The MT 361 is used to confirm a deal between two parties, A and B:
It can also be exchanged on behalf of an institution or corporate:
The MT 361 can also be used as a unilateral confirmation from a money broker to the parties A and B:
Or, when two money brokers are involved, between the money brokers:
Party A and party B are the legal entities which have agreed to the transaction.
Party A is either:
the Sender,
the institution/corporate on behalf of which the message is sent,
one of the institutions for which the broker arranged the deal and to whom he is sending the confirmation
or, when a money broker confirms to another money broker, the party for which the sending broker arranged the deal.
Party B is either:
the Receiver,
the institution/corporate on behalf of which the message is received,
the other institutions for which the broker arranged the deal, that is, party A's Counterparty, or
when a money broker confirms to another money broker, party A's Counterparty.
When ISDA is mentioned in field 77H (Type), this confirmation constitutes a confirmation as referred to in, and supplements, forms a part of and is subject to, the ISDA Master Agreement or the Interest Rate and Currency Exchange Agreement dated as of (see field 77H) between party A and party B as amended and supplemented from time to time ('Agreement'). All provisions contained in the Agreement governs this confirmation except as expressly modified below.
For the purpose of this document 'ISDA Master' shall mean either the ISDA Master Agreement or the Interest Rate and Currency Exchange Agreement or vice-versa.
When the AFB does define the interbank confirmation for cross currency swaps, the following paragraph will apply:
When AFB is mentioned in field 77H (Type), this confirmation constitutes a confirmation as referred to in, and supplements, forms a part of and is subject to, the AFB Master Agreement for foreign exchange and derivatives transactions dated (see field 77H) between party A and party B as amended and supplemented from time to time ('Agreement'). All provisions contained in the Agreement governs this confirmation except as expressly modified below.
If field 77H specifies DERV as the type of master agreement and if Party A and Party B are parties to a Deutscher Rahmenvertrag für Finanztermingeschäfte (the "German Master Agreement"), this transaction is subject to the terms and conditions of that German Master Agreement.
If Party A and Party B have mutually agreed to enter into this German Master Agreement, but the Agreement itself has not yet been signed, the terms and conditions of the Deutscher Rahmenvertrag für Finanztermingeschäfte (the "German Master Agreement") and its annexes, the "Anhang für Devisengeschäfte und Optionen auf Devisengeschäfte" or the "Anhang für Optionsgeschäfte auf Börsenindizes und auf Wertpapiere zu dem Rahmenvertrag für Finanztermingeschäfte", as applicable, will apply.
The individual transaction (Einzelabschluß) and all other transactions (Einzelabschlüsse) between Party A and Party B form a single agreement.
For the confirmed trade, the guarantee agreed between the parties applies.
Relationship between parties:
Each party will be deemed to represent to the other party on the date on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction):
Non-reliance. It is acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it is based upon its own judgement and upon advice of such advisers as it is deemed necessary. It is not relying on any communication of the other party as investment advice or as a recommendation to enter into the Transaction; it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. No communication received from the other party shall be deemed to be an assurance or guarantee as to the expected results of that Transaction.
Assessment and understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the risk of that Transaction.
Status of the parties. The other party is not acting as a fiduciary for an adviser to it in respect of that Transaction.
If the confirmed swap is a compounding swap, the compounding schedules must be used (sequence C2 and/or sequence F2).
If the confirmed swap is an amortising swap, the amortising schedule must be used (sequences H and I).
If the confirmed swap has one or two stub periods, linear interpolation for the rates for these stub periods are applied. The MTs 361 must not be used if another method is applicable
Terminations, partial terminations and recouponing of cross currency interest rate derivatives must be confirmed using the MT 365 Cross Currency Interest Rate Swap Termination/Recouponing Confirmation.
If the sequences L and M (additional amounts to be settled) are used without the settlement instructions, the settlement instructions in sequences D and G apply for these payments.
This message handles only the initial confirmation of the transaction. It is not allowed for advising/confirming details at scheduled rate resets during the life of a contract. This information is advised/confirmed using the MT 362 Interest Rate Reset/Advice of Payment.
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 361 must be quoted in the relevant reference field, that is, field 21 of the MTs 202, 203, 205.
When cancelling a previously sent message (field 22A is CANC) using MT 361:
field 21 must contain the reference, that is, 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, that is, 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.
