User Group Meeting in Bulgaria

Alke DE BOER

Regional Account Manager

Balkan countries & Turkey

2

Welcome to this Welcome to this

User Group MeetingUser Group Meeting

3

At the end of this User Group Meeting help me to remind you

At the end of this User Group Meeting help me to remind you

to switch YOUR mobile phone from MUTE mode

back to NORMAL mode

to switch YOUR mobile phone from MUTE mode

back to NORMAL mode

4

Don’t forget :swift.com is your prime source for SWIFT information

5

Agenda

• Introduction • Figures, my area, MIs for Payments, MIs for Securities, SSP, Swiftcommunity.net

• SwiftNet Phase2 migration • SAM Swift Alliance Messenger• Traffic, rebate, taxation• Conferences

6

SWIFT in figures – March 2008 ytd

8.285 live users

208 live countries

3.1+ billion messages in 2007

Average message price: <10 eurocents

Availability:

- FIN systems: 100100 %%

- Transport network: 99,99399,993 %%

7

FIN traffic – Peak day 2008 and growth 2007

21.9% annual growth 2007

21.9% annual growth 2007

– 25 Jan ’08 message volume: 16.550.07516.550.075

8

Serbia38 live users

Albania17 live users

Bosnia and Herzegovina31 live users

Macedonia16 live users

Romania 45 live users

Turkey 56 live users

Bulgaria32 live users

My area: 9 countries and 391 live users

Ukraine 143 live users

Montenegro12 live users

9

Banking Market Infrastructures – Oct2007High-Value Payments HVP

29

5

1

InterAct FileAct Browse

46

1

8

7

3

4

14

10

11

2

13 7

FIN CopyFIN

Live

Implementation

Plan/Discussion

Live

Implementation

Plan/Discussion

74

7

8

8

7

11

Low-Value Payments LVP

Systems Systems

SWIFTNet services

Plan/Discussion

Live

Implementation

10

Banking Market Infrastructures HVP – Mar2008High-Value Payments

Albania (AIP)Algeria (RTGS)Angola (PTR)Australia (PDS/PDC)Austria (ARTIS)Azerbaijan (AZIPS)Bahamas (BHS)Bahrain (RTGS)Barbados (BDS)Belgium (ELLIPS)Bosnia & Herzegovina (BIH)Botswana (RTGS)Bulgaria (BGN-RINGS)Canada (LVTS)Chile (Netting - LBTR)CLS BankCroatia (HSVP)

Latvia (LVL)Lesotho (RTGS)Luxemburg (LIPS)Malta (MARIS)Mauritius (MACSS)Morocco (RTGS)Namibia (NISS)Netherlands (TOP)New Zealand (AVP)Norway (NICS)Oman (RTGS)Philippines (PPS)Romania (REGIS)Singapore (MEPS+)Slovenia (SIPS)South Africa (BOP - RTGS - SAMOS)

Pakistan (RTGS) Hong Kong (RTGS)Fiji (RTGS)Central African States (BEAC) Nigeria (RTGS)Russian Federation (RTGS)

Live

Spain (NSLBE - SLBE)Sri Lanka (LankaSettle)Swaziland (RTGS)Sweden (RIX)Switzerland (Remote Gate)Tanzania (TISS)Thailand (BAHTNET/2)Trinidad & Tobago (SAFE-TT)Tunisia (RTGS)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)Eurosystem (TARTGET 2)Estonia (RTGS)Finland (BOF)France (CRI – PNS/TBF)Germany (RTGSPlus)Ghana (GISS)Greece (HERMES)Guatemala (RTGS)Hungary (VIBER)Ireland (IRIS)Israel (RTGS)Italy (BIREL)Jordan (RTGS)Kenya (KEPSS)Kuwait (RTGS)

Implementation

COMESA (RTGS) Georgia (RTGS)Palestine (RTGS) Kazakhstan (ISMT)Peru (RTGS) Lebanon (RTGS)Dominican Republic (RTGS) Mexico (RTGS)Egypt (ROSE (*)replacement)

