Features and types of SWIFT

Features:

1.SWIFT requires membership. Most professional banks in China are its members.

2.SWIFT has low cost and high speed. For the same content, the cost of SWIFT is only about 18% of that of telex and only about 2.5% of that of telegram.

3.SWIFT has high security; . SWIFT encryption is more reliable, more confidential and more automated than telex encryption.

4.4 format. SWIFT is standardized. For SWIFT messages, SWIFT organizations have uniform requirements and formats.

There are three types of users: members (shareholders), sub-members and ordinary users. Members can enjoy all SWIFT services; Ordinary users only enjoy services related to their business, mainly from the securities industry, such as securities intermediaries, investment management companies, fund management companies and so on.

Services provided by SWIFT

1, access service

SWIFT's access service is completed through a series of products of SWIFTAlliance, including:

(1) SwiftAlliance Access and Entry: interface software for transmitting FIN information;

(2) SWIFTAlliance Gateway: access the window software of SWIFTNet;

(3) SWIFTAlliance Webstation: access the desktop access software of SWIFTNet;

(4) File transfer interface: file transfer interface software, which is convenient for users to access their background systems through SWIFTNet FileAct.

SWIFTNET Link software is embedded in SWIFTAlliance Gateway and SWIFTAlliance Webstation to provide transmission, standardization, security and management services. Once connected, it ensures that users can access SWIFTNet multiple times using the same window and get different services.

2. Financial information transmission services

After the launch of SWIFTNet, traditional FIN services were provided on the new network SwiftNet FIN (launched in August 2002). SWIFT combines traditional FIN services with newly developed interactive services to develop SWIFTNet information transmission services to meet the ever-developing needs of modern financial institutions. Including the following four services: (1) in financial information transmission; (2) Swiftnet interaction: it provides two information transmission modes: interaction (real-time) and store-and-forward, which are suitable for financial services that require real-time response. (3)SWIFT FileAct: It provides interactive and store-and-forward file automatic transmission modes, which are suitable for the transmission of large amounts of data. (4)SWIFTNeBrowse uses standard Internet browsers (such as IE) and SWIFT Alliance Web Station to access browse-based browsing services, and its security is guaranteed by SSL and SIPN.

3. Transaction processing services

Transaction processing services also provide transaction processing services to foreign exchange exchanges, money markets and financial derivatives certification institutions through SWIFTNet, including:

(1) Accord matching service

(2) Real-time reporting of bilateral netting business (netting adjustment)

(3) End-to-end electronic payment (E-PaymentsPlus) supporting B2B business.

4. Analytical services and tools

SWIFT also provides some auxiliary services for financial institutions, namely analytical services and analytical tools.

SWIFT includes the following tools:

(1)BIC online and BIC directory update broadcast: providing the latest global code (BIC) for financial institutions;

(2) Traffic monitoring: you can monitor the information currently transmitted by SWIFT;

(3) Transaction observation: it can monitor the process of information from sending to receiving, obtain various parameters, and provide analysis data for improving the efficiency of securities system and payment system;

(4) Straight-through processing (STP) review: In order to improve competitiveness, STP capability is becoming more and more important for financial institutions. SWIFT can provide users with an independent and objective STP evaluation.

Risk prevention of SWIFT

The security threat of SWIFT comes from two aspects: payment risk and system risk.

SWIFT does not directly help financial institutions pay risks. With the services provided by SWIFT, financial institutions can effectively control payment risks. For example, SWIFT provides FIN Copy services to support clearing, settlement and netting of securities-related transactions involving large payments. Before the transaction order is sent to the recipient, the order should be backed up and authenticated by a third party (such as the central bank).

The security of SWIFT system is mainly threatened by these aspects: forgery, message interception (reading or copying), modification, replay, message loss, message sender or receiver denial, etc. In view of these security threats, SWIFT system provides security policies to maintain system security. SWIFT security level is divided into: (1) secure login and service selection. (2) prevent third parties from impersonating. (3) Prevent third parties from intercepting messages. (4) making it impossible for a third party to modify or replace the contents of the message, or making it possible for the receiver to find that the message was modified during transmission. (5) Prevent the replay and loss of messages. (6) Copy and store messages exchanged in the system, and record various activities related to message exchange and their occurrence time. (7) Separation of related safety responsibilities, that is, one person cannot be responsible for multiple safety affairs.

