NYBF 2014 - The Road to 2015


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NYBF 2014 - The Road to 2015

  1. 1. 1 SWIFT Business Forum New York 5 March 2014 Malene McMahon, SWIFT Stacy Rosenthal, SWIFT The Road to 2015 #BFNY
  2. 2. The Road to 2015 (SWIFT2015 Strategy) 18 Initiatives in 4 Key Areas Deepening the Core Expanding the Core Enabling Interoperability and TCO Reduction Interface Hosting Services High-End Interfaces Low-End Connectivity Go Local Enabling Transformation BrandPlatform Innovation People CSR Reference Data Sanctions Matching Custody & Asset Servicing RTGS Corporates Correspondent Banking Clearing & Settlement 2
  3. 3. The Road to 2015 (SWIFT2015 Strategy) Context • Evolving context since SWIFT2015 took shape –Increased regulation –Sanctions, KYC, AML –Cyber crime –Asian expansion 3
  4. 4. Securities and Standards Highlights MyStandards and the new Readiness Portal are revolutionizing how the community manage, implement messages and test market practices MyStandards From CICI to GMEI, DTCC/SWIFT’s newly re-branded utility is the leading provider of LEI’s globally LEI DTCC are transforming the US corporate actions landscape with their introduction of real time messages and ISO 20022 formats Corporate Actions 4
  5. 5. Payments & Corporates Highlights Corporates have seen tremendous growth and the value proposition continues to evolve Corporates eBAM is a great example of the evolution of CGI (Common Global Implementation) and market collaboration and innovation eBAM eStatements is an example of sticking to the core and reusing existing infrastructure to support further automation eStatements 5
  6. 6. 6 Corporates
  7. 7. Corporate Adoption – Executive summary – 2013 New corporate groups in 2013 173 (20% vs. 2012) 20% 10% 70% Americas Asia Pacific EMEA Traffic (FIN 31% FileAct 41% Q4 2013 vs. Q4 2012) Bank adoption 908 banking groups offering corporate connectivity 46 banking groups certified  573 banks (BIC8)  117 countries Corporate Group adoption (BIC8) 3SKey: 36 banking groups BPO: 55 banking groups 31% FORTUNE Global 500 On SWIFT 1200+ Corporate groups connected
  8. 8. Corporates Steady growth 8 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 0 20 40 60 80 100 120 140 160 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 FINMonthlyTraffic CountofCorporatesSending/RecievingFIN Americas Corporates Growth MTs Sent and Recieved AMER represents 19% of the global corporates, but contributes 43% of the traffic Total number of AMER corporates = 199, across FIN, FileAct and InterAct
  9. 9. Corporates MT798 adoption 9 20+ banks are live (15 of the TOP20 trade banks) Saudi Aramco, ArcelorMittal, Alcatel-Lucent, MGB Metro Group Buying, Safran, Voith Finance, The Volvo Group, GE, Villeroy and Boch, E ON, Nokia, Seaboard Corporation, Sandvik, FLSMIDTH, … +10 Corporates live or implementing
  10. 10. Registered corporates 258 Connected to SWIFT 56% Countries 28 Corporates SWIFTRef Adoption 258 Corporates adopted SWIFTRef in 2013
  11. 11. 11 From concept to adoption eBAM 11
  12. 12. Efficiency gains Base language End-to-end ? Early adopters Easy Electronic Bank Account Management Benefits BAM Expectations Best practices Back-office investments Business modelsAwareness building Alternative to paper Accessible Automation Ambitious Multi-bankMandates Messaging solution Market demand Building blocks
  13. 13. Electronic Bank Account Management (eBAM) CGI* Working Group (WG4) • Focused on providing a forum for corporations, banks and vendors to collaborate on fostering broad adoption and enhancing the quality, effectiveness and efficiency of electronic bank account management standards and processes around the world. Objective • Simplify implementation for both corporations and banks by developing common usage of fields in the messages. • Define a harmonized set of ISO 20022 eBAM messages that will facilitate the progress toward adoption of the standard. 13*Common Global Implementation
  14. 14. 14 Automating bank statements eStatements 14
  15. 15. eStatements The Solution An initiative to standardize the electronic receipt of period end bank statements An eStatement is a PDF electronic copy of a corporation’s period end statement that is transmitted securely over SWIFT to the account owner For legal, audit and compliance purposes corporations need to standardize the receipt of this information • Index of information for archival and search capabilities • In XML format to include in the zip file payload providing information including: •Bank BIC •Acct # •Period Date •Statement type In addition to intra-day and end of day reporting (CAMT, MT940/942s, BAI2) for cash management and reconciliation Adoption – 2 Corporates / 6 Banks 15
  16. 16. 16 MyStandards 16
  17. 17. 17 MyStandards MyStandards Readiness Portal Product Showcase Ramp up Clients Faster Self Service Testing Customer Service
  18. 18. 19 From CICI to GMEI LEI 19
