MT 504 Collateral Proposal

MT504 Format Specifications

The collateral proposal consists of five sequences:

Sequence A General Information provides general information about the message and the collateral transaction, that is, the function of the message, the identification of the collateral transaction, the references of the linked messages, the identification of the underlying agreement(s), the identification of the parties, the reason for which collateral is needed (the exposure type), the identification of the collateral action and the contact information.

Note
More than one occurrence of the agreement is only authorised for cross-product collateralisation and when no overall master agreement is in place yet.
Sequence B Summary provides information related to the collateral position, that is, the identification of the exposed party, the total exposure amount, the total collateral amount held by the taker, the value of collateral to be added to or to be returned from the collateral held. The sequence contains an optional subsequence with the amounts taken into account to calculate the collateral position. These amounts are required for certain types of exposures. This subsequence also contains the valuation dates and the requested settlement date of the collateral.
Sequence C specifies the details of the proposed collateral. The collateral can be securities, cash or other collateral. Other collateral indicates trade instruments, that is, documentary credits and bank guarantees. This sequence may also contain the settlement details for a piece of security or cash collateral. If the settlement details for all pieces of proposed securities collateral are the same, these details are not present in this sequence, but included once in sequence D. If the settlement details for all pieces of proposed cash collateral are the same, these details are not present in this sequence, but included once in sequence E.
Sequence D contains the common securities settlement details, that is, the settlement details of the proposed securities when they are not included in sequence C at the level of the individual piece of collateral.
Sequence E contains the common cash settlement details, that is, the settlement details of the proposed cash when they are not included in sequence C at the level of the individual piece of collateral.

