The MT 362 is used for a rate reset/advice of interest payment between two parties, A and B:
It can also be exchanged on behalf of an institution or corporate:
Party A and party B are the legal entities which have agreed to the transaction.
Party A is either:
the Sender, or
the institution/corporate on behalf of which the message is sent
Party B is either:
the Receiver, or
the institution/corporate on behalf of which the message is received.
This message is exchanged for the reset of the floating rate at each calculation or compounding period.
The message states the amount(s) to be paid/received by party A:
In the case of a single currency interest rate derivative, either the two sides are netted which results in a single net amount to be paid/received by party A, or the amounts are settled individually.
In the case of a cross currency interest rate swap, either the interest and the principal are settled as one payment or both are paid individually.
This message should not be used for rates which fix in arrears or for multi-fix rates, ie, when resets are done more often than the calculation or compounding period.
When a rate is reset, the interest amount to be paid (Sequence C or E) for that period should be included. In the case of a compounding swap the amount to be paid will only be included when the settlement amount has been determined. No separate advices should be sent for the same amounts at payment date.
For the actual transfer of funds or the confirmation of credits and debits, other messages outside Category 3 are available such as the MTs 202, 203, 205, Financial Institution Transfer messages and the MTs 900, 910, 950, Confirmation of Debit/Credit and statement messages, respectively.
In all cases, the common reference of the MT 362 must be quoted in the relevant reference field, ie, field 21 of the MT 202, 203, 205.
When cancelling a previously sent message (field 22A is CANC) using MT 362:
field 21 must contain the reference, ie, the content of field 20, of the message containing the instruction to be cancelled
the cancellation message must contain a copy of at least the mandatory fields of the general information and transaction details sequences.
To amend a previously sent message (field 22A is AMND):
field 21 must contain the reference, ie, the content of field 20, of the message containing the instruction to be amended
the amendment message must contain both the unchanged and the changed/new fields of the original message
the amendment message replaces the original message.
