# SWIFT Messaging: BIC, MT and MX, and ISO 20022 > SWIFT is an organization that runs a network for sending messages between financial institutions. It also provides message standards for payments, securities, and foreign exchange, and the format of cross-border payment messages is moving from the older MT to MX, which is based on ISO 20022. Message addressees and parties are identified by an identifier called the BIC. - URL: https://www.derivatives-compass.org/en/data-systems/swift-messaging/ - Area: Data and Systems › Data Standards - Last reviewed: 2026-10-22 - 日本語版: https://www.derivatives-compass.org/ja/data-systems/swift-messaging/index.md ## Key points - SWIFT carries messages between financial institutions, and it does not settle funds itself. - A BIC is an 8- or 11-character message addressee identifier covering institution, country, city, and branch or department. - MT is the older format designed to be read by people, and MX is the structured ISO 20022 format. - Cross-border payment messages have moved to ISO 20022 after a period of coexistence with MT. - In derivatives, SWIFT messages can be used to instruct collateral payments and to share UTIs for reporting currency options and NDFs. When a firm instructs a cash collateral payment, or shares a [UTI](https://www.derivatives-compass.org/en/glossary/uti/) for reporting a currency option or similar trade, it may exchange [SWIFT](https://www.derivatives-compass.org/en/glossary/swift/) messages. Knowing that the message format has moved from MT to a format based on [ISO 20022](https://www.derivatives-compass.org/en/glossary/iso-20022/) lets systems staff and operations staff talk from the same starting point. ## What SWIFT is SWIFT (the Society for Worldwide Interbank Financial Telecommunication) provides a network that carries messages between financial institutions, along with the message formats. It carries messages for payment instructions, securities settlement, and foreign exchange[^opc-svc]. A 2007 source describes it as a cooperative owned by financial institutions and headquartered in Belgium[^opc-gov]. It also acts as the registration authority that registers and publishes ISO 20022 messages[^boj-ra]. SWIFT is not a bank, holds no accounts or assets for its users, and does not settle funds[^opc-not]. The funds move by another route. Between banks with a [correspondent banking agreement](https://www.derivatives-compass.org/en/glossary/correspondent-bank/), the funds move by a transfer between accounts that one bank holds with the other[^boj-flow]. **Figure 1: Flow of a payment instruction message** Dashed lines show the flow of information, the messages. The funds do not pass through the SWIFT network. They move by another route, such as a transfer between accounts of Bank K and Bank L. ### gpi (payment tracking) The gpi (global payment initiative) is a multilateral service-level agreement among payment service providers on the SWIFT network. For payments through correspondent banks, it aims at faster processing, transparent costs, and payment tracking[^fsb-gpi]. ## Structure of the BIC The [BIC](https://www.derivatives-compass.org/en/glossary/bic/) (Business Identifier Code) is an identifier defined by ISO 9362, used to address messages, route transactions, and identify parties. It can be assigned to organizations that are not financial institutions as well[^iso-9362]. It is made up of 8 or 11 alphanumeric characters[^mufg-bic]. Consider a hypothetical example in which the BIC "AAAAJPJTXXX" is split into its parts. | Part | Length | Content | Example | | -------------------- | ------------------- | --------------------------------------------- | ------- | | Institution | 4 letters | Name of a bank or other institution | AAAA | | Country | 2 letters | Characters for the country | JP | | City | 2 letters or digits | Characters for the location | JT | | Branch or department | 3 letters or digits | Optional. XXX for the head office and similar | XXX | An 8-character BIC without the 3-character branch or department part refers to the head office or similar. XXX can be added to an 8-character BIC to write it as 11 characters[^mufg-bic]. The BIC is used mainly to identify financial institutions, and the [LEI](https://www.derivatives-compass.org/en/glossary/lei/) mainly to identify the parties to a trade in [OTC