Status	Tag	Qualifier	Generic Field Name	Detailed Field Name	Content/Options	No.
Mandatory Sequence A General Information
M	16R			Start of Block	GENL	1
----->
M	20C	4!c	Reference	(see qualifier description)	:4!c//16x	2
-----\|
M	23G			Function of the Message	4!c[/4!c]	3
-----> Mandatory Repetitive Subsequence A1 Agreement
M	16R			Start of Block	AGRE	4
O	22F	AGRE	Indicator	Agreement Indicator	:4!c/[8c]/4!c	5
O	98A	AGRE	Date	Agreement Date	:4!c//8!n	6
O	13B	AGRE	Number	Agreement Version Number	:4!c/[8c]/30x	7
O	70C	AGRE	Narrative	Agreement Narrative	:4!c//4*35x	8
M	16S			End of Block	AGRE	9
-----\| End of Subsequence A1 Agreement
O	98a	PREP	Date/Time	Preparation Date/Time	A, C, or E	10
----->
M	22a	4!c	Indicator	(see qualifier description)	F or H	11
-----\|
----->
M	95a	4!c	Party	(see qualifier description)	P, Q, or R	12
-----\|
O	70C	PACO	Narrative	Party Narrative	:4!c//4*35x	13
-----> Optional Repetitive Subsequence A2 Linkages
M	16R			Start of Block	LINK	14
O	13a	LINK	Number Identification	Linked Message	A or B	15
M	20C	4!c	Reference	(see qualifier description)	:4!c//16x	16
M	16S			End of Block	LINK	17
-----\| End of Subsequence A2 Linkages
M	16S			End of Block	GENL	18
End of Sequence A General Information
Mandatory Sequence B Summary
M	16R			Start of Block	SUMM	19
M	95a	EXPP	Party	Exposed Party	P, Q, or R	20
----->
M	19B	4!c	Amount	(see qualifier description)	:4!c//3!a15d	21
-----\|
Optional Subsequence B1 Summary Details
M	16R			Start of Block	SUMD	22
----->
O	19B	4!c	Amount	(see qualifier description)	:4!c//3!a15d	23
-----\|
----->
O	98a	4!c	Date/Time	(see qualifier description)	A or C	24
-----\|
M	16S			End of Block	SUMD	25
End of Subsequence B1 Summary Details
M	16S			End of Block	SUMM	26
End of Sequence B Summary
-----> Mandatory Repetitive Sequence C Collateral Details
M	16R			Start of Block	COLD	27
M	20C	COLR	Reference	Collateral Reference	:4!c//16x	28
----->
M	22a	4!c	Indicator	(see qualifier description)	F or H	29
-----\|
O	98A	SETT	Date	Settlement Date	:4!c//8!n	30
Optional Subsequence C1 Securities Collateral Details
M	16R			Start of Block	SCOL	31
M	35B			Identification of Financial Instrument	[ISIN1!e12!c] [4*35x]	32
M	36B	COLL	Quantity of Financial Instrument	Quantity of Securities Collateral	:4!c//4!c/15d	33
O	17B	OWNF	Flag	Ownership Flag	:4!c//1!a	34
Optional Subsequence C1a Settlement Details
M	16R			Start of Block	SETDET	35
----->
M	22a	4!c	Indicator	(see qualifier description)	F or H	36
-----\|
-----> Optional Repetitive Subsequence C1a1 Settlement Parties
M	16R			Start of Block	SETPRTY	37
----->
M	95a	4!c	Party	(see qualifier description)	C, P, Q, R, or S	38
-----\|
O	97a	SAFE	Account	Safekeeping Account	A or B	39
O	70C	PACO	Narrative	Party Narrative	:4!c//4*35x	40
M	16S			End of Block	SETPRTY	41
-----\| End of Subsequence C1a1 Settlement Parties
M	16S			End of Block	SETDET	42
End of Subsequence C1a Settlement Details
M	16S			End of Block	SCOL	43
End of Subsequence C1 Securities Collateral Details
Optional Subsequence C2 Cash Collateral Details
M	16R			Start of Block	CCOL	44
M	19B	DEPO	Amount	Deposit Amount	:4!c//3!a15d	45
M	22H	DEPO	Indicator	Type of Deposit Indicator	:4!c//4!c	46
O	98A	TERM	Date	Maturity Date	:4!c//8!n	47
Optional Subsequence C2a Cash Settlement Details
M	16R			Start of Block	CASHSET	48
O	22F	STCO	Indicator	Settlement Transaction Condition Indicator	:4!c/[8c]/4!c	49
-----> Optional Repetitive Subsequence C2a1 Cash Parties
M	16R			Start of Block	CSHPRTY	50
----->
M	95a	4!c	Party	(see qualifier description)	P, Q, R, or S	51
-----\|
----->
O	97a	4!c	Account	(see qualifier description)	A or E	52
-----\|
O	70C	PACO	Narrative	Party Narrative	:4!c//4*35x	53
M	16S			End of Block	CSHPRTY	54
-----\| End of Subsequence C2a1 Cash Parties
M	16S			End of Block	CASHSET	55
End of Subsequence C2a Cash Settlement Details
M	16S			End of Block	CCOL	56
End of Subsequence C2 Cash Collateral Details
Optional Subsequence C3 Other Collateral Details
M	16R			Start of Block	BCOL	57
M	22H	BCOL	Indicator	Type of Other Collateral Indicator	:4!c//4!c	58
----->
M	98a	4!c	Date/Time	(see qualifier description)	A or B	59
-----\|
M	95a	ISSU	Party	Issuer	P, Q, or R	60
M	19B	4!c	Amount	(see qualifier description)	:4!c//3!a15d	61
M	16S			End of Block	BCOL	62
End of Subsequence C3 Other Collateral Details
M	16S			End of Block	COLD	63
-----\| End of Sequence C Collateral Details
Optional Sequence D Settlement Details
M	16R			Start of Block	SETDET1	64
----->
M	22a	4!c	Indicator	(see qualifier description)	F or H	65
-----\|
-----> Optional Repetitive Subsequence D1 Settlement Parties
M	16R			Start of Block	SETPRTY1	66
----->
M	95a	4!c	Party	(see qualifier description)	C, P, Q, R, or S	67
-----\|
O	97a	SAFE	Account	Safekeeping Account	A or B	68
O	70C	PACO	Narrative	Party Narrative	:4!c//4*35x	69
M	16S			End of Block	SETPRTY1	70
-----\| End of Subsequence D1 Settlement Parties
M	16S			End of Block	SETDET1	71
End of Sequence D Settlement Details
Optional Sequence E Cash Settlement Details
M	16R			Start of Block	CASHSET1	72
O	22F	STCO	Indicator	Settlement Transaction Condition Indicator	:4!c/[8c]/4!c	73
-----> Optional Repetitive Subsequence E1 Cash Parties
M	16R			Start of Block	CSHPRTY1	74
----->
M	95a	4!c	Party	(see qualifier description)	P, Q, R, or S	75
-----\|
----->
O	97a	4!c	Account	(see qualifier description)	A or E	76
-----\|
O	70C	PACO	Narrative	Party Narrative	:4!c//4*35x	77
M	16S			End of Block	CSHPRTY1	78
-----\| End of Subsequence E1 Cash Parties
M	16S			End of Block	CASHSET1	79
End of Sequence E Cash Settlement Details
Optional Sequence F Additional Information
M	16R			Start of Block	ADDINFO	80
----->
O	95a	4!c	Party	(see qualifier description)	P, Q, or R	81
-----\|
M	16S			End of Block	ADDINFO	82
End of Sequence F Additional Information

MT504 Network Validated Rules

C1 If the message is a cancellation, that is, Function of the Message (field 23G) is CANC, then subsequence A2 (Linkages) must be present at least once in the message, and in one and only one occurrence of A2, field :20C::PREV must be present; consequently, in all other occurrences of A2, field :20C::PREV is not allowed.

