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Name of speaker Title Institution

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1 Name of speaker Title Institution
Event name, location and date SWIFTNet for the Single Shared Platform Name of speaker Title Institution TARGET2_generic_v8.ppt

2 Agenda Introduction A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2 TARGET2 Preparation phase Conclusion

3 Trans-European Automated Real-time Gross Settlement Express Transfer A system of systems (1 Jan 1999)

4 Typical Cross-Border Payment flow
RTGS 1 RTGS 2 Domestic Interlinking Domestic Bank 1 Central Bank 2 Bank 2 Central Bank 1 Payment confirmation Payment request

5 TARGET2 - Single Shared Platform
Interlinking via FIN SSP Bank A Bank B Swift Net Services NCBs Ancillary Systems

6 Agenda Introduction A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2 TARGET2 Preparation phase Conclusion

7 SWIFTNet infrastructure for SSP
Bank A Bank B SWIFTNet Internal payment system SWIFTNet FIN SWIFT interface payment message SWIFTNet FIN Copy settlement request authorisation/ refusal SWIFTNet FileAct Real-time reporting SWIFTNet InterAct Real-time cash management SWIFTNet Browse On-line visualisation of information Payment module (PM) Central SWIFT interface Payment processing Bank A Bank B Information & control module (ICM) SWIFTNet services FIN/FIN Copy

8 Interbank transfers - between HAM accounts
Bank A Bank B SWIFT interface Internal payment system SWIFT interface Internal payment system SWIFTNet FIN 4 1 3 4 1 MT202 “simplified” 2 Booking HAM Participant interface 3 MT202 “simplified” 2 MT900 to sender MT910 to receiver 4 Payment processing Optional messages

9 Payment processing in the SSP
Credit transfers and direct debits MT103, MT103+, MT202 are mandatory MT204 is optional Settlement process FIN Copy MT096 and MT097 (full copy) MT012 sender notification (optional- by participant individually) MT019 Abort notification Statement of RTGS accounts (optional) MT940 customer statement message MT950 statement message For end-of-day reporting on all transactions settled on the RTGS account Update of credit lines (optional) MT900 confirmation of debit MT910 confirmation of credit

10 Y- Copy SSP SWIFTNet FIN Y-Copy Payment order SWIFTNet FIN
Payment Instruction 1 4 1 Bank A Bank B 2 2 Settlement request 5 3 5 3 Settlement response SSP SWIFT Interface 4 Final Payment Instruction received Sender / receiver notification and reporting (Optional) 5 Settlement Application

11 Use of FIN Copy for RTGS Payment Order
Temporary queue -Settlement request awaiting response from central institution SWIFTNet FIN Bank A Bank B Payment order (MT103, 103+, 202,204*) Y- Copy SSP * MT204 is optional

12 Use of FIN Copy for RTGS Settlement Request
SWIFT Net FIN Bank A Bank B Payment order Y- Copy Settlement Request (MT096) SSP

13 FIN Copy for RTGS Authorisation
Approved / Settled Payment order SWIFTNet FIN Bank A Bank B Payment order Y- Copy Sender notification (MT 012)* Settlement Request (MT 096) Authorisation (MT 097) SSP * Sender notification is optional per participant

14 Y- Copy SSP FIN Copy Rejection SWIFT Net FIN Bank A Bank B
Payment order Y- Copy Abort Notification (MT 019) Settlement Request (MT 096) Rejection (MT 097) SSP

15 Standard FIN Copy Security using MAC/PAC
SWIFT Y- Copy MAC: A to B PAC: A to Central Institution PAC: Central Institution to B

16 SWIFTNet Phase 2 and TARGET2
Design/build/test Pilots Infrastructure upgrade RMA usage Development phase User testing Migration

17 TARGET2 – SWIFTNet Phase 2
Objectives To decouple SWIFTNet Phase 2 project planning from TARGET2 project planning Avoid massive BKE between all TARGET2 participants Allow all involved parties (end user and CI) to migrate independently

18 Consequences for TARGET2 participants
Requirement: remove obligation for BKE exchange with all T2 correspondents Solution: Pre-agreed MAC mechanism will be provided as FIN CBT upgrade to minimize necessary adjustments Description in UDFS version 1.1 Specification by SWIFT sent to CBT providers Provision by CBT providers in 1Q2006 T2 participant is responsible for implementation before start of testing phase Still allow BKE if exists or required by auditors For TARGET2 participants TARGET2 migration is independent from SWIFTNet Phase 2 migration and vice versa !

