dc:rights
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Intellectual Property Rights:
The ISO 20022 Message Definitions described in this class and subclasses were contributed by SWIFT. The ISO 20022 IPR policy
is available at www.ISO20022.org > Intellectual Property Rights Policy.
Copyright:
Copyright © S.W.I.F.T. SCRL ("SWIFT"), avenue Adèle 1, B-1310 La Hulpe, Belgium, or its licensors, 2008. All rights
reserved. SWIFTStandards are licensed subject to the terms and conditions of the SWIFTStandards IPR Policy - End-
User License Agreement, available at www.ISO20022.org > Intellectual Property Rights Policy > SWIFT.
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rdfs:comment
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Order messages are used to instruct the executing party to subscribe, to redeem or to switch a given amount/quantity of a specified financial instrument.
As the processes are different for many institutions, there is a need to differentiate at message type level. These message definitions can be grouped into three categories:
- Subscription,
- Redemption,
- Switch.
Orders in the funds industry may be given according to different scenarios,
eg, some players group orders before sending them to the next party in the chain. In order to cater for this, two sub-categories have been created for the subscription and the redemption types of message definitions.
- Bulk order: A bulk message is typically a message containing a series of individual order transactions from different accounts, but for the same financial instrument with the same intermediary details. The order will result in a single cash settlement (not settlement per individual order) executed using one single method. This order is sent by a concentrator or a party collecting orders and bulking them to relay the transactions to the transfer agent or another intermediary.
- Order: An order message is typically a message containing a single order or multiple orders (list of orders related to several financial instruments) for the same account. It is a 'shopping list' for one account. This type of order is typically sent by financial advisers or banks that are managing a portfolio for a particular account.
In short, a bulk is "1 financial instrument-n accounts"; and an order is "1 account-1 financial instrument"; if it is a single order and "1 account-n financial instruments"; if it is a multiple order.
No specific order category has been created for cross or 'bed and breakfast' orders. In some countries, for legal reasons, these must appear as separate orders, while in others, the two orders may be given together. Therefore, no specific order has been created for a bed and breakfast order, as this transaction is the combination of a redemption and a subscription linked together.
Limit and forward orders are not covered, as these are not common in the Funds industry.
For each category, below main flows are covered:
- the order,
- the order confirmation,
- the order cancellation instruction.
There is no order amendment message definition, as the agreed philosophy is 'cancel and replace'. In addition, message definitions for 2 new flows are now available. They are:
- the order confirmation amendment,
- the order confirmation cancellation.
These message definitions cover the cases where one or several details in the order confirmation message need to be amended or when the entire order confirmation message needs to be cancelled.
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