Sequence A if field :23G: is ...	Then subsequence A2 is ...	And field :20C::PREV is ...
CANC	Mandatory (minimum one occurrence of A2 must be present)	Mandatory in one occurrence of subsequence A2, and not allowed in all other occurrences of subsequence A2
NEWM	Optional	NA

Sequence A

if field :23G: is ...

Then subsequence A2 is ...

And field :20C::PREV is ...

CANC

Mandatory (minimum one occurrence of A2 must be present)

Mandatory in one occurrence of subsequence A2, and not allowed in all other occurrences of subsequence A2

NEWM

Optional

C2 In sequence A, if field :20C::SCTR is not present, then field :20C::RCTR is mandatory, otherwise field :20C::RCTR is optional.

Sequence A
if field :20C::SCTR is ...

Sequence A
then field :20C::RCTR is ...

Not present

Mandatory

Present

Optional
C3 In sequence B, if field :19B::TEXA is not present, then field :19B::TCRL is mandatory, otherwise field :19B::TCRL is optional.

Sequence B
if field :19B::TEXA is ...

Sequence B
then field :19B::TCRL is ...

Not present

Mandatory

Present

Optional

Sequence A if field :20C::SCTR is ...	Sequence A then field :20C::RCTR is ...
Not present	Mandatory
Present	Optional

Sequence B if field :19B::TEXA is ...	Sequence B then field :19B::TCRL is ...
Not present	Mandatory
Present	Optional

C4 In each occurrence of sequence C, the presence of subsequences C1, C2 and C3 depends on the value of field :22H::COLL//<Indicator> as follows:

In each occurrence of sequence C if field :22H::COLL//4!c is ...	In the same occurrence of sequence C then subsequence C1 is ...	In the same occurrence of sequence C and subsequence C2 is ...	In the same occurrence of sequence C and subsequence C3 is ...
BCOL	Not allowed	Not allowed	Mandatory
CCOL	Not allowed	Mandatory	Not allowed
SCOL	Mandatory	Not allowed	Not allowed

In each occurrence of sequence C

if field :22H::COLL//4!c is ...

In the same occurrence of sequence C

then subsequence C1 is ...

In the same occurrence of sequence C

and subsequence C2 is ...

In the same occurrence of sequence C

and subsequence C3 is ...

BCOL

Not allowed

Mandatory

CCOL

Not allowed

Mandatory

Not allowed

SCOL

Mandatory

Not allowed

C5 In each occurrence of subsequence C2, the presence of field :98A::TERM depends on the value of field :22H::DEPO//<Indicator> as follows:

In each occurrence of subsequence C2
if field :22H::DEPO//4!c is ...

In the same occurrence of subsequence C2
then field :98A::TERM is ...

FIXT

Mandatory

CLNT

Not allowed
C6 In each occurrence of subsequence C3, if field :22H::BCOL//LCOL is present, then field :98B::EXPI//OPEN (that is, Qualifier = EXPI, Data Source Scheme not present and Date Code = OPEN) is not allowed, otherwise field :98B::EXPI//OPEN is optional.

In each occurrence of subsequence C3
if field :22H::BCOL//LCOL is ...

In the same occurrence of subsequence C3
then field :98B::EXPI//OPEN is ...

Present

Not allowed

Not present

Optional
C7 Sequence D is mandatory when in any occurrence of sequence C the subsequence C1 is present and the subsequence C1a is not present.

In sequence(s) C

Then sequence D is ...

If in one (or more) occurrence(s) of sequence C: subsequence C1 is present and an internal subsequence C1a is not present

Mandatory
C8 Sequence D is not allowed when for all occurrences of sequence C either the subsequence C1 is not present, or C1a is present in all occurrences of C1.

If sequence D is ...

Then in sequence(s) C

Present

In one (or more) occurrence(s) of sequence C: subsequence C1 must be present and an internal subsequence C1a must not be present
C9 Sequence E is mandatory when in any occurrence of sequence C the subsequence C2 is present and the subsequence C2a is not present.

