SWIFT for Payment Market Infrastructures Short version 7

Stephane Ernst, Market Manager for HVPMIs

Sep 2010

Basic concept p of RTGS

Real Time Gross Settlement
th the continuous ti ( (real-time) l ti ) settlement ttl t of f funds individually on an order-by-order basis (without netting). an act that discharges obligations in respect of funds or securities transfers between two or more parties. A settlement may be final or provisional. provisional settlement which is irrevocable and unconditional.

Settlement processing

Settlement finality y

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Business and operational p functions of RTGS

Payment transaction processing
Transaction input Validation Cl i & Clearing Settlement Notification

Liquidity Management

Liquidity management

Reserve management

Payment investigation

Participant administration

Profile management

Reference data

Reporting Management

Operational

Statistical

Regulatory

SWIFT for HVPMI Offering Presentation Confidentiality: Public

SWIFTs 5-pillars offering for Payment Market Infrastructures

Your Payment Market Infrastructure system

Services
Consulting Training Customer Support

Messaging
FIN, InterAct,FileAct, Browse Copy

Interfaces

Security

Connect
Alliance Connect Bronze/Silver/ Gold

Alliance Interfaces Integration tools

PKI,HSM

A comprehensive solution
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SWIFT offering for high value payments MIs

SWIFT offers St d d (MT, Standards (MT MX)
Central bank CSD Govt Entities High-value payment MI

Messaging (FIN, FINCopy, FileAct, FileAct Copy, InterAct, Browse, Mail) Connectivity (SAA,SAG,SSA,SAL)

SWIFT Support Payments processing

Participants

g 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) Ordering customers financial institution Cash Mgmt (A C Adv & Stat) Except & Inve E estigations Cr redit Transfer r Initiation Direct Debit In D nitiation Credit Transfers (Bulk and Single) Cash Management MT 1xx, 2xx MT 9xx Except & Investigations E Cash Mgmt (A C Adv & Stat) Beneficiary customer Beneficiary customers financial institution

MT 101

MT 9xx

Ordering customer

UNIFI MX MT-based

MT

COEXISTENCE

MX/ISO 20022

6 SWIFT for HVPMI Offering Presentation Confidentiality: Public

MT 9xx

Payment y transaction processing: p g Payment per payment

Th The store-and-forward t df d messaging service, FIN InterAct using MX UNIFI messages
Internal Payment system SWIFT interface

Participant B SWIFTNet FIN/InterAct V-topology

Participant A

Central institution
Bank A

SWIFT interface Central web server

Payment processing
Bank B

FIN/InterAct transaction flow

FINCopy is the most relevant solution for high-value g payment p y systems wolrdwide

Internal Payment system SWIFT interface

Participant B SWIFTNet FIN Copy

Payment message Settlement request Payment message (settled) Authorisation/ refusal

Participant A

Central institution
Bank A

SWIFT interface Central web server

Payment processing
Bank B

FIN Copy transaction flow

SWIFT for HVPMI Offering Presentation Confidentiality: Public

Cash management g and p participant p administration

I InterAct, t A t provides id i interactive t ti exchange h of instructions between counterparties Transfer funds between accounts Change priorities of queued payments t Modify intra-day credit limits to better manage liquidity and collateral throughout the day in real time Browse, provides secure browsing to access the market infrastructures to monitor Current C t positions iti of f the th settlement ttl t account Foreign exchange and credit risk exposures Transaction T ti flow fl and d status t t
SWIFT for HVPMI Offering Presentation Confidentiality: Public
Internal Payment system SWIFT interface

Participant B SWIFTNet

Participant A

InterAct real-time information exchange and control

Browse online Info query

Central institution
Bank A

SWIFT interface Central web server

Payment processing
Bank B

Report p & directory y management g

R Report t management, t where h volume and flexible structure are essential FileAct is ideal for exchanges of Large reports: business, g y statistical or regulatory reports Raw data Directories FIN Inform can supplement FIN to report transaction
Participant B SWIFTNet

Internal Payment system SWIFT interface

Participant A

FileAct for reporting

FileAct for reporting

Central institution
Bank A

SWIFT interface Central web server

Payment processing
Bank B

FileAct for bulk reporting

SWIFT for HVPMI Offering Presentation Confidentiality: Public

SWIFT can support a converged system using Y-topology

Internal Payment system

SWIFTNet Participant B

SWIFT interface

Participant A
Payment message Settlement request Authorization/rejection Payment message settled Payment file message Settlement request Authorization/rejection Payment file message settled

Central institution
Bank A

SWIFT interface Central web server

Payment processing
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

Internal Payment system SWIFT interface

Payment instructions by File

Participant B

Participant A

Payment instruction by transaction

Notification message

Central institution
Bank A

SWIFT interface Central web server

Payment processing
Bank B

FIN/InterAct V-topology p gy for transaction-per-transaction p payment p y 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 End-to-end project management

Monitoring Problem management Reporting

Messaging landscape analysis Payments STP review Technical design Integration design Business Continuity planning Disaster recover process design Design Security Best Practices

Customer support packs

SERVICE OPERATION Easy live

SERVICE DESIGN Requirement & Technical Design Specification

Testing support Operational procedures

SERVICE OPERATIONAL READINESS Messaging services Go-Live

TRAINING MI & Participant trained

Products MI implementation

PARTICIPANT DEPLOYMENT

Member Member registration follow-up follow up Supporting documentation Deployment of the MI participants

SERVICE IMPLEMENTATION Messaging Services implemented

Member Messaging Services implemented

Ordering Ordering and provisioning (*) () Alliance portfolio installation of the MI SWIFTNet Messaging prototyping Integration SWIFT Alliance/application
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SWIFT for HVPMI Offering Presentation Confidentiality: Public

SWIFT services for payments p y

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 Ad ti SWIFT provides. id Adopting

Participants/members with
Central bank CSD Govt Entities Hi h l payment High-value t MI

State-of-the-art Reliability, Resiliency, Security and Customer Support Right trusted third party services Global reach and the interoperability

Participants p ACH Direct Participants

Business flexibility

HVPMIs with
High resilience and security Business &operational cost efficiency Comprehensive solution Risk reduction Focus on core service Global and community reach
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Lo al e pa payment ment MI Indirect Participants Low-value

Participants
SWIFT for PMIs - 28 October 2009

Direct Participants

SWIFT for High g value payment p y market infrastructures

Live system market Status
Central & Eastern Europe Albania Azerbaijan Bosnia & Herzegovina Bulgaria Croatia Hungary Romania Latvia

62 systems 90+ countries

North America Canada US (TCH)

Western Europe Denmark Eurozone (EBAEURO1/STEP1 &TARGET2) Norway Sweden Switzerland UK

Central & Latin America Bahamas Barbados Chile Dominican Rep. ECCB El Salvador Guatemala Trinidad & Tobago Venezuela

Middle East Bahrain Israel Jordan Kuwait Oman UAE (DIFC)

Africa Angola Algeria Central African States (BEAC) Ghana Kenya Mauritius Morocco Sierra Leone South Africa Tan ania Tanzania T nisia Tunisia Zambia Zimbabwe West African States (BCEAO)

Botswana Egypt Lesotho Namibia Swaziland Uganda

Asia Pacific Australia Fiji Hong Kong New Zealand Philippines Singapore SiL Sri Lanka k Thailand

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Systems on Y Copy topology

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Th k you! Thank !

Q&A

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