Psf 2013 work session - market infrastructures

290 views

Published on

PSF 2013 EMEA - Worksession - Market Infrastructures: collaborating communities

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
290
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Psf 2013 work session - market infrastructures

  1. 1. Market Infrastructures Collaborating Communities Premium Services Forum 25-26 November 2013 Amsterdam Ruth Montgomery – Service Manager Claudia Cassinari – Head of Payments Market Infrastructures, EMEA Isabel Snoeckx – Manager, Strategic Programmes & Business Continuity Susan Rogers – Product Manager Stephen Harris – Manager, Messaging & Interfaces, Bank of England
  2. 2. Agenda Objectives & Introduction Team Activity Rules of the Game Kick-off Report back & debrief Collaboration with Swift – Stephen Harris, Bank of England Wrap-up 3 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  3. 3. Session Objectives Achieving Operational Excellence: Reaping the Rewards of Collaboration The whole is greater that the sum of its parts 4 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  4. 4. Session Objectives – Focus on Market Infrastructures: Unique and critical responsibilities Overview of all parties involved in markets and communities Unique position to influence and facilitate collaboration within communities 5 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  5. 5. Session Objectives – Enabling Collaboration by means of: Sharing best practices in disaster recovery Discussing approaches to assessing impact and prioritizing recovery actions Exploring internal and external communication strategies 6 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  6. 6. The Goal – to Enable Collaboration Collaborate kəˈlabəreɪt/ - to work jointly on an activity towards a shared outcome 7 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  7. 7. Rules of the Game 1. You will be presented with a scenario …. imagine you’ve just arrived on Tuesday morning and news begins to filter through 2. Look at the questions on the handouts and think about how you would react 3. Discuss the responses amongst your team 4. Note down the key points you will share in the debrief 8 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  8. 8. Rules of the Game – How do you React? How do you assess the impact on your Swift and other operations? How do you assess the impact on your community’s operations and business? How do you prioritize your recovery activities? With whom do you communicate internally and externally, and which channels do you use? 9 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  9. 9. Rules of the Game – Team Discussion Three questions to discuss with your team: Does this affect you? What do you do? Who do you tell? 10 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  10. 10. Rules of the Game – Preparing for the Debrief After discussing with your team, summarize on your report sheet: One thing you learned One thing that surprised you One thing you feel was missing from the discussion What would you now recommend to your organisation and/or community to do differently? 11 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  11. 11. ws….Breaking News….Breaking News….Break 12 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  12. 12. ws….Breaking News….Breaking News….Break 13 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  13. 13. ws….Breaking News….Breaking News….Break 14 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  14. 14. ws….Breaking News….Breaking News….Break 15 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  15. 15. ws….Breaking News….Breaking News….Break 16 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  16. 16. ws….Breaking News….Breaking News….Break 17 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  17. 17. ws….Breaking News….Breaking News….Break 18 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  18. 18. Feeding Back – Preparing the Debrief Summarize on your report sheet: One thing you learned One thing that surprised you One thing you feel was missing from the discussion What would you now recommend to your organisation and/or community to do differently? When full business resumes, how do you review the events and your reactions? 19 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  19. 19. Taking RTGS resilience to the next level Testimonial from the Bank of England Premium Service Forum 2013 Stephen Harries Manager, Messaging & Interfaces, Bank of England 20
  20. 20. What we do RTGS settled, on average, £570bn per day (135k vol), and £743bn (229k vol) on its busiest day, last year Through RTGS, the Bank of England provides the following HVPS settlement (CHAPS) DvP settlement (CREST) Deferred Net Settlements for LVPS’s Also plays key role in the implementation of monetary policy Our reliability: 100%; availability since 2011 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  21. 21. Milestones 2013 2012 2010 2008 2006 2005 2001 1996 • RTGS Live • Moved to SWIFT FIN • DvP in central bank money in Crest with real-time links to RTGS • Dual-site for operations staff • Introduction of Reserves Accounting Premium Service Forum 2013 – Amsterdam – 25-26 November 2013 • Automation of DNS scheme settlement via SWIFT • Full copy payment message from SWIFT • User Business Intelligence system • Internal Business Intelligence dashboard • Liquidity Savings Mechanism
  22. 22. RTGS is extremely resilient, but weaknesses with current contingencies for total loss Reintroduction of credit risk Introduction of operational risk Capacity constraints Challenge in the identification of ‘grey payments’ Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  23. 23. Third Site capability (international comparisons) and drawbacks Not cost effective for Bank of England Does not address replication of technology issues Optimum would be geographically remote (even more expensive) Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  24. 24. Genesis How can we determine intra-day balances at point of failure for RTGS? If SWIFT calculate balances for us, are they effectively running a basic RTGS system? Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  25. 25. SWIFT Market Infrastructure Resiliency Service (MIRS) SWIFT hosting a simple, generic RTGS system Could be used by other central banks Business operations will remain with the BoE Enables recovery from SoD/Intra-Day total loss of RTGS Is generic - will not cover all UK specifics DvP; collateral; reserves accounting are all bespoke to the UK Payment automation influenced by UK volumes only (100-200k/day) Functionality limited to a basic RTGS service Central Bank Validation Group confirmed functionality Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  26. 26. MIRS will Enable payments to continue at normal volumes Enable payments to be made with settlement finality (so eliminating credit risk introduced under ‘Bypass’) Be seamless to our participant banks Enable DNS scheme clearing settlements as normal Provide an interface for BoE & our participant banks to monitor/control Dispense with our current contingencies Resolve the ‘grey payments’ issue associated with Bypass Be geographically remote Run on different technology from our current RTGS service And assist with Cyber-Security... Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  27. 27. Cyber-Security evolving best practice How can you recover from a total loss of your system? • Technological diversification Store inputs separately, as messages Store a ‘Golden Copy’ of your database separately Roll-forward from the Golden Copy (replaying the separately stored messages) Forensically investigate the affected system offline and repair it PFMI Principle 17 – operational recovery within 2 hours Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  28. 28. MIRS current status Bank signed a ‘pilot agreement’ in July 2011, aiming to go-live late 2013 SWIFT development from January 2012 to Q1 2013 Pilot tests conducted by the Bank very successfully in December 2012 and June 2013 BoE amended RTGS system to interface with MIRS BoE internal testing of MIRS completed summer 2013 CHAPS banks connectivity testing and training summer 2013 BoE testing with CHAPS banks October/November 2013 Scheduled for go-live January 2014 CHAPS banks very supportive Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  29. 29. RTGS future developments …. 2014/15 2014 • MIRS • RTGS • Internal 2012 Enquiry Business Link move • User Intelligence to Business dashboard SWIFTNet Intelligence • Liquidity Browse system Savings 2013 2010 • Full copy payment • Automation message 2006 of DNS from • Introduction scheme of reserves settlement SWIFT accounting via SWIFT 2008 2005 • Dualsite for • Moved to operati SWIFT FIN ons • DvP in staff central bank money in Crest with real-time links to RTGS 2001 1996 • RTGS Live • PreFunding for the DNS schemes Mechanism MIRS will impact the way we develop most/all future enhancements And running throughout: Cyber-Security considerations... Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  30. 30. Q&A Thank you 32 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  31. 31. Wrap Up and Next Steps Thank you for your active participation! Two questions to continue considering with your community: What would you recommend to your organisation/community to do differently? When full business resumes, how do you review the events and your reactions? PSF Report and follow up 33 Premium Service Forum 2013 – Amsterdam – 25-26 November 2013
  32. 32. Thank you

×