Embed Size (px)
Citation preview
Investment Manager &
Custodian Workshop
Bangkok, 26 April 2016
Agenda 1:45 – 2:00 pm Welcome and registration
2:00 – 2:20 pm SWIFT Welcome
Poruthai Khunaphante, Country Manager, Thailand SWIFT
2:20 – 2:40 pm
Industry Trends & Challenges
Alexandre Kech, Head of Securities Markets & Standards, Asia Pacific, SWIFT
2:40 – 3:00 pm
Enabling STP
Marco Attilio, Global Account Director, Asia Pacific, SWIFT
3:00 – 3:15 pm Break
3:15 – 3:45 pm Workshop: Identifying common challenges
3:45 – 4:00 pm Findings, Actions and Closing of Workshop
SWIFT Corporate
presentation
Investment Manager & Custodian Workshop
Bangkok, 26 April 2016
The global
provider of
secure financial
messaging
services
40 years serving
the global
financial
community
70s 80s 90s 00s 10s
1973: Swift is born
1976: First operating centre opens
1977: SWIFT goes live – first message sent
1979: North America connects to SWIFT
1980: First Asian countries connect to SWIFT
1986: SWIFT launches value-added services
1987: SWIFT launches securities services
1992: Interbank File Transfer goes live
1994: Customer support centre opens in Hong Kong
1997: SWIFT technology centre opens in the United States
2001: SWIFTNet goes live
2004: ISO 20022 introduction
2008: SWIFT launches Alliance Lite
2009: SWIFT launches Innotribe
2012: SWIFT launches Sanctions Screening and Testing
2013: SWIFT opens operating centre in Switzerland and
corporate services centre in Kuala Lumpur
2014: SWIFT’s KYC Registry goes live
SWIFT
in figures
6.1+ billion FIN messages per year (2015)
11,000+ SWIFT users
200+ Countries and territories
27.5 million FIN messages peak day (2015)
8.8% Increase in FIN traffic (2015)
Governance
Banking &
Payments
Committee
Board of Directors
Securities
Steering
Committee
Audit &
Finance
Committee
Human
Resources
Committee
Technology &
Production
Committee
Franchise
Risk
Committee
SWIFT Groups Community input
Oversight group
Cooperating Central
Banks of G10 countries
Belgium
Canada
France
Germany
Italy
Japan
The Netherlands
United Kingdom
United States
Switzerland
Sweden
ECB
Extended oversight
Australia
China
Hong Kong
India
Korea
Russia
Saudi Arabia
Singapore
South Africa
Turkey
National
Member
Groups
National
User
Groups
SWIFT
Global
ownership,
global
representation
User
categories
Shareholders and Supervised Financial Institutions
Closed User Groups / Corporates
Non-Supervised Entities active in the financial industry
SWIFT
community
Banks
Global Custodians
Corporates
Central Counterparties
Trade Depositories
Central Banks
Broker-Dealers
Fund Managers
Clearing & Settlement Systems
Depositories
Stock Exchanges CSDs
ICSDs
SWIFT users
0
50
FIN price before rebate FIN traffic SWIFT message
pricing
Continually lowering Total
Cost of Ownership (TCO)
1991 – 2015
Million messages
5000
Cent / msg (EUR)
1991 2015
4000
3000
2000
1000
40
30
20
10
6000
SWIFT 2020 – strategic priorities
Many-to-Many Market
Infrastructures Messaging
Integration
& Interfaces
Shared
Services
Expand and
deepen
offerings for
Market
Infrastructures
Grow and strengthen core ‘many-to-
many’ financial messaging, connectivity
and closely adjacent products and
services
Build our Financial Crime Compliance
portfolio to meet the full spectrum of
related challenges
Sibos
The premier financial
services event
Delegates
8,200+ Speakers
450
Sessions Exhibitors
180+ 250+ Press
120
Innotribe
Provides early insights
on innovation to the
financial community Startup
Challenge
Innotribe
@Sibos
Industry
Challenge
Research &
thought
leadership
How do we
support APAC
How do we
support APAC
ASEAN
China
India
Japan
North
Asia
Oceania
APAC Regional organisation (RM, GAM, Country Managers, Focus Groups, Sales Desk & Partners)
How do we
support APAC
ASEAN
China
India
Japan
North
Asia
Oceania
Markets & Initiatives
(Markets, Standards, Business Solutions, Communications)
APAC Regional organisation (RM, GAM, Country Managers, Focus Groups, Sales Desk & Partners)
How do we
support APAC
ASEAN
China
India
Japan
North
Asia
Oceania
Services & Support
(Technical & business Consulting, Training, Customer Support)
Markets & Initiatives
(Markets, Standards, Business Solutions, Communications)
APAC Regional organisation (RM, GAM, Country Managers, Focus Groups, Sales Desk & Partners)
24/7 Global support
20+ Languages spoken by teams in our regional support centres
3000+ Consultancy projects
500 000+ People trained over 30 years in over 210 countries
8.8/10 Customer satisfaction
Support
Training
Consulting End-to-end
product lifecycle
services
APAC Securities Markets
Trends and challenges
Alexandre Kech, Head of Securities Markets & Standards, Asia Pacific
Key trends are highly relevant for SWIFT APAC core businesses
Trends
Renewal
• Fighting financial crime, monitoring & control, compliance
recommendations.
