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CLS Member Gateway Elimination

Ram Komarraju

SWIFT Business Forum – New York

March 4, 2014

Agenda

2

Introduction

Current State and Limitations

Target State and Benefits

SWIFT Presentation

New CLS Browser Based GUI

Member Migration – Status Update

Q&A

3

» As part of its Strategic Architecture program (STAR), CLS is

eliminating the current Member Gateway using a standards-based

solution addressing several issues and bringing significant value to

our Members

Introduction

Key Objectives

Reduce Member Total Cost of Ownership (TCO) for CLS Connectivity by removing CLS gateway infrastructure and support

Eliminate the issues & limitations of the legacy platform

Provide standard connectivity solutions that leverage existing Member infrastructure by partnering with SWIFT

Build on ISO 20022 standards for communication

CLS Gateway Application

4

Current State

Internal Storage

Data

Files

CLS

AP

I -

Inte

rface

SW

IFT

RA

- In

terf

ace

SAG/SNL

Member

Application

CLS PD processes CLS GUI

Client

» CLS gateways have local storage for the data files, which is used for recovery

» CLS sends trade notifications to both Member primary and secondary gateways

» Both gateways must be up and connected to the CLS Core

Existing Operational model

SWIFT

5

Current State

Issues & Limitations

Expensive to maintain: for example, upgrades to the Gateway require extensive coordination and testing

Requires specialized knowledge: complex proprietary implementation makes support and new development difficult. It also contains functionality that is never used by Members (e.g. user-member functionality)

Hard to integrate: proprietary technology makes it difficult to integrate the gateway into a Member’s infrastructure

Architecture is not scalable: performance and capacity are a concern and the gateway could become a bottleneck during high-volume market events

SWIFT

6

Target State

SWP/

SAG/SNL*

Member

Application

MQ

Browser Based

GUI

CLS Gateway Elimination – Operational model & Migration

Legacy components removed

following completion of migration

7

Target State

Key Benefits

Enhanced Resiliency

Message replay based on InterAct

Store & Forward

Single URL across

Prod/DR

Standardisation

ISO 20022 Messaging

SWIFT InterAct Store

& Forward

SWIFTNet Browse

Reduced Complexity

No CLS proprietary software &

infrastructure

Ease of integration

using standard SWIFT

infrastructure

ISO 20022 messaging

Improved Security

Single-sign on using SWIFT framework & PKI offering

Support for fine-grained

access control

Built on SWIFT secure

network

Increased Performance

Batching

Compression

Message redesign to optimize the

size and number of messages transmitted

Support

SWIFT Single Window Support

CLS Focused on Core

Functional Support

CLS Member Gateway

Elimination Project New York Business Forum

Damien Vanderveken

4 March 2014

CLS partnering with SWIFT

Adding Value while reducing TCO for the CLS

community

CLS Member Gateway Elimination Project – NY Business Forum – 4 March 2014 9

Adding Value

Reducing

TCO

• Lower operation and deployment costs through re-use

of existing SWIFT infrastructure

• Lower integration costs thanks to usage of standard

technology (MQ based) and ISO 200222 standards

• New FX transactional pricing model ensuring that

member messaging spend remains at similar level – for

like-for-like FX instruction volumes

• Enhanced performance and capacity via the introduction

of a new Market Infrastructure Channel

• Enhanced resiliency and operational risk reduction

through the usage of SWIFT store-and-Forward

messaging with replay (ie. new data retrieval service)

• Support for non-repudiation of transactions submitted via

all channels for up to 24 years

Concerns addressed by SWIFT – we listened!

CLS Member Gateway Elimination Project – NY Business Forum – 4 March 2014 10

One-time

access to

Browse

channel is too

expensive

Site failover

involves

manual

intervention

and

downtime

SWIFT PKI certificates – new pricing

• New pricing applicable for certificates used to

access the new CLS Browse service

• 70% discount of one-time fee

• Applicable as of April 2014 for foreseeable

future

MI Channel – resiliency enhancement

• Provides an automated failover capability to

eliminate manual interventions and associated

downtime

• Message sequencing is guaranteed to ensure

business logic is preserved

• Available as of August 2014

11

How can SWIFT help you with your

migration?

