SWIFT

GlossaryThis glossary provides definitions of SWIFT-specific terminology. The glossary includes terms that exist only in the context of SWIFT and general terms that have a SWIFT-specific meaning. This document is for all users of SWIFT services and products.

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..............................................................................................................................................................82 A . egal Notices ...............................................................................................................................................................86 L

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Preface

PrefaceAbout this document This glossary provides definitions of SWIFT-specific terminology. The glossary includes terms that exist only in the context of SWIFT and general terms that have a SWIFT-specific meaning.

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Aabort Abort can refer to a delivery abort, a file transfer abort, or a session abort. abort notification A system message that alerts the sender of an acknowledged, live input message that the system has aborted the delivery of the message. An error code indicates the reason for the delivery abort. Accord for Securities Accord for Securities extends the proven benefits of Accord matching to equity and fixed income trades. The solution is used by major prime and executing brokers to match equity and fixed income trades executed by the global hedge-fund community. Accord for Securities can also be used in other process flows to replace faxed trade confirmations with electronically matched MT 515 messages. Accord Long Term Archival An Accord add-on service that provides subscribers with a 10-year archive of complete matching history and audit trail. Subscribers access Accord Long Term Archival by means of Browse. SWIFT sometimes abbreviates this term as Accord LTA. Accord Subscriber Information Message A message that the Customer Support Centre sends from the Accord application to all Accord customers, typically with operational information about the Accord service.. SWIFT sometimes abbreviates this term as ASIM. ACK The term that is often used in communication protocols to acknowledge that one party has correctly received the information sent by another party. Issuance of an ACK does not indicate that the issuer accepts the business content of the information that it has acknowledged. activation data Data values, other than private and public keys, that SWIFT requires to initiate the certification process and to operate the cryptographic modules. Activation data must be protected. Examples of activation data include PINs, passwords, and activation secrets. activation date The date on which a SWIFT service update becomes operational. SWIFT usually introduces updates to its services through an activity called provisioning. Typically, SWIFT does not perform provisioning in real time. This is because of the required validation and verification, and because one update may require synchronised changes on different systems. As a result, SWIFT often schedules updates in advance of performing them. activation secrets A pair of passwords that either the user's certificate administrator or the SWIFTNet Registration Authority issues to a subscriber when the subscriber has successfully registered to a service.

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The subscriber uses these secrets only once during the certification process, after which the secrets become invalid. addressing Addressing is a function that links the identity (the name) of an entity (for example, an institution, an individual, or an application) that sends or receives SWIFTNet messages, with a means of routing the message (that is, an address). SWIFT uses addressing to route messages within the networking system, and to ensure that messages reach the right recipient. addressing DN The Distinguished Name (DN) of the requestor or the responder of an InterAct or FileAct message. The distinguished name that is at the top of a SWIFT user's addressing tree contains the BIC of that user. administered institution An institution for which the security officers of another institution (called the administering institution) handle online security matters. administering institution An institution that handles the online, security-related matters of its own institution, and at least one other institution (called the administered institution). Advanced Messaging HubAbbreviated: AMH

A single integration platform for global financial institutions looking to rationalize their messaging infrastructure across networks and, at the same time, introduce new products and services to the market in a faster and more cost-effective way. Tailored to an individual customer's needs and integrated with a company's existing infrastructure, AMH provides a scalable investment, from low-barrier entry projects to high-volume messaging needs. AMH is provided by Arkelis N.V., a wholly owned SWIFT subsidiary. Affirmations The application that offers SWIFTNet users that cannot send MT 3xx messages a Graphical User Interface framework in which they can view, search, agree, or disagree with treasury confirmations that a market-making financial institution has sent. Similar to Accord, Affirmations uses an InterAct-based query and response mechanism. Affirmations is also useful where an end-user counterparty cannot generate a specific MT 3xx message. Contrary to Accord, Affirmations does not apply matching rules. It simply posts confirmation messages on an engine at SWIFT and leaves it up to the involved parties to validate and act upon the posted confirmation messages and related information. Alliance The SWIFT brand name for the range of connectivity products that customers use to connect to SWIFT services. Alliance Access SWIFT's prime messaging interface. Alliance Access is designed to connect business applications to SWIFT messaging services. Alliance Access is a multi-platform interface that enables to connect single or multiple destinations to SWIFT with maximum automation of system management tasks.25 March 2011 5

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Alliance Access Kit An Alliance Kit that SWIFT has designed for customers that opt for a private infrastructure and require automation and high levels of integration with their back-office applications. Alliance Bank File A BIC Directory Download for Alliance users. The file can only be used to upload BIC data into the customer's correspondent information file. Alliance Connect Bronze The network connectivity product designed for customers that receive or send less than 1,000 messages per day. With Alliance Connect Bronze, customers connect in a secure and costeffective way to SWIFTNet through the Internet. Alliance Connect Gold The network connectivity product for high-volume users that require the highest resilience and service levels. By using the managed access solutions of SWIFT Network Partners for both Leased Line connections, SWIFT is able to offer a highly resilient configuration with guaranteed bandwidths and service levels. Alliance Connect Silver The network connectivity product designed for customers that receive or send between 1,000 and 40,000 messages per day. The managed access solutions of SWIFT Network Partners provide guaranteed bandwidths and a high service level. The internet channel provides a costeffective back-up connection. Alliance Developers Toolkit A SWIFT product that enables developers of third-parties and financial institutions to build their own applications for Alliance Access. SWIFT sometimes abbreviates this term as ADK. Alliance Entry A messaging interface that SWIFT has developed for low-volume customers that use a single destination. Alliance Entry offers the flexibility and control of a private infrastructure. Its features include basic automation through its batch file transfer adapter and a GUI framework for manual input. Alliance Entry Kit An Alliance Kit that SWIFT has designed for customers that opt for a private infrastructure and require basic functionality. Alliance Essentials Kit An Alliance Kit that SWIFT has designed for customers that use the full SWIFTNet infrastructure of another customer, service bureau, or their head office. Alliance Gateway The SWIFT connectivity product that provides centralised, automated, and high-throughput integration with different in-house applications and service-specific interfaces (for example, the CLS gateway). SWIFT has designed Alliance Gateway to enable customers to concentrate the flow of messages between SWIFTNet and remote financial applications over IP or IBM WebSphere MQ.6 Glossary

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Alliance Gateway Kit An Alliance Kit that SWIFT has designed for customers that opt for a private infrastructure and want to use a third-party connectivity product that requires the use of Alliance Gateway. Alliance Integrator A SWIFT-specific integration layer that connects business applications with messaging services through Alliance Access and Alliance Entry, and integrates the flow of business transactions with solutions. Alliance Integrator provides a configurable framework for automated message processing, file processing, and collaborations that support Solutions. All standards and formats available on SWIFTNet are supported (that is, MT, MX, FpML, and AnyXML, and FileAct). Alliance Integrator is offered as an add-on to Alliance Access and to Alliance Entry. Alliance Kit A connectivity product that provides everything a new customer needs to go live on SWIFTNet, in one single package (that is, software, security hardware, documentation, network connectivity, and subscription to the FIN service). The Alliance Kits cater for the needs of different customers. The Alliance Kits support InterAct, FileAct, and Browse, and enable customers to subscribe to most of the Solutions without the need to deploy any additional software. The six Alliance Kits target customers that intend to send and receive up to 1,000 messages per day from a single SWIFT destination. Alliance Lite An Internet-based connectivity product that provides a direct, secure, and low-cost access to SWIFT. It is designed for new, low-volume SWIFT customers. Customers can access Alliance Lite by using a standard internet connection, from a standard Windows PC with a browser, and a SWIFT-issued hardware security token plugged in a USB port of the PC. Alliance Lite supports manual operations through a browser, as well as optional integration with back-office applications through a lightweight AutoClient. With the optional AutoClient component, customers can integrate a back-office application, to send and receive any SWIFT MT message or FileAct file, in a completely automated fashion. Alliance plug-in A business application that operates with the Alliance portfolio of products. SWIFT partners market and sell the Alliance plug-ins. Alliance Remote Kit An Alliance Kit that SWIFT has designed for customers that want to use a SWIFT connectivity product (Alliance Entry) and the SWIFTNet connectivity of another customer, service bureau, or their head office (through Alliance Gateway). Alliance RMA A connectivity product that provides Relationship Management Application functionality. It is mainly targeted at non-Alliance customers. However, it can also be connected to an existing Alliance Gateway. Alliance SWIFTNet Link Kit An Alliance Kit that SWIFT has designed for customers that operate their own infrastructure and want to use a third-party connectivity product that requires the use of SWIFTNet Link.

