SWIFT

Glossary
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. This document is for all users of SWIFT services and products.

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Table of Contents
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..............................................................................................................................................................82 A . egal Notices ...............................................................................................................................................................86 L

Glossary

Preface

Preface
About 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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A
abort 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.

Glossary

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 Hub
Abbreviated: 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.
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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

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.

Glossary

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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B
backbone 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

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.
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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 Planning
Abbreviated: 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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Glossary

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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C
cancelled 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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Glossary

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 Depository
Abbreviated: 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 date
Abbreviated: CV Expiry date

The date on which a certificate expires. certificate policy

Abbreviated: 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 revocation
Abbreviated: CV revocation

The act of revoking an otherwise valid certificate (for example, after the certificate has been compromised). Certificate Revocation List
Abbreviated: 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 Statement
Abbreviated: 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 Identifier
Abbreviated: 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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Glossary

client process The operating system process that generates requests against SWIFTNet. This process implements client-application code. See also: server process Closed User Group
Abbreviated: 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-Shelf
Abbreviated: 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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Glossary

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's
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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 Equipment
Abbreviated: 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.

20

Glossary

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

D
Data 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 to
22 Glossary

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 Name
Abbreviated: 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 the
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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.

24

Glossary

E
e-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 Association
Abbreviated: 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 Information
Abbreviated: 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.

26

Glossary

F
Failure is Not an Option
Abbreviated: 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).
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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 Exchange
Abbreviated: 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

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 Processor
Abbreviated: 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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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).

30

Glossary

G
General 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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H
Hardware Security Module
Abbreviated: 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 box
Abbreviated: 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 card
Abbreviated: 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 token
Abbreviated: 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
Indication of Interest
Abbreviated: 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 Number
Abbreviated: 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 Number
Abbreviated: 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).
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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.

34

Glossary

International Central Securities Depository

Abbreviated: 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 Drawdown
Abbreviated: 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 Standardization
Abbreviated: ISO

The organisation that develops international standards. The ISO is based in Geneva. International Securities Association for Institutional Trade Communication
Abbreviated: 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 Number
Abbreviated: 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 Association
Abbreviated: 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).

36

Glossary

K
Key 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

L
leased 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

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.
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M
M-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 Code
Abbreviated: 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.

40

Glossary

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.

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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 reference A unique reference number assigned to every FIN input message. This number consists of the message input date, the FIN address of the sender, the input session number, and the input sequence number. SWIFT sometimes abbreviates this term as MIR. Message Middleware Enabler The SWIFT software package that provides an application programming interface to financial institutions and vendors that intend to implement a messaging interface between an application and Alliance. SWIFT sometimes abbreviates this term as MME. message output reference A unique reference number assigned at each delivery attempt of a FIN message. This reference consists of the message output date, the address of the receiver, the output session number, and the output sequence number. SWIFT sometimes abbreviates this term as MOR. message partner The representation, in an application interface, of an external application (for example, printers, or mainframe connections). The application interface sees a message partner as the recipient or sender of a message. It stores the characteristics of each message partner in its corresponding message partner profile.

42

Glossary

message priority A 1-letter code that the sender of a FIN message assigns to indicate the priority of that message for output or delivery queuing. Possible values are: S (System), U (Urgent), or N (Normal). message reception registry The registry where SWIFT stores the central routing rules. Each receiver defines its own rules and provides them to SWIFT. SWIFT uses these routing rules to determine where to deliver traffic (that is, to which store-and-forward queue or to which SWIFTNet Link). SWIFT sometimes abbreviates this term as MRR. Message Reference trailer A trailer that the system adds to FINCopy MT 096 messages, to specify the message reference of the original user message. SWIFT sometimes abbreviates this term as MRF trailer. message routing restriction tables The tables that specify the FIN message types, or message categories, that users can exchange with other categories of users. SWIFT sometimes abbreviates this term as MRR tables. message type See MT. Message User Group A group that FIN users must belong to if they want to receive a particular category of standard messages, or specific message types. Users that have not registered for a particular Message User Group cannot send or receive the messages specified for use in that Message User Group. SWIFT sometimes abbreviates this term as MUG. message user reference A free-format field in the optional user header of FIN messages. It enables senders to add information of up to 16 characters. SWIFT sometimes abbreviates this term as MUR. messaging service A service that is available on the SWIFT secure IP network and that enables financial institutions worldwide to securely and reliably exchange financial messages and files, and to browse securely through online portals. The messaging service suite includes the exchange of MT messages over FIN, the exchange of MXs messages over InterAct, the exchange of files over FileAct, and the secure access to online financial portals using Browse. middleware An item of technical software that enables data to be exchanged among different systems with standard communication components and tools for formatting, mapping, and processing.

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SWIFT

mismatched confirmation Accord considers that two confirmations exchanged between counterparties are mismatched if the content only partially fulfils the matching criteria for a particular message type. For most mismatched confirmations, the party identification and amount fields fulfil the matching criteria, but other details do not. See also: counterparty (Accord) MQ Host Adapter The MQ Host Adapter supports applications that communicate with Alliance Gateway through WebSphere MQ queues. To send and receive messages, these applications invoke the WebSphere MQ API. All such messages are consistent with both the WebSphere MQ and the Alliance Gateway syntax. Applications can communicate with the Alliance Gateway MQ Host Adapter over different queue managers. Alliance Gateway offers such platform independence for applications provided by the MQ Host Adapter. SWIFT sometimes abbreviates this term as MQHA. MQSeries Interface to Alliance Access
Abbreviated: MQSA

In the scope of Alliance Access, an add-on that exchanges SWIFT messages between Alliance Access and back-office applications over IBM WebSphere MQ. MT A traditional 'tag:value' message type for use on the SWIFT network. MT-MX Translation Testing Tool The tool that enables customers to test that their MT/MX translations produce the correct results. MTs The portfolio of traditional 'tag:value' message types for use on the SWIFT network. multi-vendor secure IP network The SWIFT architecture based on a network model that uses state-of-the-art security (secure IP network). The multi-vendor secure IP network also improves resilience and capacity, while avoiding dependency on a single network supplier. SWIFT sometimes abbreviates this term as MV-SIPN. MX An XML message definition for use on the SWIFT network. Most MX message definitions are created by SWIFT, using the ISO 20022 methodology. MXs The portfolio of XML message definitions for use on the SWIFT network. My Portal A free, online service that enables customers to view their favourite www.swift.com applications on a single screen. My Portal is available to all SWIFT customers.

44

Glossary

N
NAK The term that is often used in communication protocols to acknowledge the rejection of a message input to a messaging service. An error code indicates the reason for the rejection. naming and addressing Naming assigns an identity to an entity (for example, an institution, an individual, or an application) that sends or receives SWIFTNet messages. Addressing links the identity (the name) with a means of routing (the address). naming tree The X.500-based data structure that enables the user to record information about any end points. Naming-tree information can include names, certificates, and addresses. National Member Group A group that consists of all SWIFT Shareholders within the same nation. The National Member Group advises and assists the Board of Directors on specific local matters (for example, admission criteria, proposal of Director candidates, and work with their representative on the Board). SWIFT sometimes abbreviates this term as NMG. National User Group A group that consists of all SWIFT users within the same nation who organise themselves to discuss SWIFT matters of an operational nature. The forum allows for collective planning and co-ordination of operational activities. Netscreen Redundancy Protocol
Abbreviated: NSRP

A proprietary protocol that selected Netscreen and Juniper devices support to provide highavailability services. netting The calculation of a net balance for the settlement of outstanding financial contracts. Receivables are offset against payables to reduce the credit exposure to one or more counterparties, and to minimise settlement risk. network boundary The logical boundary within which only the secure IP network core and Point of Presence (PoP) elements reside. Network Partner See SWIFT Network Partner. next hop An intermediate connection in a string of connections that links two network devices. The next hop is the first device in the path from the VPN box to the SWIFTNet Link.

