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Slide 1 SWIFT in the Securities Business Bagin Alex Senior Regional manager Middle East,

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Presentation on theme: "Slide 1 SWIFT in the Securities Business Bagin Alex Senior Regional manager Middle East,"— Presentation transcript:

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2 Slide 1 SWIFT in the Securities Business Bagin Alex Senior Regional manager Middle East,

3 Slide 2 Agenda SWIFT short intro SWIFT in the securities market SMPG scope Egypt and South Africa example

4 Slide 3 SWIFTs mission SWIFT is a worldwide community of financial institutions whose purpose is to be the leader in communication solutions enabling interoperability between its members, their market infrastructures and their end user communities.

5 Slide 4 SWIFT - A customer centric user community Banks IMI's Corporates Insurance Companies Payments MI's Government Institutions Trustees Broker-Dealers Payment Systems Clearing & Settlement Systems Depositories Stock Exchanges Securities MIs Customer

6 Slide 5 Traffic stats (1) August 2007 YTD

7 Slide 6 Traffic stats (2) August 2007 YTD

8 Slide 7 Agenda Pre-trade/trade Post trade/pre settlement Clearing and a settlement Custody Services Investment funds

9 Slide 8 Trade Confirmation – FIN and ISO Status requests Allocation Confirmation Execution Status Reporting

10 Slide 9 Agenda Pre-trade/trade Post trade/pre settlement Clearing and a settlement Custody Services Investment funds

11 Slide 10 Agenda SWIFT short intro SWIFT in the securities market SMPG scope Egypt and South Africa example

12 Slide 11 Example IMIB/D Custodian Clearer Bank CSD Trading and Confirmation Settlement Instructions Cash / FX

13 Slide 12 Example Equities Transaction Lifecycle IMIB/D Custodian Clearer Bank CSD SWIFTNet FIX + FIN FIN

14 Slide 13 Agenda Pre-trade/trade Post trade/pre settlement Clearing and a settlement Custody Services Investment funds

15 Slide 14 Reporting – FIN and ISO Statement of Transactions Statement of Holdings Settlement Status Request Settlement Status

16 Slide 15 Corporate Actions – FIN and ISO Account Service Account Owner MT564 Notification MT565 Corp.Action Instruction MT567 Corp.Action Instruction status MT566 Confirmation of Account activity Announcement of the offer Receipt of proceeds

17 Slide 16 Corporate Actions There are 3,000 institutions receiving and 1,000 institutions sending on SWIFT Users are in over 140 countries There were 45m corporate actions messages sent over SWIFTNet FIN in 2005 YTD Traffic growth is 18%

18 Slide 17 Agenda Pre-trade/trade Post trade/pre settlement Clearing and a settlement Custody Services Investment funds

19 Slide 18 In the Funds Space, Everyone wants to… - Drive Distribution gather assets & customers, increase share of customer wallet - Increase Efficiency reduce cost, risk, streamline staff, better customer service

20 Slide 19 SWIFTs Value to the Funds Industry Partnering with SWIFT to: Drive Distribution Pension Fund automation Reduce proprietary links & internet Offshore Distribution More automation Better customer service Deliver Hedge Funds Products

21 Slide 20 SWIFTNet Funds Offering ISO standards built by the industry for the industry 55+ transaction flows linking entire marketplace Inclusive – Distributors, Fund Cos, Brokers & TAs Commitment confirmed by circa 120 major players Solution live, benefits already proven Domestic & X-border, institutional & retail Mutual, Pension & Hedge Fund processing

22 Slide 21 SWIFT ISO Set of Messages to Automate 57 different Fund Transaction Flows: Orders - Subscriptions/Redemptions Confirmations/Cancellations/Status Cash flow/forecast Price reporting / NAV calculation Statement of executed funds transactions Statement of holdings Switches Transfers & Re-registration Account opening & maintenance Commissions Static data Requests for statements Statement of pending funds transactions SN Funds: Enabling End to End STP in Mutual, Pension and Hedge Fund Processing Supermarket/Platform Fund Administration (TA, TPA) Fund Manufacturer (Fund Manager) Distributor Direct Institutional Wholesale LIVETESTING 2007 DEVELOPMENT