In sequence(s) C

Then sequence E is ...

If in one (or more) occurrence(s) of sequence C:subsequence C2 is present and an internal subsequence C2a is not present

Mandatory
C10 Sequence E is not allowed when for all occurrences of sequence C either the subsequence C2 is not present, or C2a is present in all occurrences of C2.

If sequence E is ...

Then in sequence(s) C

Present

In one (or more) occurrence(s) of sequence C:subsequence C2 must be present and an internal subsequence C2a must not be present

In each occurrence of subsequence C2 if field :22H::DEPO//4!c is ...	In the same occurrence of subsequence C2 then field :98A::TERM is ...
FIXT	Mandatory
CLNT	Not allowed

In each occurrence of subsequence C3 if field :22H::BCOL//LCOL is ...	In the same occurrence of subsequence C3 then field :98B::EXPI//OPEN is ...
Present	Not allowed
Not present	Optional

In sequence(s) C	Then sequence D is ...
If in one (or more) occurrence(s) of sequence C: subsequence C1 is present and an internal subsequence C1a is not present	Mandatory

If sequence D is ...	Then in sequence(s) C
Present	In one (or more) occurrence(s) of sequence C: subsequence C1 must be present and an internal subsequence C1a must not be present

In sequence(s) C	Then sequence E is ...
If in one (or more) occurrence(s) of sequence C:subsequence C2 is present and an internal subsequence C2a is not present	Mandatory

If sequence E is ...	Then in sequence(s) C
Present	In one (or more) occurrence(s) of sequence C:subsequence C2 must be present and an internal subsequence C2a must not be present

C11 In each occurrence of sequence C, for subsequences C1a1 and C2a1, the following party fields cannot appear more than once.

Subsequence C1a1	Subsequence C2a1
:95a::BUYR	:95a::ACCW
:95a::DEAG	:95a::BENM
:95a::DECU	:95a::PAYE
:95a::DEI1	:95a::DEBT
:95a::DEI2
:95a::PSET
:95a::REAG
:95a::RECU
:95a::REI1
:95a::REI2
:95a::SELL

In sequences D and E, for subsequences D1 and E1, the following party fields cannot appear more than once:

Subsequence D1	Subsequence E1
:95a::BUYR	:95a::ACCW
:95a::DEAG	:95a::BENM
:95a::DECU	:95a::PAYE
:95a::DEI1	:95a::DEBT
:95a::DEI2
:95a::PSET
:95a::REAG
:95a::RECU
:95a::REI1
:95a::REI2
:95a::SELL

C12 It is mandatory to specify a Delivering Agent for the Securities Settlement Parties (subsequences C1a1 and D1):
- In each occurrence of sequence C, if subsequence C1a1 Securities Settlement Parties is present, then field :95a::DEAG must be present in one and only one occurrence of subsequence C1a1 within the same occurrence of sequence C.
- In sequence D (if present), if subsequence D1 Securities Settlement Parties is present, then field :95a::DEAG must be present in one and only one occurrence of subsequence D1.
Note
See also Network Validated Rule C11.

C13 In each occurrence of sequence C, if a qualifier from the list Deliverers is present in one occurrence of subsequence C1a1 in a field :95a::4!c, then all the remaining qualifiers following this qualifier in the list Deliverers (see below) must be present in other subsequences C1a1 of the same occurrence of sequence C.

In other words, in each occurrence of sequence C, the following scenarios must be validated:

If :95a::DEI2 is present in subsequence C1a1, then :95a::DEI1 must be present in another subsequence C1a1.
If :95a::DEI1 is present in subsequence C1a1, then :95a::DECU must be present in another subsequence C1a1.
If :95a::DECU is present in subsequence C1a1, then :95a::SELL must be present in another subsequence C1a1.

In each occurrence of sequence C, if a qualifier from the list Receivers is present in one occurrence of subsequence C1a1 in a field :95a::4!c, then all the remaining qualifiers following this qualifier in the list Receivers (see below) must be present in other subsequences C1a1 of the same occurrence of sequence C.

In other words, in each occurrence of sequence C, the following scenarios must be validated:

If :95a::REI2 is present in subsequence C1a1, then :95a::REI1 must be present in another subsequence C1a1.
If :95a::REI1 is present in subsequence C1a1, then :95a::RECU must be present in another subsequence C1a1.
If :95a::RECU is present in subsequence C1a1, then :95a::BUYR must be present in another subsequence C1a1.

