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MT 304 Examples

Example 1: Settlement Contract

Narrative

On 10 January 2008, Rothschild Asset Management (Fund Manager) and LLoyd Treasury, London (Executing Broker) agree on a forex deal with the following terms:

Rothschild buys 2,157,022.75 AUD against GBP at the rate of 2.7461. The value date is 9 July 2008. The amount in GBP is 785,485.87.

Rothschild advises its custodian, State Street, London of this deal and instructs them to settle it.

Rothschild executes this deal on behalf of fund XYZ with account number: AUSQ7B9. The AUD are expected from Westpac in Sydney and the GBP will be paid to Lloyds Treasury in London.

Message 1: SWIFT Message from Rothschild Asset Management

Explanation Format
Sender ROTHGB2A
Receiver SBOSGB2X
Message Type 304
General Information :15A:
Sender's Reference :20:000159
Type of Operation :22A:NEWT
Scope of Operation :94A:ASET
Fund :83J:/ACCT/AUSQ7B9
/NAME/Fund XYZ
Fund Manager :82J:/ABIC/ROTHGB2A
/NAME/Rothschild Asset Management
Executing Broker :87J:/ABIC/LOYDGB22TSY
/NAME/Lloyd Treasury
Forex Transaction Details :15B:
Trade Date :30T:20080110
Value Date :30V:20080709
Exchange Rate :36:2,7461
Currency, Amount Bought :32B:AUD2157022,75
Delivery Agent :53J:/ABIC/WPACAU2S
/NAME/Westpac, Sydney
/ACCT/LLY0001978
Currency, Amount Sold :33B:GBP785485,87
Receiving Agent :57J:/ABIC/LOYDGB22TSY
/NAME/Lloyds Treasury
/GBSC/301557
Beneficiary Institution :58J:/ABIC/LOYDGB22TSY
/NAME/Lloyds Treasury
/ACCT/00001933
 
Optional General Information :15C:
Contact Information :29A:/NAME/Sara-Jane/PHON/634-2596

Example 2: Forward Contract

Narrative

FUMAUS33, a fund manager, arranged three foreign exchange contracts with Morgan Guaranty New York (executing broker). All three trades are to settle on 24 March 2008. Instead of making three individual payments to Morgan, the fund manager has netted the three trades and instructed the custodian to pay the difference. The GBP amounts net to zero and the custodian is instructed to pay 13,023.25 USD to Morgan.

The fund manager is acting on behalf of ABC fund with account number 12345.

First Deal

The first deal was agreed on 18 February 2008. FUMA sells 6,017,543.00 GBP against USD at the rate of 1.48. The USD amount is 8,905,963.64.

Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
General Information :15A:
Sender's Reference :20:1
Type of Operation :22A:NEWT
Scope of Operation :94A:AFWD
Open Indicator :17O:Y
Net Settlement Indicator :17N:Y
Fund :83J:/ACCT/12345
/NAME/ABC Fund
Fund Manager :82J:/ABIC/FUMAUS33
/NAME/F.M.
Executing Broker :87J:/ABIC/MGTCUS33
/NAME/Morgan Guaranty
/CLRC/ABA-021000238
Forex Transaction Details :15B:
Trade Date :30T:20080218
Value Date :30V:20080324
Exchange Rate :36:1,48
Currency, Amount Bought :32B:USD8905963,64
Delivery Agent :53J:/NETS/
Currency, Amount Sold :33B:GBP6017543,00
Receiving Agent :57J:/NETS/
 
Optional General Information :15C:
Contact Information :29A:/NAME/Richard Jones/PHON/212-1234567

Second Deal

The second deal was agreed on 4 March 2008. FUMA sells 6,299,876.00 GBP against USD at the rate of 1.475. The USD amount is 9,292,317.10.

Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
General Information :15A:
Sender's Reference :20:2
Type of Operation :22A:NEWT
Scope of Operation :94A:AFWD
Open Indicator :17O:Y
Net Settlement Indicator :17N:Y
Fund :83J:/ACCT/12345
/NAME/ABC Fund
Fund Manager :82J:/ABIC/FUMAUS33
/NAME/F.M.
Executing Broker :87J:/ABIC/MGTCUS33
/NAME/Morgan Guaranty
/CLRC/ABA-021000238
 
Forex Transaction Details :15B:
Trade Date :30T:20080304
Value Date :30V:20080324
Exchange Rate :36:1,475
Currency, Amount Bought :32B:USD9292317,10
Delivery Agent :53J:/NETS/
Currency, Amount Sold :33B:GBP6299876,00
Receiving Agent :57J:/NETS/
 
Optional General Information :15C:
Contact Information :29A:/NAME/Richard Jones/PHON/212-1234567

Third Deal

The third deal is the closing of the two other deals. It was agreed on 20 March 2008. FUMA buys 12,317,419.00 GBP against USD at the rate of 1.4785. The USD amount is 18,211,303.99.

