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Event name, location and date
SWIFTNet for the Single
Shared Platform
Name of speaker
Title
Institution
TARGET2_generic_v8.ppt
Slide 1
Agenda
Introduction
A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2
TARGET2 Preparation phase
Conclusion
Slide 2
Trans-European Automated Real-time Gross Settlement Express Transfer
A system of systems (1 Jan 1999)
Slide 3
Typical Cross-Border Payment flow
RTGS 1
RTGS 2
Domestic
Bank 1
Central Bank 1
Payment request
Interlinking
Domestic
Central Bank 2
Bank 2
Payment confirmation
Slide 4
TARGET2 - Single Shared Platform
Swift Net Services
Bank A
Bank B
Interlinking via FIN
NCBs
Ancillary Systems Slide 5
Agenda
Introduction
A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2
TARGET2 Preparation phase
Conclusion
Slide 6
SWIFTNet infrastructure for SSP
Bank B
Bank A
Internal
payment system
SWIFTNet
SWIFTNet FIN
SWIFT interface
payment message
SWIFTNet
FIN Copy
SWIFTNet FileAct
settlement
authorisation/
request
refusal
Real-time reporting
SWIFTNet InterAct
Real-time cash management
SWIFTNet Browse
On-line visualisation of
information
Payment module (PM)
Central SWIFT interface
Payment processing
Bank A
Bank B
Information & control
module (ICM)
SWIFTNet services
FIN/FIN Copy
Slide 7
Interbank transfers - between HAM accounts
Bank A
Bank B
Internal
payment system
Internal
payment system
SWIFTNet FIN
SWIFT interface
SWIFT interface
1
4
3
1
MT202 “simplified”
2
Booking
3
MT202 “simplified”
4
HAM
Participant interface
2
4
MT900 to sender
MT910 to receiver
Payment processing
Optional messages
Slide 8
Payment processing in the SSP

Credit transfers and direct debits
–
–

Settlement process
–
–
–

FIN Copy MT096 and MT097 (full copy)
MT012 sender notification (optional- by participant individually)
MT019 Abort notification
Statement of RTGS accounts (optional)
–
–
–

MT103, MT103+, MT202 are mandatory
MT204 is optional
MT940 customer statement message
MT950 statement message
For end-of-day reporting on all transactions settled on the RTGS account
Update of credit lines (optional)
–
–
MT900 confirmation of debit
MT910 confirmation of credit
Slide 9
SWIFTNet FIN Y-Copy
Payment
order
1
2
3
Payment
Instruction
SWIFTNet FIN
Y
1
Bank A
4
- Copy
Bank B
2
Settlement request
5
3
5
Settlement response
4
Final Payment
Instruction received
5
Sender / receiver
notification and
reporting (Optional)
SWIFT
Interface
Settlement
Application
Slide 10
Use of FIN Copy for RTGS Payment Order
SWIFTNet FIN
Payment order
(MT103, 103+,
202,204*)
Bank A
Y
Temporary queue Settlement request awaiting
response from central
institution
- Copy
Bank B
* MT204 is optional
Slide 11
Use of FIN Copy for RTGS Settlement
Request
SWIFT Net FIN
Payment order
Bank A
Y
- Copy
Bank B
Settlement
Request
(MT096)
Slide 12
FIN Copy for RTGS Authorisation
SWIFTNet FIN
Payment order
Bank A
Sender notification
(MT 012)*
Y
Settlement
Request
(MT 096)
Approved / Settled
Payment order
- Copy
Bank B
Authorisation (MT 097)
* Sender notification is optional per participant
Slide 13
FIN Copy Rejection
SWIFT Net FIN
Payment order
Bank A
Abort
Notification
(MT 019)
Settlement
Request
(MT 096)
Y
- Copy
Bank B
Rejection
(MT 097)
Slide 14
Standard FIN Copy Security using MAC/PAC
MAC: A to B
SWIFT
Y- Copy
PAC: A to
Central Institution
PAC: Central
Institution to B
Slide 15
SWIFTNet Phase 2 and TARGET2
Design/build/test
Pilots
Infrastructure
upgrade
RMA usage
2004
2005
2006
2007
2008
Development phase
User
testing
Migra
tion
2004
2005
2006
2007
2008
Slide 16
TARGET2 – SWIFTNet Phase 2
Objectives
 To decouple SWIFTNet Phase 2
project planning from TARGET2
project planning
 Avoid massive BKE between all
TARGET2 participants
 Allow all involved parties (end
user and CI) to migrate
independently
Slide 17
Consequences for TARGET2 participants
Requirement: remove obligation for BKE exchange with
all T2 correspondents
 Solution: Pre-agreed MAC mechanism
– will be provided as FIN CBT upgrade to minimize
necessary adjustments
– Description in UDFS version 1.1
– Specification by SWIFT sent to CBT providers
– Provision by CBT providers in 1Q2006
– T2 participant is responsible for implementation
before start of testing phase
– Still allow BKE if exists or required by auditors

