Preparing for the future with financial markets infrastructures

Preparing for the future with Financial Markets Infrastructures

Alain Raes

Chief Executive, Asia Pacific & EMEA

Indonesia is the largest economy in ASEAN,

accounts for 36% of the total GDP

Data source: IMF 2014 GDP & UN GDP 2013

Indonesia is the 17th

largest economy (IMF

2014)

the biggest economy in

ASEAN

36% of total ASEAN GDP

6+% annual GDP growth

Safe, reliable, robust, secure Financial Markets

Infrastructures is key for future growth SWIFT Business Forum Indonesia 2015

2000

1995

2005

2014

2 . 8 8 m

m e s s a g e s

Indonesia’s growth in numbers

6 . 2 8 m

m e s s a g e s

8 . 2 5 m

m e s s a g e s

>>> Increased by 118%

<<< Increased by 32%

2 0 . 4 5 m

m e s s a g e s

>>> Increased by 148%

Data source: SWIFT Data

SWIFT Business Forum Indonesia 2015

Strong growth in Indonesia

Growth evolution

(*) Base year: 2010 (100) Data source: SWIFT Data

SWIFT is …

A

co-operative

organisation

serving the

financial

industry

A

provider of

highly secure

Financial

Messaging

services

The

Financial

Standardisation

body

10,000 + customers spread over 212 countries

A financial

Services

company


SWIFT’s Governance Model

• Member driven

• Transparency in decision making

• Overseen by Central Banks

Approach

• Confidence we have right process

• Collective wisdom

• Peace of mind

Benefits

6 SWIFT Business Forum Indonesia 2015

1,000+

Corporates

+25 billion

financial

messages

per year

25 million+

peak day

messages

11,000

IT changes

per year

99.999%

availability

+ 100

million

peak day

batched

transaction

10,000+

Financial

Institutions


SWIFT scale and reach …

100+ MI

connected

globally

Right now in AP, our strategy is …

8

Strategic initiatives

Reach Value Added

Services

Australia

Right now in Asia Pacific


Low-Value

Payments

2 ACH

1 RT-RPS

New KL office

with 150+

employees (with

plan to grow to

400) to support

the region

Focus on

ASEAN (30% of

APAC business)

High-Value

Payments

17 RTGS on

SWIFT

Dedicated CCC

in HK and Help

Desk in HK & KL

to support local

ASEAN

customers

Strong footprint

in APAC includes

standards,

consultants,

market experts,

help desk,

developers

Our commitment to serve Indonesia

MI Compliance Core

SWIFT will continue to serve Indonesia in

• Standards

• Messaging

• Platform

• Payment Market

Infrastructure

• Securities Market

Infrastructure

• Sanction Screening

• Sanction Testing

• Compliance Analytics

• KYC


Standards

Platform

SWIFT’s core messaging service Financial messaging, enabled by platform and standards

Messaging FIN

InterAct

FileAct

Principles for Financial Market

Infrastructures (PFMIs)

High Value Payment Systems

Low Value Payment Systems

Central Counterparties

Central Securities Depositories

Trade Repositories

Foster financial stability

Limit systemic

risk

Increase safety

Support greater

efficiency

• Published by CPSS-IOSCO

• 24 principles

• Issued for consultation in 2011

• To be applied December 2012

Critical Service Providers

"With these new principles, authorities have a

good basis on which to ensure a safe and

stable financial infrastructure. It is essential

that authorities adopt the principles, and FMIs

observe them, as soon as possible". - Paul

Tucker, Deputy Governor, Financial Stability,

Bank of England and CPSS Chairman

13

SWIFT provides an end-to-end solution

offering to Market Infrastructure initiatives


Complete

Messaging

Solution

Secure & Resilient

Network and

Connectivity

International

Standards

Expertise

End-to-end solution

with lower cost

community approach

• Messaging Topology

• Reporting & Liquidity

Management

• Flexible Connectivity

solutions

• Resiliency

Participant

Network

• Messaging Security

• MT/MX Expertise

• ISO Enablement

• PMI Project & Delivery

Expertise

• End-to-end solution for

community

• Consultancy/Support

• Re-use Infrastructure

• Community Approach &

Reach

80+ SMI

64 countries

Securities Market Infrastructures Live on SWIFT

Africa

Egypt

Kenya

South Africa

Zimbabwe

Nigeria

Asia Pacific

Australia

China

Hong Kong

India

Indonesia

Japan

Korea

New Zealand

Singapore

Sri Lanka

Thailand

Central & Eastern Europe

Armenia

Bulgaria

Croatia

Czech Republic

Hungary

Kazakhstan

Poland

Romania

Russian Federation

Slovakia

Slovenia

Ukraine

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

Portugal

Spain

Cyprus

Malta

Middle East

Dubai

Israel

Kuwait

Lebanon

Qatar

Turkey

Status YTD 2014

Legend Size Count

< 10,000 msgs S 23

10,000 - 1,000,000 msgs M 20

1,000,000 - 10, 000,000 msgs L 13

>10, 000,000 msgs XL 8

Countries’ SMI is connected but currently no securities traffic

Taking considerations of all services, i.e. FIN, IA, FA


Payments Market Infrastructures Globally there are 76 RTGS live on SWIFT

76 HVP systems (>240 Million payments/year in 2014)

29 LVP systems (>20 Billion payments/year in 2014)

2000+ banks in 90+ countries

Central & Eastern Europe

Albania

Azerbaijan

Bosnia & Herzegovina

Bulgaria

Croatia

Hungary

Romania

Russia Latvia

Poland

Serbia

North America

Canada

Central & Latin America

Bahamas

Barbados

Chile

CMCA

Colombia (service bureau)

Dominican Rep.

ECCB

El Salvador

Guatemala

Honduras

Trinidad & Tobago

Venezuela

Western Europe

Denmark

Iceland

Norway

Sweden

Switzerland

UK

Eurozone

Target 2

EBA Clearing (2 HVP, 1 LVP)

Austria

Belgium

Germany

Greece

Italy (2 LVP)

Spain

Ireland

The Netherlands

Middle East

Lebanon

Bahrain

Israel

Jordan

Kuwait

Palestine

Qatar

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

Status 2014

HVP only

LVP only

Both HVP and LVP

Global

IPFA

Eurogiro

Africa

Asia Pacific - LIVE

Australia

Fiji

Hong Kong

Macao

New Zealand

Philippines

Singapore

Sri Lanka

Thailand

Taiwan (USD & RMB)

Papua New Guinea

Brunei

Asia Pacific - NEW

India (2015)

Malaysia (2016)

Australia (2017)


Development

Financial Crime Compliance services, tools

and roadmap

Exploration Live Qualification

Standards

Sanctions list

management

service

Data

repositories KYC Registry

Traffic analysis Compliance Analytics

FATF 16 information quality

Quality

assurance

Sanctions Testing

(testing / tuning of transaction &

client systems)

AML testing &

tuning

Processing

services

Client / Name screening

Sanctions

Screening

Traffic

Restriction

(RMA)

Sanctions KYC AML

Sands Expo and Convention Centre

Marina Bay Sands

Sibos – ASEAN at the heart of it


Our commitment to serve Indonesia

Preparing for the future with financial markets infrastructures

Economy & Finance

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