Three. Classification and expression of SWIFT message formats. Message structure

{1. basic title block} basic title

{2. Apply Title Block} Apply Title

{3. User Title Block} User Title

{4. Text Block} Body

{5. Trailer

There are ten types of SWIFT messages * * *:

Category 1: customer remittance and check (customer payment &; Check)

Category 2: Transfer by financial institutions.

Category 3: national debt market-foreign exchange (MM, derivatives).

Category 4: Collection and Clean Bills (Collection &; Cash letter)

The fifth category: securities market.

Category 6: Precious Metals (Capital Market-Precious Metals)

Category 7: documentary credits and guarantees.

Category VIII: Traveler's checks.

Category 9: Cash Management and Accounting (Cash Management &; Customer status)

Class 0: SWIFT system telegram

In addition to the above ten types of messages, SWIFT messages also have a special category, namely, N-ordinary group messages) SWIFT is a private joint-stock company, with shareholders from members, and the executive shareholders' meeting led by 25 directors is the highest authority. SWIFT's shareholders come from all over the world, and their practical experience in financial communication has a great influence on the company's management. The executive department consists of a group of full-time employees, led by the CEO and supervised by the board of directors. Including six committees, the decision-making power is granted by the board of directors.

The Audit and Finance Committee (AFC) is responsible for accounting, financial statements, financial management, auditing and daily supervision, budgeting, financing, long-term financial planning, SWIFT operation supervision and internal control.

The Remuneration Committee of the Board of Directors is responsible for evaluating the company's performance, determining the remuneration of board members and other key executives, and managing the employee compensation and allowance plan. The board of directors also has two business committees, which are responsible for banking and payment (banking &; Payment) and securities (securities); The two technical committees are responsible for standards, technologies and products (technology & products; Production)

In order to effectively manage and supervise SWIFT, the central bank of the Group of Ten (G 10) made specific arrangements to supervise SWIFT. The National Bank of Belgium (NBB) played a leading role in the supervision of SWIFT, with the assistance of the G 10 Central Bank. SWIFT members are divided into shareholders and non-shareholders.

Shareholders (members), including banks, qualified securities brokers-dealers and qualified investment management institutions, can hold shares in SWIFT. When the shares reach a certain level of directors' right to be elected, member banks have the right to vote through directors.

Non-shareholders are mainly divided into three categories: non-holding members, affiliated members and participants.

(1) Non-participating members are those institutions that are eligible to become shareholders but have no choice or are unwilling to become shareholders.

(2) Affiliate members are members who hold shares, and have 50% direct controlling interest or 100% indirect controlling interest in the organization. In addition, the organization also needs to meet the requirements of Article 8, paragraph 1, of the Regulations on Affiliated Members. That is, it must be the same as the business that members participate in. But it must be completely controlled and managed by shareholders.

(3) Participants mainly come from various institutions in the securities industry, such as securities brokers and dealers, investment managers, fund managers and money market brokers.

1. Project performance

SWIFT consists of fields, such as "59: benefit-name &; Address "(beneficiary) is the project, and 59 is the project code, which can be expressed by two digits or two digits plus letters, such as" 5 1d: applicable bank name &; Address "(applicant). Different code names mean different things. The project also stipulates a certain format, and all kinds of SWIFT messages must be expressed in this format.

In the SWIFT message, some items are required and some are optional: required items, such as "3 1d: expiration date and place"; Optional items are additional items, which may not be included in every letter of credit, such as "39B: maximum credit line".

2. Date expression

The date of SWIFT message is expressed as YYMMDD (year, month and day)

Such as: 1999 May 12, which is expressed as: 990512;

March 2000 15, expressed as: 000315;

200165438+February 9th, expressed as: 0 1 1209.

3. Digital representation

In SWIFT messages, numbers do not use frame numbers, and decimal points are represented by commas.

For example, 5,152,286.36 is expressed as: 5152286,36;

4/5 is expressed as: 0,8;

5% means: five percent.

4. Monetary performance

Australian dollar: Australian dollar; ;