The payments of the three deals are netted. This results in a GBP amount of zero and a USD amount of 13,023.25 to be paid to Morgan.

Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
General Information :15A:
Sender's Reference :20:3
Type of Operation :22A:NEWT
Scope of Operation :94A:AFWD
Open Indicator :17O:N
Final Close Indicator :17F:Y
Net Settlement Indicator :17N:Y
Fund :83J:/ACCT/12345
/NAME/ABC Fund
Fund Manager :82J:/ABIC/FUMAUS33
/NAME/F.M.
Executing Broker :87J:/ABIC/MGTCUS33
/NAME/Morgan Guaranty
/CLRC/ABA-021000238
 
Forex Transaction Details :15B:
Trade Date :30T:20080320
Value Date :30V:20080324
Exchange Rate :36:1,4785
Currency, Amount Bought :32B:GBP12317419,
Delivery Agent :53J:/NETS/
Currency, Amount Sold :33B:USD18211303,99
Receiving Agent :57J:/NETS/
 
Optional General Information :15C:
Contact Information :29A:/NAME/Richard Jones/PHON/212-1234567
 
Reference to Previous messages :15D:
Reference to Previous Deal :21P:1
Reference to Previous Deal :21P:2
Gain (Loss) Indicator :17G:N
Currency, Amount :32G:USD13023,25
 
Net Amount to be settled :15E:
Gain (Loss) Indicator :17G:N
Currency, Amount :32G:USD13023,25
Receiving Agent :57J:/ABIC/MGTCUS33
/NAME/Morgan Guaranty
/CLRC/ABA-021000238
Beneficiary Institution :58J:/ABIC/FUMAUS33
/NAME/F.M.

Example 3: Spot Contract

Narrative

On 15 May 2008, FUMAUS33, a fund manager, arranged one foreign exchange contract with BANAGB22, Bank A London (executing broker).

The fund manager is acting on behalf of ABC fund with account number 12345.

FUMAUS33 sends an MT 304 to the custodian CUSTUS33

The contract is to settle on 19 May 2008. FUMA buys 100,000,000 USD and sells 782,080,000 HKD. Bank A wants to receive the HKD in its account 2436 at its branch in Hong Kong BANAHKHH which in turn holds account (AS8794) with INTEHKHH.

The USD have to be transferred from BANAUS33 to CUSTUS33.

CUSTUS33 will then send an MT 202 to its correspondent in Hong Kong asking them to debit its account id 444719.

Message 1: Instruction Message

Explanation Format
Sender FUMAUS33
Receiver CUSTUS33
Message Type 304
General Information :15A:
Sender's Reference :20:45871
Type of Operation :22A:NEWT
Scope of Operation :94A:ASET
Fund :83J:/ACCT/12345
/NAME/Fund ABC
Fund Manager :82J:/ABIC/FUMAUS33
/NAME/Fund Manager A
Executing Broker :87J:/ABIC/BANAGB22
/NAME/Bank A
/CITY/London
Forex Transaction Details :15B:
Trade Date :30T:20080515
Value Date :30V:20080519
Exchange Rate :36:7,8208
Currency, Amount Bought :32B:USD100000000,
Delivery Agent :53J:/ABIC/BANAUS33
/NAME/Bank A
/CITY/New York
Currency, Amount Sold :33B:HKD782080000,
Delivery Agent :53J:/ABIC/CUSTHKKK
/NAME/Cust Services
/CITY/Hong Kong
Intermediary :56J:/ABIC/INTEHKHH
/NAME/Intermediary Bank
Receiving Agent :57J:/ABIC/BANAHKHH
/NAME/Bank A
/CITY/Hong Kong
/ACCT/AS8794
Beneficiary Institution :87J:/ABIC/BANAGB22
/NAME/Bank A
/CITY/London
/ACCT/2436

Message 2: Settlement of Amount Sold

Explanation Format
Sender CUSTUS33
Receiver CUSTHKHH
Message Type 202
Transaction Reference Number :20:21304/887
Related Reference :21:45871
Value Date, Currency Code, Amount :32A:080519HKD782080000,
Intermediary :56A:INTEHKHH
Account with Institution :57A:/AS8794
BANAHKHH
Beneficiary Institution :58A:/2436
BANAGB22

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