Funds Migration

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SWIFT BNL Forum 2012

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Funds Migration

  1. 1. Funds migration to ISO 20022 Reap the advantage of early migration Funds Benelux event 24 May 2012Agenda• Funds migration - Key facts & timeline• Incentives & disincentives - Mechanics• Products & Services offering - Detailed offering• Q&A 2
  2. 2. Funds Migration Key facts & timeline 3Funds MigrationA community decision• Mandatory Funds Migration to ISO 20022 is confirmed unanimously by the SWIFT Board• Q4 2015 (Standard Release date) is defined as the final end date• End 2012 remains a significant date: – Restrictions will be implemented – Incentives will be deployed as soon as possible – Disincentives will be applied as of January 2013 until the end of the migration. They should apply to those players that delay the migration 4
  3. 3. Funds Migration timeline A combination of incentives & disincentives Final end date: Standards Release 2015 2011 2012 2013 2014 2015 31 December 2012 1st January 2013 All MX fund users to be Any new fund users fully migrated amongst joining SWIFT should only themselves be allowed to use the ISO 20022 fund messages All funds users receiving orders and sending back Any new fund market status/confirmation initiative should only use messages must be able ISO 20022 fund to send/receive ISO messages 20022 messages if requested by new Existing SWIFT users will customers/counterparties still be able adopt the FIN Fund Templates but will be subject to a registration process MX Price reduction Incentives Incentives Incentives Incentives (Jul) Disincentives* Disincentives* Disincentives* * Applicable to non-compliant BICs Global Funds Migration Status Readiness & Adoption – February 2012 MX Readiness of SWIFT MX Readiness of SWIFT MX Readiness of SWIFT Funds Users Funds Users Funds Users (Belgium - Mar 2012) (Netherlands - Mar 2012) (Luxembourg - Mar 2012) 0.4% 1.6% 1% 2% 18% 16% 26% 32% 10% 56% 98% 41%MX Readiness of SWIFT Funds Users (Global - Mar 2012) 1% 3% 25% 30% 6% 36% MX adoption rate (MX as % of total funds traffic): 31% vs 28% (March 12 vs Dec 6 11) MX readiness rate (both counterparties ready on MX): 67% vs 63% (March 12 vs Dec 11)
  4. 4. Funds traffic is growing strongly on MX March 2012 vs March 2011 Avg Traffic Growth March Avg Traffic Growth March 2011: 5% 2012: 42% MX Traffic represents 31% of total funds traffic in SWIFT 7 Standards impact Current timeline for Funds Standards Maintenance 2012 2013 2014 2015 2016 2017Orders - MX No Changes to V4 migration messages unless regulatory until post-migration Restrict access FIN Fund RemovalOrders - MT Templates in MUG only FIN Fund Templates Release 4.4 Full solutionTransfers Transfers in 2012 Maintenance if required Release 4.5 AccountAccount Management Maintenance ** To Include - CR for Orders - BAH Release 4.5 Price - RMAPrice Report Report **Cash forecast No Changes to messages unless solution demandStatements No Changes to messages unless solution demand ** Release 4.5 only to take place if committed pilot companies for use of message types (this will include simplification of messages) 8
  5. 5. Migration reminderWhich messages are impacted? FIN Funds Messages ISO 20022 MessagesFIN Message Request Type Description Request Type MT 502 Order to Buy or Sell Redemption Bulk Order V02 setr.001.001.03 MT 502 Order to Buy or Sell Redemption Bulk Order Cancellation Request V02 setr.002.001.03 MT 502 Order to Buy or Sell Redemption OrderV02 setr.004.001.03 MT 502 Order to Buy or Sell RedemptionOrder Cancellation Request V03 setr.005.001.03 MT 502 Order to Buy or Sell Subscription Bulk Order V03 setr.007.001.03 MT 502 Order to Buy or Sell Subscription Bulk Order Cancellation Request V03 setr.008.001.03 MT 502 Order to Buy or Sell Subscription Order V03 setr.010.001.03 MT 502 Order to Buy or Sell Subscription Order CancellationInstruction V03 setr.011.001.03 MT 502 Order to Buy or Sell Switch Order V03 setr.013.001.03 MT 502 Order to Buy or Sell Switch Order V03 setr.013.001.03 MT 502 Order to Buy or Sell Switch Order Cancellation Request V03 setr.014.001.03 MT 509 Trade Status Message Order Instruction Status Report V03 setr.016.001.03 MT 509 Trade Status Message Order Cancellation Status Report V03 setr.017.001.03 MT 515 Client Confirmation of Purchase or Sale Redemption Bulk Order Confirmation V02 setr.003.001.03 MT 515 Client Confirmation of Purchase or Sale Redemption Order Confirmation V03 setr.006.001.03 MT 515 Client Confirmation of Purchase or Sale Subscription Bulk OrderConfirmation V03 setr.009.001.03 MT 515 Client Confirmation of Purchase or Sale Subscription Order ConfirmationV03 setr.012.001.03 MT 515 Client Confirmation of Purchase or Sale Switch Order ConfirmationV03 setr.015.001.03 MT 515 Client Confirmation of Purchase or Sale Switch Order ConfirmationV03 setr.015.001.03 9Incentives & Disincentives Mechanics 10
