P 5 beispiel eines messaging projekts d_pudney

Messaging Project

SWISS Forum for Financial Standards

October 17, 2013

Donald Pudney, Credit Suisse

Agenda

− Setting the scene, including environment and project overview

− Project management recap and our Messaging Project Objectives

− Examples of the challenges faced

• Scope, counterparties, flows, validation and transformation

− Closing thoughts

October 17, 2013 Donald Pudney, Credit Suisse 2

Preliminary Remarks

The following slides….

− … represent my personal views as Project Manager

− … cover items required to successfully implement a «messaging

project»

− … are examples for illustrative purposes only

− … do not represent an official Credit Suisse position


Setting the Scene

Myself – Donald Pudney

− Chartered Accountant, originally from South Africa

− Happily settled in Switzerland since 1997

− Varied program/ project management roles in multinational companies

− Not a “Messaging” specialist

− New parent as just had a son

Messaging Project Overview

− Replacement of MINT platform and enablement of new standards

− Message flows dealt with; SEPA, Funds, FIN (migration started)

− Multiple locations of upstream applications and centralised messaging

platform


Overview - Global Messaging Hub (GMH)

Moscow

Warsaw

Vienna

Gibraltar

London

Mexico City

Sao Paulo

Mumbai

Islamabad Shanghai

Jakarta

Tokyo

Singapore Sydney

Toronto

New York

Bahamas

Cayman Isl.

Bermuda

Guernsey

Paris

Monaco

Milano

Luxembourg Frankfurt

Madrid

Istanbul

Dubai

Taipei

Seoul

Hong Kong

Cyprus

Zurich

Credit Suisse operates a global financial messaging platform centrally out of Zurich to support the

financial messaging needs of all divisions and locations globally. Serves some 90 Credit Suisse branches

in more than 30 locations. The hub enables Credit Suisse to run B2B transactions with up to 8000 SWIFT

participants in over 200 countries. Branches generate approximately 400 Million SWIFT messages per

year, including large value payments, stock exchange transactions and other critical business content such

as intra-day transactions status.

Coverage of Businesses and Standards

Credit Suisse covers various businesses (e.g. payments, funds, securities, FX, etc.)

With clients having different networking capabilities (e.g. SWIFT, PSN, FIX, SIC, Secom, PostFinance, etc.)

In multiple locations with different standards bodies and market practices (e.g. Swiss, SEPA, French, Japan etc.)

October 17, 2013 Donald Pudney, Credit Suisse

examples of differing market practices

5

AMH Workbench

Message Handling AMH STP Engine

Short Term Archive

External Connectors

Internal Connectors

Business Support

Archiving

Anonymization

Sanction Filter

Monitoring

Authorization

DWH

SWIFT

Net

Other

networks

Message

Store

Audit

Trail

IB/PB Business

Applications globally

Key Characteristics

High volume message hub

STP engine for automated

message processing

Workbench for exception

handling

High resilience

Well integrated into Credit Suisse

infrastructure

Internal connector layer for

integration with applications

External connector layer for

integration with external

networks

Horizontal scalability

Service architecture

SEPA FIN FIP

Financial Messaging Platform (FMP)

Overview of vertical and horizontal interfaces


Project Management Recap and Our Project Objectives

What is Project Management - To utilize knowledge, skills, tools and

techniques to project activities to meet the project requirements*

Managing a project * typically includes

− Identifying requirements

− Addressing the various needs, concerns, and expectations of the

stakeholders as the project is planned and carried out

− Balancing the completing project constraints including, but not limited

to: Scope, quality, schedule, budget, resources and risk

Our specific Messaging Project objectives

− Replacement of this messaging hub, with a new application

− Enable the messaging hub to handle new global messaging standards

− Ensure operational continuity of the current messaging requirements

October 17, 2013 Donald Pudney, Credit Suisse * Source: PMBOK ® Guide 7

Examples of the Challenges Faced (1/4)

Funds business moving from FIN to ISO 20022


1 Legacy

2 Counterparties

3 Flows

4 Validation

5

Transformation

Challenge

Upstream applications are not in project scope

Driven by different market practice and/or timeline

Duplication of flows for same business

Multiple standards to follow (e.g. market practice

or bilateral agreements)

Business logic for mapping table selection

required to be built into upstream applications

Topic Implication for project

Scope creep, increase in delivery risk

No direct control, increase in delivery risk

Increased costs and risk for design, testing,

etc.

Increased costs due to massive increase in

complexity

Scope creep, Increase in delivery risk

1 2

3

4

4

5

Project Scope

Funds

Example –

Similar

challenges in

Payments

8


Scope and Counterparties issues


1 Legacy

2 Counterparties

Challenge

Upstream applications not in messaging project

scope

Priorities for upgrades not always aligned

Migration to new standards very complex as all

previous bilateral agreements have to be catered

for or eliminated

Counterparties can be in different markets, etc.

Backwards compatibility between standards

limited

Topic Options or considerations

Strategic priorities of messaging and

business need to be aligned, not in project

scope

Impacts heavily in validation scenarios

Differing payments standards across Europe

Community based mapping working groups

1 2

Messaging Project Scope

9


Duplication of flows and selection table (only outbound shown)


3 Flows

Challenge

Duplication of flows for same business (co-

existence)

MT: 3 FIN funds messages

MX: 18 XML funds messages

Incoming – XML much richer and upstream

systems can’t handle the information (prior to

upgrade)

Outgoing – extra data fields might be required by

client that have to be added (sourcing)


Increased costs and risk for design, testing,

etc.

Both have to be maintained going forward

until co-existence eliminated

Decision table as to which flow should be

followed can be very complex

Persistence of data

3

10


Validation and Transformation data requirements


4 Validation

5

Transformation

Challenge

Bilateral agreements require multiple validation

schema

Interpretation opportunities create confusion

Business logic for mapping table selection

required to be built into upstream applications

MX format more information rich than MT

Incoming – truncation and/or persistence

Outgoing – data sourcing


Increased costs due to massive increase in

complexity

Upstream apps to send all data required to

make transformation (complicated business

logic)

4

4

5

11

Closing Thoughts

Implementation of a new standard

− Gives an opportunity to rework “old” processes and applications with “new”

− Should not be under-estimated as is costly, time-consuming and covers multiple stakeholders (internal and external)

− Is filled with uncertainty and interpretation possibilities

− Experience gathered as implementation happens, steep learning curve

− ISO 20022 implemented in various flavours e.g. SEPA, Funds, new SIC

− Participants across various markets and locations are impacted by all deviations from the standard, regardless of the size of the deviation

− Front-to-back “buy-in” required and not just standards or Messaging specialists

“A standard is a “dream”, however many market practices are a “nightmare”


Q&A


P 5 beispiel eines messaging projekts d_pudney

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