• FATF, Basel III, FATCA, FCPA, AML, Sanctions
• ASEAN Economic Community (AEC), CIPS, Pacific
payment system
• Increasing international connectivity of infrastructures
• ISO 20022 adoption
• Demand for safer and more reliable infrastructure
• Cyber threats increasing
• CPMI-IOSCO PFMI & Annex F for CSPs
• Real-time 24-7
• Convergence btw high & low value
Payments
• New systems: ISO 20022 messaging – rapidly growing
interest in XML messaging capabilities
• Multi-currency clearing, PvP
• Extended operating hours (e.g. HK RMB 20.5 hrs)
• CPMI-IOSCO Principles • Mandatory OTC clearing (collateral management challenge) • Securities regulatory reporting • T+2
• ASEAN Economic Community (AEC) • Regional harmonization: ABMF, ASEAN Link, HK-CN,
TW-SG, CSIF cross-border DVP • ISO 20022 adoption
• Issuer to investor CA announcement
• Funds
• Collateral management
• OTC clearing
Securities
• Aging technology
• Fin tech (distributed ledger)
• Regional ambition-collaboration
• ISO 20022
Regulation &
compliance
Regionalization
Resiliency & reliability
Real-time
(New services)
APAC Securities 2020 strategy - 2016 plan
22
• Demand for safer and more reliable infrastructure
• Cyber threats increasing
• CPMI-IOSCO PFMI & Annex F for CSPs
Asia Pacific
Securities
challenges,
trends &
opportunities
Securities
Market
Infrastructures
Post-Trade
System refresh
Business
diversification Regulation
Aging technology
New technology
(distributed ledger)
Regional vision
ISO 20022
CA golden copy
Funds hub
Collateral mgmt
Off-shore CNY
OTC clearing
CPMI-IOSCO
T+2
OTC derivatives
Regulatory
reporting
AEC
ABMF, AFSF
CSIF-Cross-border DVP
ISO 20022 adoption
MP harmonisation
Regionalisation
Domestic projects fed by regional initiatives and vice versa
APAC Securities 2020 strategy - 2016 plan 23
Asia Pacific
Securities
challenges,
trends &
opportunities
Custodians
Growing
Competition
Do more
with less
Automation
& STP
SMIs
Global vs local custodian
ICSDs
Global broker/dealers
Outsourcers
Margin reduction
Staff reduction
Cost of compliance
But need for new
service offering
Growing complexity
Big data
exploitation
Challenges with
highly manual
processes
ISO 20022 adoption
T+2
Moving target
Domestic vs.