  19. 19. Global LEI System •International financial market regulators •Upholds governance principles and oversees that global LEI system functions for public interest •Plenary and Executive Committee • Oversees functioning of the COU, operational integrity and implementation, maintenance of standards specified by the ROC • Appointed and overseen by ROC, composed of stakeholders from financial & non-financial firms • Ensure application of uniform operational standards and protocols to maintain uniqueness of LEI and high data quality • Manage federation through LOUs • Maintain central logical database • Provision of LEI functions • Service providers, local business registries, numbering agencies Local Operating Unit (LOU) Local Operating Unit (LOU) Local Operating Unit (LOU) Central Operating Unit (COU) Board of Directors Regulatory Oversight Committee Governance Operations 20
  20. 20. CFTC Regulatory requirements (Part 45) • Reporting firms must identify themselves and counterparties with certified CICIs • Reporting firms must keep records of transactions • Reporting firms must report transactions to registered swap data repositories • Effective since April 2013 • Major Swap Participants / Swap Dealers http://www.cftc.gov/PressRoom/PressReleases/pr6563-13 21
  21. 21. ESMA EMIR - Requirements • Central role for ESMA – With Local / National supervision – Moving OTC Derivatives to centralised clearing (CCPs) – Standardisation of OTC Derivatives contracts – Increased market transparency via reporting to Trade Data Repositories • Reporting obligations start February 2014 http://www.esma.europa.eu/page/European-Market-Infrastructure-Regulation-EMIR 22
  22. 22. DTCC/SWIFT Utility • International Financial Industry (GFMA) selected DTCC/SWIFT bid • CFTC selected DTCC/SWIFT solution for CICI • Launch of CICI Utility at www.ciciutility.org • ROC Global Endorsement of CICI Utility • Re-branding of CICI Utility to GMEI Utility at www.gmeiutility.org • Transition into Global LEI System  8 July 2011  24 July 2012  21 August 2012  3 October 2013  24 January 2014 23
  23. 23. Utility Statistics (a/o 1 February) • Statistics – Total records 109,545 • Regional split – US 61,566 56.2% – EU 29,531 27.0% – Total countries 154 • All endorsed LOUs – Total records 160,433 – Total countries 164 – GMEI Utility 68.2% 24
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  25. 25. Useful links www.swift.com/lei swiftref.swift.com/bic-lei-directory www.gmeiutility.org www.leiroc.org 26
  26. 26. 27 DTCC’s Transformation Initiative Corporate Actions 27
  27. 27. © DTCCDTCC Non-Confidential (White) Phase 1 New Data Model o Implemented new data model which eliminates proprietary function codes and file formats in favor of ISO 20022 messaging o Updated internal systems to support ISO 20022 messages Corporate Actions Transformation Project Milestones 28DTCC Confidential (Yellow) 2010 2011/2012 2012/ June 2014 2014/2015 2015/2016 Project Timeline Phase 2 Announcements o Introduced ISO 20022 announcements messages for distribution, redemption and reorganization events o Pilot testing of ISO 20022 announcement messages o Launched new announcements browser o Implemented XBRL o Implemented message delivery over SWIFT network Phase 3 Distribution Events o Introduced ISO 20022 lifecycle messages for distribution events o Pilot testing of ISO 20022 distribution lifecycle messages o Introduce new distributions browser functions o First time ever acceptance of inbound elections on distribution events (EDS) o Retire PBS/PTS distributions functions – 5,239 users, 83% of 6,288 corporate action users o All distributions processing takes place on new browser Phase 4 Redemption Events o Introduce ISO 20022 lifecycle messages for redemption events o Introduce new redemptions browser features o Retire PBS/PTS redemptions functions o All redemption processing takes place on new browser Phase 5 Reorg Events o Introduce ISO 20022 lifecycle messages for reorg events o Introduce new reorg browser features o Retire PBS/PTS reorg functions – 1,049 users, 17% of 6,288 corporate actions users o All reorg processing takes place on new browser Announcements Lifecycle Processing Ongoing efforts – Onboard to ISO 20022 and retire CCF announcement files in 2015
  28. 28. ISO 20022 Corporate Actions Messages 29 MX Identifier* ISO 20022 Message Names Abbreviated Name Equivalent ISO 15022 Messages 1 seev.031.002.04 Corporate Action Notification CANO MT564 2 seev.033.002.04 Corporate Action Instruction CAIN MT565 3 seev.036.002.04 Corporate Action Movement Confirmation CACO MT566 4 seev.037.002.04 Corporate Action Movement Reversal Advice CARE MT566 5 seev.039.002.04 Corporate Action Cancellation Advice CACN MT564 6 seev.040.002.04 Corporate Action Instruction Cancellation Request CAIC MT565 7 seev.032.002.04 Corporate Action Event Processing Status Advice CAPS MT567 8 seev.034.002.04 Corporate Action Instruction Status Advice CAIS MT567 9 seev.041.002.04 Corporate Action Instruction Cancellation Request Status Advice CACS MT567 10 seev.035.002.04 Corporate Action Movement Preliminary Advice CAPA MT564 11 seev.038.002.04 Corporate Action Narrative CANA MT568 12 seev.042.002.04 Corporate Action Instruction Statement Report CAST New 13 seev.044.002.04 Corporate Action Movement Preliminary Advice Cancellation Advice CAPC MT564 SWIFT _ DTCC _ Corporate Actions * SR2013 Versions
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