Building out the future - Depozitarul Central SA · PDF fileFor Alliance Integrator, ... to SWIFT is actually Alliance Lite, she notes. Though originally positioned for the corporate

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the market and we will be able to demo these enhancements,” she adds. SWIFT will also announce that as a result of market demand, it is introducing support for Linux as a new operating platform in 2012.

For Alliance Integrator, a new set of pre-packaged applications allows customers to reduce the time to benefit for new business segments such as workers remittances or funds.

A number of updated connectivity packs will also be on display. “Alliance Connect silver pack customers can now use the internet as their prime means of connectivity and we’re extending the features available in terms of load balancing across several packages,” says Bruyndonckx. “All of this is to allow customers to have optimal usage of their bandwidth at a minimum price.”

The fastest growing method of connecting to SWIFT is actually Alliance Lite, she notes. Though originally positioned for the corporate segment, Lite today offers more features for more types of client, notably in

hat will be on display from SWIFT at Sibos in Toronto? “This has really been a cornerstone year for SWIFT; we are laying

the foundations for the future,” says Laurence Bruyndonckx head of the products and services project office, SWIFT.

The essence of the 2015 strategy is “growing the core with a difference.” The products and services on display at Sibos will reflect that objective. “It’s about evolution rather than revolution,” Bruyndonckx says. “It’s about helping customers to optimise their return on SWIFT investments, doing more with what they have already and helping them become more agile in response to market volatility. We want to make sure our customers can exercise strict control over their costs.”

In concrete terms, says Bruyndonckx, Release 7.0 impacts both the messaging and connectivity environments and delivers a number of novel features. “By now,

Building out the futureAt Sibos 2011, there will be several different options available for customers to engage with SWIFT’s products and services. These include dedicated auditorium sessions, one-on-one demos and quick ‘showcase’ explanations.

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W

many customers have begun this upgrade, which needs to be completed by March 2012. “New functionality, such as direct FileAct support, increased automation tools and an enhanced database recovery mechanism, in the Alliance suite of products has already attracted significant interest in

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the funds industry. “We also offer FileAct and Browse support for Lite users,” she says. “That is typically of interest to low-volume institutions connecting to a market infrastructure. In the case of TARGET2, for example, we already have 20 members that are using Lite to connect.”

Digital identity is another area where product reach is being extended. “When we launched 3SKey last year, it was aimed at corporate-to-bank identity verification, where customers need to be able to authenticate the data they receive at the level of the individual,” says Bruyndonckx. Over 4000 corporates are now equipped with a 3SKey token. SWIFT is growing the usage of 3SKey across different segments, regions and networks. (3SKey will be the subject of a dedicated auditorium session on Tuesday at 15:00.)

Some the innovation on display in Toronto will be in the services that are packaged with the products. These may include business and technical consulting, project management and integration. “We will demonstrate in pragmatic terms the benefits of using these services and how they contribute to achieving cost reductions,” says Bruyndonckx.

Partners continue to play a major role in that process. “Partner collaboration remains key to us; for example, in providing installation or technical consulting services,” she says. “We are also exploring new areas of collaboration around SWIFT innovations. Check out the Innotribe programme and look for the Partner labels on display around Sibos.”

Opening Plenary

Monday 19 September

14:00 - 15.30 Plenary Room: We will kick off Sibos 2011 with a discussion on the new paradigms in banking, both from a global perspective and from the central bank of our host country, Canada. The welcome address from the industry will be followed by the SWIFT plenary with SWIFT Chairman, Yawar Shah, and CEO, Lázaro Campos.

Auditorium sessions

Monday 19 September

10:00 - 10:45: Leveraging SWIFT’s Business Intelligence solutions

13:00 - 13:45: Using Accord for Treasury confirmation matching: a case study from a leading custodian

16:00 - 16:45: Integrator Stories: Your applications working with SWIFT

17:00 - 17:45: Optimising your business processes using SWIFT Business Consulting Services

For further details and for the full week’s programme, consult www.sibos.com, SibosApp or Sibos Issues.

What’s on MondayIt’s about helping customers to optimise their return on SWIFT investments, doing more with what they have already and helping them become more agile in response to market volatility.Laurence Bruyndonckx, SWIFT

Ways of seeingThere are several different ways to engage

with what is on offer from SWIFT at Sibos. “We have a comprehensive programme of auditorium sessions, including testimonies from customers on their experience of product adoption and usage,” says Bruyndonckx. “We also have product demos available on the SWIFT stand, which members of the SWIFT team will be happy to run you through.”

For clients who are looking for a basic introduction to particular aspects of the SWIFT offering there will be short showcase presentations on the stand, covering Alliance Lite, 3SKey, Integrator and SWIFTServices. “SWIFT products and services remain market leaders, both in terms of operational excellence and in terms of cost/benefit effectiveness,” says Bruyndonckx. “That is true now more than ever.”

We have a comprehensive programme of auditorium sessions, including testimonies from customers on their experience of product adoption and usage.Laurence Bruyndonckx, SWIFT

DBS began in 2008 to review its SWIFT infrastructure, as part of its continuing efforts to improve the

bank’s connectivity and disaster recovery options.

The bank elected to migrate to a configuration of Alliance Access plus Integrator, since Alliance Access provided the required stability, while accommodating strict disaster recovery requirements. Once the decision had been taken, SWIFT and local partner NCSI provided comprehensive assistance with both implementation and migration.