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SWIFT

non-delivery warning A system message that warns that the message or file for which delivery monitoring has been requested was not delivered within the period specified for that message or that file. non-repudiation The fact that an action cannot be denied after a given event. non-supervised entity active in the financial industry A legal entity that engages as main activity in financial services. It is not subject to supervision by a financial market regulator. The eligibility criteria are detailed in the SWIFT Corporate Rules. non-SWIFT BIC The BIC of an organisation that is not connected to SWIFT. nostro account An account that a financial institution holds at another financial institution (for example, at one of its correspondents).

46

Glossary

O
o The character that is used to identify the organisation in the Distinguished Name (DN). obsolescence period The period of time, expressed in units of 5 minutes, after which, if a FIN message remains not delivered, a Delayed Message trailer is generated and added to the message when it is delivered. If a non-delivery warning has been requested, it is also generated and sent at the expiry of the obsolescence period. online customer services The SWIFT service that provides customers with answers to technical questions and guidance to resolve problems in a quick and secure way. Online customer services consist of Support (knowledge base, documentation, download centre, dropbox, leased line usage report, case manager, configuration browser, and operational status), secure channel, ordering and billing, and information services (SWIFTNet Services Directory, BIC Portal, User Handbook Online, Watch). Access to these services is subject to registration by the customer. Online Directories An online query tool with single access to the content of almost all SWIFT Directories, including the BIC Directory, the BICPlusIBAN Directory, the SEPA Routing Directory, and the Countries, Currencies, and Holidays Directory. open account The payment method by which the seller ships goods and waits for payment. Open account represents the highest risk for the seller and the lowest risk for the buyer. It is the most common way for buyers and sellers to do business in international trade today (approximately 80 percent of the market). operating centre The site from which SWIFT operates and controls its systems. SWIFT has several operating centres throughout the world. SWIFT sometimes abbreviates this term as OPC. ou The characters that are used to identify the organisational unit in the Distinguished Name (DN). Output Application Sequence Number
Abbreviated: OASN

The Input Application Sequence Number (IASN) and the OASN are application sequence numbers that a network interface uses solely to track messages sent to an application for processing, and output messages received from an application to be sent to the network. As output messages are sent to a network interface, they are assigned an OASN by the transmitting application. The OASN is a running sequence that is unique to the application. During recovery, the network interface passes the OASN to the application as an indication of the last output message received by the network interface from the application. The important thing to note is that the IASN and OASN are two unique numbers; there is not a one-to-one
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SWIFT

correspondence of IASN to OASN. One input message can result in more than one output message. output message Any message that a FIN user receives from the FIN messaging service, or from another user by means of the FIN messaging service. Output Protocol Sequence Number
Abbreviated: OPSN

The Input Protocol Sequence Number (IPSN) and the OPSN refer to sequence numbers that a network interface uses to keep track of messages that pass between two applications. The transmitting network interface assigns the OPSN. It is important to note that the OPSN that is assigned by the transmitting application is validated at the receiving end, where it is called an IPSN. The OPSN consists of source and destination application, and node and sequence number. Output Regional Processor The primary logical node that establishes a session with the FIN receiver, and handles all output message queuing. See also: Regional Processor, Input Regional Processor output sequence number A sequential 6-digit number that the FIN service assigns on each attempt to deliver a FIN output message. SWIFT sometimes abbreviates this term as OSN. output time The local time for the intended recipient of a message when a FIN message is output. output window See window. over-the-Counter Derivatives
Abbreviated: OTC Derivatives

Derivatives are instruments with a value that depends on the performance of an underlying security or asset. Over-the-counter derivatives are traded in some context other than on a formal exchange. This indicates that the ability to exercise the contract is dependent on the ability of the other party to meet the obligation. See also: Derivatives

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Glossary

P
partial copy service A mode in which the SWIFTNet copying service only copies certain pre-defined fields of a message. partner See SWIFT partner. partner identifier code A code that identifies a SWIFT registered vendor. The partner identifier code is equivalent to the BIC. SWIFT sometimes abbreviates this term as PIC. Partner Programme See SWIFT Partner Programme. payload The part of an InterAct request or response that contains the business content of the request or response. payment in advance The payment method by which the buyer pays the seller before the shipment of the goods. This represents the lowest risk for the seller and the highest risk for the buyer. Payment in advance is rare. Payments Clearing The provision of SWIFT messaging solutions for both high-value and low-value clearing and settlement systems worldwide. The solutions include secure messaging, connectivity, and common message standards. Payments Market Practice Group The Payments Market Practice Group has the following objectives: to take stock of payments market practices across regions, to discuss, explain, and document market practice issues (including commercial impact), to recommend market practices (covering end-to-end transactions), to propose best practice, business responsibilities and rules, message flows, consistent implementation of ISO messaging standards and exception definitions, to ensure publication of recommended practices, and to recommend payments market practices in response to changing compliance requirements. SWIFT sometimes abbreviates this term as PMPG. PIN Entry Device
Abbreviated: PED

A handheld device that comprises a numeric keypad and an LCD screen. It is required to authenticate certain administrative commands on the Hardware Security Module box (HSM box). To do so, customers insert a PED key in the PED and type the associated PIN code on the PED keypad.

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PKI client The software that a customer requires to access the Public Key Infrastructure (PKI) services and that is embedded in SWIFTNet Link. The PKI client performs the signing, signature verification, encryption, and decryption functions. The PKI client also manages the unique private key of the customer and its certificates. PKI cryptographic module The software that is embedded in the customer's SWIFTNet Link. The PKI cryptographic module secures messages and manages certificates. The PKI cryptographic module performs the signing, signature verification, encryption, and decryption functions, and manages the unique private key of the customer and its certificates. Point of Presence
Abbreviated: PoP

The access point that connects users with the SWIFT Network Partner's network. point of service
Abbreviated: POS

In the area of remittances, a physical or a virtual location where a financial institution offers remittance services to its customers. Physical locations are locations where cash can be handled and the physical presence of the customer is required (for instance: bank branch tellers, automated teller machine, retail cashiers). Virtual locations are locations where the remittance is processed through a remote channel and the physical presence of the customer is not required (for example, e-mail ordering, phone banking, internet banking, mobile banking). Policy Management Authority The body that determines certification parameters and controls the quality of certification practices. In the context of the SWIFTNet Certification Authority (CA), SWIFT fulfils the role of the Policy Management Authority. SWIFT sometimes abbreviates this term as PMA. Possible Duplicate Emission trailer A trailer that the sender adds to a FIN message. The PDE trailer warns the receiver that the same message may already have been input to the FIN service. SWIFT sometimes abbreviates this term as PDE trailer. See also: reconciliation of traffic Possible Duplicate Message trailer A trailer that the FIN system adds to a FIN message. The PDM trailer warns the receiver that the same message may already have been output by the FIN service. SWIFT sometimes abbreviates this term as PDM trailer. See also: reconciliation of traffic Premium Custom Support The highest level of support that SWIFT provides. The Premium Custom Support package includes all the features included in the other Support levels, and additional features that the customer may require. SWIFT works directly with the customer to provide a programme that meets specific Support requirements.
50 Glossary

Premium Plus Support SWIFT has designed Premium Plus for high-volume and highly resilient infrastuctures that require high availability and reliability. It provides high levels of proactive support and personalised incident and crisis management. Premium Support SWIFT's first level of additional, optional support. SWIFT has designed Premium for mediumsize customers that operate business-critical infrastructures and must recover operations in the shortest possible time frames. prime Regional Processor The Regional Processor with which a FIN user is normally associated, and to which all normal logins are made. All output messages are typically directed to the receiver's assigned prime regional processor. SWIFT sometimes abbreviates this term as prime RP. See also: Input Regional Processor, Output Regional Processor private infrastructure A direction to SWIFTNet, that is, where the SWIFTNet connectivity infrastructure is owned and operated by the customer. private key The key of an asymmetric key pair that the owner keeps secret. The private key is mathematically related to a unique public key. Within a Public Key Infrastructure (PKI), the owner uses the private key either for signing or for decryption. processing rules The rules or conventions that describe, in an unambiguous way, how to process data. Production The environment on which SWIFT makes available, to customers, the messaging functionality on the network. The Production environment is used for the following services: pilot, Test and Training, and Live. provisioning A set of activities that ensure that SWIFT updates the SWIFT target systems according to customer requests. Provisioning activities include data entry of the requests in SWIFT's databases, validation of this data, and extraction and generation of provisioning commands to execute on the different SWIFT target systems (for example, the multi-vendor secure IP network and FIN's General Purpose Application). proxy An interface within SWIFTNet Link that gives access to selected TCP/IP protocols, while maintaining the security of SWIFTNet. Proxy Voting An InterAct store-and-forward Solution that relies on eight ISO 20022 XML messages. These messages support announcements, entitlements, voting, confirmation of votes, and results for
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shareholders' meeting activity between the issuers and the beneficial owner, and through all intermediaries (such as custodians, exchanges, market infrastructures, and proxy agencies). pseudo logical terminal A logical entity within the FIN system that receives system messages from users and makes the appropriate responses. Examples of such pseudo logical terminals are those entities that process message retrieval requests and generate the daily check reports. SWIFT sometimes abbreviates this term as PLT. public key The key of an asymmetric key pair that is published in a certificate and that relates mathematically to a unique private key. Within a public key infrastructure, the public key verifies signatures and encrypts business messages. Public Key Infrastructure
Abbreviated: PKI

A security infrastructure, based on public key cryptography, that provides digital signatures and the supporting certification services.