Deliverers		Receivers
DEI2	Deliverer's Intermediary 2	REI2	Receiver's Intermediary 2
DEI1	Deliverer's Intermediary 1	REI1	Receiver's Intermediary 1
DECU	Deliverer's Custodian	RECU	Receiver's Custodian
SELL	Seller (Deliverer)	BUYR	Buyer (Receiver)

In sequence D, if a qualifier from the list Deliverers is present in one occurrence of subsequence D1 in a field :95a::4!c, then all the remaining qualifiers following this qualifier in the list Deliverers (see below) must be present in other subsequences D1.

If :95a::DEI2 is present in subsequence D1, then :95a::DEI1 must be present in another subsequence D1.
If :95a::DEI1 is present in subsequence D1, then :95a::DECU must be present in another subsequence D1.
If :95a::DECU is present in subsequence D1, then :95a::SELL must be present in another subsequence D1.

In sequence D, if a qualifier from the list Receivers is present in one occurrence of subsequence D1 in a field :95a::4!c, then all the remaining qualifiers following this qualifier in the list Receivers (see below) must be present in other subsequences D1.

In other words, in sequence D, the following scenarios must be validated:

If :95a::REI2 is present in subsequence D1, then :95a::REI1 must be present in another subsequence D1.
If :95a::REI1 is present in subsequence D1, then :95a::RECU must be present in another subsequence D1.
If :95a::RECU is present in subsequence D1, then :95a::BUYR must be present in another subsequence D1.

Deliverers		Receivers
DEI2	Deliverer's Intermediary 2	REI2	Receiver's Intermediary 2
DEI1	Deliverer's Intermediary 1	REI1	Receiver's Intermediary 1
DECU	Deliverer's Custodian	RECU	Receiver's Custodian
SELL	Seller (Deliverer)	BUYR	Buyer (Receiver)

C14 In each occurrence of subsequence C1a, the presence of subsequence C1a1 depends on the presence of field :22F::STCO//NSSP as follows:

In each occurrence of subsequence C1a
if field :22F::STCO//NSSP is ...⁽¹⁾

In the same occurrence of subsequence C1a
then subsequence C1a1 is ...

Not present

Optional

Present

Mandatory

⁽¹⁾if the Data Source Scheme is present in field :22F::STCO//NSSP then the conditional rule does not apply.
C15 In each occurrence of subsequence C2a, the presence of subsequence C2a1 depends on the presence of field :22F::STCO//NSSP as follows:

In each occurrence of subsequence C2a
if field :22F::STCO//NSSP is ...⁽¹⁾

In the same occurrence of subsequence C2a
then subsequence C2a1 is ...

Not present

Optional

Present

Mandatory

⁽¹⁾if the Data Source Scheme is present in field :22F::STCO//NSSP then the conditional rule does not apply.
C16 In sequence D, the presence of the subsequence D1 depends on presence of field :22F::STCO//NSSP as follows:

Sequence D
if field :22F::STCO//NSSP is ...⁽¹⁾

Then subsequence D1 is ...

Not present

Optional

Present

Mandatory

⁽¹⁾if the Data Source Scheme is present in field :22F::STCO//NSSP then the conditional rule does not apply.
C17 In sequence E, the presence of the subsequence E1 depends on presence of field :22F::STCO//NSSP as follows:

Sequence E
if field :22F::STCO//NSSP is ...⁽¹⁾

Then subsequence E1 is ...

Not present

Optional

Present

Mandatory

⁽¹⁾if the Data Source Scheme is present in field :22F::STCO//NSSP then the conditional rule does not apply.
C18 In each occurrence of subsequence A1, if field :22F::AGRE is not present, then field :70C::AGRE is mandatory, otherwise field :70C::AGRE is optional.

In each occurrence of subsequence A1
if field :22F::AGRE is

In the same occurrence of subsequence A1
then field :70C::AGRE is ...

Not present

Mandatory

Present

Optional
C19 In subsequence B1, fields 16R and 16S may not be the only fields present. If both fields 16R and 16S are present, then at least one of the other fields of the same subsequence must be present.
C20 The user header of the message (block 3) is mandatory and must contain a valid code in the Validation Flag field 119 ( {3:{119:xxxx}} ). This code must be identical to the code contained in field :22a::COLA//xxxx (Exposure Type Indicator) in sequence A of the message content (text block 4).

MT504 Scope

MT504 Format Specifications

MT504 Network Validated Rules

MT504 Usage Rules