Several aspects of the project were unique. In addition to the simple routing rules inside Access, Alliance Integrator was used as an external controller for routing the messages. SWIFT therefore build a special component for DBS to provide the necessary controller services. Another custom component was built to dump messages from the Alliance database in the format required by DBS. These were constructed with essential input from the SWIFT Consulting services team.

“Flexibility in deployment and the possibility of customisation with Integrator were key factors in our choice,” says Lim Boon Khee, senior vice president, T&O IBG Technology, DBS. “SWIFT’s product expertise and vast knowledge and experience in the product were also particularly helpful during the migration process.”

Lim has a word of advice for peers looking to consider a similar migration. “Stay focused,” he insists. “Detailed planning is imperative for such a project to be successful. Also, divide the migration strategy into multiple smaller phases – divide and conquer! This will mitigate the risk and control the exposure.”


Migrating to AllianceThe experience of DBS in Singapore confirms that joining the Alliance family is bringing many benefits to the bank.

SWIFT auditorium sessionsHear the latest from SWIFT and learn from the experience of your peers.

At Sibos, SWIFT communication on its own products and services has evolved significantly in recent years. From

simple instructive presentations, an increasing number of auditorium sessions now include panels where existing customers provide feedback on their experiences. This allows peers facing similar challenges to make a realistic assessment of the solutions available and the practical implications of choosing a particular product or service.

With analytics becoming increasingly important in monitoring business within financial institutions, SWIFT’s business intelligence initiatives will be addressed in two sessions on Monday and Wednesday. SWIFT for corporates is the subject of a dedicated session on Tuesday, while those involved in trade and supply chain issues may like to catch up with the latest on open account transactions on Tuesday and letters of credit and guarantees on Wednesday.

Those grappling with the challenges of message duplication, standing settlement instructions, worker remittances and SEPA will all find auditorium sessions where these topics are explored, while the securities post-trade environment will be covered in an outline of new approaches for custodians, investment managers and brokers on Wednesday and a presentation on Thursday of SWIFT support for CCP clearing and collateralisation.

There will also be a number of products sessions throughout the week presenting pragmatic examples and case studies to help customers optimise their return on SWIFT investments and reduce TCO.

New this year, Auditorium sessions will be reported in Sibos Issues.

Full details of the daily programme of sessions are available on sibos.com and through the SibosApp.

Visiting the SWIFT stand The SWIFT stand in Toronto will provide customers with answers to all their queries through a mixture of the familiar and the new.

The look and feel of the SWIFT stand in Toronto will in some respects be recognisable to those participants who attended

the event in Amsterdam, according to Alex Hewetson, events specialist, SWIFT, who is once again responsible for the stand. “There will again be meeting rooms around the perimeter, with the Arkelis lounge in the middle of the stand,” he says. Behind and to the left of the welcome desk, there is the demo zone, where demos will be available on the dedicated pods introduced last year. “We are still keeping the USB keys to distribute information,” says Hewetson, “but taking advantage of progress in technology, this year’s keys have the same capacity, but are around one sixth the size.””

The aesthetic of the stand is, however, very different this year. “The design is fairly intricate and involves a lot of curves and mood lighting,” says Hewetson. One innovation is the use being made of the four information screens set around the stand. This year, we will be uploading SWIFT@Sibos photos to these screens in a dynamic way,” he says.

Two areas of activity that were situated on the SWIFT stand last year – Innotribe and the SWIFT auditorium – this year have

their own locations, allowing them to cater for the greater levels of participation that are expected. “We realised that these had developed to the point where they needed their own space,” says Hewetson. “We have therefore given them room to breathe, while focusing the stand’s activities on personal attention to visiting customers.”

o one in the financial services sector would be shocked to hear the present business environment described as challenging and,

says Wim Raymaekers, head of banking market, SWIFT, “New challenges for banks often demand new solutions.”

The inspiration for these solutions may nevertheless be found within traditional business areas. Correspondent banking data, for example, can play a vital role in a bank’s strategy to optimise quality and efficiency. Banks can use information about their correspondent banking flows to monitor their own business performance in a number of ways: to achieve insight into their own market share; to track the expansion (or contraction) of specific relationships; and also, crucially, to reinforce their oversight of risk exposure across the enterprise. It is, in effect, a decision-making tool.

But how best to use such a tool? Against a background of global economic change and regulatory evolution, coupled with significant shifts in the relationships between regions, currencies and national economies, the future of correspondent banking is a crucial theme at Sibos 2011.

Accordingly, a number of correspondent banking-related sessions will run through the week.

Notable in the context of leveraging a correspondent network for the data it can provide is the auditorium session, ‘Define the future of your correspondent banking business with SWIFT Business Intelligence’ (Wednesday, 21 September, 10:00 - 10:45 in the SWIFT auditorium). “Our Business Intelligence services provide new insights into banks’ correspondent banking activities based on granular analysis of

transaction volumes and currency flows,” says Raymaekers. “They can be used to support strategic and product level decision-making as well as identifying risks and operational efficiencies.” During the auditorium session, Camille Garcia, director, bank services group, Global Transaction Services, Citi, will discuss the bank’s experience as a customer of SWIFT Business Intelligence.

SWIFT Business Intelligence provides a portfolio of functionalities, of which one is Watch; subscribing banks can use the Watch to monitor their relationships and track their own network traffic against market totals. Early next year, SWIFT will be releasing dynamic reports drawn from Watch. Dynamic reports specific to correspondent banking will be demonstrated at the Wednesday morning session. “We are extending what we have today specifically to support correspondent banking,” says Raymaekers.



