SWIFT

Many people talk about 'SWIFT MT 799 "platform”. That meant that they have a formula that uses SWIFT 799 to obtain credit facilities from Bank. From this facility they will enter the" PPP ". I will not discuss about PPP. I just want you know about SWIFT 799. Then I hope you can judge for yourself, whether SWIFT platform 799 is true or false.

SWIFT is an acronym which stands for ‘Society for Worldwide Interbank Financial Telecommunications’. Formed in 1973, SWIFT is a Belgian creation, and its main offices are still in Belgium to this day. SWIFT was formed in response to a growing need for an internationally sound communications network that could facilitate business transactions across borders effectively, quickly, and securely. When SWIFT was first formed it linked 239 banks in fifteen different countries. Now, SWIFT has grown to be a world wide organization which facilitates communications between banks, corporations, and securities institutions. SWIFT communications are now the global standard for international banking transactions, and as such are utilized millions of times daily. It is estimated that more than eight thousand banking institutions currently use the SWIFT messaging system for their transactions, and SWIFT systems are now in place in two hundred and eight countries.

SWIFT’s success has primarily been the result of understanding and responding to the unique demands of a global market. The SWIFT system utilizes standardized messages, which increase efficiency, and is fully automated, which means that the days of lost messages are all but over. International transactions depend on security, reliability, and accuracy. The SWIFT system provides all these elements. In addition to providing a safe and secure messaging system for the financial world, SWIFT also provides opportunities for companies to build revenue streams, and offers a wide range of services outside the messaging field. Some of these services include directories, market information, and market solutions.

SWIFT Codes are actually very easy to understand, in spite of their unfathomable appearance. The ‘MT’ at the beginning of the code stands for ‘Message Type’, and the number indicates one of the many standardized message formats which comprise the SWIFT messaging system.

The MT-799 is a free format SWIFT message type in which a banking institution confirms that funds are in place to cover a potential trade. This can, on occasion, be used as an irrevocable undertaking, depending on the language used in the MT-799, but is not a promise to pay or any form of bank guarantee in its standard format. The function of the MT-799 is simply to assure the seller that the buyer does have the necessary funds to complete the trade. The MT-799 is usually issued before letter of credit or bank guarantee is issued. An MT-799 is an automated message sent electronically from one bank to another, so you won’t really ‘see’ an MT-799 at all. The paperwork associated with an MT-799 will vary from bank to bank, though most banks follow a similar format.

In the U.S. and in some Asian nations, MT 760 are not allowed to be sent by any financial institution. So, the way around that is for the investor to obtain a cash back standby letter of credit and then, have the issuing bank send a SWIFT MT 720 under full banking responsibility. So, with that being said, whoever tells you that a "trader" can start trading as soon as the investor's bank send to the trader's bank a SWIFT MT 799, then that would be a sign that you are in contact with a broker that has no clue of it takes to get the trading transaction going. So what do you think ?