SWIFT in Russia


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SWIFT in Russia

  1. 1. SWIFT in Russia and the MIFC project. Steven Palstermans, Head of Strategic Financial Initiatives, Russia & CIS BRBC Event, February, 4th 2014, Moscow
  2. 2. Agenda Introduction – SWIFT and SWIFT in Russia Moscow – International Financial Centre (MIFC) SWIFT supporting MIFC BRBC Event, February 4th 2014, Moscow 2
  3. 3. SWIFT… the global provider of secure financial messaging services 4bn+ 10,000+ messages per year customers 18m 212 5x9 countries availability messages per day: 22m peak day BRBC Event, February 4th 2014, Moscow
  4. 4. SWIFT in Russia • 1989: First customer, VEB • Today: 600+ customers • 2009: SWIFT office opened • Traffic growth: 60% plus • Domestic payments represent biggest business BRBC Event, February 4th 2014, Moscow 4
  5. 5. Russian SWIFT traffic by Business Area Trade Finance 0% Treasury 8% Securities 7% Payments 85% Sent and received traffic for Russian BICs, split per Business Area. BRBC Event, February 4th 2014, Moscow 5
  6. 6. Payments sent by Russia and the world Growth in Russia 5 times larger than worldwide trend 160.00% Russia World 140.00% 120.00% +137% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 2007 2008 2009 2010 2011 2012 * Worldwide growth in payment transactions of 26 % * All traffic in the payments business area sent by a Russian institution (in all currencies) BRBC Event, February 4th 2014, Moscow 6
  7. 7. Agenda Introduction – SWIFT and SWIFT in Russia Moscow – International Financial Centre (MIFC) SWIFT supporting MIFC BRBC Event, February 4th 2014, Moscow 7
  8. 8. MIFC initial milestones June 2013 Dec 2010 July - Nov 2010 2009 2008 The MIFC Action Plan launched The 2020 Concept introduced BRBC Event, February 4th 2014, Moscow The MIFC Taskforce formed + MIFC Project Groups kicked off The MIFC International Advisory Board appointed The MIFC Roadmap approved by Parliament Source: www.mfc-moscow.com 8
  9. 9. Key facts about MIFC Government support • The Government supports the MIFC project by assigning Ministry officials and members of other executive bodies to Project Groups. Business stakeholders • Experts from major Russian and international financial institutions. The creation of MIFC is sponsored and supported by all key policy makers. Country wide • The changes in legislation and regulation will apply throughout Russia. The experience and success of Moscow will be shared with the Russian regions. Long-term • The success of the project depends on the long-term performance indicators. Moscow should gain advanced positions in IFC ratings. Source: www.mfc-moscow.com BRBC Event, February 4th 2014, Moscow 9
  10. 10. Benefits For the country: • Stimulating the development of the Russian regions, especially the financial system • Easier capital access for Russian companies, which means investments into the development of the whole country BRBC Event, February 4th 2014, Moscow For the economy: For the society: • Legislative base for financial market improvement • Business climate improvement • Financial industry development • Market regulation improvement • Better market infrastructure • Market liquidity increase • Optimization of investor tax burden • New job opportunities in finance • Human resources development • Education and science development • New opportunities for entrepreneurs • Social infrastructure development • Cultural exchange, foreign professionals moving to Moscow Source: www.mfc-moscow.com 10
  11. 11. MIFC - Organisational chart President of Russia Vladimir Putin The Presidential Council for the Financial Market Development Chairman – I. Shuvalov The Presidential Executive Office International Advisory Board for the International financial center in Russia Co-Chairs: H. Gref (Sberbank) U. Rohner (Credit Suisse) MIFC Taskforce Head – Alexander Voloshin Project Groups 1 – 7 BRBC Event, February 4th 2014, Moscow - Project Group Formation - Submitting Head of Project Group candidates for Approval to the Presidential Executive Office - Approval of Project Group member lists Approval of Head of Project Group candidates Head of Project Groups 1 – 7 11
