Offshore CNY Best Practice Guidelines For Consultation

Offshore CNY Best Practice Guidelines for SWIFT FIN and ISO 15022 messages
Version 0.2
Sta tu s
Dr a ft
Pr ep ar at ion
21 Ju l y 20 11
Au th or
Of f sh o r e CN Y B e st Pr ac tic e Wor k in g Gr ou p
Note:
Relevant regulations and legislation take precedence over the guidance issued by this working group. These Guidelines
represent the industrys best endeavor to assist peers in the interpretation and implementation of Offshore CNY best
practices for SWIFT FIN and ISO 15022 messages. The Offshore CNY Best Practice Group - or any of its Members - cannot
be held liable for any error in these Guidelines.
Contributing Institutions
ANZ Bank
Asia Securities Industry & Financial Markets Association (ASIFMA) (Observer)
Bank of America Merrill Lynch
Bank of China (Hong Kong) Limited
The Bank of East Asia Limited
BNP Paribas
Citibank, N.A.
CLS
Credit Suisse
DBS Bank Ltd.
Deutsche Bank AG
Euroclear Bank
Hong Kong Investment Funds Association (HKIFA) (Observer)
The Hongkong and Shanghai Banking Corporation Limited
Invesco Hong Kong Limited
ISDA (Observer)
Janus Capital Asia Limited
JP Morgan Chase Bank, N.A.
JF Asset Management Limited
Macquarie Capital Securities Limited
National Australia Bank Limited
Nomura Asset Management Hong Kong Limited
Royal Bank of Scotland plc
Standard Chartered Bank
State Street Bank and Trust Company
The Bank of New York Mellon
UBS Global Asset Management (Hong Kong) Ltd.
Wing Hang Bank
Wing Lung Bank
SWIFT
Offshore CNY best practice guidelines v 0_2
Page 1
Table of Contents
1.
Introduction .................................................................................................................................... 3
2.
Purpose of this document ................................................................................................................ 3
3.
Guidelines to present offshore CNY transactions ............................................................................... 5

3.1.
Payments ......................................................................................................................... 5
3.1.1. MT 101 Request for Transfer ........................................................................................................ 5
3.1.2.
MT 103 - Single Customer Credit Transfer ....................................................................................... 6
3.1.3.
MT 202 - General Financial Institution Transfer ............................................................................... 8
3.1.4.
MT 210 - Notice to Receive ............................................................................................................. 9
3.2.
FX, MM, & Derivatives ....................................................................................................... 9
3.2.1. MT 300 - Foreign Exchange Confirmation ........................................................................................ 9
3.2.2.
MT 304 - Advice/Instruction of a Third Party Deal ......................................................................... 11
3.2.3.
MT 305 - Foreign Currency Option Confirmation ............................................................................ 12
3.2.4.
MT 306 (exotic options) - Foreign Currency Option Confirmation ................................................... 13
3.2.5.
MT 320 - Fixed Loan/Deposit Confirmation ................................................................................... 13
3.2.6.
MT 321 - Instruction to Settle a Third Party Loan/Deposit .............................................................. 14
3.2.7.
MT 330 - Call/Notice Loan/Deposit Confirmation .......................................................................... 16
3.2.8.
MT 380 - Foreign Exchange Order ................................................................................................. 16
3.2.9.
MT 381 - Foreign Exchange Order Confirmation............................................................................. 17
3.3.
Securities ....................................................................................................................... 17
3.3.1. MT 513 - Client Advice Of Execution.............................................................................................. 17
3.3.2.
MT 514 - Trade Allocation Instruction ........................................................................................... 18
3.3.3.
MT 515 - Client Confirmation of Purchase or Sale .......................................................................... 19
3.3.4.
MT 543 - Deliver Against Payment ................................................................................................ 19
3.3.5.
MT 564 - Corporate Action Notification ......................................................................................... 20
3.3.6.
MT 565 - Corporate Action Instruction .......................................................................................... 21
3.3.7.
MT 566 - Corporate Action Confirmation ....................................................................................... 22
3.4.
Standing Settlement Instruction ....................................................................................... 23
3.4.1. MT 670 - Standing Settlement Instruction Update Notification Request ......................................... 23
3.4.2.
MT 671 - Standing Settlement Instruction Update Notification ....................................................... 24
3.5.
Cash Reporting ............................................................................................................... 24
3.5.1. MT 900 - Confirmation of Debit .................................................................................................... 24
3.5.2.
MT 910 - Confirmation of Credit ................................................................................................... 25
3.5.3.
MT 940 - Customer Statement Message ........................................................................................ 26
3.5.4.
MT 942 - Interim Transaction Report ............................................................................................ 26
3.5.5.
MT 950 - Statement Message ....................................................................................................... 27
4.
Frequently Asked Questions ........................................................................................................... 27
5.
Observations and Recommendations .............................................................................................. 27
6.
Market Feedback ........................................................................................................................... 28
Page 2
1. Introduction
Background
Industry stakeholders approached SWIFT with concerns about the lack of straight-through-processing (STP)
of Offshore Chinese Yuan (CNY) products. As of July 2011, counterparties are processing these Offshore CNY
products in a manual (non-STP) fashion. As a result, stakeholders foresee the need to reengineer business
processes, invest in information technology system upgrades and hire staff to scale for manual processing.
SWIFTs involvement was requested to help industry participants define best practices so that market
participants can make use of the SWIFT MT and ISO 15022 messages to facilitate STP processing of Offshore
CNY products.
After the April 1st industry group meeting with 68 participants across 24 organizations, there was
agreement to establish 3 market groups to propose the best practice recommendations for straightthrough-processing for the offshore CNY market.
The groups are representative of the industry concerns by focusing on securities, cash and trade and
treasury SWIFT MT and ISO 15022 messages. The three groups met from May to June 2011 with a final
th
meeting on June 29 2011 to gain consensus across the working groups. Hereafter, for the purposes of this
document, we will refer to these groups in entirety as the Offshore CNY Best Practice Group (OCBPG).
Objective
The objective of Offshore CNY Best Practice Group is to agree best practice on the use of SWIFT MT and ISO
15022 messages to enhance STP rates for Offshore CNY transactions.
2. Purpose of this document

