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SWIFT MT‑542 – Deliver Free

📦 SWIFT MT‑542 – Deliver Free

US Capital Private Bank Knowledge Base

MT‑542 is a SWIFT Category 5 message used by an account owner (such as a global custodian, investment manager, or broker/dealer) to instruct their account servicer (e.g., sub-custodian or custodian bank) to deliver financial instruments free of payment—either physically or via book-entry—to a specified party. This message can also be used to request the cancellation or pre-advice of such delivery instructions.

📘 What is MT‑542?

  • Functionality: Facilitates the transfer of securities without monetary compensation, distinguishing it from payment-included delivery messages like MT‑543. Subcontracts International+1intellectai.com+1

  • Use Cases:

    • Gifts: Transferring securities as gifts.

    • Corporate Actions: Executing transfers related to corporate reorganizations.

    • Collateral Management: Releasing pledged securities.

    • Securities Loans: Returning borrowed securities.

    • Settlement of Non-Cash Transactions: Settling transactions that do not involve cash payments. Subcontracts InternationalOracle Docs+7ISO20022+7Citi+7

⚙️ Message Structure Overview

Sequence Description Notes
A – GENL General information: message reference, function, date Fields: :20C:, :23G:, optional :98a:, :99a:
A1 – LINK Linkage to related instructions (e.g., MT‑540, MT‑541) :20C:PREV// or :20C:POOL//
B – TRADDET Trade details: date, place, instrument, price :35B: ISIN mandatory
C – FIAC Financial instrument/account details Quantity, safekeeping, optional breakdown
D – REPO Two-leg transactions (if relevant) e.g., repo unwinds
E – SETDET Settlement details & parties :22F indicators, :95P/Q, :97A, amount subsequence E3
Optional F Other parties Only if specific

🧠 Use Cases

🔐 Compliance & System Support

  • IT Integration: Supported in SWIFT-certified trade platforms (e.g., Surecomp DOKA).

  • Message Capacity: Supports long messages (up to 10,000 characters, including multiple reductions/releases).

  • SWIFT Standards: Updated under SWIFT SR 2021, enhancing traceability of partial reductions and fund reconciliation.

✅ Best Practices

  1. Use correct function: (NEWM, CANC, PREA, etc.)

  2. Include linkages: (PREV// or POOL//) when canceling or grouping.

  3. Populate mandatory fields: (:35B: ISIN, Quantity, Settlement Party info).

  4. Utilize :22F: codes: in settlement details to clarify trade types (e.g., REPO, DVP).

📞 Contact US Capital Private Bank

📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com
📞 Phone: +971 52 992 6005

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