Transcript Taiwan SWIFT User Group

September 2008
Accord™
SWIFT’s Solution for Trade
Confirmation Matching
Slide 1
Matching Confirmations on Accord
single-slide overview
Deal
Confirmations:
(MT300,305,306,320,
330,340,341,360,
361,362, 392;
MT 5151 ; FpML2
(for IRS, CDS)
Accord
Subscribers
(>430 in 65
countries)
• Banks
• Brokers
• Custodians
• Fund mgrs
• Corporates…
Accord
subscriber or
non- subscriber
SWIFT
Copies of
confirmations
 Real-time reporting &
exception handling.
 Integration available for
various Back-Office
Systems.
1: scheduled for 4Q 2008; will be sent directly to Accord
2: scheduled for 2009
Copies of non-SWIFT
data: fax, e-mail, e-FX
portals, Broker feeds,
Reuters.....
Accord
•
•
•
•
•
Real-time Confirmation Matching Service
Availability of >99.97% last 5 years
>75K msgs/hour observed matching capacity
Common matching rules + user-defined rules
Financial Liability for Matching results
Slide 2
Accord – What?
Seen from inside the bank
Long Term Archive of matching history
and audit tail (10 years) on line
Accord
Central
Accord
Server
Central
Server
Confirmations + Matching
results, operator actions,
history, audit trail…for live
trades.
Back Office Integration
using API
Exception Handling
using Graphical Interface
SIPN
Gateway
Archive Access (e.g.auditor)
Browser based
Slide 3
Accord – Benefits
Reducing Costs and Risk

Low Total Cost of Ownership (TCO) thanks to ASP model
– Total outsourcing to SWIFT (installation, upgrades, operations, testing,
back-ups, capacity planning, etc. )
– Maximised Operator Efficiency (powerful GUI for exception handling)
– Full multi-entity support: distributed, concentrated, hubbed
– Automated feed into Treasury Management Systems  STP
– Audit trail remotely accessible (e.g. from headquarters), for all branches
– Tier-based pay-per-user pricing, with traffic aggregation and brick pricing

Risk Reduction
– Ultra-reliable matching results. Matched items with financial guarantee.
– Identity of matching results guaranteed between subscribers
– 100% Fraud-resistant
– Operator role profiles for segregation of Duties, 4-eyes principle etc.
– Very high uptime
– Operated for you since >15 years, by the people that built it, on two sites
in different continents
– Wherever you are, assistance from analysts seeing your problem, is only
a phone call away
Slide 4
Accord – Upcoming functionality
Continued expansion of functionality and coverage

Recent and upcoming functionality
– Specific Tools for Supervisors and occasional users (Dashboard, and Easy
Search) – available since 2007
– Management Reports – “end of day/shift”: available since 2007
– Management Reports – “end of month”: planned end 2008
– Continued enhancement of exception handling toolkit

Coverage in Asset Classes – available and planned
– Available: FX, Vanilla and exotic FX options, Deposits, call/notice deposits,
FRAs + resets, Interest Rate Swaps (IRS), reset/advice of payment for IRS
– Under development: FpML interest rate swaps, crossmatching of IRS in
FpML with MT 360, Credit Default Swaps (single name, Index, Tranche)
– Planned for 2009 and later: Commodities (metals), Commodity Options,
Equity Swaps, Swaptions, Total Return Swaps
Slide 5
Accord – Evolution
Going beyond matching, and beyond treasury

E-trading platform integration
– First Platform: Bloomberg POMS
– Various phases to bring customer total outsourcing of:
– confirmation generation and submission to Counterparty (FX, Options,
OTC derivatives)
– Matching, and importing matching results
– Generate and transmit instructions for gross settlement (to Nostro
bank), or for allocations (respective Custodians)

Prime Broker/Executing broker matching of MT 515
– Various phases will bring:
– Matching PB and EB view on trades by hedge funds (equity, fixed income)
– Allocations processing
– Generation and transmission of settlement instructions
Slide 6
Bloomberg blotter update
Solution description
Sell-side OMS
FX Execution
Buy-side OMS
TERMINAL
Order capture
Order execution
Block trade
+ execution report
confirmation
Notification
Allocation
storage
Receive FX confirmation
Return block trade match results (API)
Matching
Receive allocation details
Block allocation
Decompose block trade
according to allocations
Settlement results
Return alloc. results
Notification
Generate FX notification
FX notifications
Generation
Settlement results
Prime brokers / Custodians
Slide 7