Summary of guidelines
The best practice document act as guiding principles to increase STP rates between counterparties by clearly
identifying onshore verse Offshore CNY transactions in SWIFT MT and ISO 15022 messages with the use of
structured codes. The use of these structured code are optional but creates a baseline to work towards in
counterparty communication.
In all cases, the structured code appears as the last piece of information in the recommended field of the
MT and ISO 15022 messages. This will help Information Technology professionals apply programming logic
with a goal of systematic automation.
OCBPG commonly agreed on a common structured code for all impacted messages. The structured code is
/PSET/ followed by 2 characters ISO country code embedded by /. For example, /PSET/HK/ would indicate
that the place of settlement is Hong Kong. Therefore, the ISO currency code in the MT and ISO 15022
messages will be validated as CNY. By adding /PSET/<country code>/ this would indicate the place of
settlement is outside China. As a result, CNY ISO currency with the addition of /PSET/HK/ would indicate an
offshore CNY transaction. For the payments group, the structured code adds information indicating whether
the payment is trade or non-Trade Settlement related. For the treasury group, there is additional
information to the structured code that indicates the settlement mechanism of payment verses payment in
the Hong Kong RTGS.
Page 3
Messages that are impacted are as follows:

Payments
MT 101
Request for Transfer
MT 103
Single Customer Credit Transfer
MT 202
General Financial Institution Transfer
MT 210
Notice to Receive
Treasury
MT 300
Foreign Exchange Confirmation
MT 304
Advice/Instruction of a Third Party Deal
MT 305
Foreign Currency Option Confirmation
MT 306
Foreign Currency Option Confirmation (for exotic options)
MT 320
Fixed Loan/Deposit Confirmation
MT 321
Instruction to Settle a Third Party Loan/Deposit
MT 330
Call/Notice Loan/Deposit Confirmation
MT 380
Foreign Exchange Order
MT 381
Foreign Exchange Order Confirmation
Securities
MT 513
Client Advice Of Execution
MT 514
Trade Allocation Instruction
MT 515
Client Confirmation of Purchase or Sale
MT 540
Receive Free
MT 541
Receive Against Payment
MT 542
Deliver Free
MT 543
Deliver Against Payment
MT 544
Receive Free Confirmation
MT 545
Receive Against Payment Confirmation
MT 546
Deliver Free Confirmation
MT 547
Deliver Against Payment Confirmation
MT 564
Corporate Action Notification
MT 565
Corporate Action Instruction
MT 566
Corporate Action Confirmation
Standing Settlement Instructions for Treasury and Payment
MT 670
Standing Settlement Instruction Update Notification Request
MT 671
Standing Settlement Instruction Update Notification
Cash Reporting
MT 900
Confirmation of Debit
MT 910
Confirmation of Credit
MT 940
Customer Statement Message
MT 942
Interim Transaction Report
MT 950
Statement Message
Legends used in this guidelines

Symbol
/
PSET
TR
NT
<
>
SPRO
PVP
Description
Delimiter that must be present at the beginning and ending of the
structured code.
Indicates the place of settlement
Indicate the transaction is Trade Settlement related
Indicates the transaction is non-Trade Settlement related
The beginning symbol of a dynamic field. The following text describes
the nature of the data to be presented.
The closing symbol of a dynamic field.
Indicates the deal is to be settled with a specified method
Indicates the transaction is to be settled by Payment Versus Payment
Page 4
<ISO country code>
<Trade Settlement or
non-Trade Settlement
code>
method offered by the central bank of Hong Kong.

