SWIFT road map 2010 - 2015

May 19th, 2010

Christian Kothe

Head of Central and Eastern Europe

Topics

SWIFT road map and SWIFT strategy

2015

Standards Migration – Funds and E&I

on the forefront

Preparing for projects – SWIFT

consulting

Board_Mar2010_NMG_Briefing_Material_V3 3

SWIFT 2015

SWIFT2015 Input

Community

Consultation

Market

Trends

SWIFT 2010

Review

Technology

Evolution

4

While SWIFT2010 has delivered growth…

SWIFT2010 strategy (“more together”) was about the continuation

of the virtuous cycle of growing traffic and decreasing prices.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1995 2000 2005 2010

Swift 2001

Swift 2006

Swift2010

Realization

5

…Some important lessons have been learned

• There is mileage left in the core

• Avoid incomplete solutions

• Be bolder in sharing of business risks

• Manage dynamics of market inertia versus

critical mass

• Segmentation is important

• Monitor performance and profitability

6

SWIFT´s core assets and capabilities are a

source of strength

• Operational

excellence

• Customer support

• Change management

• Connectivity and

reach

• Partner eco-system

• Brand recognitionPlatform

• 175 MEUR investment

• Resilience and security

Community • Co-operative

• Global

• 8000 institutions

Standards • Messages

• Business flows

• Tools / directories

7

Lots of potential left in our core and

immediate adjacencies

PlatformCore messaging• Correspondent banking

• RTGS

• Securities settlement and

custody

Products, Services &

Reach• Interfaces

• Services

• Reach

• Reference data/business

intelligence

Beyond Core• Running infrastructures

• Matching

• KYC/AML/Sanctions

8

Lift barriers to build on the core

What needs to change?

1. TCO must come down

2. SWIFT must support

interoperability

3. Become locally relevant

4. Share risks and rewards

with communities

5. Take more advantage of

partner ecosystem

6. Adapt organisational skills

To realise growth potential

barriers need to be lifted

9

How is SWIFT evolving

10

FXAG_26_02_2009 - Confidentiality: Level 1 11

ISO 20022 / MT to MX migration

MT-MX coexistence

Current state

• ISO 20022:

– Brings tangible benefits to the financial industry

– Enables interoperability across multiple communities

– Lowers cost, reduces risk and increases automation

• Challenges:

– The speed of adoption of MXs is slower than anticipated

– The cost of a short-term syntax migration is not necessarily justified

where MTs provide good STP

– There are a lot of successful syntaxes in use today (FIX, FpML,

proprietary formats)

• SWIFT is fully committed to shield its community from the main pain

points linked to coexistence

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MT-MX coexistence

SWIFT efforts in the coming months

• A Head of Coexistence role has been created to centralise the

responsibilities, coordinate the skills and ensure an adequate SWIFT

response to and communication on coexistence

• In the coming months, SWIFT will:

– Further define interoperability services (at messaging, products,

business levels);

– Strengthen SWIFT’s toolkit of products that support implementation,

mapping and translation;

– Make recommendations for each relevant business area, taking into

account specific gaps, pain points, opportunities and varying

customer TCO situations in the related processes.

13

Overall coexistence framework

1. Prepare MX 2 . Introduce MX 3. Implement MX

MTMX

MT/MX

Decision to

build/use MX

MX live

on SWIFTPotential

removal

of MT

message

MXMT

Milestones, dates and length

of phase to be determined by

each MT or MT group,

governed by users

Decisions by Standards Committee (STC) and

business committees (BPC and SSC)

14

Current timeline and milestones for

Investment funds

1. Prepare MX 2 . Introduce MX 3. Implement MX

MTMX

MT/MX MXMT

Top 20 players + all LU and IE

transfer agents are enabled

MT templates are

removed

2004

MX messages go live

End 2009 End 2012

End 2010

Top 20 players send only MX among

themselves

All hubs and order-senders are enabled

All LU and IE players are enabled

End 2011

All players fully enabled and

implemented on MX

Milestone 1

Milestone 2

Milestone 315

Current timeline and milestones for

Exceptions & investigations

1. Prepare MX 2 . Introduce MX 3. Implement MX

MTMX

MT/MX MXMT

E&I steering group to finalise

adoption/migration plan by ‘corridor’MT messages are

removed (MT

192/292, 195/295,

196/296)

2006

MX messages go live

End 2009 End 2012

End 2010

25 live users

15% of current FIN E&I eligible traffic

migrated

End 2011

30% of current FIN E&I

eligible traffic migrated

Milestone 1

Milestone 2

Milestone 3

16

Implementation Products and Tools

Available Today

Human-readable

Translation Rules

downloadable on swift.com

+ in 2010,

Settlement & Reconciliation

Corporate Actions

BICIBAN

IBANValueDate

ValueDateBIC

MXMT

Standards

Developer

KitAlliance

Integrator

SWIFTReady

Partners

17

Standards Developer KitDownloadable from

swiftcommunity.net/sdk

MX Repository

for Implementers

•Reference quality

information

•Processable XML format

•Comprehensive, rich

definitions

•Aligned to SWIFT

standards releases

MT/XML

Schema Library

Translation

Reference

•Executable testing tool

•A reference product for

developers

•Sample test cases

•Test translation

conformance

18

Providing packaged content in machine consumable formats,

helping implementers lower TCO and improve speed to market

•XML approach for both

MT and MX

•Speeds up

implementation

•Lowers implementation

cost

•Reduces manual effort

PowerPoint Toolkit – 23 October 2008 – Confidentiality: restricted 19

SWIFT Services Portfolio

SWIFT Services portfolio

20

SWIFT Services

Training

• Multilingual, certified

instructors with

comprehensive

understanding of financial

industry and technology

drivers

• Class-room or bespoke

on-site training, webinars,

eTraining modules

SWIFT Consulting

• Business consulting

• Technical consulting

• Project Engineering or

management

• Installation services

• Integration services

Support

• Premium, Premium Plus

or Premium Custom

upgrades

• Remote support

• Health check

Why SWIFT Services?The experience, knowledge, and management skills, end-to-end

Assess

Business process

optimization

Solution assessment

Infrastructure

discovery

Application

performance analysis

Landscaping

Benchmarking

Design

Technical consulting

IT architecture

Solution design &

modeling

SWIFT traffic shaping

Integration

specifications

Business case

justification

Implement

Develop and Test

Project management

Technical Project

Assistance

Installation

Training

Certification

Manage

Maintenance service

Technical audit

Infrastructure health

check

Proactive management

Dedicated SM

Remote Support

Defin

e

Require

ments

Pla

n

Desig

n

De

ve

lop

Test

Deliv

er

Support

Content identification, data

collection and migration Training

Project Management

Governance

Governance

SWIFT Consulting Services Business Consulting

• Extensive knowledge of financial markets

• Comprehensive understanding of message standards, and end to end processingWho

• Consulting conducted in a SWIFT neutral, and therefore objective way

• Best-practice advice and peer benchmarking

What

• Pre-defined packages

• Ad hoc Consulting on SWIFT standards

• Tailor-made service proposalsHow

‘Standard’ Consulting packages

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SWIFT Consulting Services Technical Consulting

• Extensive knowledge of SWIFT interface product portfolio

• Subject matter experts (SME) Who

• Project management or engineering

• Design of Cost-efficient and risk-free infrastructure solution

• Technical audits and advice on best-practice operations

What

• Pre-defined packages

• Time and material project assistance

• Tailor-made service proposalsHow

‘Standard’ Consulting packages

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26

Sibos is coming to Amsterdam:

25 to 29 October 2010

Thank you