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Alliance Web Plaftorm The browser-based Graphical User Interface (GUI) framework to the server products of the Alliance portfolio (that is, Alliance Access, Alliance Entry, Alliance Gateway, Alliance RMA, and Alliance Integrator). Alliance Web Platform requires the IBM Network Deployment Server application server . Alliance Web Platform Server-Embedded Alliance Web Platform Server-Embedded offers the same business functionality as Alliance Web Plaftorm. With Alliance Web Platform Server-Embedded, however, the software provided by SWIFT also includes an application server. Alliance WebStation A connectivity product that provides users with manual FileAct support, an access to Browsebased services in the banking and securities markets, and an access to the Accord application. Alliance WebStation also enables the management of SWIFTNet users. Alliance WebStation can be connected to a secure IP network through Alliance Gateway, or directly through a VPN Box. Alliance Workstation A graphical user interface for Alliance Access and Alliance Entry. It enables users to create and manage FIN messages and consult FileAct files (on Alliance Access). It also provides access to Alliance Access and Alliance Entry administration functions. Alliance Workstation is in maintenance mode. Alliance Web Plaftorm has been designed to replace it over time. allowable downtime window A period during which SWIFT schedules maintenance activities or business continuity and disaster recovery tests. SWIFT does not guarantee service availability during these periods. SWIFT sometimes abbreviates this term as ADW. application header In the context of FIN (MT messages), the second block of a FIN message header that provides application-specific information about the message to which it is attached. The structure of the application header is different for input messages and output messages. application identifier A 1-letter code in the basic header of a FIN message, which identifies the application through which SWIFT processes the message (for example, the FIN application or the General Purpose Application). application provider See SWIFTReady application provider. application service profile The profile that contains a set of parameters to be used by messaging interfaces and applications to correctly send and receive traffic through that service. These parameters trigger the usage of features within SWIFTNet or describe what a messaging interface must do with traffic sent or received.

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Audit and Finance Committee The SWIFT governance and oversight body for systems security, internal control, and financial policy. The full SWIFT Board approves the Audit and Finance Committee's charter of activities. SWIFT sometimes abbreviates this term as AFC. authenticated message A message that has been authenticated between the sender and the receiver. authentication A process that SWIFT uses to confirm the identity of the sender or the receiver of a message, or to prove the integrity of specific information. Message authentication determines the source of a message, and verifies that no-one has modified or replaced the message during transit. authentication mode A mode that is used in SWIFTNet copying services. The authentication mode indicates whether the copy service is using normal (single) or double authentication. authentication string A pair of passwords that the SWIFTNet Registration Authority returns to the security officer of an institution that has registered a new SWIFTNet Link. The authentication code authorises the SWIFTNet Link installer to download the necessary SWIFTNet Link activation and certification files from the SWIFTNet Link secrets download server. authorisation code One half of the element pair that the SWIFTNet Registration Authority returns to the security officer when it registers a new security end point. The security end point feeds the authorisation code into the Key Management Application when it generates keys and certificates. authoriser DN The Distinguished Name (DN) of the Public Key Infrastructure (PKI) certificate holder that has logged on to the SWIFTNet Link interface to send a message on SWIFTNet. This term only applies to InterAct and FileAct. automated login/select A facility within the SWIFT secure login and select service, by which an interface can log in and select without human intervention. See also: login, Select command availability The percentage of time during which the messaging services are available to users. The published availability figures are weighted to reflect in a single overall availability percentage the impact of outages affecting only parts of the user base or parts of SWIFT services.

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Bbackbone access point A physical site that SWIFT manages and controls, from which the partner networks connect to the SWIFT secure IP network. SWIFT sometimes abbreviates this term as BAP. bank payment obligation An irrevocable obligation of a bank payment obligation Obligor Bank to pay a specified amount to a bank payment obligation Recipient Bank in accordance with an established Trade Services Utility baseline of a single Trade Services Utility transaction. A bank payment obligation is intended to constitute a legally binding, valid, and enforceable obligation of the Obligor Bank to the Recipient Bank under the appropriate standard of law, enforceable in accordance with its terms. SWIFT sometimes abbreviates this term as BPO. basic header The only mandatory part of a FIN message header (that is, block 1). The basic header provides general information about the message. For input messages, this information includes identification of the application through which SWIFT processes the message. The information also includes the type of input data, the sending logical terminal, and (if required) the input session number and input sequence number. For output messages, the basic header identifies the application through which SWIFT has processed the message. The basic header also identifies the type of output data, the receiving logical terminal, and (if required) the output session number and output sequence number. BIC BIC stands for business identifier code. BIC is an international standard for identification of institutions within the financial services industry. BICs are used in automated processing. They unambiguously identify a financial institution or a non-financial institution. The ISO 9362 standard specifies the elements and the structure of a BIC. A BIC consists of either eight (BIC8) or eleven (BIC11) contiguous characters. These characters comprise either the first three, or all four, of the following components: institution code, country code, location code, and branch code. The International Organization for Standardization has designated SWIFT as the BIC registration authority. BIC Directory The SWIFT Directory that lists the BICs that SWIFT has registered according to the ISO 9362 standard, and the names and addresses of the corresponding entities. It also contains additional information (for example, the market infrastructures in which the entities participate). The scope of the additional information varies according to the version of the directory. The BIC Directory is updated at least on a monthly basis and is available for download at www.swift.com > Products & services > Reference Data > Our products> BIC > Additional information. See also: BIC Directory on paper BIC Directory Download The product that enables financial institutions and corporates to integrate BIC data into their environment. The BIC Directory Download lists important information (for example, BICs and physical address details).10 Glossary

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BIC Directory on paper A printed version of the BIC Directory. The Paper BIC Directory lists the BICs that SWIFT has registered according to the ISO 9362 standard (listed by country and in alphabetical order) and participants to market infrastructures (classified by country and by market infrastructure). It also contains SWIFT operational country information (for example, payment instruction cut-off time). SWIFT issues the Paper BIC Directory on a quarterly basis. BIC Enquiry Tool A local query facility that runs on local SWIFT Directories data. This data includes BIC Directory, BICPlusIBAN Directory, SEPA Routing Directory, currencies, and countries files. BIC Pocket Directory The pocket-sized version of the BIC Directory that comprises the two most popular sections of the complete version: the registered BICs sorted by country and the SWIFT operational country information. BIC1 BIC1s relate to financial and non-financial institutions that are not connected to SWIFT. They are non-SWIFT BICs that are identified by a 1 in the eighth position of the BIC. BIC11 An 11-character BIC that represents the institution code, country code, location code, and branch code. BIC8 An 8-character BIC that represents the institution code, country code, and location code. BICPlusIBAN Directory The comprehensive SWIFT Directory that combines the information from the BIC Directory with the national clearing codes of more than 60 countries. The BICPlusIBAN Directory enables the customer to automatically derive the beneficiary's BIC from the IBAN. blacklist A list that contains references to security tokens that SWIFT suspects of being compromised in some way, and which are therefore no longer valid. block identifier A single, numeric character between 1 and 5 that identifies the blocks (for example, basic header block and text block) in a FIN message. branch code A 3-character code that is part of the BIC. The branch code identifies a specific branch or department of an organisation. The 3-character code forms part of the 11 characters of the BIC11. See also: BIC11 broadcast During message preparation, a user can address a single MT 999 to an alias for a group of correspondents. Once the message is authorised, Alliance automatically sends a copy of the message to each of the correspondents. This is known as a broadcast.25 March 2011 11

