swift in russia

Steven Palstermans, Head of Strategic Financial

Initiatives, Russia & CIS

SWIFT in Russia and the

MIFC project.

BRBC Event, February, 4th 2014, Moscow

Agenda

Introduction – SWIFT and SWIFT in Russia

Moscow – International Financial Centre (MIFC)

SWIFT supporting MIFC

2 BRBC Event, February 4th 2014, Moscow

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4bn+ messages

per year

10,000+ customers

18m messages

per day:

22m peak day

212 countries

5x9 availability

SWIFT… the global provider of secure financial

messaging services

BRBC Event, February 4th 2014, Moscow

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SWIFT in Russia

• 1989: First customer, VEB

• Today: 600+ customers

• 2009: SWIFT office opened

• Traffic growth: 60% plus

• Domestic payments represent biggest business


Russian SWIFT traffic by Business Area

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Sent and received traffic for Russian BICs, split per Business Area.

Payments 85%

Securities 7%

Trade Finance 0%

Treasury 8%


Payments sent by Russia and the world Growth in Russia 5 times larger than worldwide trend

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* Worldwide growth in payment transactions of 26 %

* All traffic in the payments business area sent by a Russian institution (in all currencies)

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

2007 2008 2009 2010 2011 2012

Russia World

+137%


Agenda




BRBC Event, February 4th 2014, Moscow 7

MIFC initial milestones

2008

The 2020 Concept introduced

2009

The MIFC Action Plan launched

July - Nov 2010

The MIFC Taskforce formed +

MIFC Project Groups kicked off

Dec 2010

The MIFC International Advisory Board appointed

June 2013

The MIFC Roadmap approved by Parliament

Source: www.mfc-moscow.com


Key facts about MIFC

Government support

• The Government supports the MIFC project by assigning Ministry officials and members of other executive bodies to Project Groups.

Business stakeholders

• Experts from major Russian and international financial institutions. The creation of MIFC is sponsored and supported by all key policy makers.

Country wide

• The changes in legislation and regulation will apply throughout Russia. The experience and success of Moscow will be shared with the Russian regions.

Long-term

• The success of the project depends on the long-term performance indicators. Moscow should gain advanced positions in IFC ratings.

Source: www.mfc-moscow.com


Benefits

For the country:

• Stimulating the

development of the

Russian regions,

especially the financial

system

• Easier capital access

for Russian companies,

which means

investments into the

development of the

whole country

For the economy:

• Legislative base for financial market improvement

• Business climate improvement

• Financial industry development

• Market regulation improvement

• Better market infrastructure

• Market liquidity increase

• Optimization of investor tax burden

For the society:

• New job opportunities in finance

• Human resources development

• Education and science development

• New opportunities for entrepreneurs

• Social infrastructure development

• Cultural exchange, foreign professionals moving to Moscow

Source: www.mfc-moscow.com BRBC Event, February 4th 2014, Moscow 10

BRBC Event, February 4th 2014, Moscow 11 11

MIFC - Organisational chart

President of Russia

Vladimir Putin

The Presidential

Executive Office

The Presidential Council for the

Financial Market Development

Chairman – I. Shuvalov

MIFC Taskforce

Head – Alexander Voloshin

International Advisory Board for the

International financial center in Russia

Co-Chairs: H. Gref (Sberbank)

U. Rohner (Credit Suisse)

Project Groups 1 – 7 Head of Project Groups 1 – 7

Approval of

Head of

Project

Group

candidates

- Project Group

Formation

- Submitting Head of

Project Group

candidates for

Approval to the

Presidential

Executive Office

- Approval of Project

Group member lists

MIFC Working groups

7 workgroups established in 2010 to focus on different

areas:

1. Financial infrastructure and financial markets regulation

2. Corporate law and governance, financial transaction taxes

3. Administrative procedures

4. CIS / Eurasian Economic Community (EEC) / Customs Union cooperation

5. Moscow Infrastructure Development

6. Moscow educational, health, cultural and social infrastructure development

7. MIFC Marketing


Agenda





SWIFT’s value to MIFC


ISO

Standardi

-sation

Financial

Messaging

Platform

Experience

in

supporting

IFCs

Payments Market Infrastructures Systems live on SWIFT

74 HVP systems (>243 Million pymts/year in 2012)

26 LVP systems (>8.8 Billion pymts/year in 2012)

2000+ banks in 90+ countries

Asia Pacific

Australia (2 HVP, 1 LVP)

Fiji

Hong Kong

New Zealand

Macau

Taiwan

Philippines

Papua New Guinea

Singapore

Sri Lanka

Thailand

Central & Eastern Europe

Albania

Azerbaijan

Bosnia & Herzegovina

Bulgaria

Croatia

Hungary

Romania

Russia Latvia

Poland North America

Canada

Central & Latin America

Bahamas

Barbados

Chile

CMCA

Colombia (service bureau)

Dominican Rep.

ECCB

El Salvador

Guatemala

Honduras

Trinidad & Tobago

Venezuela

Western Europe

Denmark

Iceland

Norway

Sweden

Switzerland

UK

Eurozone

Target 2

EBA Clearing (2 HVP, 1 LVP)

Austria

Belgium

Germany

Greece

Italy (2 LVP)

Spain

Ireland

The Netherlands

Middle East

Lebanon

Bahrain

Israel

Jordan

Kuwait

Palestine

Qatar

Angola

Algeria

Botswana

BEAC

COMESA

Egypt

Gambia

Ghana

Kenya

Lesotho

Mauritius

Morocco

Namibia

Nigeria

Sierra Leone

South Africa

SADC

Swaziland

Tanzania

Tunisia

Uganda

Zambia

Zimbabwe

BCEAO

Status_Dec 2013

HVP only

LVP only

Both HVP and LVP

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Global

IPFA

Eurogiro

Africa

80+ SMI

63 countries

Securities Market Infrastructures Live on SWIFT

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Africa

Egypt

Kenya

South Africa

Zimbabwe

Asia Pacific

Australia

China

Hong Kong

India

Indonesia

Japan

Korea

New Zealand

Singapore

Sri Lanka

Thailand

Central & Eastern Europe

Armenia

Bulgaria

Croatia

Czech Republic

Hungary

Kazakhstan

Romania

Russian Federation

Slovakia

Slovenia

Ukraine

North America

Canada

USA

Central & Latin America

Argentina

Brazil

Chile

Mexico

Ecuador

Uruguay

Western Europe

Denmark

Estonia

Latvia

Lithuania

Norway

Sweden

Switzerland

United Kingdom

Eurozone

Austria

Belgium

Finland

France

Germany

Greece

Ireland

Italy

Luxemburg

Netherlands

Poland

Portugal

Spain

Cyprus

Malta

Middle East

Dubai

Israel

Kuwait

Lebanon

Qatar

Turkey

Status YTD 2012

Legend Size Count

< 10,000 msgs S 22

10,000 - 1,000,000 msgs M 20

1,000,000 - 10, 000,000 msgs L 13

>10, 000,000 msgs XL 8

Countries’ SMI is connected but currently no securities traffic

Taking considerations of all services, i.e. FIN, IA, FA

SWIFT’s medium to long term ambition


• Increase market share in the domestic Financial Services Business

Domain.

• Active usage of SWIFT for domestic payments in Russia for both RTGS

and retail (ACH); as well as C2B.

• Strengthen the relevance of SWIFT as strategic partner in the development

towards MIFC through:

– Participation in Working Groups

– Consulting

– Physical Implementation

• Further investigate the possibilities for Go Local Russia.

Thank you!

18 BRBC Event, February 4th 2014, Moscow

Steven Palstermans

Head of Strategic Financial Initiatives,

Russia & CIS

SWIFT Avenue Adele 1

B-1310 La Hulpe

Belgium

+32 2 655 3111

+32 2 655 4099

+32 2 655 3752

+32 478 403023

+7 903 1646095

[email protected]

swift.com

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swift in russia

Economy & Finance