When this appears, it indicates that participants should use a two-letter
ISO 3166 country code. For example, Hong Kong, the country code is
HK.
When this appears participants can use TR or NT.
3. Guidelines to present offshore CNY transactions

3.1. Payments
3.1.1. MT 101 Request for Transfer
-
In relevant individual transaction, use the structured code in the last portion of sequence B field 70.
This field allows for a maximum of 4 lines and each line can have 35 characters (4 x 35x).
Examples of the structured code use in field 70 are:

o /PSET/<ISO country code>/
OR
o /PSET/<ISO country code>/< Trade Settlement or non-Trade Settlement code>/
If <Trade Settlement or non-Trade Settlement code> is not specified, then by default the transaction is
non-Trade Settlement related.
The structured code must appear as the very last piece of information in the field.
The structured code must appear in a single line.
When using the structured code it must appear in its entirety together with delimiters.
The use of the structured code is optional.

1.
In this example of an offshore CNY transaction with the place of settlement is Hong Kong and the
transaction is Trade Settlement related. This example shows sequence B field 70 with the first three
lines occupied therefore the structured code appears in line four as the last piece of information.
Message type
101
Sequence B
Sender to Receiver Information
:70://<narrative text>
//<narrative text>
//<narrative text>
/PSET/HK/TR/
Sequence B
Page 5
2.
In this example, there is an offshore CNY transaction with the place of settlement as Hong Kong and the
transaction is non-Trade Settlement related. The third line of sequence B field 70 has space to hold the
structured code.
//<narrative text>
//<narrative text>/PSET/HK/NT/
OR
3.
In this example, this is an Offshore CNY transaction with the place of settlement in Hong Kong and the
transaction is Trade Settlement related. The structured code will be displayed as the first and last piece
of information in sequence B field 70 when there is no other information in this field.
4.
:70:/PSET/HK/TR/
This is an example of an error in the format. The structured code is not the last piece of information in
sequence B field 70. Although the SWIFT network will not reject this message, OCBPG does not agree
with this presentation.
5.
//<narrative text>
//<narrative text>/PSET/HK/
//<narrative text>/PSET/HK/TR/<narrative text>
This is an example of an error in the format. The structured code does not appear in a single line in
sequence B field 70. Although the SWIFT network will not reject this message, OCBPG does not agree
//<narrative text>/PSET/
/HK/TR/
3.1.2. MT 103 - Single Customer Credit Transfer

-
Use field 72 which allows for a maximum 6 lines and each line can have 35 characters (6 x 35x).
The two possible structured codes are:

o /PSET/<ISO country code>/<Trade Settlement or non-Trade Settlement code>/
OR
o /PSET/<ISO country code>/.
If <Trade Settlement or non-Trade Settlement code> is not specified then by default the transaction is
Page 6
1.
2.
This example shows an offshore CNY transaction. The place of settlement is Hong Kong and the
transaction is Trade Settlement related. The first four lines are already filled with other information
therefore the structured code is to put in the fifth line in field 72.
Message type
103
//<narrative text>
//<narrative text>
//<narrative text>
/PSET/HK/TR/
In this example, the transaction is offshore CNY with the place of settlement is Hong Kong and the
transaction is non Trade Settlement related. The fourth line has sufficient space to hold the full
structured code. Shown below are two possible options to present the structured code in field 72.
//<narrative text>
//<narrative text>
OR
3.
This transaction is for offshore CNY with the place of settlement in Hong Kong and the transaction is
non Trade Settlement related in field 72. There is no other information in field 72.
4.
//<narrative text>
//<narrative text>
:72:/PSET/HK/NT/
This is an example of an error in the format. The structured code does not appear as the last piece of
information in field 72. Although the SWIFT network will not reject this message, OCBPG does not agree
:72:<narrative text>
<narrative text>
<narrative text>/PSET/HK/TR/<narrative text>
Page 7
3.1.3. MT 202 - General Financial Institution Transfer

-
The field used for the structured code is field 72. This field allows a maximum of 6 lines and each line
can have 35 characters (6 x 35x)
The two possible structured codes are:

OR
If <Trade Settlement or non-Trade Settlement code> is not present, it means the transaction is nonTrade Settlement related.

