Category 3: Foreign exchange, money markets and derivatives
MT340 Forward Rate Agreement Confirmation
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The MT340 confirms the details of a forward rate agreement (FRA) agreed between party A and party B: notional amount, trade, effective and termination dates, the agreed fixed rate and the floating rate reference. It is exchanged by the two parties or on their behalf, and a money broker that arranged the deal can also send it to both sides.
- Message type
- MT340
- Category
- 3
- Status
- In the current standard
- ISO 20022
- No direct equivalent
What MT340 is used for
An FRA fixes today an interest rate for a future period. The MT340 confirms the contract at the start, and can also amend or cancel a confirmation, or report the deal to a trade repository. When the rate is fixed on the fixing date, the settlement details are confirmed with the MT341.
The confirmed deal is normally covered by a master agreement such as ISDA. When two money brokers are involved, the MT340 is also exchanged between them.
- Sent by
- Party A of the FRA, or a money broker
- Sent to
- Party B of the FRA, or a money broker
Fields
This is a catalogue entry: the field-by-field structure is not shown here because we publish structures only where we have checked them against public sources. Paste an MT340 into the parser to see each field decoded with its tag, name and value.
ISO 20022
No ISO 20022 equivalent: Swift’s MT and MX equivalence table lists none for this message. Treasury messages in category 3 were not part of the CBPR+ migration of cross-border payment instructions and remain MT messages on Swift.
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