slide 1 swift in the securities business bagin alex senior regional manager middle east,...
TRANSCRIPT
Slide 1
SWIFT in the Securities Business
Bagin AlexSenior Regional manager Middle East,
Slide 2
Agenda
SWIFT short intro
SWIFT in the securities market
SMPG scope
Egypt and South Africa example
Slide 3
SWIFT’s mission
SWIFT is a worldwide community of financial institutions whose purpose is to be the leader in communication solutions enabling interoperability between its members, their market infrastructures and their end user communities.
Slide 4
SWIFT - A customer centric user community
Banks
IMI's
Corporates
InsuranceCompanies
Payments MI's
GovernmentInstitutions
Trustees
Broker-Dealers
Payment Systems
Clearing & SettlementSystems
Depositories
Stock Exchanges Securities MI’s Customer
Slide 5
Traffic stats (1) August 2007 YTD
Slide 6
Traffic stats (2) August 2007 YTD
Slide 10
Agenda
SWIFT short intro
SWIFT in the securities market
SMPG scope
Egypt and South Africa example
Slide 11
Example
IMIIMI B/DB/D
CustodianCustodian ClearerClearer
BankBank
CSDCSD
Trading and Confirmation
Settlement Instructions
Settlement Instructions
Settlement Instructions
Settlement Instructions
Cash / FX Cash / FX
Cash / FX
Slide 12
ExampleEquities Transaction Lifecycle
IMIIMI B/DB/D
CustodianCustodian ClearerClearer
BankBank
CSDCSD
SWIFTNet FIX + FIN
FIN FIN
FIN FIN
FIN FIN
FIN
Slide 22
Securities Strategic Priorities (set by the industry)
Market Space Strategic Priorities
Be the messaging platform of choice for
market infra-structures
Succeed in Pre trade /Trade messagingPre-trade / Trade
Equity and fixed income
Platform of choice for Post-trade / Pre-set.
Post Trade /Pre-settlement
Grow traffic in Clearing and Settlement and Custody services
Clearing and Settlement
Custody Services
Drive Industry towards
Standards convergence
Become messaging platform of choice for the Funds industry in Middle East and AfricaInvestment funds
Slide 23
SWIFT Market ShareTraditional Spaces
Clearing & Settlement
Custody Services
Corporate Actions
Reporting
55%
16%
3%
43%
Market SpaceMarket Space SWIFT Market ShareSWIFT Market Share
Slide 24
SWIFT means value
ScalabilityScalability
Straight-through-processing (STP)Straight-through-processing (STP)
International StandardsInternational StandardsCost effective solutionsCost effective solutionsSecurity and reliabilitySecurity and reliability
Slide 26
Agenda
SWIFT short intro
SWIFT in the securities market
SMPG scope
Egypt and South Africa example
SMPG scope
Create globally agreed harmonised market practices which, integrated with standards, will bring the securities industry closer to
achieving STP.
STP
StandardsStandards
Market PracticeMarket Practice
SMPG tasks
• Organise national market practice groups
• Collate national market practice rules
• Define cross-border market practice rules
• Harmonise market practice differences
• Publish market practice rules
• Identify conformance mechanisms
SMPG organisation
SMPG Steering Committee
National Market Practice Groups and
Convenors
SWIFTStandards
Broker/dealers, investment managers, custodians, depositories, regulators, & vendors
www.smpg.info
SMPG meetings
• At National level:– Whenever felt appropriate – Minimum twice a year
• At Global level– 2 times a year– Amsterdam (28-30 March 2007)
draft minutes available on smpg.info
– Boston (5-6 October 2007)
SMPG countries
• Americas: BR, CA, MX, US.
• EMEA: AT, BE, CH, DE, DK, ES, FI, FR, GR, GB, IE, IL, IT, LU, NL, NO, PL, PT, RU, SE, TR, ZA, ICSDs
• Asia/Pacific: AU, HK, JP, KR, NZ, SG, TH, TW, IN
Slide 32
Agenda
SWIFT short intro
SWIFT in the securities market
SMPG scope
Egypt and South Africa example
Slide 33
Egypt CSD market scope
CSD
26 Custodians (4 on SWIFT)
131 Brokers (20 on SWIFT)
1114 Issuers
26 Direct settlement members
13 Primary Dealers
Swiftnet
Domestic VPN
Slide 34
Egypt CSD market on SWIFT today
SWIFTNet
CSD
Custodians (4 on SWIFT)
Broker and primary dealers (20 on SWIFT on branch codes )
Swiftnet
Slide 35
Egypt CSD market on SWIFT by end of this year
SWIFTNet
CSD
Custodians (4 on SWIFT)
Broker and primary dealers 50 NEW BIC codes
Swiftnet
MI-CUG
Slide 36
Egypt CSD market scope evolution
CSD
26 Custodians
131 Brokers
1114 Issuers
26 Direct settlement members
13 Primary Dealers
Swiftnet MI-CUG
Slide 37
Agenda
SWIFT short intro
SWIFT in the securities market
SMPG scope
Egypt and South Africa example
Slide 38
SAMOS
Broker A on Behalf of Client A SETS/BDA
SARB
Broker B on behalf of Client B
SAFIRES Reservation of securities on S)
Bank A Bank B
A: Security X B: Security X
100 >100 >100
R20,000 R20,000
Payment ConfirmationPayment Order
Status intimations Status intimationsStrate Ltd
“Locked in Trade”
Confirmation Confirmation
Sell Order 100/R20,000 Buy Order 100/R20,000
CSD Participant CSD Participant
ConfirmationConfirmation
Settlement Process SFIDvP
Slide 39
Client A Client BBroker A Broker B
JSE Trading System
BDA System
SAFIRES
CSDP CSDP
SAMOS
On-Exchange Trade - SWIFT Message Flow
MT586 MT586
MT
540/
1/2
/3
MT
540/
1/2
/3
MT598-101 MT598-101
As per MT298-128As per MT298-128
MT548 MT548
MT
544/
5/6
/7
MT
544/
5/6
/7
MT548-601 MT598-113
MT515 MT515
Slide 42
SWIFT Middle East regional conference 2008
17, 18 and 19 March,
Conrad Hotel,
Cairo, Egypt
Slide 43
Shoucran