Funds Migration

Funds migration to ISO 20022

Reap the advantage of early migration

Funds Benelux event

24 May 2012

2

Agenda

• Funds migration

- Key facts & timeline

• Incentives & disincentives

- Mechanics

• Products & Services offering

- Detailed offering

• Q&A

Funds Migration

Key facts & timeline

3

• Mandatory Funds Migration to ISO 20022 is confirmed

unanimously by the SWIFT Board

• Q4 2015 (Standard Release date) is defined as the final end date

• End 2012 remains a significant date:

– Restrictions will be implemented

– Incentives will be deployed as soon as possible

– Disincentives will be applied as of January 2013 until the end of

the migration. They should apply to those players that delay the

migration

4

Funds Migration A community decision

Funds Migration timeline A combination of incentives & disincentives

2011 2012 2013 2014

31 December 2012

All MX fund users to be

fully migrated amongst

themselves

All funds users receiving

orders and sending back

status/confirmation

messages must be able

to send/receive ISO

20022 messages if

requested by new

customers/counterparties

2015

Final end date:

Standards Release

2015

MX Price reduction

(Jul)

Incentives Incentives

Disincentives* Disincentives* Disincentives*

Incentives Incentives

* Applicable to non-compliant BICs

1st January 2013

Any new fund users

joining SWIFT should only

be allowed to use the ISO

20022 fund messages

Any new fund market

initiative should only use

ISO 20022 fund

messages

Existing SWIFT users will

still be able adopt the FIN

Fund Templates but will

be subject to a

registration process

Global Funds Migration Status Readiness & Adoption – February 2012

6 MX adoption rate (MX as % of total funds traffic): 31% vs 28% (March 12 vs Dec 11)

MX readiness rate (both counterparties ready on MX): 67% vs 63% (March 12 vs Dec 11)

18%

56%

26%

MX Readiness of SWIFT Funds Users

(Belgium - Mar 2012)

16% 10%

41%

32%

1% 2%


(Luxembourg - Mar 2012)

25%

6%

36%

30%

1% 3%


(Global - Mar 2012)

1.6%

98%

0.4%


(Netherlands - Mar 2012)

Funds traffic is growing strongly on MX March 2012 vs March 2011

Avg Traffic Growth March

2011: 5%

Avg Traffic Growth March

2012: 42%

MX Traffic represents 31% of total funds traffic in SWIFT

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Full solution

Maintenance

if required

To Include - CR for Orders

- BAH

- RMA

Orders - MT

Standards impact Current timeline for Funds Standards Maintenance

2012 2013 2014

8

** Release 4.5 only to take place if committed pilot companies for use of message types (this will

include simplification of messages)

2015 2016

Orders - MX

Transfers

Account Management

Price Report

2017

Removal

FIN Fund

Templates

Restrict access FIN Fund

Templates in MUG only

No Changes to V4 migration messages unless regulatory until post-migration

Release 4.4

Transfers in 2012

Release 4.5 Account

Maintenance **

Release 4.5 Price

Report **

Cash forecast No Changes to messages unless solution demand

Statements No Changes to messages unless solution demand

Migration reminder Which messages are impacted?

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FIN Funds Messages ISO 20022 Messages

FIN Message Request Type Description Request Type

MT 502 Order to Buy or Sell Redemption Bulk Order V02 setr.001.001.03

MT 502 Order to Buy or Sell Redemption Bulk Order Cancellation Request V02 setr.002.001.03

MT 502 Order to Buy or Sell Redemption OrderV02 setr.004.001.03

MT 502 Order to Buy or Sell RedemptionOrder Cancellation Request V03 setr.005.001.03

MT 502 Order to Buy or Sell Subscription Bulk Order V03 setr.007.001.03

MT 502 Order to Buy or Sell Subscription Bulk Order Cancellation Request V03 setr.008.001.03

MT 502 Order to Buy or Sell Subscription Order V03 setr.010.001.03

MT 502 Order to Buy or Sell Subscription Order CancellationInstruction V03 setr.011.001.03

MT 502 Order to Buy or Sell Switch Order V03 setr.013.001.03

MT 502 Order to Buy or Sell Switch Order V03 setr.013.001.03

MT 502 Order to Buy or Sell Switch Order Cancellation Request V03 setr.014.001.03