52

Glossary

Q
quit The command that closes a FIN session.

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R
real-time A direct communication or messaging methodology that enables users to exchange traffic immediately when both users are connected and operational at the same time. Examples include InterAct or FileAct used in real-time mode. See also: interactive rebuild date The date on which the information in the BIC Directory is updated and the update becomes effective on the network. reconciliation of traffic The process by which a sender compares the FIN messages that it has sent with the acknowledgements that it has received. Also the process by which a recipient checks received traffic for possible duplicates, such as those indicated by Possible Duplicate Emission trailer or Possible Duplicate Message trailer. FIN provides a number of reports that assist in this process, but the task remains the user's responsibility. recovery (node recovery) The process of recovering a system node. redundancy The duplication of critical operational components and facilities to ensure high availability. reference number A unique identifier that, in combination with an authentication string, secures the communication channel with the SWIFT SWIFTNet Public Key Infrastructure (SWIFTNet PKI) during the user certification process. regional partner See SWIFT regional partner Regional Processor The node of the FIN system that communicates with a user's logical terminals. The Regional Processor is primarily responsible for input message validation and output message queues for multiple destinations in a particular country. Within the flow for a single message, the Input Regional Processor and the Output Regional Processor may be the same node, depending on the location of the sender and the receiver. For an individual user, the Input Regional Processor is always the same node as the Output Regional Processor. SWIFT sometimes abbreviates this term as RP. registered vendor See SWIFT registered vendor registration The verification of a user's credentials that results in SWIFT's recognition of the user's right to access and receive the subscribed services.
54 Glossary

rejected confirmation A confirmation that was rejected by Accord because it failed the business validation or preprocessing checks. Relationship Management Application A means to manage business relationships. The Relationship Management Application is a filter that enables the user to limit the correspondents he can receive messages from and the type of messages they can send to him. The use of the Relationship Management Application mechanism is mandatory for the FIN service. It will be available on an optional basis for SCORE FileAct as of 1 June 2011. release type The classification of a release as a major release, a minor release, or a patch. Remote API The remote API concentrates SWIFTNet traffic between Alliance Gateway and service-specific products that run on remote machines that operate with SWIFTNet Link. Alliance Access and Alliance Entry are examples of such service-specific products. The remote API software emulates the SWIFTNet Link API calls towards the service-specific product. An application that runs over remote API is not aware that it communicates with Alliance Gateway because the underlying remote API emulates a SWIFTNet Link instance. The remote API also enables applications to exchange messages using the Alliance Gateway API. Remote API connections may be secured using a Secure Socket Layer (SSL) Remote API Host Adapter The Remote API Host Adapter supports applications and service-specific interfaces that emulate the SWIFTNet Link application programming interface to communicate with Alliance Gateway. The Remote API Host Adapter also supports applications that use the Alliance Gateway API to configure entities. SWIFT sometimes abbreviates this term as RAHA. Remote Authentication Dial-In User Service
Abbreviated: RADIUS

An authentication and accounting system that is used to check, by means of a RADIUS server,whether the username and the password are correct and authorise access. Remote Management System The system that remotely manages the SWIFT footprint on customers' sites. SWIFT sometimes abbreviates this term as RMS. Remote Procedure Call
Abbreviated: RPC

A protocol that enables applications to call sub-routines that are physically located at a different computer on the network. Remote Support A payable low-cost option to the existing support packages (Standard Support, Standard Plus Support, Premium Support, Premium Custom Support). With Remote Support, SWIFT enters your network area to help diagnose and troubleshoot SWIFT interface issues.
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reporting options The collective name for the user-specified criteria that generates the undelivered message report in the FIN service. requestor The SWIFT user that sends a request through InterAct or FileAct. requestor DN The distinguished name of the sender of an InterAct message or a FileAct file. resilience The measure or ability of a business service, network, or system to remain available in the event of stress, a a disturbance, or a malfunction. responder The SWIFT user to which the requestor addresses a request that it sends through InterAct or FileAct. responder DN The distinguished name of the receiver of an InterAct message or a FileAct file. retrieval A facility that enables a user to request and receive from FIN the history of a message. The user can obtain the message history with or without the message text. The history includes information about the sender, the sending time, and any delivery attempts. right security officer A role that carries joint responsibility with a left security officer for the configuration and the management of the security functions within Alliance. SWIFT sometimes abbreviates this term as RSO. Role-Based Access Control
Abbreviated: RBAC

An optional SWIFTNet facility that enables customers to control the access of end users and applications to service functions. The service administrator defines the available user access profiles (roles) for use with RBAC. After provisioning, the security officers within an institution can grant roles to end users and applications.

56

Glossary

S
S.W.I.F.T. SCRL Society for Worldwide Interbank Financial Telecommunication, Socit Cooprative Responsabilit Limite (limited co-operative society). See also: SWIFT SA-2 SWIFT Authentication Algorithm (Version 2). SA-2 is used on the customer's side. SA-2 protects local exchange of information (that is, between back-office systems and the SWIFT interface). safestore The storage of messages on two separate storage devices within the FIN system. A stored message can be retrieved for up to 124 days after it has been sent, but only by or on behalf of the sender or receiver of the original message. SAS 70 Statement on Auditing Standards for service organisations. A widely recognised industry standard that enables service providers (for example, SWIFT) to obtain independent assurance on their control objectives and processes. Together with the annual report, SWIFT publishes a SAS 70 report that provides information about the security and reliability controls that SWIFT implements. SCORE Standardised Corporate Environment. SCORE enables corporates to use SWIFT's single, secure, and reliable messaging platform to access the services that their financial institutions can provide (for example, cash management services). Standardised Corporate Environment is based on a Closed User Group that caters for financial messaging between corporates and financial institutions. Once registered to use Standardised Corporate Environment, a financial institution can interact with any corporate that is also registered in the Closed User Group. Conversely, a corporate registered in the Closed User Group can interact with any financial institution that is a member of Standardised Corporate Environment. Secure Channel SWIFT's central application for the management of security officers and business officers. Secure Channel enables registered security and business officers to submit and manage security officer profiles, SWIFTNet offline interventions, PKI delegation and authorisation setting changes, and FINCopy security-related changes. Secure Channel allows Alliance security officers to view Alliance interface licence keys. secure code card The card that enables the security officers to submit SWIFTNet offline intervention requests through the Secure Channel application. The secure code card, in combination with a username and password on www.swift.com, provides a strong authentication mechanism. SWIFT sometimes abbreviates this term as SCC.