derivatives](https://www.derivatives-compass.org/en/glossary/otc-derivative/) reporting[^boj-ref]. ## How MT and MX differ MT is the message format that SWIFT has used for a long time. It assumes that a person checks the content by eye and processes it, and the amount of information it can carry is limited[^boj-mt]. For example, the name, address, city, and country of a beneficiary are written together in a single field (field 59)[^mufg-mig]. MX is the format based on ISO 20022[^jpm-map]. ISO 20022 is an international standard that organizes the items and meanings of messages[^tc68]. MX is written in XML and holds structured information, which suits processing by systems[^boj-mt][^tc68]. Beneficiary information can also be split into structured fields[^mufg-mig]. MT and MX correspond message type by message type. The prefixes pain, pacs, and camt are ISO 20022 message areas for payment initiation, payment clearing and settlement, and cash management[^jpm-map]. | Use | MT | MX | | ------------------------------------------------ | --------------------- | ------------------ | | Payment request | MT 101 | pain.001 | | Customer transfer | MT 103 | pacs.008 | | Transfer of funds between financial institutions | MT 202 | pacs.009 | | Cash management | MT 940, 950, 900, 910 | camt.053, camt.054 | Consider a hypothetical example in which Bank K instructs Bank L in the US to move USD 1 million between financial institutions. The beneficiary institution is Bank M in the UK. Bank M does not appear in the figure; it is named in the message as the beneficiary institution. The two samples below write the same instruction as an MT 202 and as an MX (pacs.009). **Sample 1: MT 202 for a transfer of funds between financial institutions (excerpt, fictional example)** ```text :20:KB20261102001 :21:REL20261102001 :32A:261104USD1000000, :52A:AAAAJPJT :57A:BBBBUS33 :58A:CCCCGB2L ``` This is an excerpt of the fields of an MT 202, and the header section that identifies the sender and receiver is omitted. The BICs, reference numbers, amount, and date are all fictional dummy values. Note that the settlement date, currency, and amount are written one after another in a single field called `:32A:`. The value `261104` is November 4, 2026. The decimal separator in the amount is a comma, and a whole amount still ends with a comma. The fields `:52A:`, `:57A:`, and `:58A:` are institution fields that carry only a BIC. **Sample 2: The same instruction as an MX (pacs.009; excerpt, fictional example)** ```xml MSG-20261102-001 2026-11-02T01:23:45+00:00 1 KB20261102001 REL20261102001 1000000.00 2026-11-04 AAAAJPJTXXX BBBBUS33XXX AAAAJPJTXXX BBBBUS33XXX CCCCGB2LXXX ``` This is an excerpt of pacs.009.001.08. The application header (AppHdr) and items such as the settlement method are omitted. All values are fictional dummy values, and the message expresses the same instruction as the MT 202 above. Note that the items MT combines are split. The settlement date is IntrBkSttlmDt and the amount is IntrBkSttlmAmt, the currency becomes the Ccy attribute, and the decimal separator is a period. BICs go into BICFI, written here as 11 characters by adding XXX to the 8-character BIC. The MT `:52A:` corresponds to Dbtr, `:57A:` to CdtrAgt, `:58A:` to Cdtr, `:20:` to InstrId, and `:21:` to EndToEndId. The MT header that identifies the sender and receiver corresponds to InstgAgt and InstdAgt[^jpm-elem]. ## Migration to ISO 20022 From March 2023, SWIFT moved the format of cross-border payment messages step by step to one that supports ISO 20022 version 8 (the 2019 version). The period of coexistence with MT was announced to run until November 2025[^boj-coex]. The main areas covered are customer payments, payments between banks, and cash management[^mufg-scope]. MUFG Bank, in a notice as of February 2026, covers cross-border payment messages in this scope. It says that SWIFT abolished the MT format in November 2025 and that the data format used between banks was unified to ISO 20022[^mufg-scope]. | Date | Event | | ----------------- | --------------------------------------------------------------------------------------------- | | 2004 | ISO 20022 established[^tc68-dev] | | March 2023 | SWIFT begins moving cross-border payment messages to ISO 20022, coexisting with MT[^boj-coex] | | November 2025 | The period of coexistence with MT ends for cross-border payment messages[^mufg-scope] | | November 