Self-service comes to standardsMyStandards, a collaborative web-based tool, will give customers greater control of the standards and market practices they deploy

In May this year, with the backing of Innotribe Incubator – a SWIFT funded initiative to develop and nurture new ideas in the

financial industry – a project team set about building a working version of MyStandards, a new ‘self-service’ tool for customers to manage their own use of standards.

The team is working hand-in-hand with eight pilot customers. “Unlike the traditional approach where we build the solution and then the customers test it, we are starting small and adding features in collaboration with our pilot customers,” says Tom Alaerts, MyStandards pilot manager.

The pilots seem to appreciate the benefits of close collaboration in the design and development of the solution. “In developing MyStandards, SWIFT has opted for an agile development approach,” says Rainer Vogelgesang, senior product manager, SIX Group.”

Veronique Peeters, BNY Mellon, agrees. “It’s very comfortable being at the start of a project and being able to provide input before any solid decision has been made,” she comments. “We can see immediately if it’s going in the direction where we will be able to maximise the benefit of the tool.”

“It is all about collaboration,” says Marc Delbaere, head of standards strategy and architecture who leads the project. “The customers are an integral part of the team. As they are closely involved in the project, they become MyStandards ambassadors who can help advocate a completely new way of managing standards across the whole industry.”

The beta version of MyStandards is scheduled for release at the end of October. “Until then, it’s a closed pilot,” says Alaerts. “After that we plan to open it to more institutions in more countries to test the features.”

A session on MyStandards with feedback from the pilot customers will take place on Wednesday 21 September from 10:00 to 10:45 at the Standards forum.

Traditional business in a new lightLeveraging correspondent banking data, SWIFT Business Intelligence can offer crucial support to decision-making processes.

N

New challenges for banks often demand new solutions.Wim Raymaekers, SWIFT

Wim Raymaekers, head of banking market, SWIFT

Marc Delbaere, head of standards strategy and architecture, SWIFT


ccurate and comprehensive reference data is a vital requirement for the payments industry. “There is substantial

pressure on the payments industry to use reference data effectively, to automate, to integrate, and to make sure that it is complete, accurate and timely,” says Patrik Neutjens, head of reference data, SWIFT.

Such data is, however, increasingly problematic to obtain. Ongoing regulatory evolution, which is rendered more complex (at least in the short term) by such industry initiatives as SEPA, imposes an open-ended requirement to integrate new data sets, while different reference data providers deliver incomplete, often inconsistent, data products. To construct a viable ‘golden copy’ from a multiplicity of different providers is at least challenging, clearly carries risk, and is potentially costly. Straight-through processing (STP) failures attributable to flawed reference data run at around 3% with a repair cost of EUR 20–40 per transaction.

Responding to the industry’s call for a solution to this increasingly complex challenge, SWIFT has launched the SWIFT Reference Data Project, SWIFTRef, which will provide comprehensive, consistent and high-quality payments reference data from a single source. SWIFTRef will offer a modern platform with a flexible relational database, coupled with web-service technologies to allow remote-database synchronisation and an automated query-response facility. Priced

to be competitive against current provision, SWIFTRef will be presented at a dedicated auditorium session, ‘SWIFT’s definitive solution to your payments reference data needs’ from 16:00 to 16:45 on Tuesday 20th September.

As delegates attending the session will discover, SWIFTRef gives the industry a ‘one-stop shop’ for reference data and for an extensive portfolio of services around that data, ranging from data collection to facilities for product enquiries and issues management. “The key elements in our value proposition are that SWIFTRef will increase (STP) and reduce TCO,” says Neutjens.

“This is a holistic approach to reference data, based on cutting-edge database technology,” says Ian Dunning, president, Refdata, which has been has been working with SWIFT on the SWIFTRef project and who will be presenting with Neutjens at the Tuesday session.

CollaborationA key feature of SWIFTRef is its collaborative nature. In order to achieve its objective of becoming a single source for the payments industry’s entire reference data requirement, SWIFTRef will act as a one-stop shop for taking delivery of, as well as distributing, reference data. “We’re suggesting to financial institutions, central banks and others who are maintaining and issuing payments reference data in different countries, that by contributing their data, we can help each other achieve a complete solution,” says Neutjens.

By effectively combining multiple-sourced reference data within its own provision, SWIFTRef facilitates cross-referencing, updating, and finally, the maintenance of accuracy as well as a comprehensive delivery to the end-user. “The whole idea is to motivate providers to contribute their data to the platform,” says Neutjens. “We will handle the maintenance and we will provide tools and facilities to the data contributors to make their lives a lot easier in terms of how they publish and maintain their data. What is the timetable for SWIFTRef? The platform is in full development and SWIFT is already pro-actively collecting data from a number of individual contributors as well as central banks. Neutjens says, “We are in advanced discussions with a number of countries about adopting the platform and related facilities for providing and maintaining data.”

SWIFTRef will be launched at Sibos, with some services accessible immediately and the full portfolio available in January 2012. “We have all the necessary information to give to financial institutions and corporates about directories, data, formats, update frequency and pricing,” says Neutjens. “Those looking for detail will not be disappointed.”

SWIFT takes up the reference data challengeSWIFTRef, a new one-stop shop for payments-related reference data, is looking to bring a collaborative approach to a challenging area.

A [SWIFTRef] is a holistic approach to reference data, based on cutting-edge database technology.Ian Dunning, Refdata

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fforts to take cost out of the financial transaction value chain have multiplied in response to changes in the regulatory and

macro-economic environment. One of the most ambitious has been an initiative by the Depository Trust and Clearing Corporation (DTCC) to replace proprietary files with ISO 20022-based message formats for corporate actions announcements by 2015. On Tuesday at 09:00-09:45 there is a chance to find out about recent progress toward this goal in the session, ‘How DTCC paves the way for corporate actions automation, piloting the ISO 20022 SWIFT solution’. Indeed, this year’s Sibos showcases progress toward greater automation and efficiency across the corporate actions and asset servicing spectrum.

