swift india and subcontinents regional conference

SWIFT India and Subcontinents Regional

Conference

SWIFT Welcome Remarks

Kiran Shetty

Chief Executive Officer and Country Manager,

India and South Asia, SWIFT

SWIFT Opening remarks

Lisa O’Connor

Managing Director, Standards and Capital Markets

Asia Pacific, SWIFT

How Standards is facilitating

trade digitisation in India

Moderator: Mukta Kadam, Senior Standards Specialist, APAC, SWIFT

Speakers:

Ramachandran Krishnamurthi, Senior Advisor (Banking Technology) IBA

Soumyajyoti Paul, Vice President, Central Banking, Reliance Industries Ltd.

Soumya Thomas, Vice President, Treasury and Trade Solutions, Citi Bank

ISO 20022 Migration

Programme

Joe Halberstadt

Principal Standards Consultant, London, SWIFT

JPMC / ISO 20022 update 6

Standards are a good idea

Chaos

Interoperability

Standardisation

(nearly!)


Global payments – standards journey

Chaos

• Flat files

• SWIFT FIN

• Fedwire

• CHIPS

• Etc.

Interoperability

• Middleware

• Translation

Standardisation

• ISO 20022

Benefits of ISO 20022

• ISO 20022 is a global standard for financial messaging, that provides a

standard model across many business domains:• Payments, Securities, Trade Services, Card Services, FX

• ISO 20022 offers significant benefits for payments compliance

• Additional data elements in ISO 20022 allow specification of a debtor

and/or ultimate debtor, and creditor and/or ultimate creditor

• Rich party information ensures all party data can be included in the

message

• Structure of ISO 20022 party information makes automated screening more

efficient and reliable

Brownbag session_ISO 20022 migration_Feb 2019_INTERNAL USE ONLY

The Payments industry is adopting ISO20022

Specs

(UDFS)

CHAPS

EURO1

2019 2020 2021 2022 2023

T2 Live on ISO - rich

Live on ISO – Like for

like or rich

Live on ISO - rich

Hig

h &

Lo

w v

alu

eP

aym

en

tsM

Is

Nov

Fed & TCH

HKICL

Like4LikeISO

rich

NovNov Nov


Live on ISO

Nov

T2 community deploying ISO

EURO1 community deploying ISO

Live on ISO – richCHAPS community deploying ISO

Guidelines in

Nov 2019

Guidelines in

Nov 2019

connectivity functionality


Assessment

Assessment

connectivity functionalityAssessment

CHATS community deploying ISOconnectivity functionalityAssessment

ISO preparation in legacy format


10

ISO 20022 migration: community consultation

Prompted by the emergence of ISO 20022 as a global standard for payments, SWIFT launched study on the use of ISO 20022 for cross-border business

Community consultation, seeking industry feedback on drivers for migration to ISO 20022 and high level proposal to address the practical challenges

Detailed feedback from over 100 respondents (incl. 44 country level responses, individual feedback from financial institutions and key market infrastructures) representing majority of SWIFT’s top users.

September 2017

April 2018

June 2018

September 2018

The community

feedback, together with

recommendations on

how to proceed, was

presented to the

SWIFT Board on 19th

September.

Confidentiality: RESTRICTED. Do not disclose to third parties without SWIFT's prior written consent

https://www.swift.com/standards/iso-20022-migration-study

https://www.swift.com/standards/iso-20022-migration-study

11

ISO 20022 migration: board decision

SWIFT will facilitate industry

migration of cross-border

payments and cash.

Start date November 2021

(aligned with the adoption

plans of High Value

Payments Systems in the

Eurozone)

4 years coexistence

SWIFT will provide a shared

service to translate between

ISO 20022 and MT

ISO 20022 capability for

cross-border securities flows

to use on an opt-in basis

Decision not to set an end

date for the use of ISO 15022

(MT category 5 messages)

proposed

Responses to the

consultation indicated little

appetite to stop using MT

messages at this time

No plans to migrate to ISO

20022 have been made

Migration will include all users of payments and cash management messages (MT cat. 1, 2, and 9)

Payments Securities FX/ Treasury, Trade Finance


Many to many payments will also adopt ISO20022

Specs

(UDFS)

CHAPS

EURO1

Corr. Bank

2019 2020 2021 2022 2023

T2 Live on ISO - rich

Live on ISO – Like for

like or rich

Live on ISO - rich

Hig

h &

Lo

w v

alu

eP

aym

en

tsM

IsM

an

y-t

o-M

an

y

Nov

CBPR+ guidelines

in Nov 2019

gpi

Fed & TCH

HKICL

Like4LikeISO

rich

NovNov

Mandatory

confirmation

Nov


Live on ISO

Nov

T2 community deploying ISO

EURO1 community deploying ISO

Live on ISO – richCHAPS community deploying ISO

Guidelines in

Nov 2019

Guidelines in

Nov 2019

ISO20022 migration



ISO20022 migration

Assessment

Assessment



CHATS community deploying ISOconnectivity functionalityAssessment

ISO preparation in legacy format


Gpi on ISO20022

Migration approach

2019: ISO 20022 for cross-border

payments specifications

November 2021: start of migration aligned with HVP

Systems in Europe

4 years coexistence

13JPMC / ISO 20022 update

Objective:

Work collectively to make sure

all members have the

capability to receive ISO

(maybe with translation)

Objective:

Leverage and adjust SWIFT

products and services to

facilitate the co-existence of

formats


A spectrum of users with different demands

~3000~500

High volume destinations for

USD, EUR, HKD, GBP payments

Small volume destinations with

less than 100 transactions a day

~7000

• Pro-active ISO deployment

• Expected to engage ISO

transformation

• Integration solutions expected

to be deployed locally

• Reactive ISO integration

• Expected to seek lower cost

integration of ISO

• Will be looking for central

translation

• Complex environment

• High volume that

requires full STP with

low error rates

• Might opt for one

approach or the other

SPECTRUM

Confidentiality: RESTRICTED. Do not disclose to third parties without SWIFT's prior written consent 15

Cross-Border Payments and Reporting Plus (CBPR+) working group now active

Composition:

Core members from: AU, AT, CA, CH, CN, DE, ES,

FR, HK, IT, JP, LU, NL, RU, UK, US, ZA, Nordics

Including securities and gpi experts

Deliverables:

• Global ISO 20022 Market Practice Guidelines for

selected payments and cash reporting

messages, which will be validated on the SWIFT

Network

• Translation rules between MT and ISO 20022

(testable as from Q2 2019)

• Maintenance process for ISO 20022 on SWIFT

CBPR+ Scope and objectives [1/2]

▪ Enhanced ISO 20022 guidelines →not Like for Like

▪ Interoperable with HVPS+ Guidelines. Differences should be justified and documented

▪ Incorporate gpi requirements (e.g. UETR)

▪ Incorporate securities requirements for the cash-leg of a securities transaction

▪ May include new messages/new functionalities, e.g. Return & Status messages

▪ Validated on the SWIFT Network (not necessarily the case for HVPS+)

▪ Maintained on a yearly basis: governance to be developed by the group

Create global ISO 20022 Market Practice and Usage Guidelines (UGs) for selected payment

and cash messages, which will be validated on the SWIFT Network in the many to many space

Confidentiality: RESTRICTED. Do not disclose to third parties without SWIFT's prior written consent 16

CBPR+ Scope and objectives [2/2]

Translation rules approach:

▪ Built on ISO 20022 CBPR+ guidelines

→ truncation when translating ISO 20022 CBPR+ messages to MT

▪ Truncation will be indicated on MT translation

▪ Usage Guidelines and Translation Rules documentation will be made publicly available

on MyStandards


SWIFT will prepare CBPR+ compliant translation rules from MT to ISO 20022 and ISO 20022

to MT. CBPR+ members will be invited to review and comment as of end Q2 2019.

17


What’s next?

SWIFTNet

Service and

Guidelines

RMA

BIC | DN mapping

Translation

Testing

18

SWIFT Information Report in June 2019 will

provide details on:

- SWIFTNet service

- Translation

- Market practice validation

- RMA

- Addressing

- Impact per customer segment


Payments migration to ISO 20022

RTGS proprietary

formats

MT & ISO

20022

MT and/or ISO

20022 with

Translation

ISO 20022

RTGS and corr

banking

Today

2021 - 2025

2025 onwards

www.swift.com


ISO 20022 for Emerging Technologies and APIs

Presentation by: Tom Alaerts, Lead Standards Expert, APAC, SWIFT

Fireside chat:

Praveena Rai, Chief Operating Officer, NPCI

Lisa O’Connor, Managing Director, Standards and Capital Markets

Asia Pacific, SWIFT

ISO 20022 for Emerging

Technologies and APIs

May 8, 2019

Tom Alaerts

API Spec

Flavor 1API Spec

Flavor 2

API Spec

Flavor N

Regulations

API adoption in Financial Services

Fintechs

Fragmentation Harmonization / StandardisationLocal regulations and Fintech

• Open Banking

• Regional Banks

• Financial Institutions

• Technology

companies

• Corporates

• Industry Associations

“Whatever the technology, in multi-party networked business,

participants need to agree on the meaning and content

of shared data, business processes, roles and responsibilities.

This is the domain of business standards”

All institutions /

standards

organisations have

their own sets of data

objects

…and groups them into ‘syntax-

neutral’ data models, which...

XML

…are then used to define

APIs in a specific syntax JSON

ISO standardises common

data objects…

Reusing ISO 20022 for new technologies...

New technologies, but the business standards remain the same…

Several initiatives: NAV, Syndicated Loans, PSD2, …

27

Summary

ISO 20022 supports

innovation while

ensuring

Interoperability.

Interoperability will

ease adoption of your

innovative solution.

For more information – download the SWIFT White Paper on APIs

Delivering a global platform for financial services API economy• Avoid re-invent the wheel

• Needs a single, shared business standardisation methodology and governance

strategy

• Re-use ISO20022 business definitions and data models

• Ensure end-to-end consistency in business processes (API & Legacy)

• Look beyond immediate need to comply with regulation or for tactical solution

Two key aspects to ISO20022:

• A methodology: a “recipe” to standardise financial transactions.

• A machine-processible repository of content:

• the definitions of messages,

• business concepts,

• processes and everything else required to describe those transactions

• ISO20022 API shares the same business

semantics and data dictionary as a related

ISO20022 message.