MT 509 Trade Status Message Order Instruction Status Report V03 setr.016.001.03

MT 509 Trade Status Message Order Cancellation Status Report V03 setr.017.001.03

MT 515 Client Confirmation of Purchase or Sale Redemption Bulk Order Confirmation V02 setr.003.001.03

MT 515 Client Confirmation of Purchase or Sale Redemption Order Confirmation V03 setr.006.001.03

MT 515 Client Confirmation of Purchase or Sale Subscription Bulk OrderConfirmation V03 setr.009.001.03

MT 515 Client Confirmation of Purchase or Sale Subscription Order ConfirmationV03 setr.012.001.03

MT 515 Client Confirmation of Purchase or Sale Switch Order ConfirmationV03 setr.015.001.03

MT 515 Client Confirmation of Purchase or Sale Switch Order ConfirmationV03 setr.015.001.03

Incentives & Disincentives

Mechanics

10

11

Incentives Encouraging early adoption

Messaging

• MX tariff decrease (implemented in July 2011)

− -30% on tariff 1 (orders) & -70% on tariff 2 messages

• MX Pilot (test) environment: free in 2012*, then gradually increasing

back to standard level in 2015 (i.e. 50% of Live)

This measure reduces the cost of the testing related to migration as well as encourage adoption of

additional funds messages only available on ISO 20022 (Alternative funds, transfers, price report).

Non-Messaging

Selected products and services have been developed with the aim of

reducing the cost related to adoption of ISO 20022 funds messaging

2012 2013 2014 2015

Free 30% 60% 90%

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Dis-incentives Encouraging early adoption and planning

Principles

• Applying 7775 to ISO 15022 migration dis-incentives principles

• Apply to MT502 (order) senders only and on MT502 sent only

− MT 515 not considered to avoid penalising first movers (TA ready >85%)

• Dis-incentives are subject to an « exemption rate » aligned on expected

yearly progression of the global MX adoption rate

Messaging

• Funds MT tariff - gradually increasing surcharge from Jan 2013 until SR 2015

Non-Messaging

• Monthly fee - gradually increasing surcharge from Jan 2013 until SR 2015

(based on tiering)

13

Dis-incentives Messaging and non-Messaging details

1. Live MT (Funds) traffic surcharge & Test MT (Funds) traffic surcharge

− Apply normal price + surcharge

2. Monthly fee (Eur/month per BIC8):

Dis-incentives will start in January 2013 – will be reflected in February invoice

Global Tier 2013 2014 2015

01 50 100 300

02-04 100 200 600

05-10 150 300 900

11-20 200 400 1,200

2013 2014 2015

25% 50% 100%

14

Dis-incentives Exemption rate – compliance criteria

Principles

• Based on MT 502 sent vs MX equivalent (applied at BIC 8)

• The exemption rate is based on live traffic:

(MX equivalent to the MT502) / (MT502+MX equivalent to the MT502)

• The month of reference will be the previous month, and is

applicable at each individual BIC, based on billable traffic.

• This calculation will occur monthly, starting with January 2013

activity.

2013 2014 2015

30% 60% 90%

Jo

ke

r

15

Dis-incentives Exemption rate – compliance criteria

Principles

• Based on MT 502 sent vs MX equivalent (applied at BIC 8)

• The exemption rate is based on live traffic:

(MX equivalent to the MT502) / (MT502+MX equivalent to the MT502)

• The month of reference will be the previous month, and is

applicable at each individual BIC, based on billable traffic.

• This calculation will occur monthly, starting with January 2013

activity.

2013 2014 2015

30% 60% 90%

Jo

ke

r

Restrictions The Funds Member User Group (MUG)

16

FIN All

categories

ISO

20022

Funds

Principles

• Starting January 2013: registration required for all new MT Fund user

• Exceptions for SWIFT users:

– having used ISO 15022 funds messages in the past 2 years (2011 – 2012)

– enabled for CAT 5 can register and still use FIN Fund Templates

• Scope: preventing new SWIFT users to start with FIN Fund Templates

• Impact on current MT Funds users:

– No registration required for existing users automatically included

– Watch out when starting with new counterparties on MT – check if part of MUG

FIN

ISO

20022

Funds

ISO

15022

Funds

Products & Services

Detailed offering

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18

SWIFT’s Products & Services offering Mapping offering to your migration project phases