  6. 6. IncentivesEncouraging early adoptionMessaging • MX tariff decrease (implemented in July 2011) − -30% on tariff 1 (orders) & -70% on tariff 2 messages • MX Pilot (test) environment: free in 2012*, then gradually increasing back to standard level in 2015 (i.e. 50% of Live) 2012 2013 2014 2015 Free 30% 60% 90%This measure reduces the cost of the testing related to migration as well as encourage adoption ofadditional funds messages only available on ISO 20022 (Alternative funds, transfers, price report).Non-MessagingSelected products and services have been developed with the aim ofreducing the cost related to adoption of ISO 20022 funds messaging 11Dis-incentivesEncouraging early adoption and planningPrinciples• Applying 7775 to ISO 15022 migration dis-incentives principles• Apply to MT502 (order) senders only and on MT502 sent only − MT 515 not considered to avoid penalising first movers (TA ready >85%)• Dis-incentives are subject to an « exemption rate » aligned on expected yearly progression of the global MX adoption rateMessaging• Funds MT tariff - gradually increasing surcharge from Jan 2013 until SR 2015Non-Messaging• Monthly fee - gradually increasing surcharge from Jan 2013 until SR 2015 (based on tiering) 12
  7. 7. Dis-incentivesMessaging and non-Messaging details1. Live MT (Funds) traffic surcharge & Test MT (Funds) traffic surcharge − Apply normal price + surcharge 2013 2014 2015 25% 50% 100%2. Monthly fee (Eur/month per BIC8): Global Tier 2013 2014 2015 01 50 100 300 02-04 100 200 600 05-10 150 300 900 11-20 200 400 1,200Dis-incentives will start in January 2013 – will be reflected in February invoice 13Dis-incentivesExemption rate – compliance criteriaPrinciples• Based on MT 502 sent vs MX equivalent (applied at BIC 8)• The exemption rate is based on live traffic: (MX equivalent to the MT502) / (MT502+MX equivalent to the MT502) Joker 2013 2014 2015 30% 60% 90%• The month of reference will be the previous month, and is applicable at each individual BIC, based on billable traffic.• This calculation will occur monthly, starting with January 2013 activity. 14
  8. 8. Dis-incentives JokerExemption rate – compliance criteria Principles • Based on MT 502 sent vs MX equivalent (applied at BIC 8) • The exemption rate is based on live traffic: (MX equivalent to the MT502) / (MT502+MX equivalent to the MT502) 2013 2014 2015 30% 60% 90% • The month of reference will be the previous month, and is applicable at each individual BIC, based on billable traffic. • This calculation will occur monthly, starting with January 2013 activity. 15RestrictionsThe Funds Member User Group (MUG) FIN ISO FIN ISO All 20022 ISO 20022 categories Funds 15022 Funds Funds Principles • Starting January 2013: registration required for all new MT Fund user • Exceptions for SWIFT users: – having used ISO 15022 funds messages in the past 2 years (2011 – 2012) – enabled for CAT 5 can register and still use FIN Fund Templates • Scope: preventing new SWIFT users to start with FIN Fund Templates • Impact on current MT Funds users: – No registration required for existing users  automatically included – Watch out when starting with new counterparties on MT – check if part of MUG 16
  9. 9. Products & Services Detailed offering 17SWIFT’s Products & Services offeringMapping offering to your migration project phases Analyse Design Implement Test Roll-out Dashboard Project execution ISO 20022 Workshop Project roll-out report Assisting you with ISO 20022 adoption Project Tracking Standards consulting Training IT ISO 20022 Training Business Integration services Legend MyStandards SDK STaQS Consulting Alliance Lite Training Alliance Integrator Products AMH 18
  10. 10. Analyse Design Implement Test Roll-outReports Dashboard ISO 20022 Workshop Project execution Project roll-out reportYour key associates Assisting you with ISO 20022 adoption Standards consulting Project Trackingin the project planning Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH Discover our free Migration dashboard Overview of the migration status of your counterparties and related impact on dis-incentives Project roll-out report Tracking reports, detailing migration status for all your BIC’s, per counterparties and message flows and high-level project plan and a detailed report containing the key project data and planning 19 FREE 20
  11. 11. Analyse Design Implement Test Roll-outISO 20022 workshop Dashboard ISO 20022 Workshop Project execution Project roll-out reportOff to the best departure Assisting you with ISO 20022 adoption Standards consulting Project Tracking Training IT ISO 20022 Training Business Integration services MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH We help you organising a one-day workshop to tackle the project initiation. This is fully tailored to your specific needs and we can help gathering the differents impacted entities/business areas in different locations of your institution to find the best centralised solution for your migration. We can perform: • migration review • impacted standards review • infrastructure review Ultimately, we issue a final report with findings and our recommandations 21 Analyse Design Implement Test Roll-outProject execution Dashboard ISO 20022 Workshop Project execution Project roll-out reportCoordinating with Assisting you with ISO 20022 adoption Standards consulting Project Trackingall stakeholders Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH To help you with your project planning and testing windows coordination, we work with you, your counterparties and your application providers to coordinate the effort. Additionally, we can track and report your migration readiness until completion. This service offering is building on the Project roll-out report work. 22