• Greatly simplifies the task of integrating the

API to existing financial systems and

processes.

[Download here]: https://www.swift.com/news-events/news/delivering-a-global-platform-for-the-financial-services-api-economy 28

https://www.swift.com/news-events/news/delivering-a-global-platform-for-the-financial-services-api-economy

Residual friction after SWIFT gpi: Why payments still get delayed?

• Time zone differences,

causing delays when

market of recipient country

is still closed

Outgoing Payments

payments

Incoming payments

• Liquidity issues (no funding

or credit limit exceeded)

• Non-STP data, in particular

wrong account number

• Compliance issues

(sanctions hit)

• Additional documentation

required from beneficiary

• Additional regulatory

requirements for payments

above a certain amount

SWIFT gpi Instant Payments into IMPS - WG Kick-Off Review - April 2019 Confidentiality: Restricted

SWIFT gpi Instant Payments into IMPS - WG Kick-Off Review - April 2019 Confidentiality: Restricted

Architecture Diagram

SWIFTAlliance Access

SWIFT Access

Gateway

HSM

NPCI

NPCI

Net

UETR<STI>

<MT 103>

UETR<STI>

< MT 103 >

UETR<STI>

< IMPS>

UETR<STI>

<IMPS>

<IMPS>RRN

<IMPS>RRN

<IMPS>RRN

Following diagram depicts the flow of message from each bank and different networks which is envisaged as part of the proposed use case

MT

199

Sending Bank

Intermediary Bank

Beneficiary Bank

SWIFT Cross-Border SWIFT Domestic Services NPCI – IMPS

SI – Service Identifier

RRN to UETR mapping will be maintained by SWIFT Request / Update

Response

ISO 20022 for Emerging Technologies and APIs

Fireside chat:

Praveena Rai, Chief Operating Officer, NPCI

Lisa O’Connor, Managing Director, Standards and Capital Markets

Asia Pacific, SWIFT

ISO 20022 for Securities Markets

Infrastructures and adoption across

APAC

Amrita Divay

Head, Securities and FX Markets, India and South Asia, SWIFT

SWIFT for Securities

3333

SWIFT Securities 2018 in numbers

3.6bn+Securities

Messages per year

6,000+Post-trade

participants

100+Securities Market

Infrastructures

800+Investment

Managers

90%of AUM are

managed by IMs

connected

To SWIFT

10M+Corporate Actions

announced through

SWIFT/year

54%Of SWIFT traffic

3434

Investment

Managers

Fund

DistributorsMarket

Infrastructures

Banks/

Custodians

Broker

Dealers• Trading

• Post Trade

• Collateral Management

• Post Trade


• Settlement & Reconciliation

• Corporate Actions

• Funds• Clearing


• Settlement &

Reconciliation


• Clearing

• Collateral

Management

• Settlement &

Reconciliation


• Trade Reporting

• Funds

Investors

Investors

• Funds

• Funds• Collateral Management

• Clearing

• Settlement

& Reconciliation


• Trade Reporting

• Funds

Securities Messages and Business Flows

35

ISO Background

▪ 161 countries represented at ISO including India

▪ 224 Technical Committees (TC) where SWIFT is the Registration Authority

(RA) and Mr. Vinod Kumar (BIS), Mr. Vijay Kumar Singh (Ministry of Finance),

Ms Kulkarni Darshana (RBI) and one other agency has two members of TC 68

▪ The Registration Management Group (RMG) is the highest ISO 20022

registration body and among other activities approves business justifications

for new messages. India member of the RMG is Mr. G Raghuraj from Institute

for Development and Research in Banking Technology (IDRBT)

▪ When FMIs are serious about adopting ISO 20022 it is advisable that they join

the relevant Standards Evaluation Group (SEG). In this case, it would be the

“Securities SEG” for the CSD / CCPs in India.

Scope

Data dictionary

Catalogue of messages

Syntax

36

37

ISO 20022 is being used - MIs around the globe lead the way

ENTER

Globalization/alignment

with other major initiatives

Modernization/upgrade

of [end-to-end] services

Renewal of

legacy systems

Compliance with

regulation/harmonization

Interoperability for

MI-members with multiple

MI-connections

Reputation

• Live: one or more of the MI’s business streams (e.g. settlement & reconciliation, corporate actions, proxy voting, collateral management, funds, clearing,

etc. ) already live on ISO 20022. SMIs solely live on T2S without any other ISO 20022 flows (Monte Titoli, LCD, BOGS, MSE, etc.) are not counted.

Planned: confirmed and official plans to adopt ISO 20022

for one or more business streams

ISO 20022 Initiatives are growing fast in the SMI space

Live year

# of CSD/ICSD/SSS and CCP communities adopting ISO 20022 – Live & planned

Funds adoption Live Total Extra potential

Disclaimer

Preliminary findings, based on the best of our knowledge

40 SMI communities

officially confirmed

they will adopt ISO

20022 by 2021-2025,

out of which 27 are

already live and 13

are planned.

Altogether, they

respectively process

70% / 8% of the

world’s total CSD /

CCP officially reported

volumes today.

Except T2S, internal

volume share

remains still small for

a large majority

however since ISO

20022 is generally

offered as an optional

alternative channel.