Issuer to investorDTCC’s plan to replace 60 legacy DTCC systems with a single new platform that will allow users to manage the entire corporate actions lifecycle was first unveiled in 2009. In collaboration with SWIFT and XBRL US – a non-profit body that supports XBRL business reporting standards – DTCC also announced the ‘Issuer to Investor: Corporate Actions’ initiative to improve corporate actions processing using XBRL tagging data technology and ISO 20022 formats, estimating that USD400 million could be saved annually by US issuers by using XBRL in communications such as prospectuses, press releases and regulatory filings.

Since April 2011, J.P. Morgan, BNY Mellon, and Brown Brothers Harriman have been receiving ISO 20022-based corporate actions announcement messages and their related cancellations from the DTCC over SWIFT. The pilot tested all event types for corporate actions announcements, including dividends, principal and interest, redemptions, and reorganisation events such as tender offers, stock splits and warrants.

With the kinks now ironed out and message volumes rising – DTCC has sent more than 3.8 million corporate action announcement messages over the summer pilot period – this phase will end in November, at which point existing users will ‘go live’ and new participants will prepare

to onboard. From next year, more message types will be introduced to extend coverage from announcements to events related to distributions. Redemption and reorg events are due to follow in 2013.

While the dissemination of millions of ISO 20022 corporate actions to investors via their custodians represents a significant efficiency gain, the benefits depend on receipt of clean data from issuers. To this end, XBRL US has launched a taxonomy for 94 corporate action events that is aligned with ISO 20022. Having issuers electronically tag corporate actions data in XBRL allows messages to be delivered straight from the issuer to the investor without rekeying or interpretation through multiple interfaces.

From mid-September, Citi will be sending six kinds of corporate actions message via ISO 20022-compliant XBRL for all their listed depository receipts, with unsponsored ADRs scheduled for later. This means that all parties that receive this data from Citi – newswires, exchanges, repositories – will be able to process them automatically.

Since July, all issues in the US bond markets have had to submit their 10-K and 10-Q filings in XBRL and Citi is employing essentially the same software in its pilot scheme. “Every time the securities industry takes another step toward automation, liquidity ratchets up dramatically, reflecting the confidence of investors in market processes and mechanisms,” says Alan Smith, global head of issuer services, Global Transaction Services, Citi. BNY Mellon, meanwhile, is starting the implementation work necessary ahead of establishing its own pilot.

Identifying critical areasIndustry efforts to standardise corporate actions processes have intensified of late, with the International Securities Services Association and the Corporate Actions Joint

Working Group leading the drive toward best practice. On the messaging level, SWIFT’s STaQS for Corporate Actions tool is helping custodians and other financial firms, such as BNP Paribas Securities Services and Société Générale Securities Services, to assess their market practice compliance, identify critical areas and improve their level of automation by addressing those areas.

By running batches of SWIFT corporate actions messages through STaQS, firms can identify which inbound or outbound corporate action announcement messages conform to market practices defined by the Securities Market Practice Group. Recent improvements to STaQS are designed to help users to more readily identify problems and make corrections that are so crucial to ensure high levels of STP both for themselves and their counterparties. STaQS, which can be used in conjunction with SWIFT’s consulting services, is already proving valuable to a number of investment managers in the UK and elsewhere in Europe.

Meanwhile, Austrian custody and asset servicing software provider Software Daten Service has been awarded the SWIFTReady Corporate Actions label for its GEOS 5.6 product, which automates corporate actions processing for banks. SWIFT’s certification programme now encompasses five corporate actions products, reflecting on the importance of asset servicing to the SWIFT 2015 strategy. The four other products accredited are: Information Mosaic’s IMActions 6.2, TATA Consultancy Services’ TCS BaNCS Corporate Actions 6.0, Vermeg’s MegaCor and XSP 5.

Leaving no stone unturnedIndustry seeks efficiencies throughout the corporate actions value chain.

Alan Smith, global head of issuer services, Global

Transaction Services, Citi

E

Every time the securities industry takes another step toward automation, liquidity ratchets up dramatically.Alan Smith, Citi


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t Sibos in Amsterdam, the SWIFT community was introduced to Arkelis, the first wholly owned SWIFT subsidiary. Arkelis was

created by SWIFT in July 2010 to enhance its connectivity portfolio for high-volume messaging and in October, acquired the assets of the Ambit Messaging Hub (AMH) solution from SunGard.

Since then, it has been full steam ahead for the new business. “Over the past year, we have focused internally on integration with SWIFT and externally on acquiring the market presence we were looking to achieve in the high-end customer segment,” says Hans Cobben, CEO, Arkelis. “In the meantime, our staff has increased to over 80 and we have successfully proven our ability to deliver large implementations.”

Integration and synchronisation with SWIFT was an early priority for Arkelis though it retains its strategic and operational autonomy. “There are a number of areas where we work very closely with SWIFT, where it really makes sense for the customer base,” explains Valerie Morel, head of sales and marketing, Arkelis. The firm’s customer-facing activities are tightly coordinated with SWIFT global account managers, for example. “The global account manager really has an informed view of the customer’s overall operations and requirements and therefore plays an integral role in our discussions with the customer,” says Morel. The integration

extends to client support, once AMH has been implemented. “The support function is integrated with SWIFT’s global customer support organisation,” she says. AMH is also subject to the same stringent quality assurance rules that apply to all SWIFT products and services.

