SWIFT for Bangladesh Securities Market

SWIFT for Securities MarketBangladesh

Anik MehtaDirector, Securities Market, Asia Pacific, SWIFT

SWIFT for Securities Market - Bangladesh Business Forum 2014

Agenda

How SWIFT is helping and can help you

The Big Picture

Securities Trends and Global Regulation

SWIFT for Securities Markets - Overview

4bMessages per year

99.999Availability

45% Securities Messages

212Countries

10k+Financial

Institutions

23Offices globally

8Offices in Asia


YOU

Customers

Financial Institutions

Securities Market

Infrastructures

Payment Market

Infrastructures

Corporates

Central

Banks

• Stock exchanges, CCPs, (I)CSDs, Trade Repositories

• RTGS, ACHs, LVPs, Central banks

• Banks (private banks, retail and commercial banks, global transaction banks,…)

• Custodians

• Broker dealers

• Asset managers

• Insurance companies

• Fund platforms

• Wealth managers

• Corporates

Access to the Financial Community


Clearing Member

Trading Member

SWIFT’s Core Activities

CCP

Stock exchangeTrading Member

Clearing Member

Asset ManagerAsset Manager

Trade Management

Collateral management

Settlement & Cash management

Trade Management

Collateral management

Settlement & Cash management

Central Matching Utility

CSDLocal Custodian

Trade Confirmation Trade Confirmation

Trade Notification

Settlement & Reconciliation



Local Custodian



Global Custodian

Global Custodian

Settlement & ReconciliationSettlement &

Reconciliation

Trade Confirmation

Trade Confirmation

Trade RepositoryTrade reportingTrade reporting



Collateral Management Collateral ManagementAsset Servicing Asset Servicing

Asset ServicingAsset Servicing

Triparty CM


Securities FinancingAsset Servicing

Post-Trade Matching

Post-Trade Matching

Agenda



The Big Picture



- linking to other FMIs (both horizontally and vertically)

- Internationalisation/ regionalisation initiatives

- new services (like U2A, liquidity mgt, collateral), new markets (APAC, Latin Am.)

- Geographical operational hubbing by market participants

- further standardisation and automation (from proprietary to ISO)

- scalability- Compliance cost

- increased need for high quality collateral

- better manage financial shocks – regulatory principles requiring enhanced resiliency, reliability, availability

- resiliency, reliability, availability etc

- increased need for compliance data

- cyber security

- increased efficiency and transparency

- Increased reporting and control requirement

- E.g. trade reporting, PFMIs etc

Securities Markets Trends

Regulatory pressure Business risk mitigation

Operational risk mitigation

Business interoperability Cost efficiency Innovation


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• Finalised in April 2012• 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

HVP MI

Central Bank

Participants

Direct Participants

LVP MI

ACH

Indirect Participants

CSD / CCP / TR

Government Entities

6 key areas

REGULATION

Governance

Credit and liquidity

management

Settlement finality

Operational risk management

Access

Efficiency


SWIFT’s compliance to PFMISWIFT has identified itself as a CSP for the products & services it provides to FMIs

Communication Standards based

International Standards to be used

by FMIs supported

Resilient

99,999% availability of SWIFT services

Scalable

9k+ Participants

210 Ctries

4B FIN Msg/Y

17M FIN Msgs/D Secure

3 Layers

Operationally strong

SWIFT “DNA”

FNAO

Customer Support

FMI WAREHOUSE

√

√

√

√

√


Agenda



The Big Picture



80+ SMI 63 countries

Securities Market InfrastructuresLive on SWIFT

AfricaEgyptKenyaSouth AfricaZimbabwe

Asia PacificAustraliaChinaHong KongIndiaIndonesiaJapanKoreaNew ZealandSingaporeSri LankaThailand

Central & Eastern EuropeArmenia BulgariaCroatiaCzech RepublicHungaryKazakhstanRomaniaRussian FederationSlovakiaSloveniaUkraine

North AmericaCanadaUSA

Central & Latin AmericaArgentinaBrazilChileMexicoEcuadorUruguay

Western EuropeDenmarkEstoniaLatviaLithuaniaNorwaySwedenSwitzerlandUnited Kingdom

EurozoneAustriaBelgiumFinlandFranceGermany GreeceIrelandItaly LuxemburgNetherlandsPolandPortugal Spain CyprusMalta

Middle EastDubaiIsraelKuwait LebanonQatarTurkey

Asia Pacific –Brunei (2015)Coming soon

All large SMIs worldwide are on SWIFTNetConnecting MIs in every continent


SWIFT and ISO 20022

SWIFT’s commitment to ISO 20022 includes

• Responsible for the maintenance and publication of the central repository for ISO 20022

• New ISO standards

• Provisioning of new standards on SWIFT network

• Support other submitting organizations • Provision of development platform, middleware and

interface• Standards consultancy & training

• ISO 20022 to the financial industry

RegistrationAuthority

Development

Implement

Promote

Tools and Services


ISO 20022 is a global standard

that also supports local needs

ISO 20022 Why ?

DTCC, US

JASDEC, JP[Post-trade]

Euroclear

Clearstream

ANBIMA, BR

T2S, EU

CSD, LI

CSD, PL

CSD, EE

CSD, LT

ASX, AU

Live

Live

ISO 20022 Adoption – Securities MI & Treasury MI – From discussion to implementation

CLS

Treasury MISecurities MI

SGX, SG

JASDEC & TSE, JP

[Corp.Act]

BN

Live CN

Live

BR, CSD

Live

KSEI, ID

Live

Live

Live

VP, DK

ISO 20022, Post-trade, CA and CMInvolved in all major APAC SMI’s projects, examples.

Clearing & Settlement• ISO 20022 strategy• High level and detailed

gap analysis review• ISO governance support

(maintenance and new)• MyStandards• Implementation support• Trainings

Corporate action (with TSE)• Specification co-writing

and maintenance• ISO governance support• MyStandards

Clearing & Settlement

• Standards strategy• Specifications review• MyStandards• Implementation support• Community engagement

Corporate action• Specification co-writing

and maintenance• ISO governance support

Corporate action • Standards strategy• Community engagement• Specification writing and

maintenance• MyStandards

Post-trade• Standards strategy

Collateral Management• Specification co-writing

and maintenance• MyStandards


Agenda



The Big Picture



How SWIFT Can Help?

Standards, Operational Improvements

Migration and

Integration Support

Forming Connections(domestic, cross-border)

Interfaces(e.g. operational consulting, implementation, testing)

Standards Consulting(e.g. mapping, training, implementation)

After Sales

(marketing, education)

Security, Accessibility, Reliability, Resiliency, Reusability, Compliance

MI-Brokers MI-IMsMI-BanksMI-MI

LINKAGES

Community Building

ISO SupportStandards

Implementation

Training

EnablersAdoption assistance

User Groups

NMPG

ConnectivityS,M,L players

Close collaboration with

MI

Localising Operations

Partners

Vendors

SWIFT VAP

International and local standardised reach

Automation efficiency

Domestic competitiveness


Automation with CCP


Broker/Dealer Broker/Dealer

CSD, Central Banks

CCP

Another CCP

Exchangeor MTF

Custodian Paying agent

Bank Bank

Trade

Clear

Settle

Key flows Trade management and confirmation

Asset servicing

Trade settlement

Payment

Collateral Management

Post Trade Automation with SWIFT



Automation and Standardisation helps faster communication and shortening

processing time

SWIFT for Bangladesh Securities Market

Presentations & Public Speaking

Transcript of SWIFT for Bangladesh Securities Market