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secure IP network SWIFT's worldwide, highly secure, and extremely reliable Virtual Private Network (VPN). SWIFT has based the secure IP network on IP and related technologies. The secure IP network provides transport services required by SWIFTNet services. SWIFT sometimes abbreviates this term as SIPN. secure IP network backbone network A SWIFT-managed, fully resilient, high-speed network that is based on IP and associated technologies. The secure IP network backbone network interconnects the SWIFT operating centres and the backbone access points. secure login and select A SWIFT service that customers use to log in to the General Purpose Application and to select the FIN service. SWIFT sometimes abbreviates this term as SLS. Secure Socket Layer
Abbreviated: SSL

A handshake protocol developed to provide integrity, authenticity, and confidentiality over the Internet by using encryption, authentication, and message authentication codes. The protocol supports server and client authentication and is application-independent. As a result, it enables protocols such as HyperText Transfer Protocol (HTTP), File Transfer Protocol (FTP), and Telnet, to be layered on top of it transparently. Securities Market Practice Group The global securities-industry initiative facilitated by SWIFT with the objective to define harmonised market practices for the use of securities standards, using the ISO framework (ISO 15022 and ISO 20022). The ultimate goal of these practices is to ensure that transactions can be straight-through processed end-to-end. SWIFT sometimes abbreviates this term as SMPG. See also: Straight-Through Processing (STP) securities system participant An institution that is the regulatory authority or the administrator of the securities market infrastructure system. Alternatively, an institution that the regulatory authority or the administrator has authorised as a user of the securities market infrastructure system according to the access criteria of the securities market infrastructure system. The securities system participant is permitted to use SWIFT for the sole purpose of its participation in the securities-market infrastructure system. SWIFT sometimes abbreviates this term as SSPA. security end point The entity in the naming tree that has a Public Key Infrastructure (PKI) certificate that enables cryptographic operations and that authorises access to the SWIFTNet Link application programming interface and to SWIFTNet. SWIFT sometimes abbreviates this term as SEP.

58

Glossary

security officer The person that manages security matters for an institution. SWIFT initially registers two security officers per institution. SWIFT sometimes abbreviates this term as SO. See also: shared security officer, left security officer, right security officer Select command A General Purpose Application command that requests access to the FIN application. The logical terminal issues the Select command command. select negative acknowledgement A notification that the FIN system returns after an unsuccessful Select command command. An error code indicates the reason why the select was not successful. SWIFT sometimes abbreviates this term as SNK. select positive acknowledgement The acknowledgement that FIN returns after the successful completion of a Select command command. SWIFT sometimes abbreviates this term as SAK. select sequence number A sequential 4-digit number that customers use within the FIN service as part of the Select command authentication process. SWIFT sometimes abbreviates this term as SSN. select state The current status of a FIN session. The select state indicates whether there is a session open for a given logical terminal, and if so, whether the session is open for input, output, or both. sender notification A FINCopy service option in Y-Copy mode. The sender notification informs the sender of the status of the FINCopy message when the central institution confirms that it has processed the message. SEPA Routing Directory The Directory that contains the operational destinations (routing business identifier codes [BICs]) that are ready for the SEPA scheme and the list of available payment channels through which the destination is reachable for efficient routing of SEPA transactions. See also: Single Euro Payments Area (SEPA) server process A server that processes requests coming through SWIFTNet. The server process implements a server-application code. It can act as a client process against another server process while it handles an incoming request. See also: client process

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service administrator The organisation, other than SWIFT, that approves the participation of customers in Closed User Groups (CUG). The service administrator also defines the service parameters for the provision of the relevant SWIFT services and products in the Closed User Group. service administrator destination A valid SWIFT BIC8 that SWIFT assigns to the service administrator. The service administrator destination is used in digital signatures. The service administrator destination can be the same as the primary server destination. service administrator related participant A SWIFT user that belongs to the same financial institution as the service administrator. To be considered as part of the same financial institution, SWIFT must register the service administrator related participant and the service administrator as belonging to the same group of customers for traffic aggregation purposes. SWIFT sometimes abbreviates this term as SARP. service agreement An agreement between a service administrator and SWIFT. The service agreement defines the administration by or for the service administrator of the Closed User Group (CUG) for a specific SWIFTNet service. service bureau A user or non-user organisation that has been admitted under the shared infrastructure programme as an authorised service bureau to provide services to users regarding the day-today operation of their SWIFT connection. The services offered by service bureaux typically include hosting or operating SWIFT connectivity components, logging on, or managing sessions or security for SWIFT users. service description A SWIFT document that describes a SWIFT service or product. The service description describes the rules, requirements, responsibilities, and operational parameters for the proper use of a SWIFT service or product. service identifier A 2-digit code that identifies the type of data being input or output. The service identifier appears in the basic header of a FIN message. service name The unique technical identifier of a Closed User Group (CUG). service participant A customer that the service administrator has admitted to participate in a Closed User Group (CUG)-based service. service provider See SWIFTReady service provider.

60

Glossary

serviced SWIFT user Any new or existing SWIFT user may be serviced by a SWIFT member-concentrator. To be considered as a serviced SWIFT user under the SWIFT member-concentrator programme, the eligible SWIFT user must appoint a SWIFT member-concentrator. The SWIFT memberconcentrator must then confirm its appointment's acceptance to SWIFT. session In the context of FIN, the period between login and logout in the General Purpose Application, and between Select command and quit in the FIN application. During a session, a logical terminal can interact with FIN and a General Purpose Application. session history A retrievable summary of the activity in previous sessions for a BIC or destination. For example, a FIN session history provides details about the date and time at which the customer has opened and closed each session, the number of messages that the customer has sent and received, and the first and last input sequence number and output sequence number in each session for a logical terminal or group of logical terminals. session number A sequential 4-digit number that the FIN service uses to identify a particular session for a particular application. The session number increments by 1 each time a new session is opened for that application. shared connection The connection that occurs whenever different FIN users connect through the same connectivity equipment so that the users can log in simultaneously. shared infrastructure An indirect connection to SWIFTNet. Users can do this through another SWIFT user (a shared connection), by outsourcing the day-to-day operation of the connection to a third party (that is, a service bureau), or by using the services of a SWIFT member-concentrator. shared security officer A security officer that manages Local Registration Application and Role-Based Access Control (RBAC) activities for multiple institutions (identified by different BIC8s). The shared security officer can manage multiple sub-trees for different institutions. SWIFT sometimes abbreviates this term as SSO. shareholder See SWIFT shareholder Sibos The annual conference, exhibition, and networking event, that is organised by SWIFT. Sibos brings SWIFT customers, solution providers, and SWIFT together to discuss critical issues. Shareholders of the wider SWIFT community attend Sibos to be informed, to move the industry forward, and perhaps most importantly, to expand business relationships and opportunities. Originally, Sibos was the acronym for SWIFT international banking operations seminar. Today, Sibos is a term on its own. The correct spelling is Sibos. It is not SIBOS nor sibos.

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signer DN The Distinguished Name (DN) of the owner of a Public Key Infrastructure (PKI) certificate that signs a message. Signer DNs apply only to InterAct and FileAct. signing keys The signing private key of the sender is used to sign the text; the signing public key of the sender is used by the receiver to verify the signature. The signing-key pair may be the same as the encryption-key pair, or can be different. Single Euro Payments Area
Abbreviated: SEPA

The area in which all euro payments are considered domestic. Single Shared Platform
Abbreviated: SSP

The infrastructure that Banca d'Italia, Banque de France, and Deutsche Bundesbank have developed for TARGET2. The three banks operate the system on behalf of the Euro system. The single shared platform offers a comprehensive set of mandatory and optional services and components, and is based on a modular approach. single window Within the SWIFT environment, a concept that indicates the possibility to access multiple business services by means of the same connection to the secure IP network and the messaging service. Slice Processor The processor within the FIN service that safestores and routes messages. Each Slice Processor owns (that is, is in control of) a number of specific destinations. SWIFT sometimes abbreviates this term as SP. Smart Test Messages A set of pre-defined test messages that contain realistic business data. The ready-to-use messages include valid test messages (that is, test messages which contain no errors) and invalid test messages (that is, test messages which contain deliberate errors) to facilitate inbound message testing in customer applications. Invalid messages break business rules (such as Single Euro Payments Area (SEPA) or SCORE specific business rules) while remaining compliant with the message schema. They can be used to speed up implementation of new XML messages and to perform early application testing, prior to actually exchanging any messages with counterparts, customers, or correspondents. Smart Test Messages are currently available for the SEPA credit transfer scheme, the SEPA direct debit scheme, Proxy Voting 1.0, and corporate-to-bank Standardised Corporate Environment. software Software, materials, and documentation that SWIFT makes available to the customer for computer programs in object-code form that the customer has ordered to access or use SWIFT services and products. solicited report A report that the FIN service generates at the user's request.
62 Glossary

