Coordinating ALERT and SWIFT Messages
Based on client feedback, DTCC recommends that you map ALERT field values to ISO 15022 fields as shown in the following examples.
Table 1 is for three levels of clearing.
| Role | ISO15022 | ALERT |
|---|---|---|
| Buyer/seller | BUYR/SELL 97A (within BUYR/SELL block) |
Institution BIC and, if required, A/C# @ Global Custodian |
| Custodian | RECU/DECU 97A (within RECU/DECU block) |
Custodian BIC and Corresp Security A/C# |
| Security correspondent | REI1/DEI1 97A (within REI1/DEI1 block) |
Security Correspondent and A/C# @ Local Agent |
| Local agent | REAG/DEAG 97A (within REAG/DEAG block) |
Local Agent BIC and/or A/C# @ Depository (see SMPG Compliance for the REAG/DEAG Block) |
| Depository | PSET | Place of Settlement |
Table 2 is for two levels of clearing.
| Role | ISO15022 | ALERT |
|---|---|---|
| Buyer/Seller | BUYR/SELL 97A (within BUYR/SELL block) |
Institution BIC and, if required, A/C# @ Global Custodian |
| Custodian | RECU/DECU 97A (within RECU/DECU block) |
Custodian BIC and A/C# @ Local Agent |
| Local agent | REAG/DEAG 97A (within REAG/DEAG block) |
Local Agent BIC and/or A/C# @ Depository (see SMPG Compliance for the REAG/DEAG Block) |
| Depository | PSET | Place of Settlement |
Some clients choose to populate BUY/SELL with Custodian BIC instead of Institution BIC. DTCC recommends that you populate the data as shown in Table 1 and Table 2 .
The examples that follow show how to populate ALERT fields in conformance with the ISO 15022 guidelines, using an ALERT-to-ISO 15022 party sequence.
Capital Group buys equity shares from Morgan Stanley in France. Capital Group must populate ALERT with its settlement details so that Morgan Stanley can retrieve them. Morgan Stanley must also populate ALERT with its settlement details so that Capital Group or its agents can retrieve them.
| Capital Group | Morgan Stanley | ||
|---|---|---|---|
| Details | |||
|
Capital Group (CTCGUS66) Account 1234 (Capital Group’s account |
Morgan Stanley (MSNYUS33XXX) Account 9876 (Morgan Stanley’s account at Credit Suisse) |
||
|
Union Bank of California (BOFCUS33LAX) Account ABCD (Union Bank of California’s account at Bank of New York) |
Credit Suisse (CRESFRPZXXX) Account 05678 (EGSP number) |
||
|
Bank of New York (IRVTUS3NXXX) Account XYZ (Bank of New York’s account at Banque Paribas) |
|||
|
Banque Paribas (PARBFRPPXXX) Account 00987 (EGSP number) |
|||
| ALERT Field Population | |||
| Method | EUROFRAN | Method | EUROFRAN |
| Country | FR | Country | FR |
| Security | EQU | Security | EQU |
| Institution/Broker BIC | CGCTUS66 | Institution/Broker BIC | MSNYUS33XXX |
| A/C# @ Global Custodian | 1234 | A/C# @ Global Custodian | 9876 |
| Custodian BIC | BOFCUS33LAX | Custodian BIC | |
| Corresp Security A/C # | ABCD | Corresp Security A/C # | |
| Correspondent Type | Local Agent | Correspondent Type | |
| Corresp BIC | IRVTUS3NXXX | Corresp BIC | |
| A/C# @ Local Agent | XYZ | A/C# @ Local Agent | |
| Local Agent BIC | PARBFRPPXXX | Local Agent BIC | CRESFRPZXXX |
| A/C# @ Depository | 00987 | A/C# @ Depository | 05678 |
| Place Of Settlement | SICVFRPPXXX | Place Of Settlement | SICVFRPPXXX |
| SWIFT Details | |||
| Capital Group would send the following details on an MT541 message (RECEIVE AGAINST PAYMENT) to its agent, Union Bank of California: | Morgan Stanley would send the following details on an MT543 message (DELIVER AGAINST PAYMENT) to its agent, Credit Suisse (Paris): | ||
|
:16R:SETPRTY :95P::PSET//SICVFRPPXXX :16S:SETPRTY
:16R:SETPRTY :95R::DEAG/EGSP/05678 :16S:SETPRTY
:16R:SETPRTY :95P::SELL//MSNYUS33XXX :97A::SAFE//9876 :16S:SETPRTY |
COMPLETE :16R:SETPRTY :95P::PSET//SICVFRPPXXX :16S:SETPRTY
:16R:SETPRTY :95R::REAG/EGSP//00987 :16S:SETPRTY
:16R:SETPRTY :95P::REI1//IRVTUS3NXXX :97A::SAFE//XYZ :16S:SETPRTY
:16R:SETPRTY :95P::RECU//BOFCUS33LAX :97A::SAFE//ABCD :16S:SETPRTY
:16R:SETPRTY :95Q::BUYR//CGCTUS66 :97A::SAFE//1234 :16S:SETPRTY |
||
As noted previously, some broker/dealers can choose to populate their messages with the minimum three items of data required for settlement (BUY/SELL, REAG/DEAG, and PSET). This example uses the same data and ALERT instructions as the previous example, but constructs an alternative SWIFT MT543 message using only the minimum requirements.
As described in Table 1 , some clients reference BUYR (95Q) and Safe (97A); that is, Union Bank of California. This should not change the ALERT field population shown in Example 2 .
The scenario for Example 3 is similar as that for the previous two examples. Capital Group buys equity shares from Morgan Stanley in France. Capital Group must populate ALERT with its settlement details so that Morgan Stanley can retrieve them. Morgan Stanley must also populateALERT with its settlement details so that Capital Group or its agents can retrieve them. However, this scenario uses two party levels instead of three, and some account information in the Details section is different.
As noted previously, some broker/dealers can choose to populate their messages with the minimum three items of data required for settlement (BUY/SELL, REAG/DEAG, and PSET). Example 4 uses the same data and ALERT instructions as Example 3 , but constructs an alternative SWIFT MT543 message using only the minimum requirements.