19 PKI/BKE MAC bypass in TARGET2
no Pre-agreed MAC Key exists ? yes MAC: A to B SWIFT Y- Copy A B PAC1: A to Central Institution PAC2: Central Institution to B Central Institution (SSP)

20 Phase 2 overlap with TARGET2 and Standards 2007
J F M A M J J A S O N D J F M Testing NCBs TARGET2 WAVE1 Phase 2 deadlines for Wave1 cust Pilot testing to allow early start with Phase 2 for Wave1 customers and NCBs TARGET2 WAVE2 Phase 2 deadlines for Wave2 customers TARGET2 WAVE3 Phase 2 deadlines for Wave3 customers Standards2007 Infrastructure Upgrade Contingency

21 J F M A M J J A S O N D J F M TARGET2 CW1 TARGET2 CW2 TARGET2 CW3
TARGET2 Start of user testing TARGET2 Live date J F M A M J J A S O N D J F M CBs compliance checks Recommended Phase 2 Migration for T&T (at least) TARGET2 CW1 AT CY LV LT MT DE LU SI Pilot testing to allow early start with Phase 2 for CW1 customers and NCBs Recommended Phase 2 Migration for T&T (at least) TARGET2 CW2 BE IE FI NL FR ES PT Recommended Phase 2 Migration for T&T (at least) TARGET2 CW3 GR GB PL DK EE IT SR2007 Testing Infrastructure Upgrade Contingency SR2007

22 SWIFTNet infrastructure for SSP
Bank A Bank B SWIFTNet Internal payment system SWIFTNet FIN SWIFT interface payment message SWIFTNet FIN Copy settlement request authorisation/ refusal SWIFTNet FileAct Real-time reporting SWIFTNet InterAct Real-time cash management SWIFTNet Browse On-line visualisation of information Payment module (PM) Central SWIFT interface Payment processing Bank A Bank B Information & control module (ICM) SWIFTNet services FIN/FIN Copy

23 Three complementary core SWIFTNet messaging services
Browsing Secure browsing with standard internet technologies. Appropriate for data exchange in thin-client browser-based financial solutions. To be used with SWIFTNet InterAct and FileAct. SWIFTNet Browse Messaging SWIFTNet messaging SWIFTNet InterAct Secure, reliable, and STP-oriented. Appropriate for exchange of individual structured financial messages and short reports. File transfer SWIFTNet FileAct Secure, reliable, and flexible. Appropriate for exchange of batches of structured financial messages and large reports

24 SWIFTNet Browse overview
Service user Service provider SWIFTNet Workstation (running SWIFTAlliance WebStation and a standard Browser) Web Server and SWIFTNet Link* SWIFTNet Browse enables secure browser-based access (over SIPN) from an operator using a standard browser and SWIFTAlliance WebStation to a service provider’s web server * Typically used in conjunction with SWIFTAlliance Gateway

25 SWIFTNet Browse overview SWIFTNet Browse transparently combines two communication mechanisms
HTTP-S channel only authenticates the system of the end user Service user Service provider Using non-managed Web certificates HTTP-S SWIFTNet InterAct/FileAct Workstation Web Server +SNL InterAct / FileAct channel authenticates the end user Using managed SWIFTNet PKI certificates SWIFTNet Browse allows to initiate InterAct or FileAct exchanges via a secure browser link. By doing so sensitive data can be exchanged with all the security and reliability inherent to the SWIFTNet platform, while preserving the benefits of a browser-based environment.

26 Key characteristics of SWIFTNet Browse (when used with SWIFTNet InterAct/FileAct)
Highly secure & reliable Integration with SWIFTNet InterAct / FileAct for security sensitive data HTTP-S exchanges secured with web-certificates for non-sensitive / un-structured exchanges Closed User Group control SIPN Standard technologies Client uses standard browser to navigate HTTP-S for screens and InterAct for transactions or FileAct for file transfers Thin client Service provider does not install software at client side Single Window Re-utilisation of existing SWIFTNet infrastructure

27 Three complementary core SWIFTNet messaging services
Browsing Secure browsing with standard internet technologies. Appropriate for data exchange in thin-client browser-based financial solutions. To be used with SWIFTNet InterAct and FileAct. SWIFTNet Browse Messaging SWIFTNet messaging SWIFTNet InterAct Secure, reliable, and STP-oriented. Appropriate for exchange of individual structured financial messages and short reports. File transfer SWIFTNet FileAct Secure, reliable, and flexible. Appropriate for exchange of batches of structured financial messages and large reports.