25, 2025 | The Bank of Japan revises ISO 20022 for BOJ-NET to version 8 (the 2019 version)[^boj-ver] | The BOJ-NET messages are covered on the [Payment Systems: RTGS, BOJ-NET and Correspondent Banking](https://www.derivatives-compass.org/en/market-infrastructure/payment-systems/) page. ## Uses in derivatives In post-trade work for derivatives, SWIFT messages are used in two situations: instructing collateral payments and sharing UTIs for currency options, NDFs, and NDOs. ### Instructing collateral payments Payments of [variation margin](https://www.derivatives-compass.org/en/glossary/variation-margin/) and [initial margin](https://www.derivatives-compass.org/en/glossary/initial-margin/) can be instructed to [custodians](https://www.derivatives-compass.org/en/glossary/custodian/) and [collateral agents](https://www.derivatives-compass.org/en/glossary/collateral-agent/) (tri-party agents) by SWIFT messages. OSTTRA states that its collateral management service (triResolve Margin) can instruct payments to multiple custodians and tri-party agents over SWIFT and confirm their execution status. It also states that it supports SWIFT message standards for both cash and securities instructions[^osttra]. As in the MT 202 and pacs.009 examples, a SWIFT payment message identifies the counterparty institution by its BIC, and the currency, amount, and settlement date by fields. > **For systems professionals: How to hold a BIC** > > If you hold the counterparty BIC as 8 characters, add XXX at the end to match the length before comparing it with the 11-character BIC in a message. ### Sharing UTIs In a trade between parties that both have a reporting obligation, both report the same UTI. The Financial Services Agency guidelines list SWIFT, paper confirmations, and email as the means of sharing the UTI for currency options, [NDFs](https://www.derivatives-compass.org/en/glossary/ndf/), and NDOs (non-deliverable options). In a SWIFT message, the UTI tags are 22M (UTI Namespace/Issuer Code) and 22N (Transaction Identifier)[^fsa-uti]. How a UTI is assigned and shared is covered on the [Regulatory Reporting](https://www.derivatives-compass.org/en/internal-operations/regulatory-reporting/) page. ## What this page does not cover The definitions of all MT and MX messages, the migration of securities and foreign exchange messages, and SWIFT connection methods and fees are not covered on this page. [^opc-gov]: [Office of the Privacy Commissioner of Canada, "Report of Findings: Privacy Commissioner of Canada v. SWIFT"](https://priv.gc.ca/en/opc-actions-and-decisions/investigations/investigations-into-businesses/2007/swift_rep_070402) (April 2, 2007), paragraphs 3 and 4. [^opc-svc]: [Office of the Privacy Commissioner of Canada, "Report of Findings: Privacy Commissioner of Canada v. SWIFT"](https://priv.gc.ca/en/opc-actions-and-decisions/investigations/investigations-into-businesses/2007/swift_rep_070402), paragraphs 3 and 12 (description of SWIFTNet FIN). [^boj-ra]: [Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024)](https://www.boj.or.jp/research/brp/psr/data/psr240910.pdf) (September 2024), page 54, Figure 39 (in Japanese). [^opc-not]: [Office of the Privacy Commissioner of Canada, "Report of Findings: Privacy Commissioner of Canada v. SWIFT"](https://priv.gc.ca/en/opc-actions-and-decisions/investigations/investigations-into-businesses/2007/swift_rep_070402), paragraph 3 (not a bank, holds no accounts or assets) and paragraph 5 (not a payment or settlement system). [^boj-flow]: [Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024)](https://www.boj.or.jp/research/brp/psr/data/psr240910.pdf), pages 41–42, "クロスボーダー送金のメカニズム" (The mechanism of cross-border remittances) and Figure 30 (in Japanese). [^fsb-gpi]: [Financial Stability Board, "Enhancing Cross-border Payments: Stage 1 report to the G20: Technical background report"](https://www.fsb.org/wp-content/uploads/P090420-2.pdf) (April 9, 2020), PDF page 19, body text and footnote 26. [^iso-9362]: [ISO, "ISO 9362:2022"](https://www.iso.org/standard/84108.html), Abstract. [^mufg-bic]: [MUFG Bank, "SWIFT BIC"](https://www.bk.mufg.jp/request2/001/swiftbic_setsumei.html), the code structure diagram and explanation (in Japanese). [^boj-ref]: [Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024)](https://www.boj.or.jp/research/brp/psr/data/psr240910.pdf), page 