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This is not the same as a SWIFT broadcast. Browse A messaging service that enables secure access from a standard web browser to a service provider's web server and SWIFTNet server application over the SWIFTsecure IP network and SWIFTNet. Browse provides direct access to the secure messaging features of InterAct and FileAct, and is only for person-to-application use. Bulk Payments The Solution that supports the exchange of multiple low-value payments in the bank-to-bank and bank-to-Automated Clearing House (ACH) spaces. The solution uses FileAct as the primary messaging service, complemented by InterAct for single urgent payments. The solution also comprises a rulebook (which harmonises the way FileAct is used) and a pricing per payment. Business Administrator Workstation The software that the business administrator uses to interact with the EURO1/STEP1 clearing service, and to monitor banks' positions, limits, and on-hold payments. SWIFT provides the Business Administrator Workstation, which operates locally on a customer PC. SWIFT sometimes abbreviates this term as BAWS. Business Application Header A portion of the payload of an MX that contains preliminary information for the business application (for example, business sender, business receiver, message identification, creation date, business service, and signature). SWIFT sometimes abbreviates this term as BAH. Business Assessment Programme The consultancy service that SWIFT offers to its key customers. In support of those customers' key business drivers, the programme facilitates the rationalisation of their existing infrastructure and communication channels. The programme also helps them to improve their operational efficiency (Straight-Through Processing (STP)), their messaging capabilities, and the quality of service that they provide to their end customers. Furthermore, the programme provides a message and operational efficiency benchmarking. This programme was formerly called CIO-COO Reach. Business Continuity PlanningAbbreviated: BCP

A management process that provides the strategic and operational framework to review and, where appropriate, to (re-)design the way an organisation provides its products and services whilst increasing its resilience to disruption, interruption, or loss. This process also provides capability for an effective response which safeguards the interests of SWIFT's staff, stakeholders, reputation, and value-creating activities. business officer In the context of copy services, a customer contact that is authorised to represent the service administrator towards SWIFT for the purposes of requesting emergency changes to the service mode or to request the emergency withdrawal of a participant from the Closed User Group (CUG).

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bypass mode An emergency fallback mode, in which the service administrator does not receive copied information, and no longer has authorisation and rejection capability. The copy service delivers messages sent in bypass mode to the receiver with an indication that the service is operating in bypass mode. This informs the receiver that the message has not been copied and that there has therefore been no authorisation from the service administrator.

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Ccancelled confirmation A confirmation that has been cancelled and is no longer processed by Accord. This can be the result of a confirmation with code word CANC, an MT 392, or a manual action in the Accord GUI. case The name for all logged interactions. They include interactions between SWIFT and a customer (that relate, for example, to a single problem) and interactions between SWIFT staff (for example, in the event of system problems or events that require a follow up). A case includes all exchanges of information that are necessary for SWIFT to investigate and resolve a problem, or to respond to a query. case manager The online function that enables Support-registered customers to report a technical problem or query to the SWIFT Customer Support Centre. For each new entry, support staff assign a case number. Based on the evolution of the investigations, support staff provide electronic updates. SWIFT maintains a complete overview of all cases with their current status information. This information is available to customers. The facility is available at www.swift.com > Support. Cash Reporting A set of cash-reporting solutions in the market infrastructure, financial institution-to-financial institution, and corporate-to-bank business areas. The specific names are: market infrastructure cash management (in the market infrastructure business area), real-time account information (in the financial institution-to-financial institution business area), and real-time cash reporting for corporates (in the corporate-to-bank business area). CASmf A SWIFT product that implements the Common Application Server (CAS) protocol. CASmf is additional software for Alliance Access. CCI over SWIFTNet The Euroclear's Single Platform consolidates and harmonises settlement and custody services across all markets in which Euroclear is active. The Common Communication Interface (CCI) is how Euroclear users access the Euroclear's Single Platform. CCI is easy to integrate and simple to operate, with minimal time, effort, and investment. central institution An organisation that performs a clearing, netting, or settlement function for a financial community, within a FINCopy service. A central institution is typically, but not necessarily, a national or central bank. For FINCopy solutions, the central institution is often also the service administrator. central institution destination In the context of FINCopy, a synonym of service administrator destination. SWIFT sometimes abbreviates this term as CID.

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central message validation The process by which SWIFT verifies that the contents of a message conform to the applicable message standards. The message standards are specified in the corresponding SWIFT documentation. Central message validation is available in FIN and InterAct. In FIN, central message validation always applies. In InterAct, the service administrator can choose to apply central message validation. SWIFT does not deliver a message to the intended recipient if the message fails central message validation. Central Securities DepositoryAbbreviated: CSD

An organisation that holds securities and arranges for the receipt and delivery of these securities. The CSD also arranges for payments during settlement. The main function of a CSD is to immobilise or dematerialise securities. CSDs may also have the capability for trade clearance, safe custody and settlement, and post-settlement processing of securities information. See also: International Central Securities Depository (ICSD) certificate A unit of information contained in a file. At a minimum, a certificate lists the issuer of the certificate and a public key, and indicates the user that holds the corresponding private key. The certificate is digitally signed by the SWIFTNet Certification Authority (CA). See also: digital signature certificate administration facility The online service that security officers use to create operational entity names and to manage their certificates. The facility includes the Local Registration Application. certificate disablement The permanent termination of the validity of a certificate. Disablement prevents the further use of the certificate in SWIFTNet. certificate DN The Distinguished Name (DN) of the owner of a SWIFTNet Public Key Infrastructure (SWIFTNet PKI) certificate. certificate expiry dateAbbreviated: CV Expiry date

The date on which a certificate expires. certificate policyAbbreviated: CP

A set of policy requirements that describe how SWIFT creates and uses categories of digital certificates for SWIFTNet Public Key Infrastructure (SWIFTNet PKI). certificate recovery The process that generates new keys and certificates, and restores old, private decryption keys.

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certificate repository A publicly accessible database that holds information such as certificates and Certificate RevocationLlists (CRL). certificate revocationAbbreviated: CV revocation

The act of revoking an otherwise valid certificate (for example, after the certificate has been compromised). Certificate Revocation ListAbbreviated: CRL

The list of all revoked certificates that the SWIFTNet Certification Authority (CA) publishes in a central directory and makes available online to all SWIFTNet Public Key Infrastructure (SWIFTNet PKI) clients. certification The process by which the SWIFTNet Certification Authority (CA) generates key pairs and signs public keys. Certification Practice StatementAbbreviated: CPS

The statement of certification practices that SWIFT has implemented in the SWIFTNet Certification Authority (CA), the SWIFTNet Registration Authority, and the SWIFTNet Directory. Certified Expert See SWIFT-Certified Expert. Checksum trailer A trailer that appears on all General Purpose Application and FIN messages. The Checksum trailer enables the recipient to verify that the message has not been corrupted during transmission. SWIFT sometimes abbreviates this term as CHK trailer. CHIPS Universal IdentifierAbbreviated: CHIPS UID

A 6-digit code that the Clearing House Interbank Payments System (CHIPS) uses as a clearing code. It is a real-time payment clearing system for U.S. dollar payments in the United States. SWIFT publishes this code in the BICPlusIBAN Directory directory. Clearing and Settlement Mechanism A mechanism that enables participating scheme participants or their branches to clear and to settle payments made between them. It includes five categories of participants: the PanEuropean Automated Clearing House (PE-ACH), the Single Euro Payments Area (SEPA)compliant Automated Clearing House (ACH), other decentralised form of structured bilateral or multilateral clearing and settlement (or both), intra-bank or intra-group clearing and settlement arrangement (or both), and purely bilateral non-structured SEPA Scheme compliant clearing and settlement.