For TARGET2 participants TARGET2 migration is independent from
SWIFTNet Phase 2 migration and vice versa !
Slide 18
PKI/BKE
MAC bypass in TARGET2
Pre-agreed MAC
no
Key exists ?
yes
MAC: A to B
SWIFT
Y- Copy
A
PAC1: A to
Central Institution
B
PAC2: Central
Institution to B
Central Institution (SSP)
Slide 19
Phase 2 overlap with TARGET2 and Standards 2007
Pilot testing to allow early start with Phase 2
for Wave1 customers and NCBs
J
F
M
A
M
J
J
A
S
O
N
D
J
F
M
Testing
NCBs
TARGET2 WAVE1
Phase 2 deadlines
for Wave1 cust
TARGET2 WAVE2
Phase 2 deadlines
for Wave2 customers
TARGET2 WAVE3
Phase 2 deadlines
for Wave3 customers
Standards2007
Infrastructure
Upgrade
Contingency
Slide 20
TARGET2
Start of user
testing
F
M
A
M
J
J
A
S
O
N
D
J
F
M
CBs compliance
checks
Recommended Phase 2
Migration for T&T (at least)
TARGET2 CW1
AT CY
LV LT
MT
DE
LU
SI
Recommended Phase 2
Migration for T&T (at least)
TARGET2 CW2
BE
IE
PT
FI
NL
FR
ES
Recommended Phase 2
Migration for T&T (at least)
GB
PL
DK
EE
IT
SR2007
GR
TARGET2 CW3
SR2007
Testing
Pilot testing to allow early start with Phase 2
for CW1 customers and NCBs
J
TARGET2 Live
date
Infrastructure
Upgrade
Contingency
Slide 21
SWIFTNet infrastructure for SSP
Bank B
Bank A
Internal
payment system
SWIFTNet
SWIFTNet FIN
SWIFT interface
payment message
SWIFTNet
FIN Copy
SWIFTNet FileAct
settlement
authorisation/
request
refusal
Real-time reporting
SWIFTNet InterAct
Real-time cash management
SWIFTNet Browse
On-line visualisation of
information
Payment module (PM)
Central SWIFT interface
Payment processing
Bank A
Bank B
Information & control
module (ICM)
SWIFTNet services
FIN/FIN Copy
Slide 22
Three complementary core SWIFTNet
messaging services
Browsing
SWIFTNet
Browse
Secure browsing with standard internet
technologies. Appropriate for data
exchange in thin-client browser-based
financial solutions. To be used with
SWIFTNet InterAct and FileAct.
Messaging
SWIFTNet
messaging
SWIFTNet
InterAct
Secure, reliable, and STP-oriented.
Appropriate for exchange of individual
structured financial messages and short
reports.
File transfer
SWIFTNet
FileAct
Secure, reliable, and flexible.
Appropriate for exchange of batches of
structured financial messages and
large reports
Slide 23
SWIFTNet Browse overview
Service user
Service provider
SWIFTNet
Workstation
(running SWIFTAlliance
WebStation and a standard
Browser)
Web Server and
SWIFTNet Link*
SWIFTNet Browse enables secure browser-based access (over SIPN)
from an operator using a standard browser and SWIFTAlliance
WebStation to a service provider’s web server
* Typically used in conjunction with SWIFTAlliance Gateway
Slide 24
SWIFTNet Browse overview
SWIFTNet Browse transparently combines two communication mechanisms
Service user
HTTP-S channel
only authenticates the
system of the end user
Service provider
Using non-managed Web certificates
HTTP-S
SWIFTNet
InterAct/FileAct
Workstation
Web Server +SNL
InterAct / FileAct
channel authenticates
the end user
Using managed SWIFTNet PKI certificates
SWIFTNet Browse allows to initiate InterAct or FileAct exchanges via a secure
browser link. By doing so sensitive data can be exchanged with all the security
and reliability inherent to the SWIFTNet platform, while preserving the benefits of
a browser-based environment.
Slide 25
Key characteristics of SWIFTNet Browse
(when used with SWIFTNet InterAct/FileAct)

