on 22F::ADDB in Sequence D◦ CR00772 – new optional qualifier CETI for Field 70 in Sequence

F◦ CR00775 – new optional qualifier ECRD for Field 98a in

Sequence D◦ CR00776 – new options J & K for qualifier BORD, Field 98a in

Sequence E◦ CR00778 – new codeword SPRE on 22F::DIVI in Sequence D◦ CR00779 – new codewords FPRE & PPRE on 22F::ADDB in

Sequence D◦ CR00780 – new codewords NREF & REFU on 22H::NSIS in

Sequence E1◦ CR00920 – new codeword PPUT on 22F::ADDB in Sequence D◦ CR00972 – minor change to description of codeword BONU in

22F::CAEV in Sequence A◦ CR00975 – minor change to description of codeword SOFF in

22F::CAEV/RHDI in Sequences A/D

Affected by:◦ CR00976 – option H allowable in 92a::GRSS & 92a::NETT in

Sequences E & E2◦ CR00977 – qualifier MINO redefined & qualifiers MILT & MIEX

removed from 36a in Sequences B1, D, E & E1a◦ CR00979 – qualifier DECL removed from Field 70E in

Sequence F◦ CR00981 – codewords QREC & QOVE removed from

22F::OPTF in Sequence E◦ CR00982 – Change usage and definition of TAXR / WITL and

delete WITF tax qualifiers and add “Country of Income source” to movement sequences

◦ CR00983 – 22a::TXAP changed to use format option F in Sequences E1 & E2

◦ CR00984 – new optional qualifiers ITYP & ETYP on 22F in Sequence E1

◦ CR00987 – 90A now allows a sign to support negative rates in Sequences D, E, E1, E1a & E2

◦ CR01075 – minor change to text in UHB, no impact on C24

MT564 Corporate Action Notification CR00982:

◦ In Sequence E Field 92a◦ Update the definition of qualifier TAXR◦ Add format option F to qualifier TAXR (Consuming apps may need to deal with this)◦ Add optional and repetitive qualifier WITL, delete qualifiers WITF and TAXE (Consuming apps may need to deal with this)

◦ Update NVR rule C8 (Producing apps may need to take account of this)◦ Delete NVR rule C6◦ Add new NVR C19 (In each occurrence of sequence E and subsequence E2, if one or more than one occurrence of field :92a::WITL is present, then at

least one occurrence of field :92a::TAXR must be present (Error code(s): E20).) (Producing apps may need to take account of this)◦ In Sequence E2 Field 92a

◦ Update the definition of qualifier TAXR◦ Add format option F to qualifier TAXR (Consuming apps may need to deal with this)◦ Update definition and name of qualifier WITL◦ Delete qualifiers WITF and TAXE (Consuming apps may need to deal with this)

◦ In Sequence E2 Field 19B◦ Update the definition of qualifier TAXR◦ Update definition and name of qualifier WITL◦ Delete qualifiers WITF and TAXE (Consuming apps may need to deal with this)

◦ Add new optional field 94C with unique optional non repetitive qualifier COIN Country Of Income Source to sequence E2◦ (Consuming apps may need to deal with this)

◦ Add new optional non repetitive qualifier COIN Country Of Income Source to field 94a, in sequence E1◦ (Consuming apps may need to deal with this)

MT564 Corporate Action Notification CR00987:

◦ In Sequences D, E, E1, E1a, E2◦ Change option A to allow a Sign:◦ Option A :4!c//4!c/[N]15d◦ (Qualifier)(Percentage Type Code)(Sign)( Price)◦ Add Field-level NVRs:◦ When Sign is present, Price must not be zero (Error code(s): T14). ◦ When Sign is present, Price must not be zero (Error code(s): T14).In Sequence E Field 92a◦ Producing apps may need to take account of the new option & NVRs◦ Consuming apps may need to change to deal with possibility of negative rates

(MT566 Corporate Action Confirmation affected in a very similar way – most impact derives from the same CRs, particularly 982 & 987)

Category 6

MT600 MT6010

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1

1.5

2

2.5

3

3.5

4

1.5

3.5


Category 6

Category 9

MT900 MT910 MT935 MT940 MT941 MT9420

0.5

1

1.5

2

2.5


Category 9

More Information C24 customers with a commercial support agreement can access the full breakdown and cross-reference of the SR 2016 changes through the Support wiki at the following link:

https://c24tech.jira.com/wiki/display/IOPUB/SWIFT+Standards+MT+November+2016

A public version of the information here and in our support pages will be made available for download very soon.



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Questions

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SWIFT SR2016 update webinar - which message types are changing?

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