13 planned

27 already live

Live on Funds

T2SS&R

DTCCCA

LCH ClearnetColl. Mgt

JASDECS&R, CA

ASXCA

ECL FIS&R, CA

BOJ-NETS&R

CCDCS&R, CA

GalgoS&R

MKKS&R, CA

KDPWCA

ClearingKDPW CCP

Tokyo SECA

SGXCA

S&

R

VP LuxS&R, CA

S&R, CANBB

CA, Proxy votingKPEI

OeKBS&R

AMBDS&R

NSDCA, Proxy Voting

S&RECL Bank

ECL ESES

CACMU

KSEIS&R, CA

Nasdaq CSDS&R, CA

VPS&R

VPCA

ECL SES&R

72832%

6.192%

1,52168%

65.78%

million # ofdelivery

instructions in2015 (CSD, SSS)

billion # of clearedcontracts in 2015

(CCPs)

Total volume settled in 2015

(network-agnostic)

Adopting SMI communities

Rest of world*

* Excl. China because available official figures

include a significant undefined portion of retail

activity (~10 billion deliv. inst.)

ECL ESES

ECL SE

Clearstream, VP LuxHKMA

ECL Bank

DTCC, NSCC, Benefit Trust Company

NSD

VPS Galgo

Nasdaq CSD (Baltics)

KSDC TDCC

VP

CREST

MKKProxy Voting

VPSS&R, CA

NSDS&R No official

timing

announced

yet

IndevalS&R

ASXS&R

S&RCCASS

CSD/

CCPS&R, CA

Bursa

MY

CA

Bursa

MY

S&R

ECSDS&R, CA

38

ISO 20022 Adoption in Asia Pacific

ImplementationAnalysis and design

Project Phase

Live!

Ad

op

tio

n F

ore

ca

st

C&S

JPJP

CA

Funds Hub

Many-to-Many Funds

(AU, HK, SG, TW)

Many-to-Many Funds

KR

AU SG

HKID

BNSG

HK TW

BN

TH

HK

2010

-2016

2017-2

021

AU

PH

ID

CN

39

APAC Fund Platforms

Drive by market infrastructures

TAIWAN (TDCC)

HONG KONG (HKMA)

KOREA (KSD)

AUSTRALIA** (ASX)

CHINA (CSDC)

JAPAN (JASDEC)

LIVE

SINGAPORE

INDONESIA (doing)

VIETNAM (doing)

MALAYSIA

*

* Indirect SWIFT adoption via service providers

THINKING(Implementing)

Domestic X-Border

ISO 20022

ISO 20022

ISO*

Network Standard

** ASX has launched fund platform but market remains bilateral on ISO

40

Growth of ISO Messaging Volume for SMIs – Global/APAC

105.2 MGlobal

Asia Pacific 0.002 M

2010

1541.3 M

27.1 M

2017

47%

286%

CAGR%

*SWIFT Info Paper: Jan2019

41

ISO 20022 migration study for APAC

SMIs

SWIFT Info Paper Jan2019

4242

ISO 20022 migration study: community consultation

SWIFT has launched a community consultation to review the timing and practicalities of a

migration of cross-border MT traffic towards ISO 20022.

The consultation in the form of an online survey ended on 4th June 2018.

The community was asked to:

- Provide feedback on SWIFT’s understanding of drivers, demand and readiness

- Validate the proposed migration timelines

- Consider feasibility and practical implications of all aspects of the migration strategy

43

ISO 20022 Adoption trends by APAC SMIs

44

Drivers for ISO 20022 Adoption

- Alignment with domestic MI’s ISO 20022 plans

- Regulatory drivers

- Real-time and golden source data from Issuer

- Cost-reduction for global players

- Enriched data requirements

- Integration options with global vendors

- Adopt international standards and best practices

- Achieve greater STP

25%

50%

63%

88%

100%

45

▪ Of our surveyed SMIs, % of respondents that listed the

following drivers for adoption of ISO 20022….

Cost/Benefit Analysis for APAC SMIs to consider ISO 20022

Participant / community costs

Mapping and analysis from proprietary formats

system upgrades

Technical integration

Training and education

✓ STP

✓ Increase operational efficiency

✓ Reduced risk and cost

✓ Better structured data elements and standards

✓ Better understanding of the schemas by end-users

✓ improved system development and test efficiency46

COSTS

BENEFITS

Migration Models

Big Bang Co-Existence

DecentralisedOptional New

Service

▪ ASX: CHESS replacement

(2021)

▪ SGX: Post trade system

(PTS) refresh

▪ ASX: Corporate Action

notification

▪ IDX: Corporate Actions

messaging

▪ KSD: FundsNet

▪ HKMA: Funds

▪ TDCC: Funds service

▪ TSE/JASDEC: Tokyo Market

Information Corporate Action

Data Service

▪ JASDEC: PSMS and BETS

(5 years)

▪ SGX: Issuer to Investor

Corporate announcements

47

In Conclusion

▪ The implementation of ISO 20022 around the world continues to

grow.