As far as the customer base is concerned, Arkelis remains clearly focused on high-volume messaging. AMH is a modular, multi-network, messaging solution that can be tailored to an individual customer’s needs. “Our natural space is in addressing the messaging needs of the largest SWIFT customers in terms of volume and size,” says Cobben.

“We are effectively running as an independent SWIFT subsidiary at arm’s length,” Cobben confirms. “Where we can work together, we certainly do so, but we define our own product set, our own go-to-market strategy and our target customer segment.”

Outsourced messagingArkelis will be running two auditorium sessions on Thursday at Sibos. One, presented by Morel at 11:00, will focus on the flagship AMH offering, while in a second, at 13:00, Cobben will outline a new service to be unveiled at Sibos, involving outsourced messaging for high-volume users.

The new offering is the first full outsourcing service for financial messaging specifically tailored to the needs of Tier One financial institutions. “It is a result of extensive consultations with our customer base,” says Cobben. “We have been engaging in

discussions with about 10 of our customers about what kind of service we could offer that would allow them to outsource – and us to insource – their entire messaging infrastructure and operations, including connectivity, messaging and integration layers. The idea is to switch the name of the game from infrastructure and operations to an SLA with Arkelis. We would offer a capability where they would drop all their message traffic into and retrieve all their traffic from a central hub covering one or more networks. We will charge for the service in a way that reflects the elasticity in their use of it.”

“The combination of the Advanced Messaging Hub and the new outsourced messaging service supports SWIFT’s overall strategy of providing tailored choice to different customer segments, while reducing TCO for the community as a whole,” Morel adds.

Arkelis one year onSWIFT’s autonomous subsidiary has spent the past year working to reduce TCO for large customers with high message volumes.

A

Hans Cobben, CEO, Arkelis



Banks are finding SWIFT certification increasingly useful as proof of their expertise. Both Deutsche Bank and Lloyds have, for example, recently benefited from SWIFT for Corporates Specialist certification training programmes, which helps financial institutions address the specific needs of their SWIFT-connected corporate clients.

A growing number of Deutsche Bank’s corporate-facing staff are now SWIFT-certified specialists, helping corporate clients gain even more value out of using SWIFT. David A. Watson, director, head of client access, product management, Global Transaction Banking, Deutsche Bank, sits on SWIFT’s corporate advisory board and has actively supported the development of this certification, which was launched in late 2010. “We welcome the opportunity for this independent certification from SWIFT Training,” he says. “The SWIFT for Corporates Specialist certification provides external validation of our expertise. It has also been an excellent way to expose a wider audience within Deutsche Bank to SWIFT’s products and services.”

Some 40 Deutsche Bank employees followed an

intensive two-day training from SWIFT covering SWIFT messaging services and standards for corporates, the SWIFT for Corporates offering, and SWIFT corporate access models – as well as Cash and Treasury management messages and ISO 20022 messaging. Afterwards, participants took a half-day exam that verified their SWIFT knowledge. Upon successful completion of the exam they received SWIFT for Corporates Specialist certification. Additional sessions are scheduled in several locations with the aim of certifying a total of 100 employees by the end 2011.

At Lloyds Bank, meanwhile, Mike Rayfield, senior channel manager, explains the motivation behind his firm’s participation in the certification programme. “It’s important that our relationship teams are aware of what is going on in the industry space, at a high level but also at a deeper level – how a new solution might work, and the benefits of taking a different approach. SWIFT certification helps us build this knowledge for our relationship teams and gives them the confidence they need in discussions with our customers.”

For more information on the Using SWIFT - Certification Programme, visit www.swift.com/training or e-mail the SWIFT Training team at [email protected].

n fulfilling its essential role as the financial industry’s global messaging infrastructure, SWIFT collects and analyses

huge amounts of data. Andre Boico, managing director, head of pricing and business analysis, SWIFT, has long been curious about the extent to which this data offer insights into broader trends in global economic activity. “For at least five years now, we’ve been exploring correlations between SWIFT traffic data and other

economic indicators,” he says. In 2009, SWIFT initiated a project to

test these correlations, working with the Centre for Operations Research and Econometrics (CORE) at the Université Catholique de Louvain. The results were very positive. “We found that the ubiquity of SWIFT payment traffic makes it a mirror of economic activity,” says Boico

SWIFT has since been using correlations internally to gauge the natural growth in its traffic. The data is aggregated at country level and filtered to take account of intra-institution traffic

and ‘man-made’ events, such as a large market infrastructure migration on to SWIFT. By studying the correlation between this aggregated traffic data and GDP evolution, the project has resulted in a new tool that customers will now be able to take advantage of.

At an auditorium session on Tuesday morning at 10:00, Boico will be unveiling ways that customers can make practical use of these correlations. He will be joined by Prof. Luc Bauwens, president of CORE and professor of economics at Université Catholique de Louvain.

Learning from correlationsAggregated at a country level, SWIFT traffic data offers useful insights into macroeconomic trends.

I

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Oct-09Jan-09Apr-08Jul-07Oct-06Jan-06Apr-05Jul-04Oct-03Jan-03-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Source: SWIFT, OECD

Year on year quarterly growth rates

Figure 1GDP and SWIFT payments

Payments

OECD GDP - Europe

OECD GDP - All

SWIFT as Barometer of the World Economy

It’s important that our customer-facing teams are aware of what is going on in the industry space, at a high level but also at a deeper level .... SWIFT certification helps us build this knowledge for our frontline staffMike Rayfield, Lloyds Bank

SWIFT certification – a clear differentiatorSWIFT corporate specialist certification is part of the ‘Using SWIFT - Certification Programme’ from the SWIFT Training team. Certification expands knowledge internally and demonstrates SWIFT competence to the market.