regional/global priorities
MI projects
How to increase margins with reduced staff, budgets in an ever increasing competitive
landscape and with a ever increasing number of regulatory and MI projects to deal with
APAC Securities 2020 strategy - 2016 plan 24
Asia Pacific
Securities
challenges,
trends &
opportunities
Asset Managers
Regulation Do more
with less
Technology
disruption
Local and global (Volcker Rule)
KYC
Cost of compliance
Margin reduction
Staff reduction
Cost of compliance
But need for new
product offering
Non-financial run
on-line platforms
Need to rethink IT
and upgrade
Outsourcing
ASEAN, ARFP, PRC-
HK
Vietnam, Indonesia,
China, Thailand, etc
Funds
passports
Focus on
high-growth
Increasing competition and costs leading to new products,
systems and automation
APAC Securities 2020 strategy - 2016 plan 25
Asia Pacific
Securities
challenges,
trends &
opportunities
Brokers
Regulation
Collateral
Liquidity
Management
Evolving
Post-trade
Environment
Local and global
Advisory vs Execution
T+2
Cost of compliance
Better CM needed
Better LM needed
Automation
Outsourcing
Post-trade infra
renewals
T+2
Domestic brokers vs
international brokers
Access to regional-
international players
Bespoke technology
(domestic brokers)
Levelling the
playing field
For international brokers, how to handle regulatory pressure while remaining profitable
For local brokers, how to compete with international in drastically evolving domestic markets
APAC Securities 2020 strategy - 2016 plan 26
27
Domestic transformational projects, competitive and ever changing market conditions,
in a context of regional integration and harmonisation initiatives
ISO 20022 adoption – Market Infrastructures
200 initiatives
Market Infrastructures Financial Institutions Financial Institution customers
Europe Asia Pacific
Americas
Middle East & Africa
Globalisation Transformation
Regulation
Globalisation
580 Corporates Under discussion > planned > rollout > live
90 countries
DTCC, US
JASDEC, JP
[Post-trade]
Galgo, BR
T2S, EU
CSD, LI
EVK, EE
CSD, LT
ASX, AU
ISO 20022 Adoption – Securities MI & Treasury MI – From discussion to implementation
CLS
Treasury MI Securities MI
SGX, SG
[Corp Act, Post-trade)
JASDEC & TSE, JP
[Corp.Act]
CN
NSD, RU
VP Lux
VP Sec
DK
KDPW
CCP, PL
Snapshot Feb 2016
SADC ID
LCH.Clearnet, UK
Euroclear, FI
Euroclear, ESES
NBB-SSS, BE
BN
ABMF
CSIF
VN
MY
IPFA
SEPA,EU
BR
DK
CH
US – retail
division of
FRB
CPA, CA
IPFA
T2, EU
AU
Zengin, JP
IN
BOJNet, JP
NZ
SG
CO
PE
ISO 20022 Adoption – Payments MI & initiatives From discussion to implementation
PG
CL
UK
SADC
ZA
BN
US
FI
EC
BD
KH
ASEAN
MY
TH
VN PH
CIPS, CN
CNAPS2, CN
Low-
value
High-
value
CPA, CA
PL
SWIFT Enabling STP
Investment Manager & Custodian Workshop
Bangkok, 26 April 2016
STP ≠ Straight-Through-Printer
STP = Straight-Through-Processing
Investment
Managers Broker
Dealers
Fund
Distributors
Market
Infrastructures
Custodians
SWIFT
SWIFT for
securities
A common shared
infrastructure for the
securities industry
34
Clearing Member
Trading Member
SWIFT’s securities
ecosystem
CCP
Stock exchange Trading Member
Clearing Member
Asset Manager Asset Manager
Trade Management
Collateral management
Settlement & Cash management
Trade Management
Collateral management
Settlement & Cash management
Central Matching Utility
CSD Local Custodian
Trade Confirmation Trade Confirmation
Trade Notification
Settlement &
Reconciliation Settlement &
Reconciliation
Settlement & Reconciliation
Local Custodian
Settlement &
Reconciliation
Settlement & Reconciliation
Global
Custodian Global
Custodian
Settlement &
Reconciliation
Settlement &
Reconciliation
Trade Confirmation
Trade Confirmation
Trade Repository Trade reporting Trade reporting
Settlement &
Reconciliation
Settlement &
Reconciliation
Collateral Management Collateral Management Asset Servicing
Asset Servicing
Asset Servicing
Asset Servicing
Triparty CM
Settlement &
Reconciliation
Securities Financing
Asset Servicing
Post-Trade
Matching
Post-Trade
Matching
Funds Order Processing
Asset servicing
Distributors Transfer Agents
Which business can you automate in this space
Payments
Securities
Equities
Bonds
Investment Funds
SBL
Treasury/Forex
Drivers for automation
Regulation
Liquidity Management and settlement efficiency
Operational costs and risk (reputational risk)
Enhanced capability to deliver value-add services
35
Messaging
Integration
& Interfaces
Shared
Services
Standards Platform
Our offering to
the community
Standards
Platform
SWIFT’s core
messaging
service
Financial messaging,
enabled by platform
and standards
Messaging FIN
InterAct
FileAct
9362 10383
13616 15022 17442 20022
Standards
ISO
Non ISO: FpML, FIXml, AnyXML
Enabling STP
1. What back-
office
system(s)
is/are used?
