The MT 370 Netting Position Advice message is sent by a financial or non-financial institution to another financial or non-financial institution.
It is used to advise the netting position of a currency resulting from foreign exchange, non deliverable forward (NDF), options and other trades. It also specifies the settlement information for the currency.
Flow 1 - Financial Institution 1 is owed money
PEFICHZZ sends an MT 370 Netting Position Advice message to BDAPGB22 to advise the THB that BDAPGB22 must pay. PEFICHZZ wants the THB paid to its account at JANITHBK.
BDAPGB22 sends an MT 370 Netting Position Advice message to PEFICHZZ to advise the THB that it must pay to PEFICHZZ. BDAPGB22 will pay the THB to PEFI's account at JANITHBK.
BDAPGB22 generates, for example, an MT 202 to its THB correspondent, WWYMTHBK instructing the payment of the THB to JANITHBK in favour of the account of PEFICHZZ.
Flow 2 - Financial Institution 1 owes money
PEFICHZZ sends an MT 370 Netting Position Advice message to BDAPGB22 to advise the THB that PEFICHZZ must pay, specifying it will pay PEFI's account at JANITHBK.
BDAPGB22 sends an MT 370 Netting Position Advice message to PEFICHZZ to advise the THB that PEFICHZZ must pay. BDAPGB22 wants the THB paid to its account at WWYMTHBK.
PEFICHZZ generates, for example, an MT 202 to its THB correspondent, JANITHBK instructing the payment of the THB to WWYMTHBK in favour of the account of BDAPGB22.
Flow 3 - Amendment
PEFICHZZ sends an MT 370 Netting Position Advice message to BDAPGB22 to advise the THB that BDAPGB22 must pay. PEFICHZZ wants the THB paid to its account at JANITHBK.
BDAPGB22 sends an MT 370 Netting Position Advice message to PEFICHZZ to advise the THB that it must pay to PEFICHZZ. BDAPGB22 will pay the THB to PEFI's account at JANITHBK.
As the net amount does not match, PEFICHZZ contacts BDAPGB22 by telephone and requests that BDAPGB22 sends the MT 370 Netting Position Advice message as an amendment.
BDAPGB22 duly sends an MT 370 Netting Position Advice message amendment.
BDAPGB22 generates, for example, an MT 202 to its THB correspondent, WWYMTHBK instructing the payment of the THB to JANITHBK in favour of the account of PEFICHZZ.