  12. 12. MIFC Working groups 7 workgroups established in 2010 to focus on different areas: 1. 2. 3. 4. 5. 6. 7. Financial infrastructure and financial markets regulation Corporate law and governance, financial transaction taxes Administrative procedures CIS / Eurasian Economic Community (EEC) / Customs Union cooperation Moscow Infrastructure Development Moscow educational, health, cultural and social infrastructure development MIFC Marketing BRBC Event, February 4th 2014, Moscow 12
  13. 13. Agenda Introduction – SWIFT and SWIFT in Russia Moscow – International Financial Centre (MIFC) SWIFT supporting MIFC BRBC Event, February 4th 2014, Moscow 13
  14. 14. SWIFT’s value to MIFC Experience in supporting IFCs ISO Standardi -sation BRBC Event, February 4th 2014, Moscow Financial Messaging Platform 14
  15. 15. Payments Market Infrastructures Status_Dec 2013 HVP only Systems live on SWIFT LVP only Both HVP and LVP Global IPFA Eurogiro Central & Eastern Europe Albania Azerbaijan Bosnia & Herzegovina Bulgaria Croatia Hungary Romania Western Europe Denmark Iceland Norway Sweden Switzerland UK North America Canada Central & Latin America Bahamas Barbados Chile CMCA Colombia (service bureau) Dominican Rep. ECCB El Salvador Guatemala Honduras Trinidad & Tobago Venezuela Russia Eurozone Target 2 EBA Clearing (2 HVP, 1 LVP) Austria Belgium Germany Greece Italy (2 LVP) Spain Ireland The Netherlands Latvia Poland Middle East Lebanon Bahrain Israel Jordan Kuwait Palestine Qatar Africa Angola Algeria Botswana BEAC COMESA Egypt Gambia Ghana Kenya Lesotho Mauritius Morocco Namibia Nigeria Sierra Leone South Africa SADC Swaziland Tanzania Tunisia Uganda Zambia Zimbabwe BCEAO 74 HVP systems (>243 Million pymts/year in 2012) 26 LVP systems (>8.8 Billion pymts/year in 2012) 2000+ banks in 90+ countries Asia Pacific Australia (2 HVP, 1 LVP) Fiji Hong Kong New Zealand Macau Taiwan Philippines Papua New Guinea Singapore Sri Lanka Thailand 15
  16. 16. Status Legend Securities Market Infrastructures YTD 2012 Count S 22 10,000 - 1,000,000 msgs M 20 1,000,000 - 10, 000,000 msgs Live on SWIFT Size < 10,000 msgs L 13 XL 8 >10, 000,000 msgs North America Canada USA Central & Latin America Argentina Brazil Chile Mexico Ecuador Uruguay Western Europe Denmark Estonia Latvia Lithuania Norway Sweden Switzerland United Kingdom Eurozone Austria Belgium Finland France Germany Greece Ireland Italy Luxemburg Netherlands Poland Portugal Spain Cyprus Malta 80+ SMI 63 countries Central & Eastern Europe Armenia ⃰ Bulgaria Croatia Czech Republic Hungary Kazakhstan Romania Russian Federation Slovakia Slovenia Ukraine Middle East Dubai Israel Kuwait ⃰ Lebanon Qatar Turkey Africa Egypt Kenya South Africa Zimbabwe Asia Pacific Australia China Hong Kong India Indonesia Japan Korea New Zealand Singapore Sri Lanka Thailand ⃰ Countries’ SMI is connected but currently no securities traffic Taking considerations of all services, i.e. FIN, IA, FA 16
  17. 17. SWIFT’s medium to long term ambition • Increase market share in the domestic Financial Services Business Domain. • Active usage of SWIFT for domestic payments in Russia for both RTGS and retail (ACH); as well as C2B. • Strengthen the relevance of SWIFT as strategic partner in the development towards MIFC through: – Participation in Working Groups – Consulting – Physical Implementation • Further investigate the possibilities for Go Local Russia. BRBC Event, February 4th 2014, Moscow 17
  18. 18. Steven Palstermans Thank you! Head of Strategic Financial Initiatives, Russia & CIS SWIFT Avenue Adele 1 B-1310 La Hulpe Belgium T D F M E W BRBC Event, February 4th 2014, Moscow +32 2 655 3111 +32 2 655 4099 +32 2 655 3752 +32 478 403023 +7 903 1646095 steven.palstermans@swift.com swift.com 18