Solution The answers to a particular business need, a way of packaging and explaining what types of business customers can carry out over SWIFT and what the specific rules are in these business processes. Solutions are composed of the following four layers: Applications: the business applications required to address a business need. These applications are either provided by SWIFT (Accord, Trade Services Utility) or by a third party (such as a market infrastructure). Standards: establish a uniform language for communication and are key for interoperability. Many different standards are used in the frame of solutions deployed over SWIFT. Some of them are developed by SWIFT (for example, MT). Others are developed by other standardisation bodies (for example, FpML). Connectivity: all the elements (such as software and hardware) that are needed to connect to SWIFT. Messaging: the different services used to exchange messages or files, either in store-andforward or real-time mode. solution provider See SWIFT solution provider. sponsoring shareholder A SWIFT shareholder that acts as the Member-Administered Closed User Group service administrator. The SWIFT shareholder can also permit one of its sub-members to be the administrator. SSI Diagnostics SWIFT validates the Standing Settlement Instructions (SSI) your institution is maintaining in its repositories against many validation lists. SSI Diagnostics is the detailed report that SWIFT generates to enable your institution to investigate and fix the bad SSIs. SSI Directory The directory that contains the correspondents for financial institutions worldwide that hold nostro accounts in foreign currencies at other institutions. Standard Plus Support The support service level that SWIFT provides free of charge to all SWIFT customers (except Alliance Lite customers). SWIFT has designed Standards Plus for low to medium-volume customers. Standard Settlement Instruction
Abbreviated: SSI

A set of data that identifies the beneficiary bank's nostro account at its correspondent bank for a currency. An SSI consists of the BIC of the beneficiary institution, the ISO currency code, the BIC of the correspondent institution, and the account number of the beneficiary with the correspondent.

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Standard Support The support service level that SWIFT provides free of charge to Alliance Litecustomers. Alliance Lite addresses the needs of SWIFT 's low-volume customers. Standards See SWIFT Standards. Standards Committee The SWIFT Board technical committee that is responsible for Standards. The Standards Committee provides Standards-related guidance to the Board and the SWIFT Executive. The Standards Committee also reviews project progress in the Standards area. SWIFT sometimes abbreviates this term as STC. standards convergence The migration from using a series of different standards or standardisation approaches to using a single, common one. The ultimate goal of standards convergence is to move to a single approach for standards development, based on a common methodology, common business models, a common set of components, and, when justified, a common physical representation. SWIFT promotes convergence towards the use of ISO 20022. Standards Developer Kit The Standards Developer Kit helps customers and partners implement SWIFT and ISO standards easily and efficiently using up-to-date technology. A coherent set of developer components includes the MX Repository, MT/XML Schema Library and the MT/MX Translation Testing Tool. More information is available from swiftcommunity.net/sdk SWIFT sometimes abbreviates this term as SDK. Standards release
Abbreviated: SR

The set of Standards changes that SWIFT introduces on a yearly basis. Standards Release Guide A SWIFT publication that contains the Standards changes that SWIFT will implement on the SWIFT network as part of the next Standards release. SWIFT sometimes abbreviates this term as SRG. Standards Translation Rules The Standards Translation Rules provide all the necessary information and rules to translate a particular MT or MX source message to its equivalent MX or MT target message. They provide clear field-by-field translation rules, including pre-conditional rules that aim to check the translatability of a message. Standards Translation Rules are intended for business and systems analysts. Standing Settlement Instructions
Abbreviated: SSI

The details of the relevant counterparties and accounts that customers must use when they settle transactions on behalf of a particular beneficiary.

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Glossary

STaQS SWIFT's central testing service that enables financial institutions and SWIFT solution providers to test and qualify compliance of their IT systems to message standards, usage rules, market practice, and business flows. STEP1 A low-value, euro payments, clearing, and settlement system, which EBA CLEARING manages within the EURO1 system. STEP2 A bulk-payment clearing service that EBA CLEARING manages. STEP2 uses the FileAct service. The processing system is provided by the SIA with settlement through EURO1 STEP1 (ICT and XCT services) and TARGET2 (SCT and SDD services). SIA S.p.A. is an Italian company that provides processing and network services to the banking industry, including the provision of the STEP2 bulk payment clearing service of EBA CLEARING. store-and-forward A communication or messaging methodology that enables users to exchange traffic by means of a central storage facility. Messages are held temporarily in the central storage facility until the recipient is able to receive them. The correspondents need not be connected simultaneously to the central storage facility. Examples include the FIN messaging service service and standard e-mail services. Straight-Through Processing
Abbreviated: STP

Message processing that does not require manual intervention or message repair (except for reasons of policy), such that a message is entered only once. Thereafter, the system processes the message automatically for the rest of the cycle. sub-member A subsidiary or branch of a SWIFT sharehlolder. Sub-members must be more than 50 percent directly, or 100 percent indirectly, owned by a shareholder, and must meet the criteria given in the first paragraph of Article 8 of the SWIFT Articles of Association (SWIFT By-Laws). A submember does not own shares in SWIFT and does not have voting rights. A sub-member must fall under full management control of a shareholder. subset sharing A facility that enables to manage the distribution of output messages across multiple logical terminals (LTs). supervised financial institution A legal entity that engages in financial services under the supervision of a financial market regulator. The eligibility criteria are detailed in the SWIFT Corporate Rules. supply chain finance A category of solutions, processes, and technologies that banks and other financial services providers have designed to provide working capital finance and workflow, and accelerated cash flow to suppliers on the basis of the value of physical or financial supply chain events (for example, the issuance of a purchase order or the approval of an invoice).

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Support The SWIFT customer support service. All customer contacts that have registered for SWIFT Support are eligible to receive support for the SWIFT services that they have subscribed to, and the SWIFT products that they have ordered. SWIFT is the single point of contact to report all problems and queries that relate to SWIFT services and products. Different levels of support are available to cover the customer's needs. SWIFT The trading name of S.W.I.F.T. SCRL and other entities of the SWIFT group. SWIFT is a trademark of S.W.I.F.T. SCRL. See also: S.W.I.F.T. SCRL SWIFT Articles of Association Rules that govern the organisation of S.W.I.F.T. SCRL and its relationship with third parties, in particular shareholders. The SWIFT Articles of Association deal with matters such as general meetings, appointment of directors, issue and transfer of shares, and auditors. The SWIFT Articles of Association and the SWIFT General Membership Rules form the SWIFT By-Laws. SWIFT broadcast A FIN message that SWIFT sends to all destinations, or to a specified set of destinations. SWIFT sends a broadcast message either at the request of a user, or on its own initiative. SWIFT By-Laws The collective term for the SWIFT Articles of Association and the SWIFT General Membership Rules. SWIFT character set The set of permissible characters for use in MTs. The list is available in Standards MT - General Information. SWIFT Contractual Documentation The form or contract executed by a customer with SWIFT to order or subscribe to SWIFT services and products, and any other documents included by reference that set out the terms and conditions governing the provision and use of the SWIFT services or products, as amended or supplemented from time to time in accordance with their terms. The SWIFT Contractual Documentation comprises in particular the relevant SWIFT standard terms and conditions and service descriptions. SWIFT Crisis Co-ordination and Communication The mission of the SWIFT Crisis Co-ordination and Communication group is to promote operational order in the financial community in the extreme event of a total or partial SWIFT outage. The group comprises a dozen senior representatives from the financial industry (both key central banks and commercial institutions) and senior SWIFT staff. During a major crisis, the SWIFT Crisis Co-ordination and Communication group facilitates a two-way communication with existing crisis management structures of key financial markets. The group has a clear operational focus and it is not its intention to interfere with financial policy-related activities. The SWIFT Crisis Co-ordination and Communication group does not have the responsibility to manage a crisis at SWIFT (this is the responsibility of SWIFT). SWIFT sometimes abbreviates this term as SC3.
66 Glossary

