SWIFT MT-542: Securities Delivery Instruction

The SWIFT MT-542 is a financial message format used in the securities industry for delivering instructions concerning the delivery of securities. It plays a critical role in ensuring the smooth operation of securities transactions between financial institutions, custodians, and clearinghouses.  

The SWIFT MT-542, also known as the "Deliver Free Instruction," is a message type used in the SWIFT network. It is part of the MT540 to MT549 series, which focuses on securities settlement and reconciliation processes. Specifically, MT-542 is employed to instruct the delivery of securities from one party to another without payment in exchange.

This message is critical in scenarios where securities are being transferred as gifts, pledges, or as part of a corporate reorganization.

1. Delivery Without Payment: The primary function of the MT-542 is to facilitate the transfer of securities without any monetary compensation, distinguishing it from payment-included delivery messages like MT-543.
2. Standardized Format: As part of the SWIFT messaging system, MT-542 ensures consistency and compliance with international securities transaction standards.
3. Cross-Border Compatibility: It supports transactions across jurisdictions, crucial for international financial institutions managing securities.