camt.050 ISO 20022 message

camt.050 ISO 20022 message: Definition

camt.050 ISO 20022 message stands for “Liquidity Credit Transfer”. With this ISO 20022 XML message, a participant instructs a market infrastructure to move liquidity from one of its accounts to another – for instance from the central bank account to the RTGS account or to an instant payment account.

camt.050 ISO 20022 message: Scope

The camt.050 is not a payment in the proper sense: it does not move money between two payment service providers but shifts liquidity within the account landscape of one participant or banking group. Unlike the pacs.009 ISO 20022 message, which is a bank-to-bank payment, the camt.050 has no payment purpose, no remittance information and no beneficiary in the business sense – it essentially contains the account to be debited, the account to be credited, the amount and a reference.

The market infrastructure responds with a camt.025 (receipt), which confirms execution or reports the rejection with a reason code. The bookings themselves are notified – depending on the message subscription – by the camt.054 ISO 20022 message and the camt.053 ISO 20022 message statement of account.

The following ISO 20022 messages are related to the camt.050:

• camt.025 – receipt: positive or negative response to the liquidity transfer
• camt.054 ISO 20022 message – debit and credit notification for the accounts involved
• camt.053 ISO 20022 message – end-of-day statement of account
• camt.051 – liquidity debit transfer: the counterpart that pulls liquidity instead of pushing it; not used in the TARGET Services
• camt.003 / camt.004 – query and response for the current account balance before a transfer

camt.050 ISO 20022 message: Usage

General

The camt.050 is used in the liquidity management of market infrastructures. It comes into play whenever a participant actively reallocates liquidity – in contrast to standing orders and rule-based transfers, which are stored in the reference data system and executed automatically and therefore need no camt.050.

T2 (TARGET Services)

LiquidityCreditTransfer – camt.050.001.05

In T2, every participant holds a main cash account (MCA) in central liquidity management (CLM) as well as dedicated cash accounts (DCA) in the individual services – RTGS for high-value payments, TIPS for instant payments and T2S for securities settlement. With a camt.050, the participant moves liquidity between these accounts, for example in the morning from the MCA to the RTGS DCA and from there to the TIPS DCA, so that incoming SCT Inst payments are covered at all times.

A distinction is made between immediate liquidity transfers (triggered by a camt.050), standing orders (stored in CRDM and executed at fixed points in time) and rule-based transfers (when a threshold is breached). Transfers between two services technically run via transit accounts in CLM; the two bookings are executed automatically one after the other. If there are insufficient funds, the camt.050 is not queued like a payment but rejected with a negative camt.025; partial execution is foreseen only for certain types of transfer. The complete dialogue:

TIPS

TIPS distinguishes between inbound liquidity transfers (from the RTGS DCA or MCA to the TIPS DCA) and outbound liquidity transfers (from the TIPS DCA back). Both are initiated with a camt.050 and acknowledged with a camt.025. Transfers between two TIPS DCAs are not possible; only transfers between a TIPS DCA and the technical account of an ancillary system are permitted.

Other market infrastructures

Outside the Eurosystem, too, RTGS systems and clearing houses use the camt.050 to let participants manage their liquidity. It plays no role in SWIFT correspondent banking – there, liquidity transfers are settled as payments with the pacs.009.

Sources for specifications

• ISO 20022 standard – Cash Management (camt)
• ECB – T2 CLM and RTGS User Detailed Functional Specifications (UDFS)
• ECB – TIPS User Detailed Functional Specifications
• Deutsche Bundesbank – TARGET Services