▪ 27 securities market infrastructures (SMIs) live on ISO 20022 with

almost 10 of them being in Asia-Pacific. (4 more in pipeline)

▪ DLT/API platforms also can be built re-using same ISO 20022

business definitions

▪ SWIFT as the ISO 20022 Registration Authority (RA), has

consulted a number of the APAC SMIs in ISO 20022 adoption

48

www.swift.com

49

Corporate to Bank in India and SWIFT

Standards Tools

Tom Alaerts, Lead Standards Expert, APAC, SWIFT

Standards are created globally and used locally

ISO 20022 messages

Global market practice

Local market practice

Bank-specific practice

Pain.001.001.03

Eg CGI-MP guidelines

Country-specific

guideline, e.g. GLI

Bank’s implementation

for a specific market /

payment type (MIG)

Problems

Fragmentation and

change of message

implementation

guidelines

Cost of onboarding

corporates

The same problem

applies across

different channels

51

Example

MyStandards, More Than A Repository Of Specifications

Multi-format Documentation

Self-service Internet Testing

Shared View of Readiness

Powerful Comparisons

A Consistent Industry Approach

Getting standards-related issues

out of the way

Publish & Share

specifications

Bank

Consume &

Test against

specifications

Corporates

52

Financial

Institutions

52

53

How it works - getting standards-related issues out of the way

Machine specifications (schemas)

Corporate customer

MT& MX Documentation (online + PDF)Analysts

Implementers

& systems

Implementers

& testers

Your Bank

Readiness

Portal

2. Publication for testing

in a few mouseclicks

Test against specifications

over internet

Both corporate and bank can monitor

completeness and progress.

3. Corporate can test

against Bank’s message

specifications, while they

are developing.

(also used by

Bank’s own staff)

FR

EE

AC

CE

SS

1. Your bank creates and

manages/compares/updates

specifications in MyStandards

MyStandards Adoption

54

https://www2.swift.com/mystandards/group/SWIFT%20India

MyStandards in Numbers

45.000+Registered Users

22.000+Shared Usage Guidelines

130+Publishing Organisations

Industry

Adoption

5555

Corporates onboarding

MyStandards Adoption in the Corporate-to-Bank Space80% of the Top20 SCORE Banks are using MyStandards for Corporates Onboarding

6.000+Corporates onboarded

80%Top 20 SCORE banks

Benefits of MyStandards

2x

Faster time to revenue

Cut onboarding time by half

50%

Cost Savings

Self-service model offloads integration managers

Smooth customer experience

Easy to do business with your bank

Risk Reduction

More control on process and depth of testing

Applies across channels (SWIFT, host to host, e-banking)

58

• Building and testing message is 3x faster than before

• Greater autonomy thanks to self-service model

• Global roll-out over all channels, markets and bank

services (payments, receivables, reporting, eBam,…)

BNP Paribas & Vilmorin Case Study

59

MyStandards is very simple to use and allows us to work

autonomously, which makes the implementation project much

more predictable, efficient and fast.“

”Stéphanie Martins, Vilmorin

The biggest benefit of using MyStandards

is making our clients happy.“”Isabelle Volckaert, BNP Paribas

59

Download

paper

https://www.swift.com/file/50846/download?token=_6W8AqHW

• Customer onboarding efforts reduced by 50%

• Customized portals for customers

• Greater autonomy thank to self-service model

Societe Generale & Thales Case Study

60

The main benefit of using the Readiness Portal was speed.

The platform is much more effective than other testing

methods, meaning that even taking just one hour in between

other tasks allows you to make significant progress

“

”Florian Hivert – Thales

One of the key benefits of the MyStandards Readiness Portal

is the ability to create a dedicated testing portal per customer,

displaying only the documentation relevant to the client’s

specific needs

“

”Michèle Cohas – Societe Generale

60

Download

paper

https://www.swift.com/resource/download/167236?width=600&height=550&iframe=1

Onboard corporates twice as fast with MyStandards and the

Readiness Portal

“ We estimate our clients and

our teams save around 50%

of time on testing activities

as this is typically one of the

most complex parts in

integration projects”, Dmitry

Simakov, EMEA Head of

Client Connectivity and

Information, Treasury and

Trade Solution, Citi

https://www.linkedin.com/feed/update/urn:li:activity:6486869086276980736

… and many more

62

Find out more on

http://mystandards.swift.com

The main benefit of using the Readiness Portal was speed. The

platform is much more effective than other testing methods, meaning

that even taking just one hour in between other tasks allows you to

make significant progress - Thalès

“

”

One of the key benefits of the MyStandards Readiness Portal is

the ability to create a dedicated testing portal per customer,

displaying only the documentation relevant to the client’s

specific needs - Société Générale

“

”

The bank is experiencing significantly faster implementation cycles,

upwards of 70%, which is enabling Barclays to onboard more clients

quickly and lighten the workload for its SMEs - Barclays“

”With our developers having online access to Citi’s payment and

formatting rules, development and testing was very rapid. As a

result, our first test files sent to Citi were processed without

issue and we completed the project on time - British Council

“

”

http://mystandards.swift.com/

In action

64

MyStandards – pain.001 example Usage Guidelines Content

65

PDF for usage guidelines

Publish - PDF

Generate and publish documentation without manual intervention

66Full definition for every field and code

Publish – MS Excel

Generate and publish documentation without manual intervention

Fit for purpose yet consistent across the industry

Your

brand and

description

Only the

relevant

guidelines

68

Implementers can easily self-test adherence to specifications and general standards compliance.