SWIFT customer A SWIFT user, SWIFT partner, or service bureau. SWIFT General Membership Rules Rules that apply to all SWIFT users and govern their SWIFT user status. The SWIFT General Membership Rules deal with matters such as eligibility criteria, admission procedure, and allocation of shares between SWIFT shareholders. The SWIFT General Membership Rules and the SWIFT Articles of Association form the SWIFT By-Laws. SWIFT General Terms and Conditions The document that constitutes the main set of SWIFT standard terms and conditions. They apply each time the form or contract executed by a customer refers to the SWIFT General Terms and Conditions. They govern the provision and use of most SWIFT services and products, such as messaging services, solutions, PKI, software, or other connectivity elements. SWIFT global partner A SWIFT partner that has a well-established global presence and covers key financial markets worldwide. Strategic joint value proposition development and delivery to key financial market segments form the basis of these partnerships. SWIFT group S.W.I.F.T. SCRL, its branches, and majority-owned subsidiaries worldwide. See also: SWIFT SWIFT interface A computer system that communicates with the SWIFT network. The SWIFT user provides and operates the SWIFT interface. SWIFT member-concentrator A SWIFT shareholder or its designated sub-member that has been admitted under the shared infrastructure programme as an authorised member-concentrator. Members-concentrators provide services to users regarding the day-to-day operation of their SWIFT connection and represent them towards SWIFT. SWIFT member-concentrator programme The programme that permits SWIFT shareholders or sub-members to support access to, and use of, SWIFT by other SWIFT users. SWIFT Network Partner An independent network provider that SWIFT selects to provide an IP Virtual Private Network service offering to SWIFT customers. The service offering relates to technical and performance requirements that the SWIFT Network Partner has agreed with SWIFT. SWIFT Offline Message Accountability The software that reconciles message input to the system and message output to the users offline to detect any fault in the online message switching system. SWIFT Offline Message Accountability takes place at the end of each day. SWIFT sometimes abbreviates this term as SOMA.

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SWIFT partner An organisation that is registered with SWIFT as a SWIFT regional partner, a SWIFT global partner, a SWIFT solution provider, or a SWIFT registered vendor. SWIFT Partner Programme The programme that provides a common framework for all relationships that SWIFT globally establishes with third-party companies. It aims to provide SWIFT customers with total solutions by complementing SWIFT's own offering with SWIFTReady applications, services, and connectivity. SWIFT regional partner A SWIFT partner that is mainly responsible for the promotion and remarketing of SWIFT products (for example, Alliance systems or SWIFTNet services) to existing and new customers. A regional partner also provides SWIFTReady services for implementation and required integration works. Some regional partners hold SWIFT training courses within their territory, or offer local helpdesk services to customers. SWIFT registered vendor A company that wants to obtain information, documents, test tools, and development products from SWIFT. Registered vendors do have a business relationship with SWIFT, but they have not taken part in a SWIFT certification programme or formalised their relationship yet. SWIFT Secure Signature Key
Abbreviated: 3SKey

The solution that SWIFT has designed to enable corporates to sign financial messages and files they send to their banks, using a single signing device. 3SKey can be used on the SWIFT network, but also on proprietary networks, or the Internet. SWIFT services and products The SWIFT service(s) or product(s) concerned, as described in detail in the relevant Service Description(s). SWIFT shareholder A SWIFT user that holds one or more shares in S.W.I.F.T. SCRL. Shareholders include banks, eligible regulated securities broker-dealers, and investment-management institutions. The SWIFT shareholder eligibility criteria are detailed in the SWIFT By-Laws and the SWIFT Corporate Rules. SWIFT solution provider See SWIFTReady application provider and SWIFTReady service provider. SWIFT Standards The collective name for message standards products, tools, and services that SWIFT delivers to the SWIFT community. SWIFT undertaking A document that each applicant swift user completes. The swift user application and status are governed by the SWIFT General Membership Rules (SWIFT By-Laws).

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Glossary

SWIFT user An organisation that SWIFT has admitted under the SWIFT By-Laws as a duly authorised user of one or more SWIFT services and products. The eligibility criteria to become a SWIFT user are set out in the SWIFT By-Laws and the SWIFT Corporate Rules. SWIFT-Certified Expert An individual who works under the responsibility of a SWIFTReady service provider, and who has successfully demonstrated to SWIFT expertise with certain SWIFT services and products. A SWIFT-Certified Expert also has the capability to deliver specific services for certain products in accordance with pre-defined SWIFT quality standards. swiftcommunity.net A virtual platform, accessible on the Internet, where people with similar interests and objectives can meet, debate, share best-practice, network, and advance the critical dialogue that empowers the whole financial community. SWIFTNet The SWIFT, advanced IP-based messaging platform. SWIFTNet comprises services and products that enable customers to communicate mission-critical financial information and transactional data securely and reliably. SWIFTNet central systems Systems that provide the messaging service, or are used for data storage, administrative services, or service-management functions. SWIFTNet central systems are located in the SWIFT operating centre. SWIFTNet Certification Authority
Abbreviated: CA

A SWIFT central system that produces and publishes digital certificates. SWIFTNet Directory An online repository of institutions that are connected to SWIFTNet. The SWIFTNet Directory also shows the Public Key Infrastructure (PKI) certificates and Role-Based Access Control (RBAC) roles that the customer's security officers have issued to the operators, applications, and interfaces. SWIFT sometimes abbreviates this term as SND. SWIFTNet Link The mandatory software product for access to messaging service over the secure IP network. SWIFT sometimes abbreviates this term as SNL. SWIFTNet Link alternative routing A SWIFTNet Link licence option that enables a SWIFTNet Link instance (SWIFTNet Link ID) to use an alternative managed customer-premises equipment to access SWIFTNet. SWIFT sometimes abbreviates this term as SNL alternative routing. SWIFTNet Link heartbeat An InterAct message that SWIFTNet Link instances that are configured for permanent connections regularly send out. SWIFT has designed the heartbeat process to identify quickly
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any TCP/IP sessions that network devices drop. The SWIFTNet Link heartbeat contains the output of the SWIFTNet Link command swiftnet status. SWIFT sometimes abbreviates this term as SNL heartbeat. SWIFTNet Link ID The SWIFTNet Link identification code. SWIFT sometimes abbreviates this term as SNL ID. SWIFTNet Link-VPN connection The connection between the SWIFTNet Link host and the VPN box (managed customerpremises equipment). The SWIFTNet Link -VPN connection is under the sole responsibility of the user, which must secure and protect it. SWIFT sometimes abbreviates this term as SNL-VPN connection. SWIFTNet mandatory products The products required for access to, and use of, the messaging service. The mandatory products are SWIFTNet Link, SWIFTNet Public Key Infrastructure (SWIFTNet PKI), the Relationship Management Application, and the Hardware Security Module (HSM). SWIFTNet offline intervention The means by which security officers perform offline administration of their institution's data. Security officers submit a SWIFTNet offline intervention request to SWIFT, either through the SWIFT Secure Channel, or by phone, fax, or e-mail. This is known as offline administration because the security officers do not communicate directly with the SWIFTNet Registration Authority but with SWIFT (for example, if the security officers' activation secrets have expired). SWIFTNet Online Operations Manager An application that enables security officers to manage their SWIFTNet PKI certificates and delegate RBAC roles through a SWIFT-managed Browse service. SWIFTNet PKI profile The file that contains the certified user's signing and encryption key pairs, the signature verification and encryption certificates, and the SWIFTNet Certification Authority (CA) verification certificate. When a customer stores a PKI profile, it is encrypted with the owner's password. SWIFTNet Public Key Infrastructure
Abbreviated: SWIFTNet PKI

A pervasive security infrastructure based on public-key cryptography, which provides digital signatures and supporting certification services. SWIFTNet Public Key Infrastructure comprises the SWIFTNet Certification Authority (CA), the SWIFTNet Registration Authority, and the SWIFTNet Directory. These authorities provide the customer with online certificate management capabilities. SWIFTNet Registration Authority A SWIFT-registered body that identifies and authenticates an institution and the initial users of the SWIFTNet Public Key Infrastructure (SWIFTNet PKI) (for example, an institution's security officers). SWIFT sometimes abbreviates this term as RA.
70 Glossary

