SWIFT and BizTalkdownload.microsoft.com/...event/SWIFT_jamesbibby.pdf · Microsoft BizTalk R2...
Transcript of SWIFT and BizTalkdownload.microsoft.com/...event/SWIFT_jamesbibby.pdf · Microsoft BizTalk R2...
Slide 1Microsoft BizTalk R2 Launch v1.0
James Bibby
Business Manager, Sales Services
SWIFT
SWIFT and BizTalk
Slide 2Microsoft BizTalk R2 Launch v1.0
Agenda
About SWIFT
Overview of SWIFTSolutions
Focus on SWIFTNet Funds
Funds technical considerations
BizTalk for SWIFT case studies
– BNP Paribas
– Cuscal
Slide 3Microsoft BizTalk R2 Launch v1.0
About SWIFT
Slide 4Microsoft BizTalk R2 Launch v1.0
What is SWIFT?
Platform
Industry
owned
cooperative
Standards setting
body for electronic
financial messaging
Mandated by the
United Nations
SWIFTNet
Highly secure
Highly resilient
Slide 5Microsoft BizTalk R2 Launch v1.0
SWIFT figures
8,195 live clients
208 countries
2.8 billion messages per year
Average daily traffic 13.1 million messages
Peak day of 15.9 million messages 31 July 2006
Slide 6Microsoft BizTalk R2 Launch v1.0
SWIFT history and evolution
fund administrators
MA-CUGs
banks found SWIFT
money brokers
trading institutions
- registrars & transfer agents- custody providers- trust or fiduciary services companies
investment managers
- broker/dealers- central depositories & clearing institutions- exchanges
- payments MIs- proxy voting agencies- non-shareholding financial institutions
- treasury counterparties- treasury ETC service providers
travellers cheque issuers
securities MIs
1973
2000
securities market
data providers
1996
treasury securities ETC
service providers
Slide 7Microsoft BizTalk R2 Launch v1.0
Payments
Trade services
Securities
Treasury
SWIFT messages by market – 2007 YTD
53%
2%39%6%
Slide 8Microsoft BizTalk R2 Launch v1.0
SWIFT traffic growth – 2007 YTD
Globally Australia
Payments 13.8% 14.9%
Treasury 12.3% 3.7%
Trade 1.5% -2.0%
Securities 23.3% 53.3%
Total 17% 24.6%
Slide 9Microsoft BizTalk R2 Launch v1.0
Pricing and traffic Harnessing economies of scale
5
10
15
20
25
30
35
40
45
50
0
500
1000
1500
2000
2500
Price
(EURcent/msg)
Traffic
(Millions of messages)
(Return)
Slide 10Microsoft BizTalk R2 Launch v1.0
SWIFT Partners
Solution Partners: Application providers and
business / integration consultants
Service Partners: Installation and integration
services related to connectivity
Business Partners: Marketing and selling
SWIFT interface products
Network Partners: AT&T, Colt, Orange, Infonet
Slide 11Microsoft BizTalk R2 Launch v1.0
Working with SWIFT Partners
4
Network
Partners
40
Service
Partners
20
Business
Partners
250
Solution
Partners
Slide 12Microsoft BizTalk R2 Launch v1.0
Standards SWIFTNetMarket
practice
SWIFT
A business centric approach to standards
Business process modelling
Applications Integration
Partners
Slide 13Microsoft BizTalk R2 Launch v1.0
SWIFTNet messaging services
– Messages with MT standards and rules
– Store-and-forward
– Feature-rich
– 8,400 clients
SWIFTNet
FIN
SWIFTNet
InterAct
SWIFTNet
FileAct
– File transfer for data intensive applications
– Standards and rules
– Store-and-forward and real-time
– Messages and query-and-response
– MX standards (XML-based) and rules
– Store-and-forward and real-time
SWIFTNet
Browse
– Secure browsing
– Complements InterAct, FileAct, and FIN
Slide 14Microsoft BizTalk R2 Launch v1.0
Overview ofSWIFTSolutions
Slide 15Microsoft BizTalk R2 Launch v1.0
SWIFTSolutions
RulesIndustry agreed market practice and R&L, with SLAs
StandardsStructured standards– SWIFT or others
SWIFTNetSWIFTNet in a SWIFT managed CUG
Mandatory
Application Provided by FIs or vendors
Partners To enable FI integration
For most
solutions
Slide 16Microsoft BizTalk R2 Launch v1.0
Banking Markets
Slide 17Microsoft BizTalk R2 Launch v1.0
Securities Markets
Slide 18Microsoft BizTalk R2 Launch v1.0
Focus onSWIFTNet Funds
Slide 19Microsoft BizTalk R2 Launch v1.0
The Australian Funds Industry
Australia has the largest Funds base in Asia Pacific with over AUD1 trillion FUM.