1.
2.
In this example, the transaction is offshore CNY with the place of settlement in Hong Kong and the
transaction is Trade Settlement related. The first four lines are already filled with other information and
therefore the structured code is specified on the fifth line.
Message type
202
//<narrative text>
//<narrative text>
//<narrative text>
/PSET/HK/TR/
This example shows an offshore CNY transaction with the place of settlement in Hong Kong and the
transaction is non-Trade Settlement related. The first four lines are filled with other information and
the fourth line has enough space to hold the structured code. In this example, there are two options to
display the structured code.
//<narrative text>
//<narrative text>
OR
//<narrative text>
//<narrative text>
Page 8
3.1.4. MT 210 - Notice to Receive

-
1.
Use account identification field 25 for the structured code. This field allows a maximum of 35
characters.
After presenting the account number, put additional remarks that had been agreed with counter party
in the field to distinguish the transaction is offshore CNY
The transaction is offshore CNY.

Message type
210
Account Identification
:25:<account number><addition remarks to

indicate the transaction is offshore CNY>
3.2. FX, MM, & Derivatives
3.2.1. MT 300 - Foreign Exchange Confirmation

-
The structured codes use field 72 of sequence C (Optional General Information). This field allows a
maximum of 6 lines and each line can have 35 characters (6 x 35x)
The structured code is:
o
/PSET/<ISO country code>/
If the transaction is using payment versus payment (PVP) settlement method, then the structured code
to add in front of /PSET/<ISO country code>/ is:
o
/SPRO/PVP/
/SPRO/PVP/ can appear alone as a structured code without /PSET/<ISO country code>/. In this case
/SPRO/PVP/ must still appear as the last piece of information in field 72 of the General Information
sequence.
If a transaction is offshore CNY and PVP, the structured code to appear in its entirety is:
o
/SPRO/PVP/PSET/<ISO country code>/
All of the above structured code must appear as the very last piece of information in the field.
All of the above structured code must appear in a single line.

1.
In this example, the transaction is offshore CNY with the place of settlement in Hong Kong and the
transaction with a settlement mechanism of PVP. The first three lines are already filled with other
information and therefore the structured code appears in the fourth line in field 72 in sequence C.
Page 9
Message type
300
Optional Sequence C Optional General Information
//<narrative text>
//<narrative text>
/SPRO/PVP/PSET/HK/
Optional Sequence D Split Settlement Details
2.
This example is for an offshore CNY transaction with the place of settlement in Hong Kong and the
transaction with a settlement mechanism of PVP. The first three lines are already filled with other
information but the third line has enough space for the structured code in field 72 in sequence C.
3.
The example shows an offshore CNY transaction with the place of settlement in Hong Kong. The first
four lines already filled with other information but the fourth line has enough space to hold the
structured code in field 72 in sequence C.
4.
//<narrative text>
//<narrative text>/SPRO/PVP/PSET/HK/
//<narrative text>
//<narrative text>
In this example, the offshore CNY transaction has a place of settlement in Hong Kong. There is no
addition information in field 72 in sequence C as a result the structured code is shown alone.
.
5.
This is an example of a transaction with a settlement mechanism of PVP. The first three lines are
already filled with other information and the third line has enough space to hold the structured code in
field 72 information in sequence C.
6.
:72:/PSET/HK/
//<narrative text>
//<narrative text>/SPRO/PVP/
field 72 in sequence C. Although SWIFT network will not reject the message, OCBPG does not agree this
presentation.
Page 10
7.
<narrative text>
<narrative text>/PSET/HK/<narrative text>
This is an example of an error in the format. The structured code does not appear in the same line in
field 72 in sequence C. Although SWIFT network will not reject the message, OCBPG does not agree this
presentation.
:72:<narrative text>/SPRO/
/PVP/PSET/HK/
3.2.2. MT 304 - Advice/Instruction of a Third Party Deal

-
The structured codes use field 72 of sequence C (Optional General Information). This field allows a
maximum of 6 lines and each line can have 35 characters (6 x 35x)
o
If the transaction is using payment versus payment (PVP) settlement method, then the structured code
to add in front of /PSET/<ISO country code>/ is:
o
/SPRO/PVP/
/SPRO/PVP/ can appear alone as a structured code without /PSET/<ISO country code>/. In this case
/SPRO/PVP/ must still appear as the last piece of information in field 72 of the General Information
sequence.
If a transaction is offshore CNY and PVP, the structured code to appear in its entirety is:
o
/SPRO/PVP/PSET/<ISO country code>/

