Telex-based Messaging Systems
Several private telecommunications companies offer worldwide or interconnected services that provide a printed record of each transmitted message. Financial institutions that do not have access to SWIFT use Telex-based proprietary systems. Financial institutions access Telex-based systems via a dial-up or a dedicated line with dedicated printers. Some systems are computer monitored 24 hours a day, seven days a week and are fully redundant with automatic switch over and recovery capability.
Telex systems do not include built-in security features. Financial institutions that use Telex must exchange security codes. Typically, senders number messages sent to another institution to provide better audit controls. The sending institution is responsible for incorporating a test key in all instructions to a receiver to execute a payment order. The receiver is responsible for safekeeping the unique test code keys of each sender and decoding each test message. This function should be clearly separated from the Telex operating area and funds payment function. Presently, only a few institutions employ fully automated interface of Telex with their funds payment systems.
Society for Worldwide Interbank Financial Telecommunication (SWIFT)
Continuous Linked Settlement (CLS) Bank