Highly secure
& reliable



Standard
technologies
Thin client
Single
Window
Integration with SWIFTNet InterAct / FileAct for
security sensitive data
HTTP-S exchanges secured with web-certificates for
non-sensitive / un-structured exchanges
Closed User Group control
SIPN


Client uses standard browser to navigate
HTTP-S for screens and InterAct for transactions or
FileAct for file transfers

Service provider does not install software at
client side

Re-utilisation of existing SWIFTNet infrastructure
Slide 26
Three complementary core SWIFTNet
messaging services
Browsing
SWIFTNet
Browse
Secure browsing with standard internet
technologies. Appropriate for data
exchange in thin-client browser-based
financial solutions. To be used with
SWIFTNet InterAct and FileAct.
Messaging
SWIFTNet
messaging
SWIFTNet
InterAct
Secure, reliable, and STP-oriented.
Appropriate for exchange of individual
structured financial messages and short
reports.
File transfer
SWIFTNet
FileAct
Secure, reliable, and flexible.
Appropriate for exchange of batches of
structured financial messages and
large reports.
Slide 27
SWIFTNet InterAct is used in Real-time mode
query & response
Real-time
query &
response



Used either in the context
of person-to-application
solutions (with SAB) or
application-to-application
(with SAG)
SWIFTNet InterAct Q& R: real-time exchange of information
XML messages for SWIFTNet InterAct: Cash Management Standards
Access to the SSP (mandatory and optional modules) through
SWIFTNet InterAct:
– Payments queue management
– Liquidity management
– Management of reservation and limits
– etc…
Slide 28
Key characteristics of SWIFTNet InterAct





Secured with SWIFTNet PKI (managed certificates)
Encryption, authentication and integrity control
Non-repudiation
Closed user group control
SIPN
Highly
reliable



Highly available operations
Store-and-forward (not planned in T2)
Delivery notification (not planned in T2)
STP
oriented


Message validation (not planned in T2)
XML-based
Other




Short messages (max 100 K; recommended < 20 K for RT)
Higher priority vs. SWIFTNet FileAct
Flexible central routing
Real-time messaging requires 64K lines minimum
Highly
secure
Slide 29
The SWIFT XML Cash Management standards
Advice
Statement
GetAccount
GetTransaction
ModifyTransaction
CancelTransaction
GetLimit
ModifyLimit
DeleteLimit
GetReservation
ModifyReservation
DeleteReservation
GetMember
ModifyMember
GetBusinessDayInformation
GetCurrencyExchangeRate
GetGeneralBusinessInformation
LiquidityCreditTransfer
LiquidityDebitTransfer
BackUpPayment
ModifyStandingOrder
Receipt
&
&
ReturnAccount
ReturnTransaction
&
Return Limit
&
ReturnReservation
&
ReturnMember
&
&
&
ReturnBusinessDayInformation
ReturnCurrencyExchangeRate
ReturnGeneralBusinessInformation
Slide 30
Three complementary core SWIFTNet
messaging services
Browsing
SWIFTNet
Browse
Secure browsing with standard internet
technologies. Appropriate for data
exchange in thin-client browser-based
financial solutions. To be used with
SWIFTNet InterAct and FileAct.
Messaging
SWIFTNet
messaging
SWIFTNet
InterAct
Secure, reliable, and STP-oriented.
Appropriate for exchange of individual
structured financial messages and short
reports.
File transfer
SWIFTNet
FileAct
Secure, reliable, and flexible.
Appropriate for exchange of batches of
structured financial messages and
large reports
Slide 31
SWIFTNet FileAct is used in real-time and
store-and-forward mode
Store-andforward file
transfer
Real-time
file download