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client process The operating system process that generates requests against SWIFTNet. This process implements client-application code. See also: server process Closed User GroupAbbreviated: CUG

A subset of customers that have been grouped to use certain SWIFT services and products in a defined context (typically, the participation of customers in a market infrastructure, a MemberAdministered-Closed User Group, or a Solution). Either SWIFT or a service administrator defines the eligibility criteria and participation in the Closed User Group. CLS Third Party A financial institution that is not a CLS member, and that uses the services of a CLS Settlement Member, referred to as Third-Party Provider, to settle transactions inside CLS. CLS Third Party Service The Solution that CLS members can use to obtain a real-time copy of an agreed subset of the confirmation messages sent by a third-party customer. The SWIFT CLS Third Party Service currently covers foreign exchange (FX) and includes FX Options. Third-party customers are users of CLS that do not have a connection to the CLS Bank. cn The common name element in a Distinguished Name (DN). The cn identifies operational entities (for example, applications, systems, and operators). collective investment vehicle A term that covers a variety of investment vehicles that enable investors to aggregate their money and invest their pooled assets, rather than buying securities individually as investors. A collective investment vehicle is typically managed by a fund-management company that manages it according to a specific risk or investment objective profile. The fund-management company takes a fee that is usually based on a percentage of assets managed, or is linked to the fund's investment performance. Investors choose specific collective investment vehicles (or funds) based on the nature of their investment focus. This often has implications on the level of risk that the investor accepts to bear. Typically, investors who aim for higher returns will accept higher risks to obtain those returns. Investors with a lower risk tolerance often trade lower risk for lower investment returns. The risks that investors seek to minimise are typically related to the possibility that the value of their investment may fall, or that its price is very volatile in nature. SWIFT sometimes abbreviates this term as CIV. command centre The location from which SWIFT co-ordinates all activities during a crisis or specific incidents. SWIFT sometimes abbreviates this term as CC. Command Centre Manager The person who co-ordinates and facilitates all recovery activities during an incident or crisis. SWIFT sometimes abbreviates this term as CC Manager.

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Commercial off-the-ShelfAbbreviated: COTS

A piece of non-SWIFT software that customers purchase from an external supplier. communication software Software that provides a link between the SWIFTNet network and the application software, such as Alliance Access or Alliance Entry. Communication software includes SWIFTNet Link and Alliance Gateway. configuration browser The tool that enables SWIFT customers to view their configuration, license information, and SWIFTNet service details. Premium Plus and Premium Custom customers can also store specific information about their institution to optimise the quality of support they will receive (for example, site names). The configuration browser is available, free of charge, at www.swift.com > Support > Configuration browser. confirmation A FIN message that confirms the main facts of a deal. The information includes the date on which the counterparties agreed to the deal, the settlement instructions, and the amounts involved. confirmation chain A series of confirmations that relate to the same deal, sent or received by one matching entity. confirmation status See matching result. connectivity pack A standard configuration for SWIFTNet access. SWIFT offers four connectivity packs to its customers. Each pack determines a specific SWIFTNet Link configuration for application-level access, and a secure IP network access configuration for network-level access. Each pack corresponds to specific throughput and resilience requirements. Consulting Services SWIFT Consulting Services provide you with direct access to SWIFT experts who can help you optimise your business processes, identify best-practice enhancements for your SWIFT infrastructure, speed up your SWIFT integration projects, and reduce your total cost of ownership. SWIFT experts can assist in every phase of your SWIFT related projects: from the initial assessment of the business processes, to the design of the supporting infrastructure, all the way to the implementation and maintenance of the solution. SWIFT provides Consulting Services in our areas: Business Consulting, Technical Consulting, Implementation, and Project Management. copy fallback service mode The mode in which the customer operates the copy service if the central institution and SWIFT agree that the copy service cannot operate in normal service mode. Typically, the customer uses this mode in a disaster or emergency situation See also: bypass mode

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copy service state The operational state for an active copy service. The state can be open or closed. SWIFT may close a copy service for maintenance purposes, or because of an emergency situation. copying service mode Users can operate the copying service in either Y-Copy mode or T-Copy mode. Corporate Actions A messaging Solution based on ISO 15022 standards and using FIN. The Corporate Actions solution consists of five message types (that is, the notification, the election, the status, the confirmation, and the narrative messages). This set of messages is used in the communication between an account servicer and an account owner for income distribution and corporate actions. An InterAct, store-and-forward Solution based on a set of 13 ISO 20022 messages for Corporate Actions has been developed. These messages are interoperable with the ISO 15022 messages. CORTUX A central SWIFTNet component called the CORTUX bridge translates the CORBA protocol into the Tuxedo protocol. This translation enables interoperability between an Alliance WebStation that uses CORBA as the communication protocol, and the central SWIFTNet components that use Tuxedo as the communication protocol. counterparty (Accord) The matching entity that is a subscriber's dealing partner in a foreign exchange, money market, derivatives, or securities transaction. Countries, Currencies, and Holidays Directory The Directory that contains all geographical information SWIFT customers need to know when sending out payments. The Countries, Currencies and Holidays Directory is essential to validate payments to ensure that they will not be delayed or rejected. It is updated on a monthly basis and included in almost all other SWIFT Directories. country code A 2-letter code that organisations use for country identification in automated processing. The country code also forms part of the BIC. The ISO 3166 standard specifies the country code. CREST The book-entry transfer system for United Kingdom and Irish securities. SWIFT is a network provider to CREST. See also: Central Securities Depository (CSD) Crisis Executive The person who co-ordinates the incident or crisis recovery with the Crisis Team. (S)he is the Head of the command centre team in crisis situations. Crisis Team The team consists of a core team of executives who gather to decide on a strategic way-forward to complement the recovery activities lead by the Crisis Executive and the command centre team. The team focuses on handling the political side of the problem, protecting SWIFT's25 March 2011 19

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reputation, containing the crisis impact beyond today, and defining the high-level media crisis communication strategy. cross-border backup connection A connection to the SWIFT network through an access point in a country other than that of the organisation that requires it. It can also be a connection through a messaging interface located in a foreign branch of that organisation. Organisations maintain cross-border backup connections for emergency purposes only. cumulative patch A patch that contains all previous patches of a service or a product that relate to a specific SWIFTNet and Alliance release. cumulative release A release that contains all previous releases of a service or product that relate to a specific release. All SWIFTNet and Alliance major and minor releases are cumulative. customer See SWIFT customer Customer Premises EquipmentAbbreviated: CPE

A router at the customer site that bridges the customer's private IP network and the SWIFT secure IP network. Customer Security Management The SWIFT department that administers security for SWIFT users. Customer Security Management assists the SWIFT trusted third-party organisation (internal audit) with delivery investigations, claims, and authorisations for straight-through processing. It acts as the SWIFTNet Registration Authority for SWIFTNet security officers, and the administrator for SWIFTNet Public Key Infrastructure. The Customer Security Management also issues SWIFTNet Link Tuxedo passwords. SWIFT sometimes abbreviates this term as CSM. Customer Support Centre The first-level helpdesk facility for customer queries and problems. SWIFT sometimes abbreviates this term as CSC. cut-off date The date by which End-to-End Ordering must receive SWIFT database updates, network modification requests, and SWIFT interface contracts, to enable the customer to go live on a particular date. cut-off time The time until which the receiver of a message applies same-day value. Either the financial market practices at the receiver's location, or a bilateral agreement between sender and receiver, determine the cut-off time. In the absence of such an agreement, the cut-off time is the cut-off time for the receiver's location, as published in the BIC Directory.

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Glossary

C

cutover The point during the implementation process at which SWIFT connects a customer to the FIN or a SWIFTNet service (for example, FileAct or Browse) for live traffic.