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution

Assisting you with ISO 20022 adoption

Integration services

Training IT ISO 20022 Training Business

Standards consulting

STaQS SDK MyStandards

Implement Design Analyse

Consulting

Products

Training Alliance Lite

Alliance Integrator

AMH

Legend

Dashboard

Project roll-out report

19

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training Alliance Lite

Alliance Integrator

AMH

Legend

Reports Your key associates

in the project planning

Discover our free Migration dashboard

Overview of the migration status of

your counterparties and related impact

on dis-incentives


Tracking reports, detailing migration

status for all your BIC’s, per

counterparties and message flows and

high-level project plan and a detailed

report containing the key project data

and planning

Dashboard


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FREE

We help you organising a one-day workshop to tackle the project initiation.

This is fully tailored to your specific needs and we can help gathering the

differents impacted entities/business areas in different locations of your

institution to find the best centralised solution for your migration.

We can perform:

• migration review

• impacted standards review

• infrastructure review

Ultimately, we issue a final report with findings and our recommandations

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Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

ISO 20022 workshop Off to the best departure

Dashboard


Alliance Lite

Alliance Integrator

AMH

22

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Project execution Coordinating with

all stakeholders

To help you with your project planning and

testing windows coordination, we work

with you, your counterparties and your

application providers to coordinate the

effort.

Additionally, we can track and report your

migration readiness until completion.

This service offering is building on the

Project roll-out report work.

Dashboard


Alliance Lite

Alliance Integrator

AMH

Alliance Lite

Alliance Integrator

AMH

23

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Assisting you with

ISO 20022 adoption Peace of mind

To ensure peace of mind when preparing your ISO

20022 migration, our teams build a business case with a

clear roadmap to follow.

We come-up with

• recommendations on business process alignment

• identification of areas where increased straight-through

processing and operational efficiency can be achieved.

We report on current architecture design and highlight

areas impacted by the migration.

We document the future options and provide a

counterparty heat-map.

Dashboard


24

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Project Tracking Continuous improvement

To ensure that you continue to enjoy maximum

benefits from our analysis, we can conduct yearly

reviews to

• monitor efficiency gains

• track your progress

• potentially adapt our recommendations based

on your evolving needs

Dashboard


Alliance Lite

Alliance Integrator

AMH

25

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Integration Services

Your problems?

• You need somebody with in-depth knowledge of ISO formats and

related system components

• You are using legacy technology such as CASmf, MQSA and need

to migrate to new adapters

• You want to implement ISO 20022 for funds and require a

combination of SWIFT and technical integration expertise

• You require functionality missing in your SWIFT interface or

application and want a cost-efficient solution

How can we help?

• Integration assessment and functional analysis

• Integration delivery, testing and go-live

• Integration project management

• Integration Care contracts

Dashboard


Alliance Lite

Alliance Integrator

AMH

Alliance Lite

Alliance Integrator

AMH

26

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Benefit from our extensive knowledge in the Funds area:

We can help you with customized gap analysis and mapping guidance, as well as

general workshops and consulting.

We have experience in most major economies and numerous emerging markets,

with broad language skills.

In the context of ISO 20022 adoption, the following assignments can be foreseen:

* High-level Analysis (current and future functional level)

* Detailed Analysis/implementation specifications without switches, mapping and gap analysis

with switches, mapping and gap analysis

* Reviewing standards implementation vs market practices

Standards Consulting Helping you with

your ISO 20022 adoption

Dashboard


27

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

MyStandards Radically simplifying

your analysis work for Funds

MyStandards is a collaborative web application to better manage standards

definitions and usage in the financial industry.

Content: Base messages (MT, MX and ISO20022) and usage guidelines

Features: Analyse, Compare and Export

In the funds area, it makes it possible to analyse side by side all the

specifications and guidelines (MT and MX) from the leading Funds

players and market practices and simplify radically the analysis work for

the Funds migration.

