Psf 2013 work session - swift net protocols

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PSF 2013 EMEA - worksession - SWIFTNet protocols

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Psf 2013 work session - swift net protocols

  1. 1. SWIFTNet Protocols Premium Services Forum 25-26 November 2013 Amsterdam Susan Rogers – Product Manager Jerome Piens – Product Manager Caroline Salmon – Key Client Service Manager Inga Wassenhoven – Key Client Service Manager
  2. 2. Session objectives We would like to verify if you have a need for additional tools to help you prepare for the migration from MT to ISO20022 in the context of the planned migrations of some High Value Payments MIs. We want to gather realistic data on how and why you are using the available SWIFTNet Protocol features and whether any new features would help you meet some of your new challenges (e.g. business, operational requirements) ISO 3 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  3. 3. Agenda Agenda Part 1 – Setting the scene Part 2 – Break outs to gather your input Part 3 – Report back Conclusions 4 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  4. 4. ISO Migration from MT to ISO20022 Context TARGET2 has announced its intention to migrate its high value payment system from MT messages to ISO20022 in November 2017. Other service providers will follow suit. We would like to give you an overview of the solution that SWIFT is proposing for the TARGET2 migration and gather information on how SWIFT can help shield your back office from this change The input collected will be used to refine SWIFT’s offering for High Value Payment Market Infrastructures migration from MT to ISO20022 5 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  5. 5. ISO MT to ISO20022 migration enablers Platform Messaging services Copy services Standards 6 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  6. 6. ISO MT to ISO20022 migration enablers MT MX Security / integrity / reliability Service feature High quality of service (99.99%) Service feature Support by R7 qualified interface Service feature Non-repudiation with trusted third party Service feature Optional* Validation Service feature Optional* Undelivered message report Service feature Optional* Optional Not supported Broadcast facility Delivery notification Optional Message priority Optional Queue status report Optional Non-delivery warning Optional Session history report Optional Load balancing Optional 7 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013 *selected by T2
  7. 7. ISO MT to ISO20022 migration enablers MT MX T and Y modes + fallback modes Service feature Information for use by sender or receiver Service feature Double authentication Service feature Reverse billing Service feature Individual online retrieval for 124 days Urgent bulk retrieval for contingency Cold start support (reconciliation) Service feature (1Q14 for MX) 24 hours 24 hours Service feature (1Q14 for MX) Partial copy Service feature Will be available when required Copy destination selected by sender Not supported Service feature BIC8 Level2 or level3 DN BIC8/BIC11 Level2 or level3 DN FIN R&L SWIFTNet R&L (to be harmonised) Can be bypassed for copied messages Available if it adds value Copy destination Subscription/addressing Liability framework RMA 8 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  8. 8. ISO MT to ISO20022 migration enablers Platform – FINCopy environment Payment Instruction MT 103/202/ 202 COV SWIFT Interface Participant A • Closed user group based • Message validation • PKI based security • Archival and retrieval • Copy services • Support MT Autorised/settled Payment Instruction MT 103/202/ 202 COV (**) SWIFT Interface Participant B Sender Notification MT 012 (***) Abort Notification MT 019 (***) Authorisation request MI Authorisation response MT 096 MT 097 (*) MI Application SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013 (*) with information for sender/receiver (**) with information for receiver 9 (***) with information for sender
  9. 9. MT to ISO20022 migration enablers ISO Platform – SWIFTNet Copy environment Payment Instruction pacs.008 pacs.009 pacs.010 SWIFT Interface Participant A Autorised/settled Payment Instruction • Closed user group based • Message validation • PKI based security • Archival and retrieval • Copy services • Support ISO 20022 pacs.008 pacs.009 pacs.010 (**) SWIFT Interface Participant B Sender Notification xsys.002 (***) Abort Notification xsys.003 (***) Authorisation request MI Authorisation response pacs 008/009/010 (copy) xsys.001 (*) MI Application SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013 (*) with information for sender/receiver (**) with information for receiver 10 (***) with information for sender