– This is growing at 17-25% p.a.
Significant manual processes exist including paper and faxes.
– Over 4 million faxes p.a.
A growing global investment focus
– means a truly global standard is necessary
Over 70% of Australian Fund participants representing more than 75% of total FUM already have access to the SWIFT network
Slide 20Microsoft BizTalk R2 Launch v1.0
Managed Funds Industry Model (Australia)
Reports:
4.5 Current Position
Custodian
Regulators
Reports:2.6 Confirmations
2.7 Holding Statements
2.8 Transaction History
2.9 Commission Accounting
2.10 Fund Valuation
2.11 Tax Statements
2.12 Agent Registration & Modification
Payment Systems
Transactions:
2.1 Initial Application (Account Opening)
2.2 Account Modification
2.3 Financial Transactions
2.4 Cancellations
2.5 Distributions
Transactions:
5.1 Initial Application (Account Opening)
5.2 Account Modification Request
5.3 Depost/Redemption
5.4 Distribution
5.5Cancellations
Transactions:
7.1 Wholesale Deposit/
Redemption
7.2 Confirmations
7.3 Distribution
7.4 Transfers
7.5 Cash Accounting
7.6 Tax Reporting
7.7 Settlement
Reports:
7.8 Reconciliation
7.9 Current Position
7.10 Unit Price Information
Reports:
8.1 Investor Tax Statement
8.2 Prudential Report
Transactions:
3.1 Initial Application (Account Opening)
3.2 Account Modification Request
3.3 Financial Transactions
3.4 Distributions
3.5 Cancellations
3.6 Agent Regisration & Modification
Reports:
3.7 Unit Price Information
3.8 Confirmations
3.9 Holding Statements
3.10 Transaction History
3.11 Commission Accounting
3.12 Fund Valuation
3.13 Tax Statements
3.14 Sales/Market reports
Client Market
Investors
Distributors
Transactions:
1.1 Application
1.2 Deposit/Redemption
Contracts:
4.1 Prospectus
IDPS
(Master Trust / WRAP)
Managed Fund Provider
Margin Lender
Registries Asset
Manager
Transactions:
4.3 Wholesale
Deposit/
Redemption
4.4 Distribution
4.5 Unit Price
Information
Transactions:
6.1 Deposit Redemption
6.2 Distribution
Reports:
6.3 Current Positions
6.4 Unit Price
Information
Reports:
* Fund performance
* Rates of return
* Unit prices
4.2 Admin
Agreement
Reports:
5.6 Confirmations
5.7 Holding Statements
5.8 Transaction History
5.9 Commission Accounting
5.10 Fund Valuation
5.11 Tax Statements
5.12 Sales/Market reports
Dealer Distribution
Dealer Group
Financial
Planner
Agencies
Life Agencies
Referral
Organisations
MarketingMarketing Financial
Planning
Product
Admin.
Product
Admin.
Investment
Management
Investment
Custody
Source: swimEC
Current focus is
on the largest
triangle of
“pain”
ISO20022
messages are
applicable
throughout the
value chain
Slide 21Microsoft BizTalk R2 Launch v1.0
SWIFT Net Funds - Benefits of Automation
Risk reduction : No manual errors
Operational Efficiency : Straight through processing
Volume in-sensitivity : More business, less headcount
Market Standards : Global reach, reuse, lower IT costs
Audit Trail : Neutral evidence
Regulatory Compliance : eg MiFID & Giovannini
Slide 22Microsoft BizTalk R2 Launch v1.0
Pilot and Market Practice Time Lines
Register
Resource allocation-technical-market practice
-Business
Order Software
Training on
software
Self test with
network
Pilot phaseAugust 27th –
Sept 7th
Post pilot
review
Provide counter-
party details to SWIFT
Determine piloting partners
Determine piloting
messages
Pilot case scenarios
-write scripts-correct
outcomes
Install and
configure software
Agree pilot
complete
SMPG Funds
working group
formulation
Decide on structure
and logistics
Review overseas
MP-UK-HK-LU
Determine AU message
flows and MP
Document AU MP
Circulate AU MP
Send to global SMPG
Pilot
Market Practice (MP)
27th August ’07
Now
Individual firm activity Group activity
Group activity
If not complete, rework
back into pilot cases
Feed pilot results
back into MP
Aug/Sept ’07
Slide 23Microsoft BizTalk R2 Launch v1.0
Australian Market Practice Group of 14
Slide 24Microsoft BizTalk R2 Launch v1.0
ImplementingSWIFTNet Funds
Slide 25Microsoft BizTalk R2 Launch v1.0
Project considerations
Remember that the market practice rules are as important as the technical considerations follow the Market Practice Guide
Ensure end-to-end testing is taken with your counterparties, not just internal testing
Do you have SWIFT specific knowledge? Engage Service or Solution Partner
Slide 26Microsoft BizTalk R2 Launch v1.0
Technical Considerations
Do you have the SWIFT infrastructure to support the solution?