Typically used to reach
a large number of
counterparties
Typically used in the
context of person-toapplication solutions
(with SWIFTNet Browse)
Access to the SSP via ICM through SWIFTNet FileAct:
– Reporting
– Directory distribution

Used in store & forward mode by Target2 as sender of files (TARGET2
Directory updates)

Used by TARGET2 participants to pull files ( TARGET2 directory)
Slide 32
Key characteristics of SWIFTNet FileAct
Highly
secure





Secured with SWIFTNet PKI (managed certificates)
Encryption, authentication and integrity control
Non-repudiation
Closed user group control
SIPN
Highly
reliable




Highly available operations
Store-and-forward
Delivery notification
Highly reliable file transfer protocol
Flexible


Any file content (structure and character set)
Files size up to 250 Mb



Lower priority vs. SWIFTNet InterAct / SWIFTNet FIN
Flexible central routing
Real-time file transfer requires 64K lines minimum
Other
Slide 33
Agenda
Introduction
A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2
TARGET2 Preparation phase
Conclusion
Slide 34
Two different technical modes for using Information
and Control module (ICM)

Application-to-application mode
–
–

Information and messages will be
transferred between the SSP and
the individual participants’ internal
application.
Therefore the participant must:
– Develop its own application
– Adapt an existing application
or
– Purchase an appropriate
solution
User-to-application mode
–
–
–
The objective is to permit
direct communication
between a participant’s users
and ICM.
The information is displayed
in a browser running on a PC
system (SWIFTAlliance
Webstation)
Participants do not need to
develop a special application.
Application-to-application
User-to-application
SWIFTNet InterAct
SWIFTNet InterAct
SWIFTNet FileAct
SWIFTNet Browse
(SWIFTNet FileAct)
Slide 35
Possible interface for accessing TARGET2
ICM access
mode
User-toApplication
Application-toApplication
ICM
user profile
Any user *
SAA/E
users
- SWIFTAlliance WebStation
- SWIFTAlliance Gateway
WebStation concentration
SWIFTAlliance
Gateway
Single Window
SWIFTAlliance Starter Set
* Assumption: user is already SWIFTNet FIN user
Slide 36
SWIFTAlliance Starter Set
Enabling the single window
SWIFTNet
SWIFTAlliance
Entry
or Access
File
transfer
GUI

SWIFT Alliance Starter Set:
opens the entire single window
for you
SWIFTAlliance Starter Set

SWIFTNet
SWIFTNet
Link Link

Market
infrastructures

SWIFTNet
SWIFTNet FIN
FIN
SWIFTNet
Customer
solutions

InterAct
InterAct*

Business
Business
solutions
solutions
Browse
* when used in conjunction with SWIFTNet Browse
FileAct
Slide 37
SWIFTAlliance Starter Set

A software that leverages the
SAE/SAA platform to provide out-ofthe-box file transfer and browsing
capabilities

Features
SAB
[RA]
[RA]
Browse/InterAct
& Manual files
SAS
SAA/E

–
SAS, SAA/SAE & SNL run on
the same system
–
Allows one concurrent operator
(SAB)
–
SAS is available on Windows
and AIX/Solaris
–
SAS include the SAB software
Connectivity
–
Connectivity Pack 1 to 5
Modem
Slide 38
SWIFTAlliance Gateway
WebStation Concentration

SAB
SAB
[RA]
[RA]
SAB
[RA]



Limited SAG licence allowing for
SAB concentration
License includes 5 concurrent
users and 1 SAB Base license
SAB on the corporate desktop
Upgrade to more concurrent
users:
–
5->10
– 5->20
[RA]
FIN interface
Browse/InterAct &
Manual files

Connectivity Pack 2 to 5
SAG
Slide 39
SWIFTAlliance Gateway
Single Window
CLS
FIN
Interface gateway
MQ RA
RA
SAB