1.
In this offshore CNY example, the place of settlement is in Hong Kong and the transaction is settled with
PVP. The first three lines are already filled with other information and therefore the structured code is
on the fourth line in field 72 in sequence C.
Message type
304
Optional Sequence C Optional General Information
//<narrative text>
//<narrative text>
Page 11
/SPRO/PVP/PSET/HK/
Optional Sequence D Accounting Information
2.
This example is for an offshore CNY transaction with the place of settlement in Hong Kong and the
transaction is settled with PVP. The first three lines are already filled with other information and the
third line has enough space to hold the structured code in field 72 in sequence C.
3.
//<narrative text>
//<narrative text>/SPRO/PVP/PSET/HK/
This offshore CNY transaction is settled with PVP. The first three lines are already filled with other
information and the third line has enough space to hold the structured code in field 72 in sequence C.
//<narrative text>
//<narrative text>/SPRO/PVP/
3.2.3. MT 305 - Foreign Currency Option Confirmation

-
The structured codes use field 72. This field allows a maximum of 6 lines and each line can have 35
characters (6 x 35x)
o

1.
This offshore CNY transaction has a place of settlement in Hong Kong. The first three lines are already
filled with other information and therefore the offshore information is specified on the fourth line in
field 72.
Message type
305
//<narrative text>
//<narrative text>
/PSET/HK/
Page 12
2.
This is an example of an offshore CNY transaction with the place of settlement in Hong Kong. The first
three lines are already filled with other information and the third line has enough space for the
structured code in field 72.
//<narrative text>
//<narrative text > /PSET/HK/
3.2.4. MT 306 (exotic options) - Foreign Currency Option Confirmation

-
The structured codes use field 72 of sequence I (Optional Additional Information). This field allows a
maximum of 6 lines and each line can have 35 characters (6 x 35x).
o

1.
This is an example of an offshore CNY transaction with the place of settlement in Hong Kong. The first
three lines are already filled with other information and therefore the structured code is on the fourth
line in field 72 in sequence I.
Message type
306
Optional Sequence I Optional Additional Information
//<narrative text>
//<narrative text>
/PSET/HK/
Optional Sequence J Additional Amounts
3.2.5. MT 320 - Fixed Loan/Deposit Confirmation

-
The field used is field 72 in sequence H (Optional Additional Information). Field 72 allows a maximum
of 6 lines and each line can have 35 characters (6 x 35x).
o
When specify, the structured code must appear in its entirety together with delimiters.
Page 13

1.
This is an example of an offshore CNY transaction where the place of settlement is in Hong Kong. First
three lines already filled with other information and therefore the offshore information is specified on
the fourth line in field 72 in sequence H.
Message type
320
Optional Sequence H Optional Additional Information
//<narrative text>
//<narrative text>
/PSET/HK/
Optional Sequence I Additional Amounts
2.
In this offshore CNY transaction the place of settlement is Hong Kong. The first four lines are filled with
other information however there is space for the structured code on the fourth line in field 72 in
sequence H.
3.
//<narrative text>
//<narrative text>
This is an example of an error in the format. The structured code is not on a single line in field 72 in
sequence H. Although SWIFT network will not reject the message, OCBPG does not agree this
presentation.
//<narrative text>
//<narrative text>
//<narrative text>/PSET/
/HK/
3.2.6. MT 321 - Instruction to Settle a Third Party Loan/Deposit

-
In Subsequence C1 Settlement Parties block with Party field 95a, the qualifier is ACCW to indicate the
Account with Institution, the structured code is to put in Party Contact Narrative field - 70C with PACO
qualifier, a maximum 4 lines and each line can go up to 35 characters field (4 x 35x), excluding the
qualifier and //
o
Page 14
The structured code must appear as the last piece of information in the field.
The structured code must appear on the same line.

1.
This example is for an offshore transaction where the place of settlement is in Hong Kong. The first
three lines are already filled with other information and therefore structured code is in the fourth line
in field 70C in sequence C1.
Message type
321
Mandatory Repetitive Subsequence C1 Settlement Parties
Party
:95P::ACCW//<BIC code>
Party Contact Narrative
:70C::PACO//<narrative text>
<narrative text>
<narrative text>
/PSET/HK/
Mandatory Repetitive Subsequence C1 Settlement Parties
2.
In this example, the offshore CNY transaction has the place of settlement in Hong Kong. The structured
code appears alone because there is no addition information in field 70C in sequence C1.
3.
field 70C in sequence C1. Although SWIFT network will not reject the message, OCBPG does not agree
this presentation.
4.
:70C::PACO//PSET/HK/
<narrative text>
<narrative text> /PSET/HK/ <narrative text>
This is an example of an error in the format. The structured code is on two lines instead of one in field
70C in sequence C1. Although SWIFT network will not reject the message, OCBPG does not agree this
presentation.
<narrative text>
Page 15
<narrative text>/PSET/
/HK/
3.2.7. MT 330 - Call/Notice Loan/Deposit Confirmation

-
The structured code should be used in field 72 in Optional sequence H (Optional Additional
Information). This field allows a maximum of 6 lines and each line can have 35 characters field (6 x 35x).
o
The structured code must be used in its entirety together with delimiters.
The structured code must appear as the last piece of information in the field.
The structures code must appear on the same line.