  10. 10. MT to ISO20022 migration enablers ISO Platform – SWIFTNet Copy environment Payment Instruction pacs.008 pacs.009 pacs.010 SWIFT Interface Participant A Autorised/settled Payment Instruction • Closed user group based • Message validation • PKI based security • Archival and retrieval • Copy services • Support ISO 20022 pacs.008 pacs.009 pacs.010 (**) SWIFT Interface Participant B Sender Notification xsys.002 (***) Abort Notification xsys.003 (***) Authorisation request MI Authorisation response pacs 008/009/010 (copy) Out of scope MI Application SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013 xsys.001 (*) Out of scope (*) with information for sender/receiver (**) with information for receiver 11 (***) with information for sender
  11. 11. ISO MT to ISO20022 migration enablers Users can be shielded from the impact of the migration, through Transformation of business payload 13 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  12. 12. MT to ISO20022 migration enablers FIToFICustomerCreditTransfer … CreditTransferTransactionInformation PaymentIdentification K InstructionID L TransactionID L End-to-EndID K InterbankSettlementAmount J InterbankSettlementDate K InstructedAmount K ChargeBearer K IntermediaryAgent1 K IntermediaryAgent1Account IntermediaryAgent2 L IntermediaryAgent2Account IntermediaryAgent3 L IntermediaryAgent3Account L UltimateDebtor K Debtor K DebtorAccount K CreditorAgent K CreditorAgentAccount K Creditor K CreditorAccount L UltimateCreditor K InstructionForCreditorAgent K InstructionfForNextAgent K RegulatoryReporting K RemittanceInformation Unstructured Structured Tag Field :20: Sender’s Reference :23B: Bank Operation Code :23E: Instruction Code :32A: Value Date/Currency/Interbank Settl. Amount :33B: Instructed Amount :50a: Ordering Customer :56a: Intermediary Institution :57a: Account With Institution :59a: Beneficiary Customer :70: Remittance Information :71A: Details of Charges :72: Sender to Receiver Information :77B: ISO Regulatory Reporting 14 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  13. 13. MT to ISO20022 migration enablers ISO FIToFICustomerCreditTransfer … CreditTransferTransactionInformation PaymentIdentification K InstructionID K J K K K K InterbankSettlementAmount InterbankSettlementDate InstructedAmount ChargeBearer IntermediaryAgent1 IntermediaryAgent1Account InstructionForCreditorAgent InstructionfForNextAgent RegulatoryReporting RemittanceInformation Unstructured Structured Sender’s Reference :23B: Bank Operation Code :23E: Instruction Code Value Date/Currency/Interbank Settl. Amount Instructed Amount :50a: K K K K :20: :33B: Debtor DebtorAccount CreditorAgent CreditorAgentAccount Creditor CreditorAccount Field :32A: K K K K K K Tag Ordering Customer :56a: Intermediary Institution :57a: Account With Institution :59a: Beneficiary Customer :70: Remittance Information :71A: Details of Charges :72: Sender to Receiver Information :77B: Regulatory Reporting 15 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  14. 14. MT to ISO20022 migration enablers ISO FIToFICustomerCreditTransfer … CreditTransferTransactionInformation PaymentIdentification J InstructionID J J J J J J InterbankSettlementAmount InterbankSettlementDate InstructedAmount ChargeBearer IntermediaryAgent1 IntermediaryAgent1Account InstructionForCreditorAgent InstructionfForNextAgent RegulatoryReporting RemittanceInformation Unstructured Structured Sender’s Reference :23B: Bank Operation Code :23E: Instruction Code Value Date/Currency/Interbank Settl. Amount Instructed Amount :50a: J J J J :20: :33B: Debtor DebtorAccount CreditorAgent CreditorAgentAccount Creditor CreditorAccount Field :32A: J J J J J J Tag Ordering Customer :56a: Intermediary Institution :57a: Account With Institution :59a: Beneficiary Customer :70: Remittance Information :71A: Details of Charges :72: Sender to Receiver Information :77B: Regulatory Reporting 16 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  15. 15. ISO MT to ISO20022 migration enablers Users can be shielded from the impact of the migration, through Transformation of business payload Transformation of business information, currently part of technical header 17 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  16. 16. ISO MT to ISO20022 migration enablers Sender/Receiver for settlement purposes  BIC derived from requestor/responder DN (like-for-like approach) Field 113 Banking Priority Depends on community usage, contains up to 4 characters First character used to indicate Payment Settlement Priority (0/1/2)  SettlementPriority element in ISO 20022 (H/U/N) Second character used to request MT 012 Sender Notification   AuthorisationNotificationIndicator set to TRUE in the message header YcopyAuthorisationNotification (xsys.002) replaces MT 012 18 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  17. 17. ISO MT to ISO20022 migration enablers Tag 108 Message User Reference Various references available at ISO 20022 message level  If needed at (technical) header level could be mapped to RequestRef element in SWIFTNet header  Tag 119 Validation Flag Used to trigger extra validation 103 vs 103+; 202 vs 202 COV  Part of SWIFT’s validation offering • Tag 103 FINCopy service code • Used to request a copy  Copy indicator = true SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013 19