Andre Boico, managing director, head of pricing and business analysis, SWIFT

core feature of the SWIFT2015 strategy is to ‘go local’, establishing partnerships with operators of domestic

market infrastructure to implement globally-recognised standards and processes.

Much of the recent work done by SWIFT in this area has involved emerging markets, with recent initiatives to transform market infrastructure in Croatia and Romania now bearing fruit.

In 2010, Depozitarul Central, the Romanian central securities depository (CSD), signed a memorandum of understanding with SWIFT to aid it in the creation of a securities markets practice group (SMPG). “The objective of the SMPG is to define a standard set of market practices for Romania,” says Adriana Tanasoiu, CEO at Depozitarul Central. “Having these in place will make it a lot easier for domestic and foreign investors to understand and invest in the Romanian market and for our members to standardise and automate their processes.”

The first outcome of the Romanian SMPG was the implementation of SWIFT messages for settlement and reconciliation following meetings with custodian banks. A group of pilot clients, comprising the Romanian Development Bank, which is a subsidiary of Société Générale, Citibank Europe, ING Bank and Unicredit Tiriac, began testing the new messages in September.

The next phase will be the use of SWIFT messages for corporate actions. “We want to implement the most advanced

form of SWIFT messages for corporate actions so that we can easily standardise communications with issuers and our members,” says Tanasoiu.

In the payments arena, initiatives are underway with Polish clearing house KIR and the Croatian national clearing system, operated by FINA, both of which are adopting FileAct. The separate initiatives, in response to customer demand, will give clients in each country another means of connecting to the clearing house as well as offering a single channel to connect to real-time gross settlement systems, CSDs and correspondent banking services.

Using SWIFT will also enable FINA and KIR to connect to the other members of the European Automated Clearing House Association (EACHA).

Northern lightsThe replacement of market infrastructures’ legacy systems with SWIFT solutions has also infiltrated northern Europe. At the start of 2010, Nordic banks moved low-value payments traffic in SEEBACH – the Finnish domestic clearing infrastructure – from legacy systems to the SWIFT network, with the aim of ceasing operation of the incumbent systems by October 2011. According to SWIFT, SEEBACH traffic has already started to grow significantly, with 54% of payments having already migrated to the SWIFT network by February 2011.

“To see a community moving its domestic low-value payments traffic on to SWIFT is exactly our strategy and also in line with SWIFT2015,” said Erica Ahman, head of Nordics, SWIFT.

The role that SWIFT can play in large-scale infrastructural migration projects is among the subjects to be broached in two auditorium sessions at Sibos: ‘SWIFT Services for Payment Market Infrastructures: Delivering value and peace of mind’ and ‘Increase the resilience of market infrastructures, achieved through a new SWIFT offering’.


SWIFT extends support for market infrastructures in EuropeIn line with its ‘go local’ strategy, SWIFT is supporting several market infrastructure initiatives in Europe in both payments and securities.

A

Adriana Tanasoiu, CEO, Depozitarul Central Isabel@SWIFT

extends corporate reach

Isabel and SWIFT have joined forces to offer banks immediate access to 110,000 corporate customers

over their existing SWIFT infrastructure. A year ago, Isabel, the multi bank e-banking application provider, announced an extended co-operation agreement with SWIFT. In a first phase, SWIFT will be used as a communication channel between the Isabel 6 application and the 22 banks already working with Isabel. Isabel has since gone live with its SWIFT infrastructure. The first banks have begun testing and will go live during Q3 and Q4 of this year, with a further migration of the remaining banks by mid 2012.

Isabel and SWIFT are now embarking on phase 2 of their co-operation with the development of a new business approach to give banks easier access to more corporates. An extensive survey of corporates has identified the banks that they want to do business with via lsabel’s corporate-to-bank platform. The survey demonstrates a growing demand from corporates for more European and international banks to join the Isabel community.

Banks can now extend the use of their SWIFT infrastructure, using FileAct real-time to receive payment instructions from corporates through the Isabel application and report back through visualisation capabilities in the application. In addition, the Isabel application includes a module to manage mandates and digital signatures from the corporates.

The objective… is to define a standard set of market practices for Romania. Having these in place will make it a lot easier for domestic and foreign investors to understand and invest in the Romanian market.Adriana Tanasoiu, Depozitarul Central



On Monday 19 September at 13:00, Charles LeBrun, senior vice president for operations and technology at

Northern Trust, will share his views on best practices for a treasury back office. During this session, “Using Accord for Treasury confirmation matching”, LeBrun will also explain how his bank is taking advantage of SWIFT’s Accord to reduce cost and risk in its treasury operations.

“This will be an invaluable session for any existing or potential user of Accord,” says Jan Dings, head of Accord product management at SWIFT. Dings will share the stage with LeBrun, and update attendees on the recent and upcoming enhancements to Accord. These include the use of the Alliance Web Platform, a pilot of which is imminent. The Accord GUI on Web Platform eliminates the need to install an Alliance Web Station and the Accord GUI on each desk. “This represents a serious cost saving

for banks with many operators using Accord, especially when spread over various physical sites,” says Dings.

