slide 1 sib06_swstand_hvpc_v1.ppt swiftsolutions for high value payment clearing

Sib06_SWstand_HVPC_v1.ppt

SWIFTSolutions for high valueSWIFTSolutions for high valuepayment clearingpayment clearing


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


Single re-usable connection

Standard security implementation

Re-usable technical expertise

Single contract and service management

Common technical integration in user environment

Business standardsFinancial institutions

SWIFT

EURO1EURO1STEP1STEP1

FIsFIs RTGSRTGS

FINFINInterActInterAct

ACHACH STEP2STEP2FIsFIs

FileActFileAct

High-value paymentsHigh-value payments Low-value paymentsLow-value payments

Benefits for financial institutions


Bank A Bank B

Payment message

SWIFTNet services FIN/FIN Copy

Settlementrequest

Authorisation/

refusal

Central RTGSApplication

Central Web Server

SWIFTNet InterActReal-time cash management

SWIFTNet FileActReal-time reporting

SWIFTNet infrastructure for HVPC systems

SWIFTNet

SWIFTNet BrowseOn-line visualisation of information

SWIFT interface

Internalpayment system

SWIFTNet FIN Copy

Payment processingBank A Bank B

Central SWIFT interface


SWIFT provides a total solution for payments and settlement systems

Automated clearing houses

Bulk payments

Real-time gross settlement systems

Settlement instructions

FIN FIN Copy InterAct FileAct

Central securities depositories

DVP instructions

Real-time query/control

Reporting

Settlement instructions

Real-time query/control Real-time query/control

Reporting

Banking correspondents

Payments

Bulk payments

R-t cash reporting

Settlementinstructions


Central Institution

1. User A sends message to User B2. Original message is held in FIN3. 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

User A User B

1

2

3 4

5

FIN Copy ServiceY-Copy mode


Central Institution

1. User A sends message to User B2. Message is copied by FIN to the

Server3. Message is sent to the Server in

an MT096 envelope4. FIN forwards the message to

User B

User A User B

12

3

4

FIN Copy ServiceT-Copy mode


Sender Notification/Receiver Information

Central Institution

User A User B

1

2

3 4

5

Sender notification MT012& Sender info (Block 114)

Sender info (Block 114)Destination info (Block 115)

Destination info (Block 115)

FIN Copy ServiceAdditional features


FIN CopyY-Copy authentication

Central Institution

User A User B

MAC:A to B

PAC:A to Central Institution PAC:Central Institution to B

SWIFTY-Copy


Central Institution

User A User B

MAC:A to B

PAC:A to Central Institution

SWIFTFIN Copy

FIN CopyT-Copy authentication


Cash management messaging offeringSWIFTStandards XML

Alarms and business information

- Limits- Accounts- Transaction- Business information (static/dynamic)3

Get objectinformation

- Limits- Accounts- Transactions- Business data (membership, day profiles,

exchange rates, FX margins...).1

Actions onobjects

- Input transactions- Modify/cancel transactions- Modify/cancel limits- Transaction authorizations- Standing order management

2

Provide informationfor Reconciliation

- Registration or bookings to the account- Balance information 4


Real-time query &

response

SWIFTNet InterAct is used in real time mode query and 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

Used either in the context of person-to-application solutions (with SAB) or application-to-application (with SAG)


Key characteristics of SWIFTNet InterAct

Highly secureHighly secureHighly secureHighly secure Secured with SWIFTNet PKI (managed certificates) Encryption, authentication and integrity control Non-repudiation Closed user group control SIPN

Highly reliableHighly reliableHighly reliableHighly reliable Highly available operations Store-and-forward Delivery notification

Message validation XML-based

STP orientedSTP orientedSTP orientedSTP 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

OtherOtherOtherOther


SWIFTNet Browse overview SWIFTNet Browse transparently combines two communication mechanisms

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.

Service user

Workstation Web Server + SNL

Service provider

SWIFTNet

HTTP-S channel only authenticates the system of the end user

HTTP-SHTTP-S

InterAct/FileActInterAct/FileAct

InterAct / FileAct channel authenticates

the end user

Using non-managed Web certificates

Using managed SWIFTNet PKI certificates

User access rights

User

E Grieg

F Chopin

ok?

Limits

75,000

50,000

E Grieg


Key characteristics of SWIFTNet Browse (when used with SWIFTNet InterAct/FileAct)

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 Standard technologiestechnologies

Standard Standard technologiestechnologies

Client uses standard browser to navigate HTTP-S for screens and InterAct for transactions

or FileAct for file transfers

Re-utilisation of existing SWIFTNet infrastructureSingle windowSingle windowSingle windowSingle window

Thin clientThin clientThin clientThin client Service provider does not install software at client side

Highly secure Highly secure and reliableand reliable

Highly secure Highly secure and reliableand reliable


hardwarehardware

softwaresoftwarelineslines maintenancemaintenance

supportsupport

release qualificationrelease qualification

testingtesting

backupbackup

disaster take-over disaster take-over exercisesexercises

legallegal

softwaresoftwaremaintenancemaintenance

project managementproject management

procurementprocurement

educationeducation

documentationdocumentation

Benefits for automated clearing houses

Slide 16 Sib06_SWstand_HVPC_v1.ppt


Banking market infrastructures – August 2006

High-Value PaymentsHigh-Value Payments

25

6

1

42

5

5

6

4

2

11

7

6

5

15 9

InterAct FileAct BrowseFIN CopyFIN

Live

Implementation

Plan/Discussion

67

12

5

6

3

12

Low-Value PaymentsLow-Value Payments

Systems Systems

SWIFTNet servicesSWIFTNet services

Live

Implementation

Plan/Discussion

Live

Implementation

Plan/Discussion


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 BankCroatia (HSVP)

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)

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)

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)

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)

Georgia (RTGS)Lebanon (RTGS)Palestine (RTGS)Peru (RTGS)Russian Federation (RTGS)

Live

Implementation Plan/Discussion

Banking market infrastructures – August 2006High-value payments


Live

Banking market infrastructures – August 2006Low-value payments

Albania (AECH)EBA Clearing (STEP2)EurogiroGermany (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)

Implementation Plan/Discussion

slide 1 sib06_swstand_hvpc_v1.ppt swiftsolutions for high value payment clearing

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