Planning/Discussion

11

Banking Market Infrastructures for LVPACHs Automated Clearing House – Mar2008

Low-Value Payments

Albania (AECH)EBA Clearing (STEP2)EurogiroGermany (RPS)Italy (part of BI-COMP)Slovenia (GIRO)Sweden (BGC)Uganda (ACH)

Bolivia (ACH)Netherlands (Interpay)Jordan (ACH) South Africa (BankServ)Tanzania (ACH)United Kingdom (VocaLink)

Live

Austria (STEP.AT)Colombia (CCDC)Croatia (FINA)Georgia (ACH)Germany (Garagenclearing)Ghana (ACH)Greece (DIAS)Kazakhstan (SRP)Romania (SENT)Sierra Leone (ACH)Spain (Iberpay)

Implementation Planning/Discussion

12

Securities Market Infrastructures on SWIFTNet(I)CSDs= (International) Central Securities Depositories

Argentina Caja de Valores

Australia Australian Stock ExchangeSFE – Austraclear

Austria OeKB

Belgium Euroclear Belgium

Euroclear BankMTSNational Bank of Belgium

Brazil CBLC

Canada CDS

Croatia Sredisnja Depositarrna Agencija

Denmark OMXVP

Estonia Estonian Securities DepositoryOMX

Finland NCSD Finland – APKOMX

France Euroclear FranceEuronext Paris – MATIFMTS

Germany Eurex ClearingClearstream Banking AGMTS

Greece Central Securities DepositoryBank of Greece

Hong Kong HK Futures ExchangeHong Kong Monetary AuthoritySEHK Options Clearing House

Hungary Keler

Israel Tel Aviv Stock Exchange

Italy CCGMonte Titoli

Japan Bank of JapanJASDEC

Kazakhstan Kazakhstan Stock Exchange

Korea Securities Depository

Latvia Bank of LatviaCentral DepositoryOMX

Lebanon Midclear

Lithuania OMX

Luxemburg Clearstream Banking SA

Mexico S.D. Indeval

Netherlands Euroclear NederlandMTS

Norway VPS

Poland National Depository for Securities – KDPW

Portugal Banco de Portugal – SITEMEMTS

Russian Federation

Depository Clearing CompanyThe National Depository Center

Singapore Central DepositorySingapore Exchange

Slovakia Bank of Slovakia

Slovenia Central Securities Clearing Corporation – KDD

South Africa STRATEJSE Securities Exchange

Spain IberclearMEFFMTS

Sweden NCSD Sweden – VPCOMX

Switzerland SISSIS x-clear

Taiwan Securities Central Depository

Thailand Thailand Securities Depository

UAE - Dubai DIFX

UK (& Ireland)

Euroclear UK and Ireland

LCH.ClearnetLondon Stock Exchange

USA Chicago Mercantile ExchangeClearing CorporationDTCCFederal Reserve BanksOmgeoOptions Clearing Corporation

Zimbabwe Reserve Bank of Zimbabwe

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– Collaborative internet platform – brings people together

– Virtual meeting place – always open

– Online discussions – mutual interest

– Interaction – YOUR business network

– Knowledge bank – share and seek

– A community of communities

Launch of the new community platform:swiftcommunity.net

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youto thepower of

swiftcommunity.net

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Agenda

• Introduction • Figures, my area, MIs for Payments, MIs for Securities, SSP, Swiftcommunity.net

• SwiftNet Phase2 migration • SAM Swift Alliance Messenger• Traffic, rebate, taxation• Conferences

SwiftNet Phase2 migration

17

Test RMATrain staff

From BKE to RMABefore C2

2007 2008 2009

Q1 Q2 Q3 Q4

BKEstopped

RMA live service available

Demonstrate live RMA readiness every month

Process live RMA daily

No BKE exchange

Contingencypenalty period

C2 T2 C3C1

Continue BKE exchange

Customer confirms readiness & Demonstrates live RMA

All customers readyStart of live RMA obligations

Customer converts BKE keys to RMA

T2

18

From BKE to RMAWhen is C2?