SWIFTNet Service Profile The set of operational parameters and their values that the service administrator has authorised. These include the definition of types, the fields that the service must copy, and the routing restrictions. SWIFTNet Services Directory A look-up tool that provides an online list of participants for each service that they have subscribed to. The SWIFTNet Services Directory lists all users that participate in live or test Solutions, selected Member-Administered Closed User Group, and market infrastructures. It also includes some business information (for example, the role played by an institution in a particular Solution), and operational information (for example, the Distinguished Names (DN) used for addressing) related to the users of the services. SWIFT updates the Directory on a weekly basis. It is available free of charge at www.swift.com > Products & services > Reference Data > Our products. SWIFTNet switch A SWIFTNet central processing unit that implements SWIFTNet functionality. All information shipped between SWIFTNet users through the SWIFTNet Link application programming interface travels through this node. SWIFTReady application A financial software application that a SWIFT partner has developed. The software must operate to SWIFT's satisfaction, and must meet a set of published criteria. The criteria assesses the software's capability to provide automation in a Solution environment. All criteria are made available to the SWIFT partners upon request. Compliance with the criteria is checked on a yearly basis. The criteria may indeed change from one year to the other to reflect the evolution of a particular business domain. This is the reason why the label indicates the year for which the labelling criteria were satisfied. SWIFTReady application provider As a service to SWIFT customers, SWIFT runs a programme that qualifies the SWIFT compliance of third-party financial applications. Compliant solutions are awarded a SWIFTReady Application label. The providers of such SWIFTReady applications are called SWIFTReady application providers. SWIFTReady service provider A SWIFTReady service provider can be accredited to deliver consultancy services with SWIFTCertified Experts. These services include implementations of SWIFT software and SWIFTNet connectivity, upgrades of SWIFT software products and SWIFTNet connectivity, and the integration of Solutions. SWIFTReady services SWIFTReady services include the implementation of SWIFT software and SWIFTNet connectivity, the updates of SWIFT software and SWIFTNet connectivity, a migration assistance (either on a specific step or end-to-end), and the integration of Solutions. synonym A shared mode of operation for a FIN destination whereby the master destination performs the login and sends the Select command.

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syntax The set of rules that governs the structure and physical representation of standard messages and message components. System Control Processor The component of the FIN service architecture that monitors and controls the entire FIN service. In particular, the System Control Processor validates all access requests for the FIN service. SWIFT sometimes abbreviates this term as SCP. system message A message that is sent from, or addressed to, the FIN system or a SWIFT department, identified as message category 0 (for example, MT 021, MT 074). System message trailer A trailer that is added to system messages. SWIFT sometimes abbreviates this term as SYS trailer. system MIR The message input reference of a system-originated message. The date that the system MIR contains is always the message generation date expressed in GMT. system time The time on which the FIN service operates. The system time is expressed in GMT and is shown in all system-generated messages.

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Glossary

T
T-Copy mode In T-Copy mode, SWIFT delivers the original message (or file) to the recipient, and at the same time provides a copy (of all or part of the contents) to one (or several) copy destination(s). Such a copy destination is typically the service administrator, or an entity designated by the service administrator. T-Copy mode can be used in FINCopy, FINInform, and can be used for messages or files sent in InterAct and FileAct in store-and-forward mode. See also: Y-Copy mode tank file A repository of sample messages that are available to FIN users in local Test and Training mode. TARGET Trans-European Automated Real-time Gross settlement Express Transfer. The euro-payments system of the European Central Bank that interlinks the Real-time Gross Settlement (RTGS) payments systems of European national central banks. TARGET was created at the introduction of the EURO currency (1st January 1999). It was fully replaced by TARGET2 in May 2008. TARGET2 The Eurosystem-owned European Real Time Gross Settlement (RTGS) system. TARGET2 went live in November 2007 and fully replaced the previous TARGET system in May 2008. TARGET2 is one of the largest high-value payment systems in the world. TARGET2 Directory The directory issued by the Eurosystem, that is used by the TARGET2 direct members to route payments within the Payments Module (PM) of the Single Shared Platform (SSP). The main purpose of the TARGET2 Directory is to provide information in the scope of the automation and the routing of payments. Test The date when SWIFT provides a technical testing environment for developers. This includes availability of SWIFTNet on the integration testbed and availability of the communication software. Test and Training A service that enables users to simulate all the functions of FIN in test mode. This includes future message standards releases that are not yet available in live mode. SWIFT sometimes abbreviates this term as T&T. text block The part of a FIN message (block 4) that contains the substance of the message. The text format and structure varies according to the message type. time of receipt The time of receipt of a FIN message at the receiving terminal (for example, for cut-off purposes) is the delivery time of the output message.

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time services The services that provide indisputable time stamping for documents, time-dependent prices, and revocation requests. Trade Services Utility A centralised data matching engine. SWIFT has designed the Trade Services Utility to enable banks to share costs and to enhance interoperability through increased standardisation. Banks can use the core functionality of the Trade Services Utility to offer competitive services that complement existing offerings. These services include supply chain finance, risk mitigation, management information, and in-sourcing of business processes (for example, data checking and account reconciliation). The Trade Services Utility enables better risk management for banks, increased certainty for corporates, and simpler transactions for both. SWIFT sometimes abbreviates this term as TSU. trailer An item of data that is contained within block 5 of a FIN message. The SWIFT system or FIN can add trailers too (for example, Delayed Message trailersor Possible Duplicate Message trailers). Alternatively, a trailer can indicate that special circumstances apply to the handling of a message (for example, the Possible Duplicate Emission trailer). training destination A FIN destination that can send and receive training messages. Training destinations are defined in the SWIFT database in the same way as any other destination. They are identified by a zero in the eighth position of the BIC. Training trailer A trailer added to all FIN Test and Training messages, that identifies those messages as training messages. SWIFT sometimes abbreviates this term as TNG trailer. transaction delivery agent An Alliance Gateway option that exchanges messages between dedicated IBM WebSphere MQ queues in two or more financial institutions. SWIFT sometimes abbreviates this term as TDA. transaction reference number An alphanumeric reference of up to 16 characters that the sender assigns to FIN messages. A transaction reference number is in fields 20 and 20a of a FIN message. SWIFT sometimes abbreviates this term as TRN. Tuxedo The middleware product selected for the messaging service. Tuxedo is a product name that is registered by BEA Systems Inc.

74

Glossary

U
undelivered message report A report that the messaging service generates according to user-specified criteria. The undelivered message report lists all messages or files sent by a destination that remain undelivered at the time the report was generated. unmatched confirmation A confirmation is classified as unmatched when Accord cannot find a corresponding confirmation In the opposite direction between the same counterparties. An unmatched sent confirmation is also referred to as outstanding and an unmatched received confirmation as alleged. unsolicited report A report that the FIN service generates and automatically delivers to a logical terminal, without a specific user request. The FIN service generates unsolicited reports according to predetermined criteria. user See SWIFT user. user (security) An individual within a user organisation that establishes General Purpose Application and FIN sessions. The term user (security) also applies to a user that sends and receives FIN messages. In automated systems, it also applies to those processes that perform operator functions such as session establishment and termination. user acknowledgement The acknowledgement that a user sends to the FIN service. The acknowledgement may be positive or negative. See also: user positive acknowledgement, user negative acknowledgement User Handbook The collection of the contractual, technical, and operational documents that SWIFT makes available to its customers. The prime access method and latest versions of the documentation can be found on the swift.com website. Access is restricted and a licence is mandatory for SWIFT users as part of their contractual relationship. SWIFT sometimes abbreviates this term as UHB. user header An optional header that is contained in block 3 of a FIN message. The user header enables senders to add their own references (the message user reference). User headers also indicate special validation rules. user negative acknowledgement A FIN user sends a negative user acknowledgement to reject a message. Checksum failure is the only grounds for the rejection of a FIN message. SWIFT sometimes abbreviates this term as UNK.
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user positive acknowledgement The acknowledgement that a user sends to FIN, which positively confirms safe receipt and acceptance of a FIN output message. SWIFT sometimes abbreviates this term as UAK. User trailer A trailer that the sender attaches to a FIN message. Examples of User trailers are the Training trailer and the Possible Duplicate Emission trailer.