53, "（２）参照データにおける国際標準" (International standards for reference data) (in Japanese). [^boj-mt]: [Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024)](https://www.boj.or.jp/research/brp/psr/data/psr240910.pdf), page 11, footnote 3 (in Japanese). [^mufg-mig]: [MUFG Bank, "ISO 20022 Adoption and Migration for Cross-Border Payments"](https://www.bk.mufg.jp/global/productsandservices/transaction/iso20022_migration/index.html) (as of February 9, 2026), the explanation under "MT-Based Cross-Border Remittances". [^jpm-map]: [J.P. Morgan, "Migration to ISO 20022: Useful information, hints and tips"](https://www.jpmorgan.com/content/dam/jpmorgan/documents/payments/iso20022-mapping-guide.pdf) (updated March 2025), page 2, "Message Types". It is not an exhaustive mapping, and the source says to check the schema for details (page 1). [^tc68]: [TC68 Japan Committee Secretariat, "ISO 20022 の概要" (Overview of ISO 20022)](https://www.boj.or.jp/paym/iso/isotc68/data/1ISO20022gaiyo.pdf) (March 2015), pages 1–3 (in Japanese). [^jpm-elem]: [J.P. Morgan, "Migration to ISO 20022: Useful information, hints and tips"](https://www.jpmorgan.com/content/dam/jpmorgan/documents/payments/iso20022-mapping-guide.pdf), page 4, "Payments: Data elements guide", and the MT 202 to pacs.009 translation example on pages 9–10. [^boj-coex]: [Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024)](https://www.boj.or.jp/research/brp/psr/data/psr240910.pdf), pages 11 and 52 (in Japanese). [^mufg-scope]: [MUFG Bank, "ISO 20022 Adoption and Migration for Cross-Border Payments"](https://www.bk.mufg.jp/global/productsandservices/transaction/iso20022_migration/index.html) (as of February 9, 2026), the main text and "Frequently Asked Questions", Q2 and Q3. [^tc68-dev]: [TC68 Japan Committee Secretariat, "ISO 20022 の概要" (Overview of ISO 20022)](https://www.boj.or.jp/paym/iso/isotc68/data/1ISO20022gaiyo.pdf), page 2, section 2 (in Japanese). [^boj-ver]: [Bank of Japan, "日銀ネットで利用するISO20022電文のバージョン改訂の実施について" (Implementation of the version revision of ISO 20022 messages used in BOJ-NET)](https://www.boj.or.jp/paym/bojnet/net_forum/nfo251125a.pdf) (November 25, 2025) (in Japanese). [^osttra]: [OSTTRA, "Collateral Management"](https://osttra.com/services/trade-lifecycle-services/collateral-management/), "Benefits" and the SWIFT Settlement entry under "Included Services" (accessed October 2026). [^fsa-uti]: [Financial Services Agency, "店頭デリバティブ取引等の規制に関する内閣府令第４条第１項で定める作成・保存・報告事項 ガイドライン" (Guidelines on the items to be prepared, retained, and reported under Article 4, paragraph 1 of the Cabinet Office Order on the regulation of OTC derivatives transactions, unofficial translation)](https://www.fsa.go.jp/news/r4/shouken/20221209-1/01.pdf) (December 2022), Attachment 2, section 4(1) and note 7 (page 5) and section 4(2), item 3 (page 6). PDF pages 53–54 (in Japanese). ## Sources - [Report of Findings: Privacy Commissioner of Canada v. SWIFT](https://priv.gc.ca/en/opc-actions-and-decisions/investigations/investigations-into-businesses/2007/swift_rep_070402) — Office of the Privacy Commissioner of Canada - [決済システムレポート 2024](https://www.boj.or.jp/research/brp/psr/data/psr240910.pdf) — 日本銀行 - [Enhancing Cross-border Payments: Stage 1 report to the G20: Technical background report](https://www.fsb.org/wp-content/uploads/P090420-2.pdf) — Financial Stability Board - [ISO 9362:2022 Banking — Banking telecommunication messages — Business identifier code (BIC)](https://www.iso.org/standard/84108.html) — ISO - [SWIFT BIC](https://www.bk.mufg.jp/request2/001/swiftbic_setsumei.html) — 三菱ＵＦＪ銀行 - [ISO 20022 Adoption and Migration for Cross-Border Payments](https://www.bk.mufg.jp/global/productsandservices/transaction/iso20022_migration/index.html) — MUFG Bank - [ISO 20022 の概要](https://www.boj.or.jp/paym/iso/isotc68/data/1ISO20022gaiyo.pdf) — TC68 国内委員会事務局（日本銀行金融研究所） - [Migration to ISO 20022: Useful information, hints and tips](https://www.jpmorgan.com/content/dam/jpmorgan/documents/payments/iso20022-mapping-guide.pdf) — J.P. Morgan - [日銀ネットで利用するISO20022電文のバージョン改訂の実施について](https://www.boj.or.jp/paym/bojnet/net_forum/nfo251125a.pdf) — 日本銀行 - [Collateral Management](https://osttra.com/services/trade-lifecycle-services/collateral-management/) — OSTTRA - [店頭デリバティブ取引等の規制に関する内閣府令第４条第１項で定める作成・保存・報告事項 ガイドライン](https://www.fsa.go.jp/news/r4/shouken/20221209-1/01.pdf) — 金融庁