As the result of a recent link-up, Accord is also accessible via Bloomberg.REDUCING COST AND RISK FOR CORPORATE TREASURERSOn Tuesday 20 September at 13:00, corporate treasurers will participate in a panel discussion entitled ‘Using SWIFT’s confirmation matching service to achieve cost-effective risk management in your corporate treasury department’.

Intel’s global treasury operations and controls director Deepa Palamuttam and Daimler’s finance, operations and NAFTA projects manager Paul Rivas will join Dings to share their own experiences of what they have already achieved with Accord, and to discuss their future plans for using the system.

For corporate treasurers, Accord for Treasury enables real-time matching and interactive

exception handling and allows the integration of matching results into treasury management systems. Some 30 corporates already use Accord, mostly top 500 companies, and often in different sites. The upcoming availability of Alliance Lite connectivity to Accord will make the service cost effective for corporates of any size, Dings explains.

Payments NZ tackles settlement riskCollaboration between SWIFT, payment system operator Payments NZ and the New Zealand banking community will result in a new, near real-time clearing and settlement system for low value payments that will reduce systemic risk.

ew Zealand’s new ‘Settlement Before Interchange’ project will enable participating banks to exchange bulk

payment files bilaterally via the SWIFT network intra-day. “Currently low-value payments are cleared overnight and settled the next morning,” says Bill Doran, key clients relationship manager, Australia and Oceania, SWIFT. “This means all the banks are carrying settlement risk throughout the business day until the following morning’s settlement. With the new system, the banks will clear the files during multiple settlement windows throughout the day, but what is truly unique is it requires settlement to have occurred before the files are interchanged between banks.”

The system uses FileAct Y-Copy and

InterAct ISO 20022 messages to deliver

summary payment information to the Reserve

Bank on the same day, to trigger near real-

time settlement. “This will reduce the liquidity

risk and at the same time eliminate settlement

risk within the low value payments system,”

says Doran. A potential benefit is that it may

allow banks to reduce the amount of capital

they need to hold for settlement risk.

New Zealand will be the first banking

community to use SWIFT’s FileAct Y-Copy

mechanism, but the expectation is that other

markets will follow its innovative approach to

removing overnight deferred settlement risk.

The eight participating banks, which include

ANZ, ASB, BNZ, Citibank, HSBC, Kiwibank,

TSB Bank and Westpac, are currently in the

testing phase of a staged migration to the new

system. The first two banks are expected to

join the new system at the start of November,

with two more to follow at the end of the

month and the remainder in February 2012.

Model of collaboration“Development and final deployment of this technology has been a perfect example of how a community of banks can work together with various stakeholders, including SWIFT and the Reserve Bank of New Zealand, to make improvements that benefit all,” says Steve Nichols, CEO of Payments NZ. The Payments NZ systems team has led coordination and management of the various testing phases for the technical solutions, laying the groundwork for migration to the new system from

November and into early 2012. The Payments NZ legal team has also worked with the community to develop an entire suite of rules, standards and procedures to govern interoperability of the new system. “Once we go live, this project will be the culmination of an innovation initiative that has spanned several years and required a significant investment by the entire community both financially and in human resource,” says Nichols. “It has involved a large number of highly skilled and focused individuals from across the community all collaborating to achieve an outcome that sets a new benchmark for the settlement and interchange of low value payments.”

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Customers testify to Accord benefits Two auditorium sessions about SWIFT’s Accord matching service offer insights into how its financial institution and corporate customers are achieving risk reduction and efficiency gains.

[The Accord GUI on Web Platform] represents a serious cost saving for banks with many operators using Accord.Jan Dings, SWIFT

Bill Doran, key clients relationship

manager, Australia and

Oceania, SWIFT


SWIFT Sanctions Screening service set for early 2012 Centralised screening will provide a cost-effective approach to sanctions compliance.

eeping up-to-date and compliant with ever-changing sanctions lists and requirements represents a common

challenge to the banking industry. The burden is particularly great for small to midsize banks, which often lack internal sanctions compliance resources.

SWIFT’s new centralised Sanctions Screening service aims to provide a cost-effective solution in this area of growing concern and workload. Currently under development with FircoSoft and scheduled to go live in early 2012, Sanctions Screening over SWIFT will combine FircoSoft’s filtering application and list update service with the security and resilience of SWIFT in a ‘subscribe and comply’ service.

Groups from the UK, Italy, the Netherlands and Finland took part in a recent workshop to validate the service description and pilot testing scheduled to start in October. Users of the new service will be able to request that selected SWIFT FIN messages be routed to the centralised screening application, where they will be filtered in real time, and checked against selected sanctions lists. If there is no match to the sanctions list, the message will be delivered as usual. If there is a match, the customer will be asked to instruct SWIFT whether to release, abort or flag the message.

The service is designed to increase compliance in the community as a whole,

explains Brigitte De Wilde, head of AML & sanctions initiatives at SWIFT. “Providing the international banking community with a secure, standardised service that supports sanctions compliance is another way SWIFT is fulfilling its mission of delivering standardised approaches that help our customers increase their efficiency and reduce costs and operational risk,” she says.

A conference session on Monday 19 September from 16:00 to 17:00 will discuss recent regulatory developments, the benefits and challenges of industry collaboration, tools, sharing of practices and common standards to meet the increasing expectations of regulators. An auditorium session on Tuesday 20 September from 14:00 to 14:45 will provide more detail on the new SWIFT service.

