SWIFTSolutions for high value payment clearing Sib06_SWstand_HVPC_v1.ppt

Adding value to payments clearing Standardisation Reduced costs and complexity for participants Interoperability of clearings Third party software availability Single window Re-use of existing infrastructure Simplicity for participants Sib06_SWstand_HVPC_v1.ppt

Benefits for financial institutions High-value payments Low-value payments Single re-usable connection Standard security implementation Re-usable technical expertise Single contract and service management Common technical integration in user environment Business standards EURO1 STEP1 FIs RTGS FIs ACH STEP2 FIN InterAct FileAct SWIFT Financial institutions Sib06_SWstand_HVPC_v1.ppt

SWIFTNet infrastructure for HVPC systems Bank A Bank B SWIFT interface Internal payment system SWIFTNet Payment message SWIFTNet FIN Copy SWIFTNet FileAct Real-time reporting Settlement request Authorisation/ refusal SWIFTNet Browse On-line visualisation of information SWIFTNet InterAct Real-time cash management Central RTGS Application Central SWIFT interface Payment processing Bank A Bank B Central Web Server SWIFTNet services FIN/FIN Copy Sib06_SWstand_HVPC_v1.ppt

SWIFT provides a total solution for payments and settlement systems Banking correspondents Automated clearing houses Real-time gross settlement systems Central securities depositories Settlement instructions Settlement instructions Payments Settlement instructions DVP instructions R-t cash reporting Real-time query/control Real-time query/control Real-time query/control Bulk payments Bulk payments Reporting Reporting FIN FIN Copy InterAct FileAct Sib06_SWstand_HVPC_v1.ppt

FIN Copy Service Y-Copy mode User A User B 1 5 2 1. User A sends message to User B 2. Original message is held in FIN 3. Message is copied by FIN to Y-Net Server, and sent in an MT096 envelope 4. Authorisation is sent to FIN (MT097) 5. FIN forwards the message to User B. If not authorised, FIN returns message to User A 3 4 Central Institution Sib06_SWstand_HVPC_v1.ppt

FIN Copy Service T-Copy mode User A User B 1 4 2 1. User A sends message to User B 2. Message is copied by FIN to the Server 3. Message is sent to the Server in an MT096 envelope 4. FIN forwards the message to User B 3 Central Institution Sib06_SWstand_HVPC_v1.ppt

FIN Copy Service Additional features Sender Notification/Receiver Information User A User B 1 5 2 Destination info (Block 115) Sender notification MT012 & Sender info (Block 114) 3 4 Sender info (Block 114) Destination info (Block 115) Central Institution Sib06_SWstand_HVPC_v1.ppt

FIN Copy Y-Copy authentication User A User B MAC:A to B SWIFT Y-Copy PAC:A to Central Institution PAC:Central Institution to B Central Institution Sib06_SWstand_HVPC_v1.ppt

FIN Copy T-Copy authentication User A User B MAC:A to B SWIFT FIN Copy PAC:A to Central Institution Central Institution Sib06_SWstand_HVPC_v1.ppt

Cash management messaging offering SWIFTStandards XML Get object information - Limits - Accounts - Transactions - Business data (membership, day profiles, exchange rates, FX margins...). 1 Actions on objects - Input transactions - Modify/cancel transactions - Modify/cancel limits - Transaction authorizations - Standing order management 2 Alarms and business information - Limits - Accounts - Transaction - Business information (static/dynamic) 3 Provide information for Reconciliation - Registration or bookings to the account - Balance information 4 Sib06_SWstand_HVPC_v1.ppt

SWIFTNet InterAct is used in real time mode query and 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: interactive exchange of information for messages that are time-critical and need an instant response New message types will be introduced as ISO XML messages for SWIFTNet InterAct: Cash Management standards Types of operations supported include: Payments queue management Liquidity management Management of reservation and limits SWIFTNet Interact is used in real time mode. Real time mode is well suited for messages that are time-critical and require an instant acknowledgement. Real time query-response is an interactive service typically used in the context of online enquiry or reporting systems and often in conjunction of SWIFTNet Browse. Cash management standards :Some adaptation may be needed but more or less they will be similar to the current cash management standards. Additional notes: SWIFTNet FIN uses SWIFTNet InterAct as a transport mechanism - this is largely invisible to customers. SWIFTNet InterAct and SWIFTNet FIN will co-exist as messaging services: a. New message types will be introduced as ISO XML messages for SWIFTNet InterAct b. SWIFT has no plans to discontinue FIN in the foreseeable future SWIFT is developing a comprehensive approach to facilitate the co-existence of FIN MTs and of ISO XML messages, when both are used in the same business area Sib06_SWstand_HVPC_v1.ppt