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Glossary

V
validation The process that checks that a set of data conforms to a pre-defined structure and rules. See central message validation for checks that SWIFT performs. value date The date on which the amount of the payment or the transfer is at the disposal of the receiving user. value-date calendar A calendar with the possible value dates for each currency. Accord uses this calendar to verify whether a date in a confirmation is a valid value date on which settlements can take place. If there is an unforeseen bank holiday and SWIFT has advance warning of it, then SWIFT updates the value-date calendar. These updates are totally transparent to the Accord customers. value-date ordering A process by which the FIN service outputs certain messages in sequence, according to the value date of the message. verification In relation to a given digitally signed message and public key, the process of accurately determining whether the digital signature on the message was created by the private key corresponding to that public key, and whether the message has been altered since the sender created the digital signature. See also: digital signature Virtual Private Network
Abbreviated: VPN

A private network capability that provides the user with dynamic allocation of resources, and a uniform numbering plan over dispersed, geographically independent locations. VPN box The IPsec security device installed on customer premises. The VPN box enables SWIFT to create and manage a secure tunnel between the customer site and the SWIFT-managed backbone access points. SWIFT uses the secure tunnel to implement end-to-end security.

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W
Watch The SWIFT portfolio of business intelligence facilities that enables financial institutions to analyse the different aspects of their SWIFT business. Customers can monitor traffic flows, market shares, messaging costs, and other SWIFT expenses. Watch comprises two product categories: Watch Analyser and Watch Reports. Watch Analyser An online, Cognos-supported software that SWIFT offers as part of the Watch portfolio. Watch Analyser comprises four tools: Watch Traffic Analyser, Watch Message Cost Analyser, Watch Market Analyser, and Watch Billing Analyser. Analyser products enable financial institutions to analyse their messaging activity over SWIFT, both from a traffic or message cost point of view. They also enable financial institutions to examine their total cost of ownership over SWIFT. All Analysers are accessible on www.swift.com, using figures updated monthly by SWIFT. Watch Billing Analyser Watch Billing Analyser enables an institution to analyse its total cost of ownership in SWIFT. Watch Billing Analyser provides all billing-related information, including credit notes and invoices for all products and services over a 3-year period. Watch Market Analyser Watch Market Analyser provides consolidated views of FIN traffic flows and characteristics down to message type level, on a country-to-country basis. Watch Market Analyser also provides associated Market Analyser reports that feature benchmark analytics. Watch Message Cost Analyser Watch Message Cost Analyser provides a consolidated view of an institution's billed FIN, InterAct, and FileAct traffic. Such information is available notably in terms of the average message price, fixed charges, number of chargeable units, and other measures. An institution can survey its messaging costs across multiple dimensions (for example, time, geography, or business solution) to improve the operational efficiency and manage its business better. Watch Reports The set of pre-defined reports in Microsoft Excel format that SWIFT offers as part of the Watch portfolio of business intelligence analysers. Watch Reports are available for download on www.swift.com. They provide updates of the most common traffic, message cost, and billing queries required by financial institutions (for example, regular updates of the total traffic sent or received by message type compared to SWIFT totals in a region or a market). Watch Traffic Analyser Watch Traffic Analyser provides detailed information about FIN, InterAct, and FileAct traffic sent and received by an institution in comparison to SWIFT totals. The institution can analyse the information by message type, BIC, country, counterparty, and other key elements. This information gives the institution a better insight about its position in the global market place in terms of business performance. Web Services Host Adapter The adapter that enables the exchange of requests and responses in SOAP format with Alliance Gateway. Customers that already use Web services in the back office can use their Web services framework to integrate applications with SWIFTNet.
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SWIFT sometimes abbreviates this term as WSHA. window A technique to improve communication efficiency by buffering message transmission up to a maximum number of sent messages (input window), or received messages (output window), that are awaiting logical acknowledgement. window size The number of packets that can be in transit between correspondents without acknowledgement. Window size is applicable at both network and application levels. For FIN, the window size is the number of FIN messages that a user can send without acknowledgement. Workers' Remittances A Solution that provides a market practice and architecture framework to support the interbank clearing and settlement of workers' remittances. Workers' remittances are cross-border, consumer-to-consumer payments of relatively low value. An example of workers' remittances is migrant workers abroad who send money to family members in their country of origin. Workers' Remittances Directory The directory that financial institutions must integrate to participate in the Workers' Remittances Solution. The Workers' Remittances Directory identifies participants to the service solution, their processing capabilities, and their point of services. workflow engine The internal SWIFT term for middleware for IP-based services and products. wrapper The software that SWIFT adds to a component to provide the five, standard interfaces that must be present in a SWIFT component. These standard interfaces are introspective, operation, support, management, and business. The wrapper ensures that the component's external interfaces conform to the Information Transport Layer (ITL) architecture.

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Y
Y-Copy mode A copying mode in which the service administrator authorises or rejects a message or file before the messaging service delivers the message or file to the intended recipient. Y-Copy mode can be used in FINCopy, FINInform, and can be used for messages or files sent in InterAct and FileAct in store-and-forward mode. See also: T-Copy mode

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Z
zone cold start The restoration of service from an empty or zeroed state for a single messaging zone that is, currently either the Trans-Atlantic or the European zone).

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Abbreviations
3SKey SWIFT Secure Signature Key AMH Advanced Messaging Hub BCP Business Continuity Planning CA SWIFTNet Certification Authority CHIPS UID CHIPS Universal Identifier COTS Commercial off-the-Shelf CP certificate policy CPE Customer Premises Equipment CPS Certification Practice Statement CRL Certificate Revocation List CSD Central Securities Depository CUG Closed User Group CV Expiry date certificate expiry date CV revocation certificate revocation DN Distinguished Name

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Abbreviations

EBA Euro Banking Association ERI Euro-Related Information FEP Front-End Processor FIX Financial Information Exchange FNAO Failure is Not an Option FPL FIX Protocol Ltd. HSM Hardware Security Module HSM box Hardware Security Module box HSM card Hardware Security Module card HSM token Hardware Security Module token IASN Input Application Sequence Number ICSD International Central Securities Depository IDD International Drawdown IoI Indication of Interest IPSN Input Protocol Sequence Number ISDA International Swaps and Derivatives Association
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ISIN International Securities Identification Number ISITC International Securities Association for Institutional Trade Communication ISO International Organization for Standardization MIC Market Identifier Code MQSA MQSeries Interface to Alliance Access NSRP Netscreen Redundancy Protocol OASN Output Application Sequence Number OPSN Output Protocol Sequence Number OTC Derivatives over-the-Counter Derivatives PED PIN Entry Device PKI Public Key Infrastructure PoP Point of Presence POS point of service RADIUS Remote Authentication Dial-In User Service RBAC Role-Based Access Control RPC Remote Procedure Call
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Abbreviations

SEPA Single Euro Payments Area SR Standards release SSI Standard Settlement Instruction SSI Standing Settlement Instructions SSL Secure Socket Layer SSP Single Shared Platform STP Straight-Through Processing SWIFTNet PKI SWIFTNet Public Key Infrastructure VPN Virtual Private Network

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Legal Notices
Copyright SWIFT 2011. All rights reserved. You may copy this publication within your organisation. Any such copy must include these legal notices. Confidentiality This publication may contain SWIFT or third-party confidential information. Do not disclose this publication outside your organisation without the prior written consent of SWIFT. Disclaimer SWIFT supplies this publication for information purposes only. The information in this publication may change from time to time. You must always refer to the latest available version on www.swift.com. Translations The English version of SWIFT documentation is the only official version. Trademarks SWIFT is the trade name of S.W.I.F.T. SCRL. The following are registered trademarks of SWIFT: SWIFT, the SWIFT logo, 3SKey, Innotribe, Sibos, SWIFTNet, SWIFTReady, and Accord. Other product, service, or company names in this publication are trade names, trademarks, or registered trademarks of their respective owners.

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