Your C2 date is linked to your C1 dateYour C2 date is linked to your C1 date

C1 date Q2 2007

Q3 2007

AL/BG/RS/MK

and ME 31jul

Q4 2007

TR/UA 30sep

RO/BA 31oct

C2 date April 2008 May 2008 June 2008

Country schedule published on swift.com

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From BKE to RMABefore C2 - Prepare for live RMA

– After 1 Jan 2008

■ Configure RBAC roles, live queue, live certificate on HSM

– Latest at C2 – 6 weeks

■ Submit RMA readiness form on www.swift.com

– After form submitted

■ SWIFT activates you for live RMA (ADW)

– After SWIFT activated you on live RMA

■ Send a live RMA message to your own BIC8 (swift.rma)

■ Receive this live RMA message from live RMA SnF queue yourbic8_rma

– Do not send live RMA to correspondent BIC8s !

20

Test RMATrain staff

From BKE to RMABetween C2 and T2

2007 2008 2009

Q1 Q2 Q3 Q4

BKEstopped

RMA live service available

Demonstrate live RMA readiness every month

Process live RMA daily

No BKE exchange

C2 T2 C3C1

Continue BKE exchange

Customer confirms readiness & Demonstrates live RMA

All customers readyStart of live RMA obligations

Customer converts BKE keys to RMA

Contingencypenalty period

T2

21

From BKE to RMABetween C2 and T2 – Demonstrate live readiness

– Minimum once per month

■ Send a live RMA message to your own BIC

■ Receive this live RMA message

=> Do this for all your live BIC8s

– No live RMA authorisations to your existing correspondent BIC8s !

– BKE remains the primary method to maintain relationships

■ Continue BKE renewals

– No obligation to act on received live RMA messages from correspondents (do not blindly Reject !)

22

From BKE to RMAContingency period Q3 2008

– If you cannot demonstrate live RMA readiness: penalty per live BIC8

July 2008: 5,000 EUR Aug 2008: 10,000 EUR Sep 2008: 20,000 EUR

23

Test RMATrain staff

From BKE to RMABetween T2 & C3

2007 2008 2009

Q1 Q2 Q3 Q4

BKEstopped

RMA live service available

Demonstrate live RMA readiness every month

Process live RMA daily

No BKE exchange

Contingencypenalty period

C2 T2 C3C1

Continue BKE exchange

Customer confirms readiness & Demonstrates live RMA

Customer converts BKE keys to RMA

T2

Traffic recording

All customers ready& start of live RMA obligations

24

Where to find information?

– RMA Roadshows

– RMA Planning Guide

– RMA FAQ

– ‘From BKE to RMA’

– RMA e-learning

– RMA videos

– Test scenarios

– Interface documentation

25

RMA next steps - summary

– Read the RMA Planning Guide & RMA FAQ

– Know your C2 deadline

– Budget and plan resources for 2008

– Train your staff

– Continue BKE exchange until T2 (Keep your SCR!)

Continue (or Start) testing!

26

Leased Line Usage Reports

– Access■ Login to Ordering & Support on swift.com

– Outcome■ Monthly reports per Connectivity Pack

– Benefits■ Closely monitor your bandwidth utilisation

■ Better understanding of when peaks in traffic occur

■ Possible load balancing amongst different packs

27

Risk and Resilience - Capacity Leased Line Usage Reports

Available from swift.com > Ordering & Support > Leased Line Usage

28

Agenda

• Introduction •Figures, my area, MIs for Payments, MIs for Securities, SSP, Swiftcommunity.net

• SwiftNet Phase2 migration • SAM Swift Alliance Messenger• Traffic, rebate, taxation• Conferences

29

SWIFTAlliance Messenger 6.0Functional Overview

– Browser based message entry facility for both “MT” and “MX” messages

– Verification & authorisation of messages in line with the SAA 4-eyes principle configuration

– Allows to search for live and archived messages

– Validates the input messages before submitting them, and assists the user in correcting errors

– Offers functionality to create and share re-usable templates

– Manual batch input / batch output of “MT” or “MX” messages

– Context sensitive on line help facility including SWIFTStandards

– Message reporting & printing facility

6.0

6.0

6.0

30

SWIFTAlliance Messenger 6.0Technical overview

– SAM acts as a front-end to access SAA(E) business logic and SAA(E) business data