1. Engineer

pastes the

output of the

b/o system into

the message

window and

sees

immediately

the errors.

2. One click link to your

documentation in MyStandards.

In addition, extra rules can be tested

(for example, local clearing code in

country X is Y digits longs)

69

Link back to error location in MyStandards documentation

3. Engineer sees what was

wrong and can immediately

retest.

70

Readiness Portal - MT Testing

Link back to

MyStandards

documentation

71

Link back to MyStandards documentation

Risk reduction

Was this

optional

component

tested?

Were all

those codes

tested?

More visibility on onboarding process

Collaborative

platform

Readiness

Portal

also for

MT 798

testing

SWIFT Translator

MyStandards Support for Any Formats

Leveraging SWIFT Translator

www.|

MT

ISO 20022

www.|

MT

ISO 20022

Domestic (CFON…)

Proprietary

XML

CSV

Fixed Width

…BAI / BACS

SIC / SECOM

FIX / FpML

EDI(FACT)

Document your MT / ISO 20022 specifications

Document other formats in MyStandards and benefit from all

its features using SWIFT Translator

www.|

76

Non-SWIFT formats on MyStandards

Me

ssa

ge

Fo

rma

t

TradeDate (M)ddMMyy

Amount (M)12d3c

Cash Account (O)12d

SettDate (M)ddMMyy

…

Create your FormatExport your

FormatImport on

MyStandards

Any Generic XMLImport a XSD schema and use

it as format

<XSD>

ProprietaryBuild your format from scratch

(flat file, fixed width…) and use it

as format

Other Financial FormatsDefine more standardised

formats (FIX, FpML, EDI(FACT),

SECOM, SIC, BAI, BACS,…)

CSVImport CSV sample and use it

as format

Translator

• Definition in SWIFT

Translator, documentation

in MyStandards (web

view)

• Support for existing

formats: Proprietary, SIC /

SECOM, BAI, FIX, FpML,

EDIFACT, etc.

MyStandards Support for Any Formats

(With SWIFT Translator)

79

Roadmap

Non-SWIFT formats Documentation

on MyStandards

Mappings Documentation

on MyStandards

Non-SWIFT formats Testing

on Readiness Portal

Format / Mapping Libraries

Mappings / Responder

on Readiness Portal

Q2 2019Beta-version in March

Q4 2019

2020Upon Prioritisation

TBDUpon Prioritisation / Initiatives

e.g. HKICL Q2 2019

Now Available

Online Validation of Any Formats (with SWIFT Translator)

• Have online testing

and validation of

non-SWIFT formats

in the Readiness

Portal

81

Questions

Treasury Markets: Trends and Futures

of Standards

Joe Halberstadt, Principal Standards Consultant, London, SWIFT

Treasury markets - standards

evolution

SWIFT India Treasury SWG March 2019

Power Point template - You can edit footer content by going into 'Insert' tab > 'Header & Footer' 85

Innovate or die

Need to control our own destiny.

• Community together with SWIFT Standards

need to drive the MT change agenda.

• Must look 2+ years ahead.

• Industry collaboration in standards process

key.

Market needs constantly evolving

Comply with regulation

•New flows

•Additional data elements

Increase STP

• Increase product coverage

•Reduce errors

•Reduce free text

Reduce operational risk

•Eliminate ambiguity


Annual Release Cycle

• Not just ‘bug fixes’ and ‘tidy-ups’….

• ….rather, an ongoing programme to add value to messages:• Additional instrument coverage

• New use cases

• Improved STP

• Individual country change-request submissions

• Also SWIFT-led FX Market Practice Group• Tier 1 dealers (Citi, UBS, Deutsche, Barclays, JPM, RBS, GS, HSBC etc.) and buy-side

• Much collaboration with industry bodies AFME Global FX Division, ISITC US and ISDA

• Associated development of message usage guidelines• Aids customer implementation

• Supports consistent global usage

• Improves usage quality

87

Treasury standards – key highights

MT

670/1

repla

ces

free-t

ext S

SI update

s

Add U

TI and o

ther

regula

tory

fie

lds

Add M

IFID

clie

nt

report

ing f

ield

s.

Add f

ield

for

off

shore

settle

ment

Add 1

0+

new

derivative

instr

um

ents

to C

at 3

Add IS

IN to C

at 3

Repla

ce f

ree

-form

at

codes w

ith s

tructu

re

for

ND

F/O

Formed FX MPG, to drive improvements

Mark

et pra

ctice f

or

ND

O e

xerc

ises

Mark

et pra

ctice f

or

MIF

ID a

rtic

le 5

9

Mark

et pra

ctice f

or

CLS

sta

tus r

eport

ing

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19

Treasury message volumes

Traffic sent

Linear (Traffic sent)

Mark

et pra

ctice f

or

Options c

loseouts

Rem

ove fre

e text

from

part

y field

s

Add s

upport

for

post-

trade e

vents

• New capability

• Improve structure

• Usage guidelines

Standards MT Release - typical timeline

Prepare change requests for submission

01 June 2019 Deadline for change request submission

June – August CR Forum available for review and comment CRs

July 2019 High-level Information published

August 2019 Maintenance working group meetings

September – 30 October 2019 Country voting

November 2019 Update High-Level Information published

December 2019 SWIFT Board approves SR 2020

Standards Release Guide (SRG) published

February 2020 SRG and MFVR Updates published (tentative)

May 2020 Vendor Test System activated

July 2020 User Handbook published & Test & Training activated

November 2020 Standards MT Release 2020 Live

Industry involvement

is key!