28 SWIFTNet InterAct is used in Real-time mode query & response
Used either in the context of person-to-application solutions (with SAB) or application-to-application (with SAG) Real-time query & response SWIFTNet InterAct Q& R: real-time exchange of information XML messages for SWIFTNet InterAct: Cash Management Standards Access to the SSP (mandatory and optional modules) through SWIFTNet InterAct: Payments queue management Liquidity management Management of reservation and limits etc…

29 Key characteristics of SWIFTNet InterAct
Highly secure Secured with SWIFTNet PKI (managed certificates) Encryption, authentication and integrity control Non-repudiation Closed user group control SIPN Highly reliable Highly available operations Store-and-forward (not planned in T2) Delivery notification (not planned in T2) Message validation (not planned in T2) XML-based STP oriented Short messages (max 100 K; recommended < 20 K for RT) Higher priority vs. SWIFTNet FileAct Flexible central routing Real-time messaging requires 64K lines minimum Other

30 The SWIFT XML Cash Management standards
Advice Statement GetAccount & ReturnAccount GetTransaction & ReturnTransaction ModifyTransaction CancelTransaction GetLimit & Return Limit ModifyLimit DeleteLimit GetReservation & ReturnReservation ModifyReservation DeleteReservation GetMember & ReturnMember ModifyMember GetBusinessDayInformation & ReturnBusinessDayInformation GetCurrencyExchangeRate & ReturnCurrencyExchangeRate GetGeneralBusinessInformation & ReturnGeneralBusinessInformation LiquidityCreditTransfer LiquidityDebitTransfer BackUpPayment ModifyStandingOrder Receipt 21 messages

31 Three complementary core SWIFTNet messaging services
Browsing Secure browsing with standard internet technologies. Appropriate for data exchange in thin-client browser-based financial solutions. To be used with SWIFTNet InterAct and FileAct. SWIFTNet Browse Messaging SWIFTNet messaging SWIFTNet InterAct Secure, reliable, and STP-oriented. Appropriate for exchange of individual structured financial messages and short reports. File transfer SWIFTNet FileAct Secure, reliable, and flexible. Appropriate for exchange of batches of structured financial messages and large reports

32 SWIFTNet FileAct is used in real-time and store-and-forward mode
Store-and-forward file transfer Typically used to reach a large number of counterparties Typically used in the context of person-to-application solutions (with SWIFTNet Browse) Real-time file download Access to the SSP via ICM through SWIFTNet FileAct: Reporting Directory distribution Used in store & forward mode by Target2 as sender of files (TARGET2 Directory updates) Used by TARGET2 participants to pull files ( TARGET2 directory)

33 Key characteristics of SWIFTNet FileAct
Highly secure Secured with SWIFTNet PKI (managed certificates) Encryption, authentication and integrity control Non-repudiation Closed user group control SIPN Highly reliable Highly available operations Store-and-forward Delivery notification Highly reliable file transfer protocol Any file content (structure and character set) Files size up to 250 Mb Flexible 4MB files with Store and Forward Lower priority vs. SWIFTNet InterAct / SWIFTNet FIN Flexible central routing Real-time file transfer requires 64K lines minimum Other

34 Agenda Introduction A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2 TARGET2 Preparation phase Conclusion

35 Two different technical modes for using Information and Control module (ICM)
Application-to-application mode Information and messages will be transferred between the SSP and the individual participants’ internal application. Therefore the participant must: Develop its own application Adapt an existing application or Purchase an appropriate solution User-to-application mode The objective is to permit direct communication between a participant’s users and ICM. The information is displayed in a browser running on a PC system (SWIFTAlliance Webstation) Participants do not need to develop a special application. Application-to-application User-to-application SWIFTNet InterAct SWIFTNet FileAct SWIFTNet Browse (SWIFTNet FileAct)

36 Possible interface for accessing TARGET2
User-to-Application Application-to- Application ICM access mode ICM user profile Any user * - SWIFTAlliance WebStation - SWIFTAlliance Gateway WebStation concentration SWIFTAlliance Gateway Single Window SAA/E users SWIFTAlliance Starter Set * Assumption: user is already SWIFTNet FIN user

37 SWIFTAlliance Starter Set Enabling the single window
Entry or Access SWIFTAlliance Starter Set File transfer GUI SWIFTNet Link SWIFT Alliance Starter Set: opens the entire single window for you SWIFTNet InterAct * Market infrastructures Market infrastructures SWIFTNet FIN SWIFTNet Link SWIFTNet FIN SWIFTNet Customer solutions Browse Customer solutions Business solutions FileAct Business solutions InterAct Browse FileAct * when used in conjunction with SWIFTNet Browse