1.
This is an example of an offshore CNY transaction where the place of settlement is in Hong Kong. The
first three lines are already filled with other information. As a result, the structured code is to put in the
fourth line in field 72 in sequence H.
Message type
330
Optional Sequence H Optional Additional Information
2.
//<narrative text>
//<narrative text>
/PSET/HK/
This is an example of an offshore CNY transaction where the place of settlement is in Hong Kong. The
first four lines filled with other information however there is enough space for the structured code in
the fourth line in field 72 in sequence H.
//<narrative text>
//<narrative text>
3.2.8. MT 380 - Foreign Exchange Order

-
The structured code will appear in the mandatory subsequence B1 FX Order Parties block, in
Safekeeping Account field 97A with qualifier SAFE. This field is at maximum 35 characters, excluding the
qualifier and //.
After the account number then input text that has been agreed with your counter party to indicate an
offshore CNY transaction.
Page 16
1.

Message type
380
Mandatory Subsequence B1 FX Order Parties
Safekeeping Account
:97A::SAFE//<account number><addition
remarks to indicate the transaction is
offshore CNY>
3.2.9. MT 381 - Foreign Exchange Order Confirmation

-
1.
The structured code should appear in the mandatory subsequence B1 FX Order Parties block, in
Safekeeping Account field 97A with qualifier SAFE. This field is at maximum 35 characters, excluding the
qualifier and //
After the account number then input text that has been agreed with your counter party to indicate an
offshore CNY transaction.
Message type
381
Mandatory Subsequence B1 FX Order Parties
Safekeeping Account
:97A::SAFE//<account number><addition remarks

to indicate the transaction is offshore CNY>
3.3. Securities
The securities post-trade, settlement instruction, settlement instruction confirmation message formats all
support the mandatory or optional use of the place of settlement (PSET) that will identify the transaction as
offshore CNY. The place for PSET is in field 95a of the repetitive settlement party sequence.
In both securities settlement instructions (MT540, MT 541, MT 542, MT 543) and confirmations (MT 544,
MT 545, MT 546, MT 547), since their message layout are identical, the PSET is specified in Mandatory
Repetitive Subsequence E1 Settlement Parties block
3.3.1. MT 513 - Client Advice Of Execution
Page 17
1.
In this example, the offshore CNY transaction lists the currency of the transaction as CNY and then
includes the place of settlement (PSET) in the client advice of execution with the BIC code is XHKGHKHH
(indicating HK Exchange & Clearing Corporation).
Message type
513
Mandatory Sequence C Order Details
Price
:90B::DEAL//ACTU/CNY100,
Optional Repetitive Subsequence D1 Settlement Parties
Party
:95P::PSET//XHKGHKHH
3.3.2. MT 514 - Trade Allocation Instruction

1.
This Example makes use of field 95p in sequence C1 to show an offshore CNY transaction. PSET appears
with the place of settlement as Hong Kong Stock Exchange (XHKGHKHH).
Message type
514
Mandatory Sequence B Confirmation Details
Price
Optional Repetitive Subsequence C1 Settlement Parties
Party
Page 18
3.3.3. MT 515 - Client Confirmation of Purchase or Sale

1.
This is an example of an offshore CNY transaction where PSET appears in field 95P in sequence C with
the place of settlement as Hong Kong Stock Exchange (XHKGHKHH).
Message type
515
Mandatory Sequence C Confirmation Details
Price
Optional Repetitive Subsequence D1 Settlement Parties
Party
3.3.4. MT 543 - Deliver Against Payment

1.
This is an example of a deliver against payment settlement instruction for offshore CNY transaction
where the settlement is at Hong Kong Stock Exchange (XHKGHKHH).
Message type
543
Mandatory Repetitive Subsequence E1 Settlement Parties
Party
Mandatory Sequence E3 Amount
Page 19
Amount
:19A::SETT//CNY300000,
3.3.5. MT 564 - Corporate Action Notification

It is recommended by OCBPG when presenting the structured code, sub custodian should start to quote (the
plus sign indicates the message type in above diagram means the party who should start to quote the
structured code).
-
The structured code in repetitive Narrative field 70E Optional Sequence F Additional Information block
will use the ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35
characters, excluding the qualifier and //.
The structured code must appear as an individual occurrence and as the last piece of information of 70E.
o
The structured code must appear together with delimiters.