Introductory

workshop

Detailed

assistance

proposal

Operational

processes

review and

requirements

gathering

SWIFT

infrastructure

Impact

assessment &

capacity

planning

To-Be definition

Solution Design,

Migration Plan

and BCP

Field Services

Installation,

go-live support

Project Management

CLS Member Gateway Elimination Project – NY Business Forum – 4 March 2014

12

• Provide a thin client with improved UI look and feel

• Retain and “fine tune” popular screens, rationalise obsolete screens and improve unpopular screens to enhance Member workflow

• Consolidate settlement sessions in one UI

Strategy

• New Member dashboard

• Enhanced Instruction input and approval process

• Streamlined user admin function

• Settlement session consolidation

Key changes

Strategy and changes

CLS Browser Based GUI

CLS Browser Based GUI

13 13

CLS Browse

Features

RBAC Roles

Single Sign-On

Simple User Provisioning

Steps

• User Name + BIC

Non-Repudiation

of GUI Transactions

Single URL

Features

14

» CLS testing is progressing well

» Member on-boarding activities in JAS to commence in line with the

Member Migration plan for Phase 0

» SWIFT Pilot release of MI Channel available since end February

2014

» SWIFT live release of MI Channel expected end April 2014

Current Project Status

15

Member Migration

Item # Phase 0

Early GUI

JAS

onboarding

Phase 1 Phase 2 Phase 3

Total Number of Members

(control and standard branch) 65

April 2014 to

Aug 2014

Sept 2014 to

Feb 2015

Mar 2015

to

Aug 2015

Sept 2015 to

Dec 2015

Confirmed migrations windows 65 3 (13) 29 33 N/A

[Contingency]

Phase confirmation details and timeline

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 → Q4 2015

Phase 0 Phase 1 Phase 2 Phase 3

Initial Member brief ing

Draf t functional spec released

Second Member brief ing

Baselined functional spec released

Live GUI demos via WebEx

Issue Web based GUI Guide

Begin Member testing in JAS

Deploy to Production

Phase 0 Phase 1 Phase 2 Phase 3

Member migration in 4 Phases

16

Member Migration Activities

CLS hosted monthly WebEx session

December 2013

• CLS STAR Browse GUI - live demonstration via WebEx

January 2014

• SWIFT SnF Retrieval and Replay Functionality walkthrough for CLS Gateway Elimination

February 2014

• 41st CLS Technology User Group Meeting

• Highlight CLS Browse GUI and Gateway elimination consideration

March 2014

• Self learning GUI operation - video session published

• Member on-boarding walkthrough session

17

» CLS requests Members to start the planning required for the migration at the earliest.

» If Members need clarification or assistance to complete their project plans, architecture design validation, and testing plans, please reach out to CLS.

» Engage with CLS and your back office system vendor (if any)

» CLS will provide more information in quarterly CLS Technology User Group meetings and monthly CLS Gateway Elimination WebEx session.

Member Migration Activities

Call to Action

18

https://cmv.cls-group.com/Library/Pages/subfolder.aspx?path=/CLS1+Member+Gateway+Elimination

» To assist Members in migration

efforts, we created a web site

where more details of the project

and migration plan can be found

» From the CLS Home Page, the

link to sign on to the

Member/Vendor website is in the

upper right corner http://www.cls-

group.com/Pages/default.aspx

» If a member or vendor requires

access to the website, they should

contact the CLS Service Control

team: Tel: + 44 (0)870 900 0606 /

607, and select menu option 2 or

Email: servicecontrol@cls-

services.com

» For more information regarding the

SWIFTNet-based solution for the

CLS community visit

http://www.swift.com/cls

Migration Website

Member Migration

Q & A

19

Appendix

20

21

CLS Browser Based GUI

Old GUI landing page

22

CLS Browser Based GUI

New Member Dashboard

23

CLS Browser Based GUI

Old Member Payment Monitor Screen

24

CLS Browser Based GUI

New Payment Monitor Screen

CLS Browser Based GUI – Site Map

25

Member Client

Dashboard

Transactions

Management Cash

Management

Commands and

Messages Static Data

Management

Instruction List

Instruction

Command List

Instruction Entry

Account Balances

Account Movements

Settlement

Projections

Pay In Schedule List

Payment Monitor

Command List

Message List

Branch List

Institutional Branch

List

Settlement Member

Information

Organisational Roles

User List

Configure

Dashboard

Parameters

Instruction History

Instruction Detail

Instruction

Command

Detail

Pay In Detail

Pay Out Detail

Manual Account

Transfer

Command Detail

Message Detail

SSI Detail

PIS Detail