Cash Levels Overview

The diagram represents the ALERT Data Section for BICs due to the cascading of accounts in SWIFT tags.

*Current Beneficiary Institution information held in Receiving Agent Data fields in ALERT for one level of clearing.

An investment manager typically employs a global custodian. Depending on how the global custodian settles the currency, one of the following levels of clearing could be applied:

  • One Level of Clearing

    A single cash account (typically with the Custodian on behalf of the Investment Manager).

  • Two Levels of Clearing

    Two Different Cash Accounts, one belonging to the Custodian and the other a local/domestic cash account held in country. Cash moves to or from the domestic account depending on the direction of the instruction.

  • Three Levels of Clearing

    Three Different Cash Accounts, one belonging to the Custodian a second local/domestic cash account held in country and a third intermediary cash account. Cash moves from the intermediary to the domestic account and then to the Custodian account depending on the direction of the instruction.

    SWIFT FIELD* Level of Clearing ALERT Section SWIFT FIELD NAME SWIFT Definition Translation
    Field 54 Three Intermediary* Receiver's Correspondent The branch of the Receiver or another financial institution at which the funds will be made available to the Receiver. This is what DTCC refers to as Intermediary - "The first party to receive cash in the local market"
    Field 56 Two, Three Receiving Agent Intermediary* Intermediary The financial institution through which the transaction must pass to reach the account with institution. This is the Local Agent (Receiving Agent) as the FI through which the transaction must pass to reach the Account with Institution (Custodian)
    Field 57 One, Two, Three Beneficiary / Custodian Account with Institution The financial institution which will pay or credit the beneficiary institution. This is the custodian as the FI that will pay or credit the beneficiary institution (End Client)
    Field 58 / Field 59 One, Two, Three Beneficiary / Custodian Beneficiary Institution The financial institution which has been designated by the ordering institution as the ultimate recipient of the funds being transferred. This is the End Client as the ultimate recipient of the funds being transferred

    *Please note that whilst the BICs will align to the SWIFT fields, the account numbers will cascade for three levels of clearing.

Validation Rules

*A/C# @ Receiving Agent – Mandatory (if Rec Agent BIC populated)

Receiving Agent BIC - Mandatory

Receiving Agent Name – Mandatory (prepopulated)

*Some GCs currently have the ability to bypass the A/C# @ Receiving Agent for certain markets

Final Beneficiary A/C#/IBAN - Mandatory

Beneficiary Inst BIC - Mandatory

Beneficiary Inst Name – Mandatory

A/C# @ Receiving Agent Account/IBAN – Conditional*

Receiving Agent BIC – Conditional*

Receiving Agent Name – Conditional*

*Conditional based on the Final Beneficiary & Receiving Agent details are different. Both sections must then be completed fully.

Final Beneficiary A/C#/IBAN - Mandatory

Beneficiary Inst BIC - Mandatory

Beneficiary Inst Name – Mandatory

A/C# @ Receiving Agent – Conditional*

Receiving Agent BIC – Conditional*

Receiving Agent Name – Conditional*

Intermediary A/C#/IBAN – Conditional*

Intermediary BIC- Conditional*

Intermediary Name- Conditional*

*Conditional based on the Final Beneficiary, Receiving Agent and Intermediary details all being different from each other. All three sections must then be completed fully

Notes

Common practice for GCs and IMs who have SSIs with one level of clearing:

  • Place the valid account number in the Final Beneficiary Account field and put either a full stop (period) or other commentary in the Receiving Agent Account number and dual populate the BIC in both the Receiving Agent and Final Beneficiary Inst BIC fields.
  • Dual populating both valid BIC and account number in both the Receiving Agent and Beneficiary Inst BIC and account number fields.

This practice is in place due to the ALERT validation rule, whereby receiving agent BIC is mandatory for ALL levels of clearing. ALERT will be making a change to validation rules, making Beneficiary BIC mandatory and Receiving agent BIC conditional to eliminate the need for dual population for one level of clearing. Rule change expected Q3 2025.