MT514 Trade Allocation Instruction

When MT514 is used

Investment managers often trade one block for many funds: they place a single MT502 order, the broker executes it (reporting progress with MT509 and MT513 messages if agreed), and the manager then tells the broker how to split the block. That split is the MT514. Each allocation gets its own message, numbered with 99B::ALLO (this allocation) and 99B::TOAL (total number of allocations). The broker answers each one with an MT515 confirmation for that account, the manager affirms with an MT517, and each fund’s custodian receives a settlement instruction (MT541 for a purchase, MT543 for a sale).

The sender is the instructing party (the manager or its authorised representative) and the receiver the executing party (the broker). The message can go directly or through an ETC service provider, and a copy can go to the fund’s custodian so that it knows a settlement is coming.

The allocation sits in sequence B (CONFDET): trade date (98a::TRAD), direction (22H::BUSE), payment type (22H::PAYM), at least one confirmation party (B1, usually the fund with its safekeeping account), the quantity allocated (36B::ALLO) and the security (35B). The block quantity (36B::TQBT) and the block settlement amount (19A::SEBL) help the broker check that the allocations add up. The price is usually the average price of the block (90a::DEAL).

Settlement details (sequence C) are optional. They are needed only where the broker has no standing settlement instruction for the fund, or where this allocation settles differently, for example at another custodian.

Pre-allocation. An MT514 can also be sent before execution, linked back to the order, to give the split in advance. The order can say how a partial fill should be treated with 22F::PRCO in the MT502 (pro-rata, or specific as in the linked allocation).

Corrections. A wrong allocation is cancelled with 23G CANC and the SEME of the original in 20C::PREV, then resent. If the broker has already confirmed it, its MT515 must be cancelled too.

MT514 format: sequences and fields

Rules worth knowing

• Sequences A and B are mandatory, and B must contain at least one B1. A1, B2, C with C1 to C3, D and E are optional.
• One allocation per message. Number them with 99B::ALLO and 99B::TOAL so the broker knows when the set is complete.
• When 23G is CANC, link the allocation being cancelled with 20C::PREV in sequence A1.
• Some fields are conditional under network rules, for example the deal price and the alternate party identifiers; rule numbers differ between releases, so search for the error code your interface reports.

MT514 example

Northwind Asset Management (FUNDGB2LXXX) allocates 25,000 of the 40,000 shares bought in its block order NW502261020007 to its Gulf Equity Fund. This is allocation 1 of 2; the fund settles at ZagTrader Test Bank Dubai (ZAGTAEADXXX), so the manager gives the settlement details.

{1:F01FUNDGB2LAXXX0000000000}{2:I514BRKRAEADXXXXN}{4:
:16R:GENL
:20C::SEME//NW514261020001
:23G:NEWM
:98C::PREP//20261020150000
:22F::TRTR//TRAD
:99B::ALLO//001
:99B::TOAL//002
:16R:LINK
:13A::LINK//502
:20C::RELA//NW502261020007
:16S:LINK
:16S:GENL
:16R:CONFDET
:98A::TRAD//20261020
:98A::SETT//20261022
:90B::DEAL//ACTU/AED4,85
:22H::BUSE//BUYI
:22H::PAYM//APMT
:22F::PRIC//AVER
:16R:CONFPRTY
:95P::BUYR//FUNDGB2LXXX
:97A::SAFE//NWGEF-001
:16S:CONFPRTY
:36B::ALLO//UNIT/25000,
:36B::TQBT//UNIT/40000,
:35B:ISIN AEZAGT000016
ZAGTRADER DEMO PJSC
:16S:CONFDET
:16R:SETDET
:22F::SETR//TRAD
:16R:SETPRTY
:95P::REAG//ZAGTAEADXXX
:97A::SAFE//ZAG-NWGEF-001
:16S:SETPRTY
:16R:SETPRTY
:95P::PSET//CSDXAEADXXX
:16S:SETPRTY
:16S:SETDET
-}

Line by line

Allocation 2 (99B::ALLO//002) gives the remaining 15,000 shares to the second fund.

The broker confirms this allocation with the MT515 shown on that page, quoting NW514261020001 in 20C::RELA.

All BICs, accounts and the ISIN are made up. The ISIN carries a valid check digit.

Common errors and rejects

1. Allocations do not add up to the block

   If the ALLO quantities differ from the executed block (a typo, or a partial fill not reflected), the broker cannot confirm and the trade stays open. Check against the MT513 or the executed quantity, and use TQBT so the broker can spot the gap.

2. Allocation arrives late

   Under short settlement cycles, allocations sent late on trade date leave little time to confirm, affirm and instruct before the CSD deadlines. Late allocations are a common root cause of settlement fails reported later as LATE or unmatched.

   How to fix it

3. Unknown fund account

   A safekeeping account in B1 that the broker does not know is rejected with an MT509 and reason SAFE. Set up the fund’s standing settlement instructions with the broker before the first trade.

4. Settlement details that contradict the standing instruction

   Sending sequence C with a chain that differs from the standing instruction, by mistake, sends the shares to the wrong agent and the custodians do not match (ICAG). Send settlement details only when they are meant to override.

   How to fix it

ISO 20022

Swift’s MT and MX equivalence table (8 May 2024) lists no ISO 20022 equivalent for the MT514.

Category 5 messages were not part of the November 2025 end of coexistence for payments, and the MT514 remains available on FIN. Much allocation traffic flows through ETC service providers, which the standard explicitly allows as a route for this message.

Related messages

• MT502Order to Buy or Sell
• MT509Trade Status Message
• MT513Client Advice of Execution
• MT515Client Confirmation of Purchase or Sale
• MT517Trade Confirmation Affirmation
• MT541Receive Against Payment
• MT543Deliver Against Payment

• From instruction to settled position: MT540-548, sese.023/024/025 and the statements that follow.

MT514 questions

What is an MT514 message?

A trade allocation instruction: the investment manager tells the broker which fund or account gets how much of a block trade. Each MT514 carries one allocation.

Who sends the MT514?

The instructing party, usually the investment manager, to the executing broker, directly or through an ETC service provider. A copy can go to the fund’s custodian.

What follows an MT514?

The broker sends one MT515 confirmation per allocation, the manager affirms each with an MT517, and each fund’s custodian is instructed with an MT541 or MT543.

Do I need settlement details in an MT514?

Only if the broker has no standing settlement instruction for the fund or the allocation settles differently. Otherwise leave sequence C out.

Is there an ISO 20022 equivalent for MT514?

Swift’s equivalence table lists none. The MT514 remains an MT message on FIN.