ISO 20022 for funds presentation
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ISO 20022 for funds presentation

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ISO 20022 for funds presentation ISO 20022 for funds presentation Presentation Transcript

  • ISO 20022 for FundsThe migration pathKoen VierendeelsProgramme manager MX migration Funds02/07/2009
  • Investment funds & SWIFTA bit of history• In 2001, the fund industry asked SWIFT for a solution to increase automation within the Fund industry• SWIFT applied a two-phase approach: – Delivery of a tactical solution (ISO 15022 fund templates) to cover the most urgent needs in 2001 – Delivery of a strategic solution (ISO 20022 fund messages) to fully comply with the industry’s requirements in 2004• Both solutions are actively used and are a huge success: in 2008, over 25 million messages were sent Traffic evolution ISO 15022 Traffic evolution ISO 20022 7,000,000 450,000 6,000,000 400,000 350,000 5,000,000 300,000 4,000,000 250,000 3,000,000 200,000 150,000 2,000,000 100,000 1,000,000 50,000 0 0 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008MT MX Funds migration_02072009_v03 2
  • Investment funds & SWIFTChanging service offer in a changing world (1/2)• Automation of order processing still remains a key challenge, but focus is widening: – Product wise: automation needs to cover all types of funds (mutual funds, hedge funds, pension funds, money market funds) – Process wise: Increase STP levels for pre- and post transaction processes: – Collection and distribution of (operational) fund information – Account opening – Position management (statement, pricing, transfer) – Cash forecasting• Drivers: – Reduce costs and risks – Increase transparency (KIinz report)MT MX Funds migration_02072009_v03 3
  • Investment funds & SWIFTChanging service offer in a changing world (2/2) ISO 15022 (MT) ISO 20022 (MX) Lifecycle Orders Orders, Transfers, Statements, Account management, Price reports, Cash Forecasts, Fund Processing Passport Products Mutual funds Mutual funds, hedge funds, pension funds Geographical Europe Worldwide Cross border Cross border & domesticMT MX Funds migration_02072009_v03 4
  • MT-MX Funds migrationApproach & planning (1/3)• The migration will be done in 2 waves: – Wave 1: migration of cross-border TAs & large hubs – Wave 2: migration of other users• Rationale: – Business dynamic: cross-border and TAs/IMIs first, then distributors follow – Approach allows to focus on a limited number of players for Wave 1 , offering opportunities for a handheld approach.• Timing: full implementation of the ISO 20022 fund messages throughout the industry by end 2012MT MX Funds migration_02072009_v03 5
  • MT-MX Funds migrationApproach & planning (2/3)*• Community to migrate: Category Institutions BICs MT Usage Comments Very High > 19 187 75.80 % Limited number of institutions and limited 2000/d. number of high volume BICs High > 46 174 20.87 % 200/d. Medium > 40 63 2.48 % 50/d. Low > 73 110 0.78 % 19 messages/day in average – 27 5/d. institutions only receiving MT 515 Very Low < 158 171 0.07 % 1 message/day in average – 136 5/d. institutions only receiving MT 515 Total 336 705 100.0%MT MX Funds migration_02072009_v03 *Q1 2009 figures 6
  • MT-MX Funds migration Approach & planning (3/3) End 2010 End 2011 End 2012 End 2008 End 2009 Board decision on end date MILESTONE 3: • All players haveMILESTONE 1 implemented ISO 20022• All top 20 players are ISO 20022 enabled for Funds• All Luxembourg and Irish Transfer Agentsare ISO 20022 enabled MILESTONE 4: MILESTONE 2: DECOMMISSIONING OF • All top 20 players only use ISO 20022 between themselves related MT Fund • All hubs are ISO 20022 enabled Templates* • All order senders are ISO 20022 enabled • All Luxembourg and Irish players are ISO 20022 enabled MT MX Funds migration_02072009_v03 7
  • Status MT-MX migration programmeUsers and volumes SWIFT fund solutions MT fund templates traffic MX fund traffic 3,000,000 200,000 180,000 2,500,000 160,000 140,000 2,000,000 120,000 1,500,000 100,000 80,000 1,000,000 60,000 500,000 40,000 20,000 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2008 2009 April 2008 April 2009 April 2008 April 2009 94.65% of volume 90.96% of volume 5.35% of volume 9.04% of volume 652 BICs 662 BICs 38 BICs (live) 53 BICs (live)MT MX Funds migration_02072009_v03 8
  • EFAMA study on funds processingstandardization EFAMA = European Fund and Asset Management AssociationIntroduction to funds distribution
  • Do you need support in implementing theFunds MX solution? 1-800-825-2518 funds@swift.comMT MX Funds migration_02072009_v03 10