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SWIFT

DData Distribution A Solution that enables SWIFT users and securities market data providers to exchange corporate action data (in ISO 15022 format) and other securities-related market data over SWIFTNet, using either FIN or FileAct. Delayed Message trailer A trailer that the FIN service adds to user-to-user messages that it has not been able to deliver after a certain time. This delivery time is 15 minutes for urgent-priority messages, and 100 minutes for normal-priority messages. SWIFT sometimes abbreviates this term as DLM trailer. delayed NAK A negative acknowledgement that the FIN service sends to the sender of a command or request. A delayed negative acknowledgement indicates that, although the FIN service has positively acknowledged the original command or request, it cannot execute or fulfil it. An error code indicates the reason for the rejection. The FIN service returns a delayed negative acknowledgement as a response to all user commands for which normal responses do not contain provision for an error code. delivery instructions User-specified rules that define how FIN queues messages of a particular priority, category, or type at the Regional Processor in the delivery subsets for a destination. delivery monitoring The facility that enables the sender of a message or a file to request a non-delivery warning, a delivery notification, or both, for that message or file. delivery notification A system-generated message that confirms that the system has effectively delivered a message or file for which the user has requested the delivery monitoring feature. The notification provides the date and the time of delivery. delivery queue A sequence of output messages or files stored while awaiting delivery to a particular destination. delivery subset A subset of the output messages for a destination that FIN stores in a specific delivery queue, according to the user's delivery instructions. dematching The process by which Accord disassociates a previously matched confirmation from the confirmation with which it is matched. Dematching can take place when Accord finds a better pair of matching confirmations. Derivatives The Solution that enables the transport and validation of the FpML Trade Notification and Confirmation messages, using InterAct. FpML has become the industry standard to22 Glossary

D

communicate electronic information related to over-the-Counter Derivatives (OTC Derivatives) transactions. FpML has been developed under the auspices of the International Swaps and Derivatives Association (ISDA). destination The identity of a SWIFT user organisation at a specific location. The 8-character BIC identifies a destination. digital signature The mathematical result calculated using a publicly available algorithm and a private key on a unit of digital information. Anyone who has the unit of information and the corresponding public key can, through verification, accurately determine whether that mathematical result was created using that private key, and whether the unit of information has been altered since that mathematical result was calculated. See also: verification direct debit A payment method by which a pre-authorised agreement enables one organisation to automatically debit money from the bank account of another individual or organisation. Direct debits are made automatically and on a regular basis. This is the recommended method of payment for SWIFT customers. direct loss A non-recoverable loss of funds. This loss represents the principal amount of FIN authenticated messages or transfers, and any loss of interest that occurs as a result. Directories Download Automation A facility at www.swift.com > Products & services > Reference Data > Our products that enables customers to automate the download of the monthly directory files (for example, the BIC Directory or the SEPA Routing Directory). Directories Web Services Directories Web Services are designed to ease the integration of SWIFT Directories with customer applications and interfaces. This is done by providing tailor-made queries and responses that can be used directly by software and applications, without any development for the end user. Directory SWIFT publishes a series of directories that are essential for SWIFT customers to improve the straight-through processing of their transactions or to update their customer database. Some examples of the dictories that SWIFT provides are as follows: BIC Directory, BIC Enquiry Tool, BICPlusIBAN Directory, BIC Pocket Directory, Countries, Currencies, and Holidays Directory, EURO1/STEP1 Directory, BIC Directory on paper, SEPA Routing Directory, and SWIFTNet Services Directory. More information is available at www.swift.com > Products & services> Reference Data. Distinguished NameAbbreviated: DN

The identification of an entity following the X.500 notation. SWIFTNet identifiers have the format of a DN. An example is cn=xyz,ou=abc,o=bankbebb,o=swift, in which bankbebb is the25 March 2011 23

SWIFT

8-character BIC, and the other elements at the left form the optional extension. This extension enables detailed identification by department, geographical location, application, or individual. Distributed Architecture The messaging architecture that implements messaging zones (currently, European and TransAtlantic) with pairs of operating centres that store the traffic for each zone. distribution router An IP router within the secure IP network Point of Presence (PoP) that connects the PoP to the secure IP network. documentary collection The instruction of the seller to the bank to collect the value of the documents from the purchaser. The bank may either hand over the documents against payment, or get a commitment to pay (generally, the acceptance of a draft). The bank makes sure that the payment is received but does not make any commitment to pay. The Uniform Rules for Collections (URC) of the International Chamber of Commerce (ICC) govern documentary collections. documentary credit The bank's written confirmation of the instruction of the applicant (that is, the buyer) to pay to the beneficiary (that is, the seller) a specific amount. The credit must specify the amount, the agreed currency, and the agreed deadline. The issuing bank must pay provided that the beneficiary submits documents that conform to the agreed terms and conditions. The Uniform Customs and Practice (UCP) of the International Chamber of Commerce (ICC) govern documentary credits. dormant mode The mode for a copy service that SWIFT has defined, but that is not yet in live operation. double authentication An optional ,mechanism used in FINCopy, which enables the service administrator to verify the origin and integrity of copied data. Double authentication also enables the recipient of a user-touser Y-Copy mode message to verify that the service administrator has authorised the message. DSL Entry One of the SWIFT connectivity products that enables a customer to connect securely to SWIFTNet through Digital Subscriber Lines (DSLs). DSL Entry requires two VPN boxes, A DSL router, and a DSL line to the point of presence of a SWIFT Network Partner.

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Glossary

E

Ee-invoicing The automated process of issuing, sending, receiving, and processing invoice data by electronic means. SWIFT's solution for e-invoicing facilitates more standardised exchange of electronic invoices between banks and non-bank e-invoicing service providers. This enables increased reach and also supports the use of ISO 20022 financial invoice message standard. e-ordering The facility that enables SWIFT customers to order products, services, training, and documentation online. E-ordering also enables customers to upgrade, change, and terminate existing installations. The facility is available at www.swift.com > Ordering. EBA CLEARING A company based in France that manages the EURO1, STEP1, and STEP2 payments-clearing systems. EBA CLEARING is associated with the Euro Banking Association (EBA). encrypt DN The Distinguished Name (DN) of the entity for which the sender has encrypted an InterAct message. To encrypt the message, the sender uses the encrypt DN public key infrastructure certificate. To decrypt the message, the holder of the PKI certificate uses its private key. end of support The end of support date for a specific release of a product or service is the date on which SWIFT no longer supports that specific release. end user An individual that accesses one or more services within a customer's organisation. End-to-End Ordering The SWIFT department that fulfils customer orders end-to-end, administers customer data and contracts, and ensures secure customer access to SWIFTNet services. The End-to-End Ordering department also collects and publishes official information (for example, BICs and directories) and is responsible for the system and the network's provisioning that enable customers to work with SWIFT. Enquiry Link The facility that enables members of the Bank of England's Real-Time Gross Settlement, Money Market Reform, and Clearing House Automated Payments System to track the status of payments, enquire about balances, and make account transfers in very low volumes after the close of the Clearing House Automated Payments System. EUCLID Connector SWIFT-developed connector that enables SWIFTNet access to the Euroclear Bank Service, EUCLID, through Alliance Gateway. SWIFT sometimes abbreviates this term as ECC. Euro Banking AssociationAbbreviated: EBA

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SWIFT

An association of over 100 banks, the core activities of which are the initiation and development of cost-effective and efficient euro clearing systems. EBA CLEARING is an associated company which manages EURO1, STEP1, and STEP2 payments-clearing systems. Also known as Association Bancaire pour l'Euro (ABE). Euro-Related InformationAbbreviated: ERI

A computer-readable method by which financial institutions can indicate ERI in the free-text fields of messages. Financial institutions used ERI during the dual-currency transition period for the euro from 1999 to 2002. It is now also available for other dual-currency information and for future euro-transition periods. EURO1 A euro payments-clearing and settlement service managed by EBA CLEARING. EURO1 uses the FIN service and FINCopy, InterAct, Browse, and central processing provided by SWIFT. The central processing authorises payment messages for delivery, only when the result of processing the payments is to keep both the sender's and the receiver's positions within limits. EBA CLEARING acts as business administrator and manages the settlement process. EURO1/STEP1 Directory The Directory that enables EURO1/STEP1 participants and sub-participants to list other banks for which they act as correspondents for payments sent through the EURO1/STEP1 system. The directory is updated on a monthly basis. It reflects the list of BICs that participate in EURO1, or STEP1, or both, and the banks entered by EURO1/STEP1 participants as reachable destinations. The directory is cross-referenced with the BIC Directory to reflect changes in BICs or membership in EURO1/STEP1. Euroclear Group The group that comprises Euroclear Bank, EMX , Xtrakter, and the national central securities depositories for Belgium, France, Netherlands, Ireland, Finland, Sweden, and the United Kingdom. Euroclear Bank (the headquarters of which based in Belgium) is one of the International Central Securities Depositories (ICSD) providing clearing, settlement, and custody services for domestic and international securities. Exceptions and Investigations A Solution that streamlines the management of payments-related queries. Exceptions and Investigations comprise a set of MXs, an InterAct-based service, and a rule book.