(in-house or
off-the shelf)
2. Is the system
capable of
automation?
Can it integrate
with other
internal/extern
al systems?
3. Can it use
market
recognised
standards to
dialogue with
other industry
players?
4. Which
networks are
supported?
39
Typical system
configuration
Network
Connection
Communications
Software
Messaging
Software
SWIFTNet
41
Integration Domain
Featu
res
Network
Communication
Messaging
Interface
Integration
capabilities
Market Simple Medium Complex
Alliance
Access Alliance
Lite2
Alliance
Messaging
Hub
Integration
Platform
SWIFT
Integration
Layer
Alliance
Gateway
Alliance
Gateway ARG
Off-premises Offering
On-premises offering
SWIFT Alliance Family
Overview
Network
Architecture
NP networks Local loops Connectivity SWIFT IP
Backbone
SNL
M-CPE
Backbone
Access
Points
OPCs
SWIFT IP Network
SIB
POP
SIPN Access
Network
Network
Partner 2
Network
Partner 1
VPN Box B
SWIFT
NP
router A
Customer
Network
Line A
Line B
POP
NP
router B
VPN Box A
Operations
Example of
connectivity
Alliance Lite 2
Alliance Lite2 provides
a simple, secure, off-
premise SWIFT
connection
Easiest way to connect to SWIFT
Hosted solution, with a light footprint
Peace of mind with SWIFT’s world-class
security, reliability, service and support
Suitable for both manual and automated
operations for most message volumes
Low start-up cost and usage-based pricing
Alliance Lite 2
Light footprint
1
2
3
Standard broadband Internet connection
Standard Internet Explorer browser
Standard Windows PC / laptop
4 SWIFT security tokens (USB)
Alliance Lite 2
How does it work?
Alliance Lite2
Secure workflow
SWIFTNet Interface
USB Token to
sign messages
and files
Secure connection
Automated
File Transfer
SWIFT
Community
All SWIFTNet
flows
Browser
screens
Customer Premises
Internet or
Alliance Connect VPN
SWIFT
Network
Financial
Institutions
Alliance Lite2
Servers
Secure server
Network SWIFT
Operating Centres
Alliance Lite 2
Key features
Full-featured, best-in-class SWIFT interface off-premise; supports all SWIFTNet flows
Light footprint
Secure Internet connection from any location;
option to connect over SWIFT’s VPN
Automation using lightweight AutoClient (automated file transfer)
Setup service & support (global 24/7/365) included, wide range of optional services
Easy-to-use browser-based screens
High availability, resilience and security
Business applications not designed to
connect to external networks/SWIFTNet
Discrepancy between internal message
formats and external formats (ISO)
Maintenance of different protocols cause
applications to be updated
Specialised skills are hard to find
Complications are multiplied: multiple
systems, multiple internal and external teams
involved
How to keep up with front-office/retail
progress
SWIFT
Clients
Service
Providers
48
Integration challenges
48
Alliance Converter
Key features
SWIFT
SWIFT
Integration
Layer
Lite2
AutoClient
File
Websphere
MQ
Web
services
Lite2
Business
Application
1
Business
Application
3
Business
Application
2
Customer premises SWIFT premises
Tra
nsfo
rmatio
n
More connectivity options for
business applications
Support business application
proprietary data format
Workshop
Investment Manager & Custodian Workshop
Bangkok, 26 April 2016
Identifying common STP challenges
between Investment Managers and
Custodians in Thailand
Points
Where are the pain points shared by industry players?