■ SAA(E) is the repository of all messages, profile definition, routing rules, and any other business data

■ Operators that use SAM must be defined as SAA(E) operators

■ SAA(E) operators profiles are managed using a SAW =SWIFTAlliance Workstation

■ SAA(E) templates are accessible in SAM

– SAM licensing based on the defined operator model

– SWIFTAlliance Messenger runs in a Web Application Server (WAS) environment

31

SWIFTAlliance Messenger 6.0Standard Configuration - Server Embedded

– SWIFTAlliance Messenger Server Embedded (SAM-SE) contains the embedded WAS WAS Web Application ServerWeb Application Server and is deployed on a single Windows Server 2003 Standard Edition

– SWIFTAlliance Messenger and SWIFTAlliance Access/Entry can be deployed either on the same host or on different host

– SAM-SE has embedded Web Application Server

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Qualified on Windows

SWIFTAlliance Messenger 6.0Summary

SAM-SE 6.0

SAM 6.0

SAA 6.0

SAE 6.0

Institutions with large number of operators

RequiresIBM

WebSphere Application

Server

Resilient configuration

Cluster

Qualified on Windows, AIX,

Solaris

Institutions with up to 100

operators

Out-of-the-box offering

including Application

Server

SA

MS

AM

-SE

33

Agenda

• Introduction • Figures, my area, MIs for Payments, MIs for Securities, SSP, Swiftcommunity.net

• SwiftNet Phase2 migration • SAM Swift Alliance Messenger• Traffic, rebate, taxation• Conferences

34

FIN daily average traffic evolution 2007

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mill

ion m

essages

2006 Actuals 2007 Actuals Peak Days

Last peak day on 28 September: 16,098,340 messages Last peak day on 28 September: 16,098,340 messages

35

FIN Daily average traffic evolution - Total per Market

Payments

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mill

ion

me

ssa

ge

s

Actuals 2006 Actuals 2007 peak days

Securities

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mill

ion

mes

sage

s

Actuals 2006 Actuals 2007 peak days

Trade

160

170

180

190

200

210

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Th

ousa

nd

me

ssa

ge

s

Actuals 2006 Actuals 2007 peak days

Treasury

600

800

1,000

1,200

1,400

1,600

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Tho

usan

d m

essa

ges

Actuals 2006 Actuals 2007 peak days

36

Pricing achievements: 2005 - 2007

July ‘05

Key Accounts

Other Top 200

Market Infrast.

BRIC+

Small users

July ‘07January ’07July ’06

- 8.2% F

IN

- 10% In

terA

ct

En

ha

nced

Su

pp

ort

Free

HS

M

HV

ol

Intra

Fin

Co

py

- 5%

Red

uced

RT

GS

fee

- 6.4% F

IN

MT

535

HV

ol

Intra

Fin

C

op

y

- 4 % F

IN

DIS

.H

igh

Vo

lM

I / MA

CU

G fee

s Join

ing

fees

SW

IFT

Allia

nc

eS

tarte

r Se

t

Intra =

Do

mestic

FIN

- 8%S

WIF

TN

etK

its

One-time

Annual reduction

10 MEUR10 MEUR 23 MEUR23 MEUR - -

36 MEUR36 MEUR 34 MEUR34 MEUR 23 MEUR23 MEUR 16 MEUR16 MEUR

37

Pricing achievements: 2005 - 2007

July ‘05

Key Accounts

Other Top 200

Market Infrast.