Worked example – MIFIDII

client reporting



MIFID II Delegated Act, Article 59

• Introduced a formal obligation for post-trade execution reporting of trades

to clients• In a durable medium

• No later than the business day after execution

• 16 reporting fields

• SWIFT confirmations already supported the majority of the requirement• Several large dealers chose to use confirmations as their means for compliance

• Published on swift.com

SWIFT published MIFID II delegated act article 59 usage

guidelines for MT 300, 305, 306, 600, 601, developed in

consultation with the industry

Clients can comply with new regulatory reporting

requirement, using existing confirmation flows

Worked example – post-trade

events



Rationale for change

• MT 300 is industry standard for confirmation of new FX trades• Sport, forward, NDF & Swaps

• Also for options exercises

• In some jurisdictions, FX is not allowed to be freely traded.

• E.g. Forwards must be linked to an underlying commercial obligation• For example an import or export of goods

• If that obligation changes, then the FX forward must change likewise• The amount may increase or decrease

• The settlement date may be brought forward or pushed back

• The trade may be cancelled altogether

• This type of post-trade event is typically processed manually


Example corporate FX linked to trade

FX ForwardBuy EUR 17Mn

Sell INR 1.31Bn

Value date 21 May

2019

Due to arrive

21 May 2019

Must be paid

on 21 May

2019


If delivery should change…..

Cars arrive early

• Early settlement of FX deal

• Partial, if only some arrive early

Cars arrive late

• Rollover of FX deal

• Partial, if only some arrive late

Order cancelled

• Early termination of FX deal

• Partial, if only part of order is cancelled


Background to SR 2019 Change request

• Indian community developed market practice using codes in MT 300 free

format fields

• Hong Kong community saw opportunity for wider application across Asia• Submitted change request in 2018 to add new Post-Trade-Events sequence to MT 300

• Approved by community

• Will be implemented in MT 300 as part of standards release in Nov 2019

• Global market practice guidelines to be developed

Automate business process that is currently manual.

Bring efficiency increased efficiency to Asian markets

Objective of the change

Standardise the reusable

aspects of the SWIFT India

MT 300 MPG.

Of particular interest in

several Asian economies.

Optional Sequence F Post-Trade Events

M 15F New Sequence Empty field

M 21H Event Type and Reference 4!c/16x

O 21F Underlying Liability Reference 16x

O 30F Profit and Loss Settlement Date 8!n

O 32H Profit and Loss Settlement Amount [N]3!a15d

O 33E Outstanding Settlement Amount 3!a15d

End of Sequence F Post-Trade Events

Conclusion – Standards, you know they are good for you

Industry engagement is key

Think two+ years ahead

Local requirements can

become regional or even

global

Identify opportunities

Engage with SWIFT

Submit changes

Participate in reviews

Adopt enhancements


Thank You

Standards Maintenance Process &

Standards Release 2019 Business

Highlights

Koushik Dutta, Standards Specialist, APAC, SWIFT

100

Agenda

• MT Standards Release process

• MT SR 2019 Changes in business domains

− Payments & User Header Block

− Treasury & Commodities

− Securities

• SWIFT’s documentation for SR 2019 implementation

101

Release process

1 June 2018 Deadline for change requests

before end August 2018 Maintenance Working Group (MWG) meetings

19 September 2018 Board Business Committees meet

20 September – 30 October 2018 Country voting

11 December 2018 Board ratifies the country vote

21 December 2018 Standards Release Guide (SRG)/Message Format

Validation Rules (MFVR) published

8 February 2019 Changes to MT 7XX deferred to SR 2020, SRG/MFVR updated

to indicate no change for SR 2019

22 February 2019 Updates to the SRG/MFVR

17 November 2019 Standards MT Release 2019 Live

Standards MT Release 2019 maintenance timeline

See SR 2019 timeline and advance documentation on future standards releases

(https://www.swift.com/standards/standards-releases/mt-release-2019 link)

https://www.swift.com/standards/standards-releases/mt-release-2019?tl=en#topic-tabs-menu

103

Overview of changes

104

Payments & User Header Block

PEFIJPJT SWUBDEFFOrdering

Customer

MT 103 MT 103

Beneficiary

Customer

SDEBFRPP

SWIFT gpi - A unique end-to-end tracking

A unique end-to-end tracking identifier

is included in the header of the payment message

and

carried across the payments route

up until the beneficiary bank

106

Technical changes – Block 3 – Payments

• Optional use of field 121 Unique End-to-end Transaction Reference

in Block 3 of enquiry messages.