Will it be automated or manual?
Integrate by developing your own application or through an off the shelf application?
Slide 27Microsoft BizTalk R2 Launch v1.0
SWIFTReady label programme
run by SWIFT
Label criteria are SWIFT
specific and re-evaluated
annually Two levels of
certification
Qualifies third party financial
applications as SWIFT
compliant
Slide 28Microsoft BizTalk R2 Launch v1.0
What does the label program cover
Designed to reflect the capability of a product to provide automation in a SWIFT environment
Core focus on evaluating support of:
– SWIFTStandards
– SWIFT messaging/connectivity
– SWIFT functionality as per the Service Definition for the SWIFTSolution
Slide 29Microsoft BizTalk R2 Launch v1.0
Microsoft BizTalk
Microsoft BizTalk SWIFT Accelerator
First certified in 2005
Certified SWIFTReady Financial EAI Gold for 2007
Slide 30Microsoft BizTalk R2 Launch v1.0
Case study 1:BNP Paribas
Slide 31Microsoft BizTalk R2 Launch v1.0
Business Drivers
Primary driver:
ENHANCE CUSTOMER SERVICE
Recognition of SWIFT being the common delivery platform for BNP’s clients
Standardisation and STP Capabilities
Increase security, accountability and reliability
Reduce manual processes, associated errors and associated costs
Slide 32Microsoft BizTalk R2 Launch v1.0
SWIFTSolution
SWIFTSolution = SWIFTNet FIN
– Significant majority of clients were already SWIFT enabled
– Clients could easily automate processing of MT messages
MT950 Statement
– to report cash movements
MT535 Statement of Holding
– to report current position of the financial instruments held for client
Slide 33Microsoft BizTalk R2 Launch v1.0
SWIFT Enabling
Existing portfolio management system was not SWIFT enabled.
Selected Microsoft BizTalk with the SWIFT Accelerator because:
– Automation platform for all standards
– Full support for both MT and MX SWIFT messages
– Enabled decoupling of SWIFT messaging from business application
Slide 34Microsoft BizTalk R2 Launch v1.0
Business Benefits
Increased service level to clients
– EOD reports based on industry standards
– STP is now easily achieved by clients
Reduced risk
– Industry leading SWIFT security
– Non-repudiation of message delivery
Reduced operational cost
– Process now fully automated
– Fewer errors, less manual intervention
Slide 35Microsoft BizTalk R2 Launch v1.0
Case study 2:Cuscal
Slide 36Microsoft BizTalk R2 Launch v1.0
Business Drivers
Risk mitigation – technology refresh
Enable clients to enter and manage RTGS payments via secure internet portal
Create a flexible payments platform to enable introduction of new SWIFT based services (e.g. international remittances)
Enable end-to-end STP, including payment cancellations and queries
Slide 37Microsoft BizTalk R2 Launch v1.0
SWIFTSolution
SWIFTSolution = SWIFTNet FIN
– Main feeder to Australian RTGS system is SWIFT
MT103 Single Customer Credit Transfer
– Used to make the payment
MT192/195/196 – Cancellation/Query
– Used to cancel payments, make queries and receive answers
Slide 38Microsoft BizTalk R2 Launch v1.0
SWIFT Enabling
Microsoft BizTalk with the Accelerator for SWIFT selected because:
– Support for all SWIFT FIN messages
– Provides workflow management
– Integrates with other systems (General Ledger and Billing)
Slide 39Microsoft BizTalk R2 Launch v1.0
Business Benefits
Increased customer service– Clients can now send and receive SWIFT query
messages on status of payments
Increased agility and flexibility– Will re-use services to introduce International
Remittance product to clients
Reduced risk– Integrated with internal security controls
Reduced Operational cost– Less manual handling of queries from clients
Slide 40Microsoft BizTalk R2 Launch v1.0
Summary
Slide 41Microsoft BizTalk R2 Launch v1.0
Summary
Keys to success:
Ensure your technology is SWIFTReady Certified
Ensure your people understand the standards and market rules not just the technology
Engage a SWIFT Certified Partner if you do not have the knowledge in house
Slide 42Microsoft BizTalk R2 Launch v1.0
&uestions
Answers