1.
This is an example of a corporate action that is an offshore CNY event. The structured code appears
before another occurrence of field 70E in sequence F.
Message type
564
Page 20
Optional Sequence F Additional Information
2.
3.
Narrative
:70E::ADTX//PSET/HK/
Narrative
:70E::ADTX//<narrative text>
<narrative text>
This is an example of a corporate action notification is for an offshore CNY event. The structured code
appears after another occurrence of field 70E in sequence F.
Narrative
<narrative text>
Narrative
This is an example of an error in the format because there is additional narrative text in field 70E in
sequence F. Although the SWIFT network will not reject the message, OCBPG does not agree this
presentation.
Narrative
:70E::ADTX//PSET/HK/<narrative text>
3.3.6. MT 565 - Corporate Action Instruction

-
The structured code will be put in Optional Sequence F Additional Information block, in repetitive
Narrative field 70E with the ADTX qualifier. The field size is maximum with 10 lines and each line can go
up to 35 characters, excluding the qualifier and //.
The structured code must appear in an individual occurrence of 70E. Additional information has to put
in another repeated field 70E with ADTX qualifier.
o
The structure must appear together with delimiters.


1.
In this example, the corporate action instruction is for an offshore CNY event. The structured code
appears before another occurrence of field 70E in sequence E.
Message type
565
Optional Sequence E Additional Information
Page 21
2.
Narrative
Narrative
< narrative text>
In this example, the corporate action instruction is for an offshore CNY event. The structured code
appears after another occurrence of field 70E in sequence E.
Narrative
<narrative text>
Narrative
3.3.7. MT 566 - Corporate Action Confirmation

-
The structured code is used in Optional Sequence F Additional Information block, in repetitive Narrative
field 70E with ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35
characters, excluding the qualifier and //.
The structured code must appear in an individual occurrence of 70E. Additional information has to put
in another repeated field 70E with ADTX qualifier.
o
The structure must appear together with delimiters.


1.
In this example, the corporate action confirmation is for an offshore CNY event. The structured code
appears before another occurrence of field 70E in sequence E.
Message type
566
Optional Sequence E Additional Information
2.
Narrative
Narrative
<narrative text>
In this example, the corporate action confirmation is for an offshore CNY event. The structured code
appears after another occurrence of field 70E in sequence E.
Page 22
Narrative
<narrative text>
Narrative
3.4. Standing Settlement Instruction
3.4.1. MT 670 - Standing Settlement Instruction Update Notification Request

-
The structured code in Optional Subsequence B2 Other Details block, in repetitive Narrative field 70E
with ADTX qualifier. The field size is maximum with 10 lines and each line can go up to 35 characters,
excluding the qualifier and //
The structured code must appear in an individual occurrence of 70E. Any additional information has to
put in another repeated field 70E ADTX
o
The structure must appear together in its entirety with delimiters.

It is optional to specify the structured code.

3.
In this example, the standing settlement instruction notification is for offshore CNY. The structured
code appears before another occurrence of field 70E in sequence B2.
Message type
670
Page 23
Optional Subsequence B2 Other Details
4.
1.
Narrative
Narrative
<narrative text>
In this example, the standing settlement instruction notification is for offshore CNY. The structured
code appears after another occurrence of field 70E in sequence B2.
Narrative
<narrative text>
Narrative
This is an error in the format because there is additional narrative text in field 70E in sequence B2.
Although the SWIFT network will not reject this message, OCBPG does not agree this presentation.
Narrative
:70E::ADTX//PSET/HK/<narrative text>
3.4.2. MT 671 - Standing Settlement Instruction Update Notification

This is a message generated by the SWIFT network from the fields of the MT 670. If the original MT 670 has
the offshore CNY structured field, it will automatically appear in the same block of information in the MT
671. However, if the original MT 670 doesnt follow the OCBPG guidelines then the MT 671will also not
follow the OCBPG guidelines.
3.5. Cash Reporting
3.5.1. MT 900 - Confirmation of Debit

-
The two possible structured code are:

OR
The structured code must be used in its entirety together with delimiters. The structured code must
appear as the very last piece of information in the field.
Page 24

1.
2.
The advice is for offshore CNY. The place of settlement is Hong Kong and the transaction is trade
related. First four lines already filled with other information and there is insufficient space to hold the
full piece of information in the fourth line in field 72.
Message type
900
//<narrative text>
//<narrative text>
//<narrative text>
/PSET/HK/TR/
The advice is for offshore CNY. The place of settlement is Hong Kong and the transaction is non trade
related. First four lines filled with other information and the fourth line has sufficient space to hold the
full piece of information in field 72.
3.
related. There is no information needed to put in field 72.
4.
//<narrative text>
//<narrative text>
:72:/PSET/HK/NT/
Error format, structured code is not the very last piece of information in the field. Although SWIFT
network will not reject the message, OCBPG does not agree this presentation.
<narrative text>
<narrative text>/PSET/HK/TR/<narrative text>
3.5.2. MT 910 - Confirmation of Credit