38 SWIFTAlliance Starter Set
A software that leverages the SAE/SAA platform to provide out-of-the-box file transfer and browsing capabilities Features SAS, SAA/SAE & SNL run on the same system Allows one concurrent operator (SAB) SAS is available on Windows and AIX/Solaris SAS include the SAB software Connectivity Connectivity Pack 1 to 5 SAB [RA] [RA] SAS Browse/InterAct & Manual files SAA/E RA: Remote API, RAHA: Remote API Host Adapter, SAW: Workstation SAB: WebStation, SAG: Gateway, SAE/SAA: Entry & Access Legend: RAHA licence not required [RA] Modem

39 SWIFTAlliance Gateway WebStation Concentration
Limited SAG licence allowing for SAB concentration License includes 5 concurrent users and 1 SAB Base license SAB on the corporate desktop Upgrade to more concurrent users: 5->10 5->20 Connectivity Pack 2 to 5 SAB SAB SAB [RA] [RA] [RA] [RA] FIN interface Browse/InterAct & Manual files SAG RA: Remote API, RAHA: Remote API Host Adapter, SAW: Workstation, SAB: WebStation, SAG: Gateway, SAE/SAA: Entry & Access

40 SWIFTAlliance Gateway Single Window
The ‘typical’ SAG Licence License price based on traffic License includes one Host Adapter (RAHA or MQHA) + one Agent (FTA or TDA), 5 concurrent users and 1 SAB Base license Upgrade of Agents & Host Adapters possible, price depending on traffic tier Value added versus SAG automation Full SWIFTNet concentrator SAG in the DMZ Scalability, resource optimisation Resilience Connectivity Connectivity Pack 2 to 5 SAB FIN Interface CLS gateway RA MQ RA [RA] SAG Browse, InterAct & FileAct for any services RA: Remote API, RAHA: Remote API Host Adapter, SAW: Workstation, SAB: WebStation, SAG: Gateway, SAE/SAA: Entry & Access MQ: MQSeries, MQHA: MQSeries Host Adapter for SAG, FTA: File Transfer Agent, TDA: Transaction Delivery Agent DMZ

41 SWIFTAlliance Gateway – Licensing & pricing ‘An easy step approach’
Profile 3: “Single Window” Benefits : -Can reside in DMZ -Scalability & resource optimisation Resilience Off-the-shelf application integration using Agents (FTA or TDA) and Host Adapters (RAHA or MQHA) -Flexible SAB deployment From 5 till 320 concurrent users Price: Starts at €26,434 depending on traffic license (incl SAB Base license, 5 users, 1 Agent, 1 Host Adapter) YMF: €6,025 €5,328 €13,114 €4,099 Profile 2 : “Automation “ Benefits : -Off-the-shelf application integration using Agents (FTA or TDA for < 200 InterAct or FileAct per day) -Flexible SAB deployment From 1 till 320 concurrent users Price : Starts at €13,320 (incl SAB Base license, 1 user, 1 Agent) YMF: €3,402 Profile 1 : “WebStation Concentration” Benefits : -Flexible SAB deployment From 5 till 320 concurrent users Price : Starts at €7,992 (incl SAB Base license + 5 users) YMF: €3,477 SWIFTAlliance Starter Set Benefits : -FileAct out-of-the box, manual 1 concurrent user Price : €3893 (incl SAB Base license + 1 user) YMF: €1,516 EUR prices are based on SWIFT 2005 budgeted reference rate (1.22)

42 SWIFTAlliance offering for TARGET2
Application-to-Application to ICM Messaging Services SWIFTNet InterAct SWIFTNet FileAct Recommended interfaces Vendor application  SAG Single Window In-house application  SAG Single Window + Developer Tool-kit Accessing the Payments Module SWIFT FIN SWIFTNet FIN Copy Recommended Interfaces SWIFTAlliance Access /Entry User-to-Application to ICM SWIFTNet Browse SAA/E users  SAS Others  SAB Option: SAG WebStation Concentrator

43 Agenda Introduction A comprehensive set of services for TARGET2
SWIFT connectivity for TARGET2 TARGET2 Preparation phase Conclusion

44 Ordering and Service Subscription Installation & configuration
Migration Timeline : example in case of going Live Date in November 2007 2005 2006 2007 2008 P r e p a r a t i o n Planning Design Ordering M1 Ordering and Service Subscription Installation M2 Testing Installation & configuration M3 Live M4 Start T2 test Start T2 Live

45 Project Definition and Preparation:
Appoint a project team Read TARGET2 technical documentation Select access mode (DP/IP) Identify requirements to implement Target2 Upgrade your connection with your local Network Provider (swift.com – Partners – Network Partners) if applicable Line provisioning / Installation