The ‘typical’ SAG Licence

License price based on traffic

License includes one Host Adapter
(RAHA or MQHA) + one Agent (FTA or
TDA), 5 concurrent users and 1 SAB
Base license

Upgrade of Agents & Host Adapters
possible, price depending on traffic tier

Value added versus SAG automation
[RA]
SAG
Browse, InterAct
& FileAct
for any services
DMZ

–
Full SWIFTNet concentrator
–
SAG in the DMZ
–
Scalability, resource optimisation
–
Resilience
Connectivity
–
Connectivity Pack 2 to 5
Slide 40
SWIFTAlliance Gateway – Licensing & pricing
‘An easy step approach’
Profile 3:
“Single Window”
€13,114
€5,328
€4,099
SWIFTAlliance
Starter Set
Benefits :
-FileAct out-of-the
box, manual
-1 concurrent user
Profile 1 :
“WebStation
Concentration”
Benefits :
-Flexible SAB deployment
-From 5 till 320 concurrent
users
Price :
€3893 (incl SAB
Base license + 1
user)
Price :
Starts at €7,992
(incl SAB Base license + 5
users)
YMF: €1,516
YMF: €3,477
Profile 2 :
“Automation “
Benefits :
-Off-the-shelf application
integration using Agents
(FTA or TDA for < 200
InterAct or FileAct per day)
-Flexible SAB deployment
-From 1 till 320 concurrent
users
Price :
Starts at €13,320
(incl SAB Base license, 1
user, 1 Agent)
YMF: €3,402
Benefits :
-Can reside in DMZ
-Scalability & resource
optimisation
-Resilience
-Off-the-shelf application
integration using Agents
(FTA or TDA) and Host
Adapters (RAHA or MQHA)
-Flexible SAB deployment
-From 5 till 320 concurrent
users
Price:
Starts at €26,434 depending
on traffic license
(incl SAB Base license, 5
users, 1 Agent, 1 Host
Adapter)
YMF: €6,025
EUR prices are based on SWIFT 2005 budgeted reference rate (1.22)
Slide 41
SWIFTAlliance offering for TARGET2
Application-to-Application to ICM
User-to-Application to ICM
Messaging Services
Messaging Services
SWIFTNet InterAct
SWIFTNet Browse
SWIFTNet FileAct
SWIFTNet InterAct
SWIFTNet FileAct
Recommended interfaces
Recommended interfaces
Vendor application  SAG Single
Window
SAA/E users  SAS
In-house application  SAG Single
Window + Developer Tool-kit
Others  SAB
Option: SAG WebStation Concentrator
Accessing the Payments Module
Messaging Services
SWIFT FIN
SWIFTNet FIN Copy
Recommended Interfaces
SWIFTAlliance Access /Entry
Slide 42
Agenda
Introduction
A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2
TARGET2 Preparation phase
Conclusion
Slide 43
Migration Timeline : example in case of going Live
Date in November 2007
2005
2006
2007
2008
Preparation
Planning
Ordering
Design
M1
Ordering and
Service
Subscription
Installation
M2
Installation &
configuration
Testing
M3
Start T2 test
Live
M4
Start T2 Live
Slide 44
Project Definition and Preparation:
 Appoint
a project team
 Read TARGET2 technical documentation
 Select access mode (DP/IP)
 Identify requirements to implement Target2
 Upgrade your connection with your local
Network Provider (swift.com – Partners – Network Partners) if
applicable
 Line provisioning / Installation
Slide 45
Ordering : Software ordering and Service
Subscription
Milestone1 (M1) to be completed by April 2007

If not yet done, register to swift.com online services
 Order
additional software (SAB/SAG/SAS) or
upgrade with SWIFT (swift.com – Support – ordering)

Software delivery

Complete and submit the e-MSSF by indicating single or
multiple service subscription (swift.com – Support – ordering-Target2
specific MSSF)

