Rouble Settlements via SWIFT

Charles Robson5th INTERNATIONAL ROUBLE SETTLEMENT FORUM

Country Profile – Russia – Dec2008 2

Agenda

• Some statistics

• Rouble Settlements via

correspondent banking

• The Russian RTGS and SWIFT

Country Profile – Russia – Dec2008 3

CIS0.99%

ROW99.01%

CIS : Traffic Share

Source : FIN_per Sales Area

RU75.31%

Rest of CIS

24.69%

BY18.47%

GE3.51%

KG2.49%

MD3.48%MN

1.69%

TM0.40%

TJ1.14%

UA33.18%

UZ3.31%

KZ16.20%

AM2.76% AZ

13.37%

Country Profile – Russia – Dec2008 4

Russia : Messages by market

Russia

Payments75.3%

Trade0.5%

Treasury11.7%

Securities12.6%

CIS

Payments78.1%

Trade0.7%

Treasury11.3%

Securities9.9%

Aug/2008 Growth

Payments 16.97%

Securities 51.74%

Treasury 0.40%

Trade 7.89%

Total 17.97%

Aug/2008 Growth

Payments 14.35%

Securities 51.15%

Treasury 2.91%

Trade 5.78%

Total 15.39%

Country Profile – Russia – Dec2008 5

Messages sent from Russia

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

RU US DE GB BY UA AT CH KZ LV

Top 10

receivers

Country Profile – Russia – Dec2008 6

Messages sent to Russia : Top 10 senders

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

RU US DE GB BE AT CH BY KZ UA

Country Profile – Russia – Dec2008 7

Russia : Weight Domestic Traffic per Market

0

5,000,000

10,000,000

15,000,000

Payments Securities Treasury Trade

Total Dom

Weight:54%

Weight:26%

Weight:70%

Weight:15%

Country Profile – Russia – Dec2008 8

Agenda

• Some statistics

• Rouble Settlements via

correspondent banking

• The Russian RTGS and SWIFT

Payments Market Practice Group

• Under the auspices of the Russian National SWIFT Association (User and Member Group together) guidelines have been worked out on how to use the ISO-Standards to do Rouble Payments: “RUR-6 guidelines”.

• Includes – amongst others – the MT 101, 103, 202, 205, 210, category 9 messages and n92, n95 & n96 messages.

• Includes transliteration table.

• Currently version 6.

• Available on swift.ru

Country Profile – Russia – Dec2008 9

Issue(s) with RUR-6.

• They are not mandatory.

• Not all banks are using latest version, so banks have to support different versions, depending on their counterparts.

• The Central Bank’s Payment Order is not fully in line with the ISO-Standards from point of view of number of characters to be used for fields and Bank Identifiers.

Country Profile – Russia – Dec2008 10

Country Profile – Russia – Dec2008 11

Agenda

• Some statistics

• Rouble Settlements via

correspondent banking

• The Russian RTGS and SWIFT

History

• Central Bank of Russia & SWIFT signed a Memorandum of Understanding on the fact that the SWIFT communication platform would be proposed to the RTGS participants as parallel communication channel for the Russian RTGS.

• Technically solution to support SWIFT as RTGS channel has been implemented.

• Based on some extra requirements from the National Security Service, the converter Central Bank of Russia proprietary formats to ISO-formats and vice versa is being finalised.

Country Profile – Russia – Dec2008 12

13

Message Flow Russian RTGS

CB of Russia Payments Application

ConverterCB of Russia – ISO Formats

and vice versa

SWIFT Backbone Network

CB of Russia VPN

Direct Participants

Indirect Participants

14

Steven PalstermansHead of Russia, CIS & Mongolia

SWIFTAvenue Adele 1 B-1310 La Hulpe Belgium

+32 2 655 3111+32 2 655 4099+32 2 655 3752+7 903 1646095 steven.palstermans@swift.comswift.com

TDFM

WE

Thank you