  12. 12. Analyse Design Implement Test Roll-outAssisting you with Dashboard ISO 20022 Workshop Project execution Project roll-out report Assisting you with ISO 20022 adoption Project TrackingISO 20022 adoption Standards consulting Training IT ISO 20022 Training BusinessPeace of mind Integration services MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH To ensure peace of mind when preparing your ISO 20022 migration, our teams build a business case with a clear roadmap to follow. We come-up with • recommendations on business process alignment • identification of areas where increased straight-through processing and operational efficiency can be achieved. We report on current architecture design and highlight areas impacted by the migration. We document the future options and provide a counterparty heat-map. 23 Analyse Design Implement Test Roll-outProject Tracking Dashboard ISO 20022 Workshop Project execution Project roll-out reportContinuous improvement Assisting you with ISO 20022 adoption Standards consulting Project Tracking Training IT ISO 20022 Training Business Integration services MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH To ensure that you continue to enjoy maximum benefits from our analysis, we can conduct yearly reviews to • monitor efficiency gains • track your progress • potentially adapt our recommendations based on your evolving needs 24
  13. 13. Analyse Design Implement Test Roll-outIntegration Services Dashboard ISO 20022 Workshop Project execution Project roll-out report Assisting you with ISO 20022 adoption Project Tracking Standards consulting Training IT ISO 20022 Training Business Integration services MyStandards SDK STaQS Legend Consulting Alliance Lite Training Your problems? Alliance Integrator Products AMH • You need somebody with in-depth knowledge of ISO formats and related system components • You are using legacy technology such as CASmf, MQSA and need to migrate to new adapters • You want to implement ISO 20022 for funds and require a combination of SWIFT and technical integration expertise • You require functionality missing in your SWIFT interface or application and want a cost-efficient solution How can we help? • Integration assessment and functional analysis • Integration delivery, testing and go-live • Integration project management • Integration Care contracts 25 Analyse Design Implement Test Roll-outStandards Consulting Dashboard ISO 20022 Workshop Project execution Project roll-out reportHelping you with Assisting you with ISO 20022 adoption Standards consulting Project Trackingyour ISO 20022 adoption Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMHBenefit from our extensive knowledge in the Funds area:We can help you with customized gap analysis and mapping guidance, as well asgeneral workshops and consulting.We have experience in most major economies and numerous emerging markets,with broad language skills.In the context of ISO 20022 adoption, the following assignments can be foreseen: * High-level Analysis (current and future functional level) * Detailed Analysis/implementation specifications without switches, mapping and gap analysis with switches, mapping and gap analysis * Reviewing standards implementation vs market practices 26
  14. 14. Analyse Design Implement Test Roll-outMyStandards Dashboard ISO 20022 Workshop Project execution Project roll-out reportRadically simplifying Assisting you with ISO 20022 adoption Project Tracking Standards consultingyour analysis work for Funds Training IT ISO 20022 Training Business Integration services MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH MyStandards is a collaborative web application to better manage standards definitions and usage in the financial industry. Content: Base messages (MT, MX and ISO20022) and usage guidelines Features: Analyse, Compare and Export In the funds area, it makes it possible to analyse side by side all the specifications and guidelines (MT and MX) from the leading Funds players and market practices and simplify radically the analysis work for the Funds migration. MyStandards will become generally available in May 2012 www.swift.com/mystandards Questions? mystandards@swift.com 27 Analyse Design Implement Test Roll-outSDK Dashboard ISO 20022 Workshop Project execution Project roll-out reportEfficiently implementing Assisting you with ISO 20022 adoption Standards consulting Project Trackingstandards Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH Standards Developer Kit (SDK) ) Funds Migration Subset: • Helps customers implement SWIFT MT and ISO standards • Library of ‘enriched’ XML schemas for Funds messages, MT and ISO 20022 • Updated by SWIFT for each new MX version and annual MT Standards Release • The SDK for Funds: • MX Enriched Schemas for the Funds messages (not the complete business area) for CAMT, SETR, REDA, SEMT, SESE, ACMT • MX Enriched Spread sheets for the relevant messages (not the complete business area) for CAMT, SETR, REDA, SEMT, SESE, ACMT • These enriched schema’s allow automatic generation of user-friendly GUIs and facilitate customized documentation and message integration 28