23 Slide 22 Securities Strategic Priorities (set by the industry) Market SpaceStrategic Priorities Be the messaging platform of choice for market infra- structures Succeed in Pre trade /Trade messaging Pre-trade / Trade Equity and fixed income Platform of choice for Post-trade / Pre-set. Post Trade / Pre-settlement Grow traffic in Clearing and Settlement and Custody services Clearing and Settlement Custody Services Drive Industry towards Standards convergence Become messaging platform of choice for the Funds industry in Middle East and Africa Investment funds

24 Slide 23 SWIFT Market Share Traditional Spaces Clearing & Settlement Custody Services Corporate Actions Reporting 55% 16% 3% 43% Market Space SWIFT Market Share

25 Slide 24 SWIFT means value Scalability Straight-through-processing (STP) International Standards Cost effective solutions Security and reliability

26 Slide 25 SWIFTNet and FIX? SWIFT is used at a network layer level for the connectivity Unilink is the hub providor for the inteface

27 Slide 26 Agenda SWIFT short intro SWIFT in the securities market SMPG scope Egypt and South Africa example

28 SMPG scope Create globally agreed harmonised market practices which, integrated with standards, will bring the securities industry closer to achieving STP. STP Standards Market Practice

29 SMPG tasks Organise national market practice groups Collate national market practice rules Define cross-border market practice rules Harmonise market practice differences Publish market practice rules Identify conformance mechanisms

30 SMPG organisation SMPG Steering Committee National Market Practice Groups and Convenors SWIFTStandards Broker/dealers, investment managers, custodians, depositories, regulators, & vendors

31 SMPG meetings At National level: –Whenever felt appropriate –Minimum twice a year At Global level –2 times a year –Amsterdam (28-30 March 2007) draft minutes available on smpg.info –Boston (5-6 October 2007)

32 SMPG countries Americas: BR, CA, MX, US. EMEA: AT, BE, CH, DE, DK, ES, FI, FR, GR, GB, IE, IL, IT, LU, NL, NO, PL, PT, RU, SE, TR, ZA, ICSDs Asia/Pacific: AU, HK, JP, KR, NZ, SG, TH, TW, IN

33 Slide 32 Agenda SWIFT short intro SWIFT in the securities market SMPG scope Egypt and South Africa example

34 Slide 33 Egypt CSD market scope CSD 26 Custodians (4 on SWIFT) 131 Brokers (20 on SWIFT) 1114 Issuers 26 Direct settlement members 13 Primary Dealers Swiftnet Domestic VPN

35 Slide 34 Egypt CSD market on SWIFT today SWIFTNet CSD Custodians (4 on SWIFT) Broker and primary dealers (20 on SWIFT on branch codes ) Swiftnet

36 Slide 35 Egypt CSD market on SWIFT by end of this year SWIFTNet CSD Custodians (4 on SWIFT) Broker and primary dealers 50 NEW BIC codes Swiftnet MI-CUG

37 Slide 36 Egypt CSD market scope evolution CSD 26 Custodians 131 Brokers 1114 Issuers 26 Direct settlement members 13 Primary Dealers Swiftnet MI-CUG

38 Slide 37 Agenda SWIFT short intro SWIFT in the securities market SMPG scope Egypt and South Africa example

39 Slide 38 SAMOS Broker A on Behalf of Client A SETS/BDA SARB Broker B on behalf of Client B SAFIRES Reservation of securities on S) Bank A Bank B A: Security XB: Security X 100 >100 >100 R20,000 Payment ConfirmationPayment Order Status intimations Strate Ltd Locked in Trade Confirmation Sell Order 100/R20,000Buy Order 100/R20,000 CSD Participant Confirmation Settlement Process SFIDvP

40 Slide 39 Client AClient BBroker ABroker B JSE Trading System BDA System SAFIRES CSDP SAMOS On-Exchange Trade - SWIFT Message Flow MT586 MT540/1/2/3 MT As per MT MT548 MT544/5/6/7 MT MT MT515

41 Slide 40 SWIFT means value Scalability Straight-through-processing (STP) International Standards Cost effective solutions Security and reliability

42 Slide 41 SWIFT Pricing Challenge I Eurocent/kChar % Achieved

43 Slide 42 SWIFT Middle East regional conference , 18 and 19 March, Conrad Hotel, Cairo, Egypt

44 Slide 43 Shoucran


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