KBrigitte De Wilde, head of AML & sanctions initiatives, SWIFT

SWIFT has established a ‘lead bank model working group’ to modify existing MT 798 message guidelines to enable direct connections to SWIFT from the banks’ web portals. The aim is to remove the need for each individual corporate to learn the different functionality of its partners’ web portals, maintain the security cards and passwords to operate them, and build multiple different connections to their back offices.

The working group, which held its first meeting on 30 August 2011, consists of seven bankers together with representatives of SWIFT. The group is actively seeking new members.

The new focus follows on from recent initiatives between corporates and SWIFT. Previously, corporates that dealt with multiple banks around the world in multiple currencies had to use each of the banks’ web portals or set up direct connections between the bank and the corporate. Many expressed concern that this process was becoming too expensive. Last year, SWIFT added support for trade finance messaging, enabling users to send messages for commercial letters of credit, standby letters of credit and bank guarantees. This allowed corporates to use the SWIFT network to streamline the entire process.

“Corporations today use multiple banks to process letters of credit,” says Fran Martell, director and global product manager at Citi. “Instead of using a different system from each bank, they will now use the web portal for which they consider to be their lead bank.”

Under the ‘lead bank model’, a corporate can designate which of its banks is to become its lead bank. The selected bank will then effectively act as a hub through which all traffic is directed. Instead of going to each portal in turn, messages will be directed through one website which will then pass them on over the SWIFT network to their intended recipients.

“The group is currently reviewing workflow examples and defining the new message structures with the objective of completing them during Q4 this year,” says Chris Conn, senior business manager for trade and financial supply chain management at SWIFT Americas. `”After this, the banks will estimate the changes to their systems and come to an agreement on an implementation date.”

Solving the trade information jigsawSWIFT has embarked on a new industry initiative that will enable corporates to consolidate all of their trade finance messages through their lead bank’s web portal.

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CreditsPublisher: Owen Fitzpatrick, SWIFTManaging editor: Maria-Eugenia Forcat, SWIFTSWIFT@Sibos is written and produced by Information Partners on behalf of SWIFTAdvertising is sold by Mayridge on behalf of SWIFT: [email protected]. Tel: +44 1386 872679Printed by Fusion Media Ltd

Legal notice: SWIFT © 2011Reproduction is authorised with acknowledgement of source. All other rights reserved. SWIFT, the SWIFT logo, Sibos, Accord, SWIFTReady, and SWIFTNet are registered trademarks of SWIFT. Photographs feature SWIFT employees, customers and partners.

Consult with the people who know your businessViacom turned to SWIFT’s Consulting Services for a solution encompassing both implementation and business benefits.

hen Viacom, the leading global entertainment content company, decided to overhaul its treasury strategy, the challenge

quickly became one requiring more than installation. Viacom wanted to communicate directly with all its banking partners in a reliable, cost effective and secure manner.

For Brian Harrison, head of international treasury at Viacom, only SWIFT satisfied all these requirements. “We are always trying to enhance our internal processes and decided to implement SWIFT as part of a larger Global TMS implementation,” he said.

“SWIFT Consulting Services has been an enormous asset to us and continues to guide our team toward achieving our end goal on schedule,” Harrison added. Pat Antonacci, principal consultant SWIFT Americas, said the first deliverable from the Consulting team was to design and execute the implementation and configuration of Viacom’s test and production environment.

Another recent Consulting project, reflective of SWIFT’s Go Local initiative, involved the Banco Central de Uruguay, which engaged the team to upgrade its existing SWIFT infrastructure and implementation of Y-Copy service to support its real time gross settlement

(RTGS) implementation.“The project leverages SWIFT’s skills

in electronic communication, helping the central bank implement participant deployment with local players,” said Antonacci. “It is a great example of how SWIFT’s Go Local initiative continues to support local strategies and market infrastructure around the world.”

Kurt Ryelandt, head of Consulting Services, EMEA, SWIFT, points out clients are attracted to SWIFT Consulting Services for a number of diverse reasons. “Clients may be looking to implement best-practices in financial messaging and reduce back office

processing costs, they may be in search of market insight and benchmarking or seeking easier implementation of new industry initiatives,” he says. “In all those cases, SWIFT Consulting Services can help.”

“Corporate Treasurers need help to connect to their various banking partners and banks need help enabling their customers to connect to them,” said Ryelandt. “Consulting Services can give advice on how to optimise their back-office operations.”

Ryelandt said most of the engagements Consulting Services offer were accomplished relatively quickly. “They often start at ten days and long projects average 50 days,” he said. “We try to be short and focussed.”

So far, Consulting Services has completed

more than 450 projects for 350-plus clients

in 75 countries. Globally, it has more than 35

specialist consultants with an average of 15

years experience and access to some 2,000

SWIFT specialists.

Two auditorium sessions – Optimising

your business processes using SWIFT

Business Consulting Services, on Monday

at 17:00, and Leveraging SWIFT Technical

Consulting Services to optimise your SWIFT

infrastructure, reducing risk and costs, on

Wednesday at 14:00 – will answer any

questions participants may have on how they

can work with SWIFT’s consulting team.

W

Kurt Ryelandt , head of Consulting Services, EMEA, SWIFT

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SGSS is a business division of Societe Generale and/or its related companies, which provides a wide range of securities services only to asset managers, institutional investors, fi nancial intermediaries and corporations. SGSS does not provide services directly to retail customers, nor investment advice and/or recommendations regarding any investment strategy or transactions. Not all services are available in all countries. © GettyImages - FRED&FARID

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Documents

Building out the future - Depozitarul Central SA · PDF fileFor Alliance Integrator, ... to SWIFT is actually Alliance Lite, she notes. Though originally positioned for the corporate