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Glossary

F

FFailure is Not an OptionAbbreviated: FNAO

A key element of delivering excellence capabilities at SWIFT. FNAO aims to foster a culture of continuous improvement and commitment to provide services that meet the highest levels of security, reliability, and resilience. It is about anticipating problems, going the extra mile to find a solution, and educating to prevent recurrence file transfer adapter An Alliance Gateway option that automates the emission and reception of files over FileAct. File transfer adapter uses FileAct to automate incoming and outgoing file transfers. When a file becomes available locally on Alliance Gateway, the file transfer adapter handles the FileAct exchange automatically (including retransmission attempts and file signature verifications). The file transfer adapter also sends an acknowledgement for receipt. SWIFT sometimes abbreviates this term as FTA. file transfer integrated Alliance Gateway enables third-party file transfer middleware to exchange files over SWIFTNet. To achieve this, the middleware can invoke the file transfer integrated commands and pass a set of parameters as arguments. The middleware manages all other elements of the file exchange (for example, it manages monitoring, error handling, retry mechanism, and address maintenance). SWIFT sometimes abbreviates this term as FTI. file transfer interface The file transfer interface of Alliance Gateway embeds two optional components: the file transfer adapter and file transfer integrated. These components enable file transfer between correspondents over SWIFTNet. Customers use the Alliance Gateway Admin GUI to manage both components. The file transfer adapter and the file transfer integrated enable file transfer either in real time or through the store-and-forward delivery mode of FileAct. file transfer local agent A component of SWIFTNet Link that provides FileAct functionality. SWIFT sometimes abbreviates this term as FTLA. FileAct An automated messaging service that SWIFT has designed to enable customers to exchange files. FileAct supports both interactive and store-and-forward modes. It is particularly suited for the exchange of large volumes of data. FIN /messaging application/ The financial messaging application, which together with the General Purpose Application, makes up the FIN service. /messaging service/ The messaging service that enables the secure and reliable exchange of MT messages in store-and-forward mode. User-to-user, user-to-SWIFT, and SWIFT-to-user messages are sent and received within the FIN service (that is, within both the General Purpose Application and the FIN application).25 March 2011 27

SWIFT

FIN address A 12-character string that identifies the sender and the receiver in the header of a FIN message. The string consists of an 8-character BIC, a logical terminal code as the ninth character, and a 3-character branch code. FIN bridge The component within FIN that forms a bridge between the FIN service and the SWIFTNet access and transport infrastructure. FIN vendor testbed A network used to test applications or interfaces before deployment on the FIN production network. The FIN vendor testbed is reached through the integration testbed. Financial Information ExchangeAbbreviated: FIX

A message standard that facilitates the electronic exchange of information that relates to securities transactions. See also: FIX Protocol Ltd. (FPL) financial institution For SWIFT purposes (for example, for message validation), a financial institution is an organisation that is eligible as a SWIFT user, except Treasury Counterparty (TRCO), nonfinancial institutions in a Member-Administered Closed User Group, Corporates (CORP), and Securities Market Data Provider (SMDP) categories. financial market infrastructure See market infrastructure. financial supply chain An end-to-end sequence of financial processes that take place in a commercial transaction. The financial supply chain starts with the issuance of a purchase order and ends with the postsettlement reconciliation between the buyer's accounts payable system and the seller's accounts receivable system. FINCopy One of the FIN copy services. FINCopy enables the sender of a message to trigger a full or partial copy of a FIN message to a pre-defined third party (BIC8) for further processing, including optional authorisation. FINCopy operates in T-Copy mode and Y-Copy mode. The other FIN copy service is FINInform. FINCopy service identifier A unique 3-letter code in field 103 of a FIN message usage header, which identifies a FINCopy service message. FINCopy also uses this field, for the same purpose, in undelivered message reports and abort notifications to the users. FINInform One of the FIN copy services. FINInform automatically generates a full or partial copy of a predefined set of FIN message types, and forwards the copy to a pre-defined third party (BIC8 or

28

Glossary

F

BIC11). The message copy can be sent to up to three destinations. There is no impact on the original message flow. FINInform operates in T-Copy mode. The other FIN copy service is FINCopy. FINInform copy destination A BIC8 or BIC11 that the FINInform service administrator has identified as the destination that receives copies of the FIN messages, based on the service parameters that the FINInform service administrator has defined. The copy destination may belong to the FINInform service administrator or another SWIFT user. FINInform service identifier A 3-letter code that identifies the FINInform service. The FINInform identifier code appears in the header of the received copy of a message. FIX engine A software application the primary function of which is to maintain Financial Information Exchange (FIX) trading sessions between itself and one or more counterparties. FIX hub The collective name for the hardware and software components, known as UL NET. ULLINK owns and operates the FIX hub at its operating centres. FIX over SWIFT The Solution that enables to send FIX messages over the SWIFT network. FIX Protocol Ltd.Abbreviated: FPL

An international group of committees that owns and maintains Financial Information Exchange (FIX) as a public domain specification. follow the sun The expression that indicates that a service is implemented through two, three, or more service centres across the world, each covering a part of the service opening hours. Customer requests can be handed over from one centre to the next at the end of the local opening hours. For example, Support is available 24 hours a day. The three main Customer Support Centres (Asia Pacific [AP], Europe Middle East Africa [EMEA], and Americas [AM]) operate during their local working hours. Front-End ProcessorAbbreviated: FEP

A processor at a SWIFT operating centre or a user site. full function mode A Test and Training mode in which users can exchange FIN messages with other training users (subject to a message routing restriction tables), with themselves, or with the system. SWIFT sometimes abbreviates this term as FFM. See also: local test mode

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SWIFT

Funds The Solution that covers transactional and reporting flows related to global fund distribution. Funds comprises a set of ISO20022 (XML) standards, a rulebook, and InterAct (in store-andforward mode, with central validation and non-repudiation).

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Glossary

G

GGeneral Distribution The date when SWIFT makes available, to customers, a qualified version of SWIFTNet Link and the Alliance products for live operations and general distribution. General Purpose Application The SWIFT application that establishes and controls the communication between a logical terminal and the FIN application. The General Purpose Application also controls the user's initiation and termination of FIN sessions. SWIFT sometimes abbreviates this term as GPA. Giovannini Group The group that was formed in 2001 under the leadership of Dr. Alberto Giovannini of Unifortune, under the auspices of the European Commission Directorate General of the Internal Market. The purpose of the Giovannini Group was to identify the key technical, operational, legal, and commercial barriers to an effective single market for clearing and settlement of European securities transactions. See also: Giovannini Protocol, Giovannini Report Giovannini Protocol The protocol that SWIFT published in March 2006, which defines the solution to Barrier 1 in the Giovannini Report. It identifies ISO15022 and ISO20022 (data layer) and IP with PKI and nonrepudiation (transfer layer) as the standard interface technologies which, according to the European Commission, all European clearing and settlement infrastructures must adopt by 2011. Giovannini Report The report that the Giovannini Group published in 2003. The Giovannini Report lists and describers 15 barriers to an effective single European clearing and settlement market. It also assigns specific actions for each barrier. For example, barrier 1 focused on the national differences in the technology and interfaces used to access clearing and settlement infrastructures. SWIFT and the Securities Market Practice Group were assigned to propose a solution to this barrier (see Giovannini Protocol). global cold start The restoration of service from an empty or zeroed state for all messaging zones (that is, currently, both the Trans-Atlantic and the European zones). global partner See SWIFT global partner.

