Mark Abrams

Mark heads up the trade finance offering at TFG where his team focuses on bringing in alternative structured finance to international trading companies.

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Contents

Unpacking MT 759: The ancillary trade structured message in international trade finance

Overview of MT 759

MT 759 supports sharing and requesting crucial details for trade transactions. These include various documents, such as credits, demand guarantees, standby letters of credit, and other commitments like guarantees and sureties.

Its scope is broad, addressing numerous needs – from alerting parties about potential fraud to facilitating requests for additional financing. This ensures that all stakeholders remain informed and ready to respond to any changes in their trade agreements.

MT 759’s targeted approach to trade transactions sets it apart from other MT messages. This focus significantly improves the clarity and efficiency of communication.

MT 759 core users and their goals

Banks and financial institutions that manage trade finance operations use MT 759. 

It is particularly useful for communicating additional details or special requests not typically accommodated by standard documentary credits or guarantee messages.

MT 759 has various applications, including:

• Fraud alerts: Enables institutions to communicate concerns about potential fraud within a specific transaction quickly.
• Financing requests: Facilitates submitting requests for additional financing or modifications to existing financial arrangements.
• General information: Helps with exchanging information affecting a trade transaction’s terms, implementation, or conditions.

Overview of key components

MT 759 has several key fields:

• Field 20 (Transaction Reference Number): This field assigns a unique identifier to each transaction and ensures clear tracking and reference.
• Fields 22D (Form of Undertaking) and 23H (Function of Message): These fields detail the commitment’s nature and the message’s primary purpose, ranging from issuance requests to fraud alerts. They play a crucial role in specifying the message’s intent.
• Field 45D (Narrative): This field provides ample space for narrative descriptions, allowing for the inclusion of detailed information or instructions related to the trade transaction. 

Impact of MT 759 on trade finance

MT 759 ensures the smooth and secure operation of trade finance activities. It stands at the forefront of risk management strategies by enabling the efficient management of trade transactions through the rapid exchange of information. This allows all parties involved to quickly address discrepancies, potential fraud, or changes in transaction terms.

Furthermore, MT 759 aids compliance efforts and dispute resolution. Its structured format for presenting detailed, transaction-related information enhances transparency and promotes accountability. 

Effects on international trade

Adopting MT 759 significantly benefits stakeholders across the trade finance sector, enabling communication of secondary issues. It skillfully manages challenges such as fraud detection and the need for transaction changes. Furthermore, MT 759 serves as a reliable channel for requesting additional financing or for clarifications on transaction terms.

This capability enhances the operational resilience and adaptability of international trade operations. MT 759 simplifies the process of navigating the complexities of global commerce, thereby enhancing the ease and efficiency of operations.

The future of technology in trade finance

The rise of digitalisation and blockchain technology opens possibilities for enhancing MT 759. These technologies have the potential to transform the communication of ancillary trade information, introduce more automated processes, and strengthen security measures.

As the trade finance sector evolves, there is an expectation for MT 759 to become increasingly integrated with electronic documentation and smart contracts. This integration signifies a substantial move towards a more agile and secure management of trade transactions, perfectly aligning with the fast-paced demands of global commerce.

Embracing these advancements requires continuous adaptation and innovation. This ensures that the full benefits of emerging technologies are realised within the trade finance landscape, keeping pace with the evolving needs of businesses worldwide.

Speak to our trade finance team