46 Ordering : Software ordering and Service Subscription
Milestone1 (M1) to be completed by April 2007 If not yet done, register to swift.com online services Order additional software (SAB/SAG/SAS) or upgrade with SWIFT (swift.com – Support – ordering) Software delivery Complete and submit the e-MSSF by indicating single or multiple service subscription (swift.com – Support – ordering-Target2 specific MSSF) Complete 1 e-MSSF for Target2 Testing and 1 e-MSSF for Target2 Live

47 Service Administrator
TARGET2 Service subscription (Life cycle) Customer NCB Service Administrator 1 TARGET2 form Approval page Approval page SWIFT.COM 4 6 Validation 5 3 2 7 Customer completes and submits the e-MSSF on SWIFT ordering site – swift.com 2. SWIFT validates the e-MSSF 3. NCB is informed on service subscription – trigger approval of the e-MSSF approval page 4. NCB approves the service subscription – submits the approved approval page of e-MSSF 5. Service Administrator (T2) receives the approval page approved by NCB for approval 6. Service Administrator (T2) approves and submits the approval page 7. Service (s) provisioning is executed (process takes at least 3 weeks) Implementation Tracking - Monitoring Reporting sheet

48 Installation and configuration
Milestone2 (M2) to be completed before May 2007 Perform your interface upgrade and install additional software or contact a SWIFT Business Partner (swift.com – Partners – Business Partners) Install the FIN Copy Patch available on swift.com Download Center (swift.com – Support– Download Center) for non-SWIFT interface users please contact your Interface vendor Upgrade your interface to enable pre-agreed MAC mechanism by installing patch (swift.com – Support– Download Center) Configure your SWIFTNet interface

49 Testing TARGET2 User Testing
Milestone3 (M3) at start of test wave: May 2007 Exchange keys with Test Target2 CID (TRGTXEP0) Activation of Target2 services in Test mode Start testing according to the test cases/scenarios as prepared by ESCB and your NCB SSP development CB’s Acceptance Testing Free Testing activities Connectivity Testing Certification activities Inter- operability Country Business Day Activities in the Production environment TARGET2 User Testing

50 Live Exchange keys with Test TARGET2 CID (TRGTXEPM)
Milestone4 (M4) at start of Live wave: November 2007 Exchange keys with Test TARGET2 CID (TRGTXEPM) Activation of TARGET2 services in Live mode Start testing according to the test cases/scenarios as prepared by ESCB and your NCB

51 Where to find help ? Detailed readiness information is
available please consult the ‘Getting Started’ document (www.swift.com – Products and Services – Market Infrastructures – TARGET2) Please also consult the TARGET2 website (https://target2.ecb.int ) Contact your National Central Bank Contact details of Network Providers, Business Partners SWIFT Customer Service Centers SWIFT on-line support and Frequently Asked Questions (FAQ’s) Updates on vendor initiatives, activities and status

52 Migrate smoothly to TARGET2 with SWIFT Training
Objective : receive technical background information to enable a smooth migration and implementation Two different modules according to your role and requirements: Business overview of TARGET2 Technical infrastructure and file transfer Complemented with technical training courses on the SWIFTAlliance interfaces Available as of October 2005 Courses scheduled according to the country migration window

53 Migrate smoothly to TARGET2 with SWIFT Training
Module 1 – Business overview of TARGET2 TARGET today – the need to evolve Scope and framework of TARGET2 including an overview of the SSP Overview of the services offered by the SSP SWIFT's services for TARGET2 SWIFTNet FIN, FIN Copy and CUG - SWIFTNet InterAct, FileAct and Browse

54 Migrate smoothly to TARGET2 with SWIFT Training
Module 2 – Technical infrastructure and file transfer The Secure IP Network, including resilient network access options for TARGET2 direct and indirect users The core SWIFTNet messaging services and their features: SWIFTNet InterAct, SWIFTNet FileAct, SWIFTNet Browse SWIFTNet security: layered security, PKI and SWIFTNet security officers FileAct on SWIFTAlliance WebStation: configuration, sending and receiving files FileAct on SWIFTAlliance Gateway: brief overview of FTA Module 3 – Managing SWIFTAlliance Gateway Module 4 – Managing SWIFTAlliance Starter Set (incl. WebStation)

55 TARGET2 migration milestones
2003 2004 2005 2006 2007 Prepare now Definition phase Order services GFS UDFS v1 UDFS v2 UDFS final User testing Book 4 Live Customer migration process

56 SWIFT supports the migration to TARGET2
Ad-hoc participation of SWIFT to the migration task force Your Relationship Manager add name & coordinates) is your single window to SWIFT Your service partner (add name & coordinates) can advise you on the technical infrastructure

57 & uestions Answers TARGET2_generic_v8.ppt


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