  18. 18. More transformation business information Mapping (business) information in MT header MT MX Sender BIC* BANKBEBBABC Requestor DN ou=abc,o=bankbebb,o=swift Receiver BIC* BANKDEFFXYZ Responder DN ou=xyz,o=bankdeff,o=swift Message type 202 Request type pacs.009.001.03 Priority U/N Priority Urgent/Normal Delivery notification 1/2/3** Delivery notification TRUE/FALSE Obsolescence period 003 (fixed 15 mins) Overdue warning delay 5 mins to 24 hours Field 103 FINCopy service code Service name e.g. target.copy TGT Copy indicator TRUE (copy forced by service setup T2) Field 108 Message user reference Reference Request ref Reference H_ _ _ (options H/U/N) Settlement priority H (options H/U/N) _Y_ _ (options Y/N) Authorisation notification indicator TRUE (options TRUE or FALSE) STP, COV Will be part of validation offering (see next slide) Field 113 Banking priority (4 characters***) Field 119 Validation flag ISO 20022 for HVPS - JTF - 6 November 2013 SWIFT Premium Services Forum 2013 - Amsterdam * For settlement purposes ** MT 010 Non-delivery warning, MT 011 Delivery notification or both sent in combination with chosen priority *** Mapping local usages of 3rd and 4th characters to be investigated 20
  19. 19. ISO MT to ISO20022 migration enablers In line with today’s offering for MTs over FIN: SWIFT will perform central validation of constraints and cross-element rules of the global ISO 20022 message standards* SWIFT will not validate community-specific implementations SWIFT will also validate compliance with the globally agreed like-for-like implementation guidelines of ISO 20022 message standards for HVPS * Network validated (or cross-element) rules are almost fully aligned between MT and ISO 20022. EUinspired network validation in MTs will be incorporated as part of the like-for-like implementation of ISO 20022 21
  20. 20. ISO MT to ISO20022 migration enablers Users can be shielded from the impact of the migration, through Transformation of business payload Transformation of business information, currently part of technical header Shielding from protocol changes 22 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  21. 21. What will be done during break out MT to ISO20022 migration Facilitated breakout sessions Discuss among ourselves What data from incoming messages do you pass to your back office application (apart from block 4) and how do you use it? Refer to the handouts for examples 23 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  22. 22. SWIFTNet features Context As part of our Messaging Evolution Strategy, we would like to better understand how and why you are using some of the available SWIFTNet protocol features We would like to capture the problems these features are helping you to solve (business, operational, …) and how these features could further help you to reduce some of your risks. We would also like to understand if from your point of view some features could be further enhanced or if some are still missing. The input collected will be a driver in the definition of our future messaging evolution strategy 24 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  23. 23. SWIFTNet features We would like to review your current usage of the features listed below Copy services Keeping in mind • What’s the problem it helps you to solve? Non-Repudiation • Could it be further enhanced? Delivery Notification • Do you have challenges that could not be Message Validation addressed by the current set of features? Closed User Group (CUG) Retrieval Priority Management Role-Based Access Control (RBAC) Real-time vs. Store-and-Forward 25 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  24. 24. SWIFTNet features Video A day of the life of a SWIFTNet Message The purpose of this video is to ensure a common understanding of how messages (and files) are being processed by SWIFT and how protocol features are invoked. 26 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  25. 25. What will be done during break out Protocol Features Facilitated breakout sessions Discuss among ourselves Which features are being used or not? How are these features being used? Why are they used? 27 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  26. 26. What do we expect from you Break outs on 3 topics MT to ISO20022 migration SWIFTNet features 28 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  27. 27. ISO Report Back MT to ISO 20022 migration 29 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  28. 28. ISO Conclusions and Next Steps MT to ISO20022 We’ll share the presentation with you in Slide Share on Linked In In the PSF report we will provide you with the next steps If you are interested in further discussions please contact us or your Service Manager 30 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  29. 29. Report Back SWIFTNet features 31 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  30. 30. Conclusions and Next Steps SWIFT Net Features We’ll share the presentation with you in Slide Share on Linked In In the PSF report we will provide you with the next steps If you are interested in further discussions please contact us or your Service Manager 32 SWIFT Premium Services Forum 2013 - Amsterdam – 25-26 November 2013
  31. 31. Thank you

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