Transcript Payment Market Infrastructures

SWIFT for Payment Market
Infrastructures
Short version 7
Stephane Ernst, Market Manager for HVPMIs
Sep 2010
Basic concept of RTGS
Real Time Gross
Settlement
• the continuous (real-time) settlement of
funds individually on an order-by-order
basis (without netting).
Settlement
processing
• an act that discharges obligations in
respect of funds or securities transfers
between two or more parties. A
settlement may be final or provisional.
Settlement finality
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• settlement which is irrevocable and
unconditional.
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Business and operational functions of RTGS
Payment
transaction
processing
Liquidity
Management
Participant
administration
Reporting
Management
Transaction input
Validation
Liquidity management
Clearing &
Settlement
Reserve
management
Profile management
Operational
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Notification
Payment
investigation
Reference data
Statistical
Regulatory
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SWIFT’s 5-pillars offering for Payment
Market Infrastructures
Your
Payment Market Infrastructure system
Services
Consulting
Training
Customer Support
Interfaces
Messaging
FIN,
InterAct,FileAct,
Browse
Copy
Alliance Interfaces
Integration tools
Security
Connect
PKI,HSM
Alliance
Connect
Bronze/Silver/
Gold
A comprehensive solution
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SWIFT offering for high value payments MIs
SWIFT offers
Standards (MT, MX)
Messaging (FIN, FINCopy, FileAct,
FileAct Copy, InterAct, Browse, Mail)
Central bank
CSD
Govt
Entities
Connectivity (SAA,SAG,SSA,SAL)
High-value payment MI
SWIFT Support
Payments processing
Participants
Cash management
ACH
Direct Participants
Reference data
Reporting
Indirect Participants
Low-value payment MI
Generic secure communication
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Payments market
Payments
standards
market standards
SWIFT committed to support today and tomorrow standards
Exceptions and Investigations
Direct Debits (Bulk and Single)
Credit Transfers (Bulk and Single)
Beneficiary
customer’s
financial
institution
Cash Management
MT 1xx, 2xx
Cash Mgmt (Adv & Stat)
Except & Investigations
MT 9xx
MT 9xx
MT 101
MT 9xx
Cash Mgmt (Adv & Stat)
Direct Debit Initiation
Except & Investigations
Credit Transfer Initiation
Ordering
customer’s
financial
institution
UNIFI MX
Ordering
customer
Beneficiary
customer
MT-based
MT
COEXISTENCE
MX/ISO 20022



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SWIFT
for HVPMI Offering Presentation – Confidentiality: Public
Payment transaction processing:
Payment per payment
• The store-and-forward
messaging service, FIN
• InterAct using MX UNIFI
messages
Participant B
Internal
Payment system
SWIFTNet
FIN/InterAct
V-topology
SWIFT interface
Participant A
SWIFT interface
Central institution
Payment processing
Bank A
Central web server
Bank B
FIN/InterAct transaction flow
• FINCopy is the most relevant
solution for high-value payment
systems wolrdwide
Participant B
Internal
Payment system
SWIFTNet
FIN Copy
SWIFT interface
Participant A
Payment
message
Settlement
request
Central institution
Authorisation/
refusal
SWIFT interface
Payment processing
Bank A
Payment message
(settled)
Central web server
Bank B
FIN Copy transaction flow
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Cash management and participant
administration
• InterAct, provides interactive exchange
of instructions between counterparties
– Transfer funds between accounts
– Change priorities of queued
payments
– Modify intra-day credit limits to
better manage liquidity and collateral
throughout the day in real time
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SWIFTNet
SWIFT interface
Participant A
InterAct real-time
information exchange
and control
Central institution
• Browse, provides secure browsing to
access the market infrastructures to
monitor
– Current positions of the settlement
account
– Foreign exchange and credit risk
exposures
– Transaction flow and status
Participant B
Internal
Payment system
SWIFT interface
Payment processing
Bank A
Browse online
Info query
Central web server
Bank B
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Report & directory management
• Report management, where
volume and flexible structure
are essential
• FileAct is ideal for exchanges
of
– Large reports: business,