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 Delivery notification STP oriented Message validation XML-based Other 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 Sib06_SWstand_HVPC_v1.ppt

SWIFTNet Browse overview SWIFTNet Browse transparently combines two communication mechanisms HTTP-S channel only authenticates the system of the end user Using non-managed Web certificates Service user Service provider HTTP-S SWIFTNet User access rights User E Grieg F Chopin ok?  Limits 75,000 50,000 E Grieg 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. Sib06_SWstand_HVPC_v1.ppt

Highly secure and reliable Standard technologies Key characteristics of SWIFTNet Browse (when used with SWIFTNet InterAct/FileAct) Highly secure and 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 Sib06_SWstand_HVPC_v1.ppt

Benefits for automated clearing houses hardware software lines maintenance support release qualification testing backup disaster take-over exercises legal software maintenance project management procurement education documentation Sib06_SWstand_HVPC_v1.ppt Sib06_SWstand_HVPC_v1.ppt Slide 16

Banking market infrastructures – August 2006 High-Value Payments Low-Value Payments Systems Systems Live 67 Live 6 Implementation 12 Implementation 3 Plan/Discussion 5 Plan/Discussion 12 SWIFTNet services FIN FIN Copy InterAct FileAct Browse Live 25 42 6 11 6 Implementation 6 5 4 7 5 Plan/Discussion 1 5 2 15 9 Sib06_SWstand_HVPC_v1.ppt

Banking market infrastructures – August 2006 High-value payments Live Albania (AIP) Algeria (RTGS) Angola (PTR) Australia (PDS) Austria (ARTIS) Azerbaijan (AZIPS) Bahamas (BHS) Barbados (BDS) Belgium (ELLIPS) Bosnia & Herzegovina (BIH) Bulgaria (BGN-RINGS) Canada (LVTS) Chile (Netting - LBTR) CLS Bank Croatia (HSVP) Denmark (DDK-KRONOS) Egypt (CBE) EBA Clearing (EURO1/STEP1) ECB (TARGET) Finland (BOF) France (CRI – PNS/TBF) Germany (RTGSPlus) Ghana (GISS) Greece (HERMES) Guatemala (RTGS) Hungary (VIBER) Ireland (IRIS) Italy (BIREL) Jordan (RTGS) Kenya (KEPSS) Kuwait (RTGS) Latvia (LVL) Lesotho (RTGS) Luxemburg (LIPS) Malta (MARIS) Mauritius (MACSS) Namibia (NISS) Netherlands (TOP) New Zealand (AVP) Norway (NICS) Oman (RTGS) Philippines (PPS) Romania (REGIS) Slovenia (SIPS) South Africa (BOP - RTGS - SAMOS) Spain (NSLBE - SLBE) Sri Lanka (LankaSettle) Sweden (RIX) Switzerland (Remote Gate) Tanzania (TISS) Thailand (BAHTNET/2) Trinidad & Tobago (SAFE-TT) Uganda (UNIS) United Kingdom (CHAPS-£ CHAPS-€ / Enquiry Link) United States (CHIPS) Venezuela (PIBC) Zambia (RTGS) Zimbabwe (ZETTS) West African States (BCEAO) Implementation Plan/Discussion Bahrain (RTGS) Botswana (RTGS) Morocco (RTGS) Pakistan (RTGS) Central African States (BEAC) Tunisia (RTGS) Eurosystem (TARGET2) Singapore (MEPS+) Israel (RTGS) Swaziland (RTGS) Fiji (RTGS) Hong Kong (RTGS) Georgia (RTGS) Lebanon (RTGS) Palestine (RTGS) Peru (RTGS) Russian Federation (RTGS) Sib06_SWstand_HVPC_v1.ppt

Banking market infrastructures – August 2006 Low-value payments Live Implementation Plan/Discussion Albania (AECH) EBA Clearing (STEP2) Eurogiro Germany (RPS) Slovenia (GIRO) Sweden (BGC) Jordan (ACH) Uganda (ACH) United Kingdom (VOCA) Croatia (FINA) Georgia (ACH) Germany (Garagenclearing) Ghana (ACH) Greece (DIAS) Italy (part of BI-COMP) Luxemburg (LIPS-Net) Netherlands (Interpay) Romania (SENT) Sierra Leone (ACH) South Africa (BankServ) Spain (Iberpay) Sib06_SWstand_HVPC_v1.ppt