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HHardware Security ModuleAbbreviated: HSM

A tamper-resistant hardware device within which the user generates and stores its SWIFTNet Public Key Infrastructure private keys. The HSM performs cryptographic operations such as signing the data that is sent over SWIFTNet. Hardware Security Module boxAbbreviated: HSM box

A hardware box that can store multiple SWIFTNet Public Key Infrastructure (SWIFTNet PKI) private keys. SWIFTNet Link can access the HSM box over the local area network (LAN). Hardware Security Module cardAbbreviated: HSM card

An Integrated Circuit Card that the user inserts in a card reader and that can store one SWIFTNet Public Key Infrastructure (SWIFTNet PKI) private key. The user connects the card reader to a PC through a Universal Serial Bus (USB) port. Hardware Security Module tokenAbbreviated: HSM token

A security token that the user inserts in the Universal Serial Bus (USB) port of a PC. An HSM token can store one SWIFTNet Public Key Infrastructure (SWIFTNet PKI) private key. head office declaration A document that the parent entity completes to provide information about the legal status of a sub-member (that is, a branch or subsidiary). header The portion of a message that contains control information (for example, the sender, the receiver, the message type, and the priority information). high-value payments Payments that, because of the amount involved, the urgency or the need for settlement finality, are of particular concern to the financial industry. hold queue A queue that holds the message input reference of messages that are pending authorisation from the central institution of a FINCopy service that operates in Y-Copy mode. host adapter Bi-directional transport mechanisms that route incoming messages from applications to the Alliance Gateway/Alliance Access, and route outgoing messages from the Alliance Gateway/ Alliance Access back to those applications identified as message partners. To facilitate message transport, the host adapter concentrates message traffic, and dispatches it between Alliance Gateway/Alliance Access and the applications. SWIFT sometimes abbreviates this term as HA.32 Glossary

I

IIndication of InterestAbbreviated: IoI

A broadcast message that is sent to trading partners to indicate the sender's interest. initial secrets dematerialisation The secure infrastructure (internal SWIFT systems and processes) that enables convenient access to the initial secrets required for SWIFTNet Link installation and configuration at the customer's site. Upon successful entry of an authentication string, this infrastructure grants access to a Customer Security Management-created file over the secure IP network. Innotribe A set of events, tools, and projects that enables collaborative innovation in financial services. Innotribe is a SWIFT initiative. Input Application Sequence NumberAbbreviated: IASN

IASN and Output Application Sequence Number (OASN) refer to application sequence numbers (input and output) that a network interface uses to keep track of both messages sent to an application for processing, and output messages received from an application to be sent to the network. input message Any message that a user sends to the FIN messaging service, or to another user, by means of the FIN messaging service. Input Protocol Sequence NumberAbbreviated: IPSN

IPSN and Output Protocol Sequence Number (OPSN) refer to sequence numbers that a network interface uses to keep track of messages that pass between two applications. Input Regional Processor The primary logical node of the FIN service that establishes a session with the FIN sender, and validates all FIN messages that come from the sender. See also: Regional Processor input sequence number A sequential, 6-digit number that is assigned to each FIN input message. SWIFT sometimes abbreviates this term as ISN. input window See window. input/output identifier A 1-letter code in the application header that indicates whether the FIN message is input (I) or output (O).25 March 2011 33

SWIFT

institution code A 4-letter code that forms part of the BIC. The institution code unambiguously identifies an institution in the financial services industry. SWIFT assigns the institution code. institution DN The Distinguished Name (DN) of the SWIFT user. The DN includes the BIC and no other details. integration testbed A network environment that vendors and developers use to test applications or interfaces before deployment on SWIFT's production environment. The integration testbed environment is used for the developer testing service. integrity The mechanism that enables the originator of a message to provide the recipient with the means of verifying that the message has not been modified during transmission. integrity protection The mechanism that ensures that no unauthorised persons have modified a message or payload during storage or transmission. InterAct A messaging service that enables the interactive (real-time) and store-and-forward exchange of messages between parties. InterAct is particularly suited for mission-critical and time-critical applications. interactive The messaging model that indicates a conversational exchange of messages (for example, when a user enters a question or command and the correspondent responds immediately). interactive customer consultation Interactive customer consultations are part of SWIFT's customer consultation programme, an ongoing dialogue with our global community of shareholders and users. They are online surveys that typically focus on future product releases and prioritise specific features. These surveys poll a broad sample of the SWIFT community. SWIFT communicates survey results through summary reports, which it may use afterwards in regional conferences and at Sibos. SWIFT sometimes abbreviates this term as ICC. Interactive Workstation A Browse interface that bank members use to interact with the EURO1 and STEP1 clearing services. Bank members can use this service to monitor bank positions, limits, and on-hold payments. The Interactive Workstation replaces the clearing workstation. SWIFT sometimes abbreviates this term as IWS. interface applications Business applications that SWIFT sells and markets, and that operate with the Alliance portfolio of products.

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Glossary

I

International Central Securities DepositoryAbbreviated: ICSD

An institution that clears and settles international securities transactions by book entry (that is, by the adjustment of participants' accounts). The stock is domiciled in the native countries' national Central Securities Depository (CSD). International DrawdownAbbreviated: IDD

International Drawdown is an alternative that SWIFT offers to customers that have difficulty in arranging their direct debit with a bank that is connected to the European and US Automated Clearing Houses (ACH). IDD uses the existing international-correspondent, banking-payment infrastructure to process payments automatically from a client-designated payment account. The IDD service is a global cash-management system offered by an international third-party provider. International Organization for StandardizationAbbreviated: ISO

The organisation that develops international standards. The ISO is based in Geneva. International Securities Association for Institutional Trade CommunicationAbbreviated: ISITC

A global industry group that comprises fund managers, broker-dealers, and custodian banks. The ISITC aims to support the Straight-Through Processing (STP) of securities transactions. To do this, the group defines the business requirements that result in the development of new message standards and the refinement of existing standards. International Securities Identification NumberAbbreviated: ISIN

A code that uniquely identifies a specific issue of securities. Its structure is defined in ISO 6166. The ISIN is a 12-character alphanumerical code that does not contain information characterising financial instruments, but serves for uniform identification of a security. International Swaps and Derivatives AssociationAbbreviated: ISDA

The industry association for the world's leading participants in privately negotiated swaps and related derivatives transactions. Members include financial institutions, government entities, corporations, and service providers. interoperability The ability of computers, protocols, and message standards to communicate with other computers, protocols, and message standards. Interoperability is required for Straight-Through Processing (STP). IPsec Internet Protocol security. An industry standard technology that SWIFT uses to secure all IPbased communication flows between the customer premises and SWIFT.

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SWIFT

ISO 15022 The standard that enables the securities industry to design message types on the basis of ISO 15022 syntax and message design rules, a dictionary of data fields, and a catalogue of messages. SWIFT is the ISO 15022 Registration Authority. ISO 20022 The standard that describes the agreed methodology used by the financial industry to create consistent message standards. ISO 20022 uses a modelling methodology to capture financial business areas, business transactions, and associated message flows in a syntax-independent way. It also uses a central dictionary of business items used in financial communications. ISO 20022 (Financial) repository The repository that the ISO 20022 Registration Authority maintains. SWIFT is the ISO 20022 Registration Authority. The ISO 20022 (Financial) repository contains a data dictionary and a business process catalogue (that includes models and derived message definitions). ISO Registration Authority A competent body that ISO has appointed to ensure that an international standard developed by an ISO technical committee is maintained or implemented (or both) effectively. SWIFT is the ISO Registration Authority for ISO 9362 (BIC), ISO 10383 (MIC), ISO 13616 (IBAN), ISO 15022 (scheme for securities messages), and ISO 20022 (universal financial industry message scheme). issuer agent message ISO 20022 messages that facilitate corporate action communications between registrars, or other agents of the issuer, and the central securities depository. This includes a few messages for the announcement of the corporate action and several messages to manage the corporate actions life cycle (for example, the authorisation to disperse cash proceeds for an event).