  15. 15. Analyse Design Implement Test Roll-outSTaQS Dashboard ISO 20022 Workshop Project execution Project roll-out reportYour dedicated Assisting you with ISO 20022 adoption Standards consulting Project Trackingtesting platform for Funds Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH SWIFTs Simulation Testing and Qualification Service (STaQS) for Funds has been developed to support the Funds community in implementing ISO20022 (MX) funds Two versions are available: messages. Syntax validation against pre- configured market practices: It will help to familiarise users with MX France message structures and processing flows. Australia STaQS will also support existing users of SMPG ISO 15022 messages migrating to ISO FINDEL 20022 funds messages by reducing the time Processing flow simulation spent on testing. emulating a counterparty (available as transfer agent but also as Users can upload a file of funds messages distributor), based on FINDEL for testing. STaQS for Funds validates each recommendations. message and returns full validation details, summaries and statistics. 29 Analyse Design Implement Test Roll-outAlliance Lite Dashboard ISO 20022 Workshop Project execution Project roll-out reportThe cost-effective low-volume Assisting you with ISO 20022 adoption Standards consulting Project Trackingconnectivity solution Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH Alliance Lite is an Internet-based SWIFT product, offering SWIFT connectivity to new low-volume users. It offers manual entry of Funds messages as well as automated message transfer, all with the security you expect from SWIFT. It can transfer files in CSV format (comma-separated values) for message types like funds orders, funds order status and confirmations, and funds account statements. The CSV files are simple and can be easily constructed with many widely used tools, including Excel. Alliance Lite will transform each line of the CSV file into an individual MT or ISO 20022 message, and send the message(s) over SWIFT. 30
  16. 16. Analyse Design Implement Test Roll-outAlliance Integrator Dashboard ISO 20022 Workshop Project execution Project roll-out reportMinimising the required Assisting you with ISO 20022 adoption Standards consulting Project Trackingmodifications Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH Alliance Integrator is an add-on for Alliance Access that helps connect your business applications to SWIFT with a minimum effort. Integrator allows you to minimise the modifications required in your back-office applications, reducing the time and cost related to the deployment of business solutions over SWIFTNet. In the Funds context, it will enable you to seamlessly start exchanging ISO 20022 messages with your counterparties without making modifications to your business applications. It has proven to be an ideal platform to handle the coexistence of current and ISO 20022 Funds messages during the adoption period, as it allows you to make the switch from current to new message format for each individual counterparty, depending on their Funds adoption progress. Moreover, Integrator can reduce the number of interventions required in existing processes, diminishing the risk associated with SWIFT implementations. 31 Analyse Design Implement Test Roll-outAMH Dashboard ISO 20022 Workshop Project execution Project roll-out reportThe modular high-volume Assisting you with ISO 20022 adoption Standards consulting Project Trackingmessaging hub Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMH AMH (Advanced Messaging Hub) is a modular, multi-network, high- volume financial messaging hub that focuses on meeting the needs of multi-entity, multinational, global financial institutions that have substantial volumes of messages with high availability and operational requirements. AMH is a solid, highly scalable, flexible and open SOA platform that is designed to support the flow of financial message traffic for SWIFT and local clearing gateways. It is easily extendable to more services and protocols. 32
  17. 17. Analyse Design Implement Test Roll-outTraining Dashboard ISO 20022 Workshop Project execution Project roll-out reportTailored to answer all Assisting you with ISO 20022 adoption Standards consulting Project Trackingyour questions Training IT ISO 20022 Integration services Training Business MyStandards SDK STaQS Legend Consulting Alliance Lite Training Alliance Integrator Products AMHTo learn about SWIFT’s solution for investment funds and get in-depth informationon ISO 20022 messagingOur teams provide:• classroom courses• on-site training• etraining modules. 33 All you need to know about Funds Migration List of available documents • Funds Interoperable Elements Matrix (= synonym document) Document has MT mapping to MX. MX 2 1 3 FIN users already map FIN Back Completion of the equation for the fields into their back office Office mapping of MX to back office • Info Papers • List of MX ready counterparties In case of questions or documents request, please contact us at Funds@swift.com 34
  18. 18. Thank you

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