MyStandards will become generally available in May 2012

www.swift.com/mystandards

Questions? [email protected]

Dashboard


Alliance Lite

Alliance Integrator

AMH

Alliance Lite

Alliance Integrator

AMH

28

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

SDK Efficiently implementing

standards

Standards Developer Kit (SDK) ) Funds Migration Subset:

• Helps customers implement SWIFT MT and ISO standards

• Library of ‘enriched’ XML schemas for Funds messages, MT and ISO 20022

• Updated by SWIFT for each new MX version and annual MT Standards

Release

• The SDK for Funds:

• MX Enriched Schemas for the Funds messages (not the complete business area) for

CAMT, SETR, REDA, SEMT, SESE, ACMT

• MX Enriched Spread sheets for the relevant messages (not the complete business

area) for CAMT, SETR, REDA, SEMT, SESE, ACMT

• These enriched schema’s allow automatic generation of user-friendly GUIs and

facilitate customized documentation and message integration

Dashboard


http://www.swift.com/mystandards

29

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

STaQS Your dedicated

testing platform for Funds

SWIFT's Simulation Testing and Qualification

Service (STaQS) for Funds has been

developed to support the Funds community

in implementing ISO20022 (MX) funds

messages.

It will help to familiarise users with MX

message structures and processing flows.

STaQS will also support existing users of

ISO 15022 messages migrating to ISO

20022 funds messages by reducing the time

spent on testing.

Users can upload a file of funds messages

for testing. STaQS for Funds validates each

message and returns full validation details,

summaries and statistics.

Two versions are available:

Syntax validation against pre-

configured market practices:

France

Australia

SMPG

FINDEL

Processing flow simulation

emulating a counterparty (available

as transfer agent but also as

distributor), based on FINDEL

recommendations.

Dashboard


Alliance Lite

Alliance Integrator

AMH

30

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Alliance Lite The cost-effective low-volume

connectivity solution

Alliance Lite is an Internet-based SWIFT product, offering

SWIFT connectivity to new low-volume users.

It offers manual entry of Funds messages as well as

automated message transfer, all with the security you

expect from SWIFT.

It can transfer files in CSV format (comma-separated

values) for message types like funds orders, funds order

status and confirmations, and funds account statements.

The CSV files are simple and can be easily constructed

with many widely used tools, including Excel. Alliance Lite

will transform each line of the CSV file into an individual

MT or ISO 20022 message, and send the message(s)

over SWIFT.

Dashboard


Alliance Lite

Alliance Integrator

AMH

31

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

Alliance Integrator Minimising the required

modifications

Alliance Integrator is an add-on for Alliance Access that helps connect your business

applications to SWIFT with a minimum effort.

Integrator allows you to minimise the modifications required in your back-office

applications, reducing the time and cost related to the deployment of business solutions

over SWIFTNet.

In the Funds context, it will enable you to seamlessly start exchanging ISO 20022

messages with your counterparties without making modifications to your business

applications.

It has proven to be an ideal platform to handle the coexistence of current and ISO 20022

Funds messages during the adoption period, as it allows you to make the switch from

current to new message format for each individual counterparty, depending on their

Funds adoption progress.

Moreover, Integrator can reduce the number of interventions required in existing

processes, diminishing the risk associated with SWIFT implementations.

Dashboard


Alliance Lite

Alliance Integrator

AMH

32

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

AMH The modular high-volume

messaging hub

AMH (Advanced Messaging Hub) is a modular, multi-network, high-

volume financial messaging hub that focuses on meeting the needs

of multi-entity, multinational, global financial institutions that have

substantial volumes of messages with high availability and

operational requirements.

AMH is a solid, highly scalable, flexible and open SOA platform that

is designed to support the flow of financial message traffic for

SWIFT and local clearing gateways. It is easily extendable to more

services and protocols.

Dashboard


Alliance Lite

Alliance Integrator

AMH

33

Roll-out Test

ISO 20022 Workshop

Project Tracking

Project execution







Consulting

Products

Training

Legend

To learn about SWIFT’s solution for investment funds and get in-depth information

on ISO 20022 messaging

Our teams provide:

• classroom courses

• on-site training

• etraining modules.

Training Tailored to answer all

your questions

Dashboard


Alliance Lite

Alliance Integrator

AMH

All you need to know about Funds Migration List of available documents

• Funds Interoperable Elements Matrix (= synonym document)

• Info Papers

• List of MX ready counterparties

In case of questions or documents request, please contact us at

[email protected]

34

FIN users already map FIN

fields into their back office

Document has

mapping to MX. MX MT

Back

Office

Completion of the equation for the

mapping of MX to back office

1

2

3

mailto:[email protected]

Thank you

Economy & Finance

Funds Migration