statistical or regulatory
reports
– Raw data
– Directories
Participant B
Internal
Payment system
SWIFTNet
SWIFT interface
Participant A
FileAct for
reporting
SWIFT interface
Central institution
Payment processing
Bank A
FileAct for
reporting
Central web server
Bank B
FileAct for bulk reporting
• FIN Inform can supplement
FIN to report transaction
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SWIFT can support a converged system using Y-topology
Internal
Payment system
SWIFTNet
Participant B
SWIFT interface
Participant A
Payment message
Payment file message
Settlement request
Settlement request
Authorization/rejection
Authorization/rejection
Payment message settled
Payment file message settled
Central institution
SWIFT interface
Payment processing
Bank A
Central web server
Bank B
FIN Y-topology for transaction-per-transaction payment flow
FileAct Header copyY-topology for Bulk or Batch payments flow
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SWIFT can support converged system using V-topology
Payment
instructions
by File
Internal
Payment system
Participant B
SWIFT interface
Participant A
Payment instruction
by transaction
Notification message
Central institution
SWIFT interface
Payment processing
Bank A
Central web server
Bank B
FIN/InterAct V-topology for transaction-per-transaction payment flow
FileAct V-topology for Bulk or Batch payments flow
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SWIFT services for payment market infrastructures
What
•Project Management plan
PROJECT
MANAGEMENT
•Monitoring
•Problem management
•Reporting
End-to-end project
management
•Customer support
packs
SERVICE
OPERATION
Easy live
SERVICE DESIGN
Requirement &
Technical Design
Specification
•Messaging landscape analysis
•Payments STP review
•Technical design
•Integration design
•Business Continuity planning
•Disaster recover process design
•Design Security Best Practices
•Testing support
•Operational procedures
SERVICE
OPERATIONAL
READINESS
TRAINING
MI & Participant
trained
Messaging services
Go-Live
•Member registration follow-up
•Supporting documentation
•Deployment of the MI participants
PARTICIPANT
DEPLOYMENT
Member Messaging
Services
implemented
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SERVICE
IMPLEMENTATION
Messaging Services
implemented
• Products
• MI implementation
•Ordering and provisioning (*)
•Alliance portfolio installation of the MI
•SWIFTNet Messaging prototyping
•Integration SWIFT Alliance/application
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SWIFT services for payments
PROJECT
MANAGEMENT
SERVICE
OPERATION
SERVICE
DESIGN
SERVICE
OPERATIONAL
READINESS
PARTICIPANT
DEPLOYMENT
TRAINING
Delivering value and peace of mind
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SWIFT support successful PMI transformations
Adopting SWIFT provides….
Participants/members with
Central bank
CSD
Govt
Entities
High-value payment MI
State-of-the-art Reliability, Resiliency,
Security and Customer Support
Right trusted third party services
Global reach and the interoperability
Participants
Business flexibility
ACH
Direct Participants
HVPMIs with
Indirect Participants Low-value payment MI
Participants
SWIFT for PMIs - 28 October 2009
Direct Participants
High resilience and security
Business &operational cost efficiency
Comprehensive solution
Risk reduction
Focus on core service
Global and community reach
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SWIFT for High value payment market infrastructures
Live system market Status…
North America
Canada
US (TCH)
Central & Latin America
Bahamas
Barbados
Chile
Dominican Rep.
ECCB
El Salvador
Guatemala
Trinidad & Tobago
Venezuela
Western Europe
Denmark
Eurozone (EBAEURO1/STEP1
&TARGET2)
Norway
Sweden
Switzerland
UK
62 systems
90+ countries
Central & Eastern Europe
Albania
Azerbaijan
Bosnia & Herzegovina
Bulgaria
Croatia
Hungary
Romania
Latvia
Middle East
Bahrain
Israel
Jordan
Kuwait
Oman
UAE (DIFC)
Africa
Angola
Algeria
Central African States (BEAC)
Ghana
Kenya
Mauritius
Morocco
Sierra Leone
South Africa
Tanzania
Tunisia
Zambia
Zimbabwe
West African States (BCEAO)
SWIFT for HVPMI Offering Presentation – Confidentiality: Public
Botswana
Egypt
Lesotho
Namibia
Swaziland
Uganda
Asia Pacific
Australia
Fiji
Hong Kong
New Zealand
Philippines
Singapore
Sri Lanka
Thailand
Systems on Y Copy topology
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Thank you!
Q&A
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