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Glossary

K

KKey Client programme A cross-divisional approach that aims to achieve and maintain a centralised relationship with a pre-defined list of SWIFT key clients that have a worldwide or multi-regional presence in the financial markets. Key Management Application The application that certifies (or recovers) an end user that has been registered and set up for certification (or recovered) using the Local Registration Application. SWIFT sometimes abbreviates this term as KMA. key pair Two mathematically related cryptographic keys. One key is private and protected. The other key is public and available to correspondents within a certificate. See also: private key, public key Knowledge Base The online database that enables SWIFT Support-registered customers to search for solutions and tips to known problems. The knowledge base also provides answers to frequently asked questions. The facility is available at www.swift.com > Support.

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SWIFT

Lleased line A standard connection line to SWIFTNet. Leased lines have bandwidths up to E1/T1. They offer a permanent connection between the customer premises and the Point of Presence (PoP) of the SWIFT Network Partner. SWIFT sometimes abbreviates this term as LL. left security officer A role that carries joint responsibility with the right security officer for the configuration and the management of the security functions within Alliance. SWIFT sometimes abbreviates this term as LSO. Loans A Solution that caters for electronic agent notification messaging for the loans market. Local Authentication Local Authentication provides integrity and authentication of files exchanged between Alliance Access and any application that connects through the application interface. Local Authentication requires that the sending entity and Alliance Access use the same key to compute a Local Authentication file signature. Alliance Integrator also uses local Authentication between itself and Alliance Access, and when connecting to back-office applications. SWIFT sometimes abbreviates this term as LAU. Local Command Team The team that leads emergency actions and recovery activities during a SWIFT site disruption in a specific location. The team is under the supervision of the Site Manager. SWIFT sometimes abbreviates this term as LCT. Local Registration Application The application that the security officer uses to register an organisation's users and manage an organisation's certificates. SWIFT sometimes abbreviates this term as LRA. local test mode The Test and Training mode in which a user can simulate a message transmission to other users, or to the system. SWIFT sometimes abbreviates this term as LTM. See also: full function mode location code A 2-character code that is used in a BIC to identify the location of an institution within a country. SWIFT assigns the location code. logical terminal The logical entity through which users send and receive FIN messages.38 Glossary

L

SWIFT sometimes abbreviates this term as LT. logical terminal code A single, alphanumeric character that identifies a specific logical terminal within a destination. The logical terminal code is the ninth character of a full FIN address. Logical Terminal Control Part of the FIN General Purpose Application. SWIFT sometimes abbreviates this term as LTC. login The process by which a logical terminal establishes a connection and opens a General Purpose Application session with FIN. The first login establishes the physical connection. login negative acknowledgement The NAK that the FIN service returns in response to a failed login attempt. An error code indicates the reason for failure. SWIFT sometimes abbreviates this term as LNK. login positive acknowledgement The acknowledgement that FIN returns after a successful login attempt. SWIFT sometimes abbreviates this term as LAK. login sequence number Part of the FIN login, a sequential 4-digit number that is part of the login process and the login authentication. SWIFT sometimes abbreviates this term as LSN. logout The process of terminating the logical connection between a logical terminal and the FIN service. Long Term Archival See Accord Long Term Archival. SWIFT sometimes abbreviates this term as LTA. LT-directed queue A special delivery subset called LTDIRa that is assigned to each logical terminal. The a represents the logical terminal code of the receiving logical terminal. All system output messages are queued to LTDIRa. Exceptions are the MT 076 (Certification Error), MT 081 (Daily Check Report), MT 087 (Certification Response), MT 092 (SWIFT-to-User Message), MT 094 (Broadcast), and MT 096 (FIN Copy to Central Institution). SWIFT sometimes abbreviates this term as LTDIR queue. LT-ID A unique 9-character identifier for any logical terminal. The LT-ID consists of the 8-character BIC for that destination and the logical terminal code. The LT-ID is also known as the BIC9.25 March 2011 39

SWIFT

MM-Copy The protocol implemented between FIN and the value-added service servers for some copy services. M-Copy operates over direct data communication links. main message flow The processing invoked by customers to send and receive messages and files to each other. The main message flow is performed by applications, messaging interfaces, communication interfaces (including SWIFTNet Link at the sender side), the central messaging infrastructure (that is, Front-End Processors (FEP), switches, the FIN bridge, and FIN), and the receiver's communication interface (including SWIFTNet Link, the messaging interface, and the applications). SWIFT sometimes abbreviates this term as MMF. managed customer-premises equipment The network equipment that is located at the customer's site, and managed by SWIFT and its SWIFT Network Partners. The managed customer-premises equipment consists of one or more VPN boxes and one or more network routers. SWIFT sometimes abbreviates this term as M-CPE. Market Identifier CodeAbbreviated: MIC

An ISO (ISO 10383) code that identifies exchanges, trading platforms, and other regulated or non-regulated markets. SWIFT is the ISO 10383 Registration Authority. market infrastructure A system that provides services to the financial industry for trading, clearing and settlement, matching of financial transactions, and depository functions. Administrators of market infrastructures can be public organisations (for example, central banks) or other public instrumentalities, or private and regulated associations or entities. A market infrastructure encompasses a set of business rules and obligations, admission rules, operating rules, business communication flows, and related communication channels. market practice The geographical, functional, and sectorial agreement about how standards should be used in a specific business scenario, for a specific market, to guarantee efficient execution of a financial transaction. Market-Infrastructure Closed User Group A Closed User Group implemented in support of a service managed by a Market Infrastructure (MI). SWIFT sometimes abbreviates this term as MI-CUG. master destination A FIN destination for which synonyms are defined. A master destination can have up to 99 synonyms. Each of these synonyms has a unique address.

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Glossary

M

master LT A logical terminal of a FIN master destination. A master LT can retrieve messages that synonyms have sent or received. Unsolicited reports are delivered to the master LT. matched confirmation The two confirmations that counterparties exchange (see counterparty (Accord)), are considered to be matched if their content fulfils the matching criteria for a particular deal type. matching criteria Specific rules that determine whether two confirmations are matched confirmations, unmatched confirmations, or mismatched confirmations. For each deal type, Accord uses different matching criteria. matching entity A single, logical dealing branch that is the sender or receiver of confirmations. A matching entity can have more than one BIC. A BIC can belong to only one matching entity. matching result The result of processing a confirmation by Accord. There are five possible matching results, also known as the matching status: matched confirmation mismatched confirmation unmatched confirmation rejected confirmation cancelled confirmation matching rule instruction A user-defined matching rule that, in the matching process, tries to auto-match confirmations that are unmatched or mismatched on specific fields. SWIFT sometimes abbreviates this term as MRI. matching rule request If two confirmations are unmatched, then a user can use a matching rule request to instruct Accord to create a user-defined matching rule (also called matching rule instruction or MRI). The matching rule instruction is used to match specific fields on future unmatched confirmations. if the counterparty is also an Accord user, then it must accept the matching rule request before the rule becomes active. SWIFT sometimes abbreviates this term as MRR. Member-Administered Closed User Group Member-Administered Closed User Group. A SWIFT-operated, member-managed service that uses messaging services. The Member-Administered Closed User Group is designed to enable users that participate in the Closed User Group (CUG) to exchange SWIFT messages bilaterally with the service administrator, or with the administrator-related participant. SWIFT sometimes abbreviates this term as MA-CUG.

25 March 2011

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SWIFT

member-concentrator See SWIFT member-concentrator. message A collection of data in a structured format that a user or an application sends or receives. A message consists of blocks of data that contain information about addressing, optional features, control information for processing and delivery, security information, and the actual payload or message text. Messages are typically used to exchange individual transactions or short reports. message category A series of message types that relate to a particular class of transaction, as indicated by the first digit of the message type number. message delivery The process of sending a FIN message from the Output Regional Processor to the address specified in the header of the message, and receiving a positive or negative acknowledgement from the receiving interface. Message Format Validation Rules The document that provides complete information about the validation procedures that the SWIFT network applies to the text block (block 4) of FIN user-to-user messages. SWIFT sometimes abbreviates this term as MFVR. message input