o Not required to be a SWIFT gpi member

o MT 190, MT 191, MT 192, MT 195, MT 196, MT 199, MT 292, MT 295, MT

296, MT 299, MT 992, MT 995, MT 996, MT 999

o Impact on all users: ability to receive field 121 in MT 992, MT 995, MT 996,

MT 999

o Non-gpi members can optionally use MT 199 (gCCT Confirmations) to

TRCKCHZZ (with field 121, not field 111)

107

Categories 1, 2, 8 & n – Payments

• Change requests:

o Add optional codes and usage rule to field 79 in MT 192 which will be used

in gSRP

AGNT / AM09 / COVR / CURR / CUST / CUTA / DUPL / FRAD / TECH / UPAY

o Documentation change to remove code REC in field 72 of payments MT

Messages (no validation impact)

• Remove Unused MTs:

o MT 800 - T/C Sales and Settlement advice

o MT 824 - T/C Inventory Destruction/Cancellation Notice

108

Treasury & Commodities

109

Category 3 – Treasury

• Change requests:

o Streamlining party fields in MT 300 and

MT 304

➢ In SR 2019, the changes focus on key

matching fields. 82a, 83a & 87a in sequence

A and 53a, 56a, 57a & 58a in sub-sequences

B1 & B2

➢ Remove option D (free format)

➢ Restructure option J (more/better structure)

➢ Use option A when only BIC available

110

Category 3 – Treasury contd…

o Add 3 codes to field 22A Type of Operation

Add support to MT 300 for post-trade events

➢ Full and partial

➢ early delivery

➢ early termination

➢ roll-over

o Replace reporting Jurisdiction code FFMS for Russia by ‘BankOfRussia’* -MT 6xx and MT 3xx derivatives messages – field 22L

o Correct usage rule for field 77H for MT 300, MT 304, MT 305, MT 306, MT 340,

MT 360, MT 361, MT 380, MT 381

*Affecting Cat 6 messages

111

Trade Finance

112

Categories 7– Trade Finance

• Revamp of Cat 7

o CRs postponed or delayed in previous years

o Intention to increase straight through processing

o Try to fill gaps in transaction flows

August 2013 Working group established

September 2015 Banking and Payments Committee approves CRs

November 2015 Community approves CRs

February 2016 Advance documentation published for review

April 2017 Updated advance documentation published

November 2018 Updated MT 700 – MT 759 go live

December 2018 Fast-track Maintenance process to defer changes planned for

SR 2019 to SR 2020

November 2020 Updated MT 760 – MT 787 go live

113

Securities

114

Category 5 – Securities

• Settlement and Reconciliation (S&R) Change Requests

o MiFID II:

➢ Add quarterly statement frequency indicator for MT 535 – Statement of Holdings (field 22F)

➢ Add Qualifier Flag Security Interest, Lien or Right of Set-off (field 17B)

➢ Allow narrative to transfer additional requirements as per art.63 on account and holding

(field 70H)

• S&R and Trade Initiation and Confirmation (TIC) Change Requests

o SFTR: Add new format option for Unique Transaction Identifier (UTI) linked to deal

reference

o MiFIR: Add qualifier for Research Unbundling (field 17B)

o CSDR: Add buy in indicator and buying agent

115

Category 5 – Securities

• Corporate Actions Change Requests

o Enhancements to meet new business and regulatory needs with new format options,

codes and qualifiers

➢ Add format option for LEI (MiFID II)

➢ Add qualifier for additional round up quantity (RDUQ)

➢ Add 4 qualifiers linked to Deemed Rate that may be used for Tax On Non-Distributed Proceeds

➢ Add 2 rejection reason codes for rejection of instructions on events with bidding ranges.

➢ Add Indicator qualifier for shareholder number (SHAR)

➢ Add amount qualifiers (ADJS, REFU)

➢ Add Odd Lot Preference Indicator code (OPLF)

o Update definitions, usage rules and rename qualifiers

o Delete inconsistent qualifier, usage rule that has become invalid, etc.

• Remove Unused MT

o MT 559 – Paying Agent’s Claim

116

• SWIFT’s documentation for SR 2019

implementation

117

Publications

• MT Release 2019

• High level information

• Business Highlights

• SRG

• FAQ on Mandatory changes in category 7 and MT 798 Trade Guidelines

• SWIFT Smart Modules

• My Standards & Change Request Forum

• SR 2019 Standards Release Guide for full details of the change:

https://www2.swift.com/knowledgecentre/publications/srg_20181221/2.0

https://www.swift.com/standards/standards-releases/mt-release-2019?tl=en#topic-tabs-menu

https://www.swift.com/resource/standards-mt-november-2019-updated-high-level-information

https://www.swift.com/standards/standards-releases/release-highlights?tl=en#topic-tabs-menuhttps://www.swift.com/resource/sr-2019-business-highlights

https://www2.swift.com/knowledgecentre/publications/srg_20181221

https://www.swift.com/resource/mt-category-7-faq

https://swiftsmart.swift.com/Saba/Web_spf/EU1PRD0018/common/leclassdetail/regdw000000000352491

http://www.swift.com/mystandards

https://www2.swift.com/knowledgecentre/publications/srg_20181221/2.0


Thank You

Closing Remarks

Lisa O’Connor

Managing Director, Standards and Capital Markets, APAC, SWIFT

Thank you for attending the

SWIFT Standards

Masterclass India

swift india and subcontinents regional conference

Documents