-
The two possible structured code are:

OR
The structured code must be used in its entirety together with delimiters.
Page 25

1.
related. First four lines filled with other information and the fourth line has sufficient space to hold the
full piece of information in field 72.
Message type
910
//<narrative text>
//<narrative text>
3.5.3. MT 940 - Customer Statement Message

When neither message context nor destination of the message is able to indicate the transaction is related
to offshore CNY
-
Use account identification field 25. This field is at maximum contains 35 characters
1.
The report is for offshore CNY.

Message type
940

3.5.4. MT 942 - Interim Transaction Report

to offshore CNY
-
Page 26
1.

Message type
942

3.5.5. MT 950 - Statement Message

to offshore CNY
-
1.

Message type
950

4. Frequently Asked Questions
5. Observations and Recommendations

The OCBPG is not a regulatory body and cannot enforce any of the guidelines. It can only point out practices
which, when followed properly, are beneficial to financial community.
Above and beyond the guidelines stated above, the community can use below observations and
recommendations to better deal with the operational impact around offshore CNY:
Page 27
6. Market Feedback
Page 28

Offshore CNY Best Practice Guidelines For Consultation

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Offshore CNY Best Practice Guidelines for SWIFT FIN and ISO 15022 messages

Offshore CNY best practice guidelines v 0_2

Purpose of this document ................................................................................................................ 3

Guidelines to present offshore CNY transactions ............................................................................... 5

MT 103 - Single Customer Credit Transfer ....................................................................................... 6

MT 202 - General Financial Institution Transfer ............................................................................... 8

MT 210 - Notice to Receive ............................................................................................................. 9

MT 304 - Advice/Instruction of a Third Party Deal ......................................................................... 11

MT 305 - Foreign Currency Option Confirmation ............................................................................ 12

MT 306 (exotic options) - Foreign Currency Option Confirmation ................................................... 13

MT 320 - Fixed Loan/Deposit Confirmation ................................................................................... 13

MT 321 - Instruction to Settle a Third Party Loan/Deposit .............................................................. 14

MT 330 - Call/Notice Loan/Deposit Confirmation .......................................................................... 16

MT 380 - Foreign Exchange Order ................................................................................................. 16

MT 381 - Foreign Exchange Order Confirmation............................................................................. 17

MT 514 - Trade Allocation Instruction ........................................................................................... 18

MT 515 - Client Confirmation of Purchase or Sale .......................................................................... 19

MT 543 - Deliver Against Payment ................................................................................................ 19

MT 564 - Corporate Action Notification ......................................................................................... 20

MT 565 - Corporate Action Instruction .......................................................................................... 21

MT 566 - Corporate Action Confirmation ....................................................................................... 22

MT 671 - Standing Settlement Instruction Update Notification ....................................................... 24

MT 910 - Confirmation of Credit ................................................................................................... 25

MT 940 - Customer Statement Message ........................................................................................ 26

MT 942 - Interim Transaction Report ............................................................................................ 26

MT 950 - Statement Message ....................................................................................................... 27

Frequently Asked Questions ........................................................................................................... 27

Observations and Recommendations .............................................................................................. 27

Market Feedback ........................................................................................................................... 28

Offshore CNY best practice guidelines v 0_2

2. Purpose of this document

Offshore CNY best practice guidelines v 0_2

Messages that are impacted are as follows:

Legends used in this guidelines

Offshore CNY best practice guidelines v 0_2

<ISO country code>

method offered by the central bank of Hong Kong.

3. Guidelines to present offshore CNY transactions

Examples of the structured code use in field 70 are:

The use of the structured code is optional.

Sender to Receiver Information

Offshore CNY best practice guidelines v 0_2

Sender to Receiver Information

3.1.2. MT 103 - Single Customer Credit Transfer

The two possible structured codes are:

The use of the structured code is optional.

Offshore CNY best practice guidelines v 0_2

Sender to Receiver Information

Sender to Receiver Information

Offshore CNY best practice guidelines v 0_2

3.1.3. MT 202 - General Financial Institution Transfer

The two possible structured codes are:

The use of the structured code is optional.

Sender to Receiver Information

Sender to Receiver Information

Sender to Receiver Information

Offshore CNY best practice guidelines v 0_2

3.1.4. MT 210 - Notice to Receive

The transaction is offshore CNY.

:25:<account number><addition remarks to

3.2. FX, MM, & Derivatives

3.2.1. MT 300 - Foreign Exchange Confirmation

/PSET/<ISO country code>/