Complete 1 e-MSSF for Target2 Testing and 1 e-MSSF
for Target2 Live
Slide 46
TARGET2 Service subscription (Life cycle)
Customer
NCB
Service Administrator
1
TARGET2
form
Approval
page
Approval
page
SWIFT.COM
4
Validation
3
6
5
2
7
Implementation
Tracking - Monitoring
Reporting sheet
Slide 47
Installation and configuration
Milestone2 (M2) to be completed before May 2007

Perform your interface upgrade and install additional
software or contact a SWIFT Business Partner (swift.com
– Partners – Business Partners)


Install the FIN Copy Patch available on swift.com
Download Center (swift.com – Support– Download Center) for
non-SWIFT interface users please contact your
Interface vendor
Upgrade your interface to enable pre-agreed MAC
mechanism by installing patch (swift.com – Support– Download
Center)

Configure your SWIFTNet interface
Slide 48
Testing
Milestone3 (M3) at start of test wave: May 2007



Exchange keys with Test Target2 CID (TRGTXEP0)
Activation of Target2 services in Test mode
Start testing according to the test cases/scenarios as prepared by
ESCB and your NCB
Connectivity
SSP
development
CB’s
Acceptance
Testing
Testing
Interoperability
Testing
Country
Testing
Business
Day
Testing
Certification activities
Activities
in the
Production
environment
Free Testing activities
TARGET2 User Testing
Slide 49
Live
Milestone4 (M4) at start of Live wave: November 2007
 Exchange
keys with Test TARGET2 CID
(TRGTXEPM)
 Activation
of TARGET2 services in Live mode
 Start
testing according to the test
cases/scenarios as prepared by ESCB and your
NCB
Slide 50
Where to find help ?

Detailed readiness information is
available please consult the
‘Getting Started’ document
(www.swift.com – Products and Services – Market Infrastructures – TARGET2)

Please also consult the TARGET2 website
(https://target2.ecb.int )


Contact your National Central Bank
www.swift.com:
–
–
–
–
Contact details of Network Providers, Business Partners
SWIFT Customer Service Centers
SWIFT on-line support and Frequently Asked Questions (FAQ’s)
Updates on vendor initiatives, activities and status
Slide 51
Migrate smoothly to TARGET2
with SWIFT Training
 Objective : receive technical background information to enable
a smooth migration and implementation
 www.swift.com/training
 Two different modules according to your role and requirements:
 Business overview of TARGET2
 Technical infrastructure and file transfer
 Complemented with technical training courses on the
SWIFTAlliance interfaces
 Available as of October 2005
 Courses scheduled according to the country migration window
Slide 52
Migrate smoothly to TARGET2
with SWIFT Training
Module 1 – Business overview of TARGET2
■ TARGET today – the need to evolve
■ Scope and framework of TARGET2 including
an overview of the SSP
■ Overview of the services offered by the SSP
■ SWIFT's services for TARGET2
- SWIFTNet FIN, FIN Copy and CUG
- SWIFTNet InterAct, FileAct and Browse
Slide 53
Migrate smoothly to TARGET2
with SWIFT Training
Module 2 – Technical infrastructure and file transfer
 The Secure IP Network, including resilient network
access options for TARGET2 direct and indirect users
 The core SWIFTNet messaging services and their features:
SWIFTNet InterAct, SWIFTNet FileAct, SWIFTNet Browse
 SWIFTNet security: layered security, PKI and
SWIFTNet security officers
 FileAct on SWIFTAlliance WebStation: configuration, sending
and receiving files
 FileAct on SWIFTAlliance Gateway: brief overview of FTA
Module 3 – Managing SWIFTAlliance Gateway
Module 4 – Managing SWIFTAlliance Starter Set (incl. WebStation)
Slide 54
TARGET2 migration milestones
2003
2004
2005
2006
2007
Definition phase
GFS
UDFS v1 UDFS v2
UDFS final
User testing
Book 4
Live
Customer migration process
Slide 55
SWIFT supports the migration to TARGET2
 Ad-hoc
participation of SWIFT to the migration
task force
 Your
Relationship Manager add name &
coordinates) is your single window to SWIFT
 Your
service partner (add name & coordinates)
can advise you on the technical infrastructure
Slide 56
uestions
A
&
TARGET2_generic_v8.ppt
nswers
Slide 57