BRIC+

Small users

July ‘07January ’07July ’06

- 8.2% F

IN

- 10% In

terA

ct

En

ha

nced

Su

pp

ort

Free

HS

M

HV

ol

Intra

Fin

Co

py

- 5%

Red

uced

RT

GS

fee

- 6.4% F

IN

MT

535

HV

ol

Intra

Fin

C

op

y

- 4 % F

IN

DIS

.H

igh

Vo

lM

I / MA

CU

G fee

s Join

ing

fees

SW

IFT

Allia

nc

eS

tarte

r Se

t

Intra =

Do

me

stic

FIN

- 8%S

WIF

TN

etK

its

One-time

Annual reduction

10 MEUR 23 MEUR - -

36 MEUR 34 MEUR 23 MEUR 16 MEUR

2007 price reduction: 10% as of July ‘07

2007 rebate: 15% paid in Jan ‘08

2008 price reduction: 5% as of Jan ‘08

38

Local TaxationLocal Taxation

This may concern banks in AL, BG, MK, RO, UA– your Local Tax authorities (may) want a CERTIFICATE of

RESIDENCE (CoR) from our Belgian Tax Authorities (stamped, signed, …)

– to avoid double taxation on some SWIFT services SNL, SAA, SAE, SAB software maintenance-upgrades fees UHB online service and user license fees Amounts specified on your Swift invoice (incl. Knowledge Base tips!) Depending on country, the exemption can be 5-10-…%

SWIFT’s Tax Department – has asked the Belgian Tax authorities to produce and mail these CoRs

to SWIFT HQ (end of February?)– will mail these CoRs directly to the UGC (or ARB Bank Assoc in RO) in

your country– where you can pick the CoR up, if needed by your bank

39

Agenda

• Introduction • Figures, my area, MIs for Payments, MIs for Securities, SSP, Swiftcommunity.net

• SwiftNet Phase2 migration • SAM Swift Alliance Messenger• Traffic, rebate, taxation• Conferences

40

2008 SWIFT Regional Conferences

– Africa

– Northern & Eastern Europe

– Latin America

– Middle East

– …

conference content:

– 65% business issues

– 25% technical/operational issues

– 10% networking/ ad hoc meeting/ …

41

Radisson SAS Hotel, Tallinn, EstoniaTheme: Supporting capital flows through the adoption of international standards

Delegate fee: EUR 550

2008 Regional Conference in Northern & Eastern Europe

Tuesday 3 - Wednesday 4 June 2008

Program, registration, hotel reservation available on swift.com as April 2nd, 2008Book early: period of the “WHITE NIGHTS”…Your visa application: may take some days…

42

SWIFT operations forum – Europe Dec2007

1616 exhibiting partnersexhibiting partners

330330 registered attendeesregistered attendees

4141 countriescountries

43

SWIFT Operations Forum - Europe14 Work session topics– SWIFTNet Releases R 6.1 and 7.0

– Resiliency

– Phase 2 Migration RMA

– CIO/COO Reach - IT (Business Assessment Programme)

– CIO/COO Reach - Business Operations (Business Assessment Programme)

– Common Communication Interface (CCI)

– Increasing reach and reducing risk through SWIFTNet Mail

– SWIFTAlliance - the future

– SWIFTAlliance - GUI evolution

– SWIFTAlliance supporting your business

– How to implement SWIFTNet Cash reporting in your institution

– How to implement Exceptions and investigations in your institution

– How to implement SWIFTNet Funds in your Institution

– Getting ready for SEPA and SEPA testing

44

10 SWIFT demos

– Online Billing

– Online Customer Services (OLCS)

– STaQS

– SWIFTNet Trade Services Utility

– SWIFTAlliance

– swiftcommunity.net

– SWIFT Directories

– SWIFT Training & SWIFTWatch

– User Documentation

45

SWIFT operations forum - Europe16 Exhibitors

– ACE Software Solutions Ltd

– Allied Engineering Group

– A&T

– Business Information Systems – BIS

– Diamis

– Dovetail

– FircoSoft

– Incentage

– I-flex solutions

– LogicaCMG

– Misys

– SIDE International – EastNets™ Group

– Software Integrators Ltd

– Sterci

– Sterling Commerce

– SunGard

46

SWIFT operations forum – Europe 2008

????????????????????????

47

Banking Market Infrastructures HVP – Mar2008High-Value Payments

Albania (AIP)Algeria (RTGS)Angola (PTR)Australia (PDS/PDC)Austria (ARTIS)Azerbaijan (AZIPS)Bahamas (BHS)Bahrain (RTGS)Barbados (BDS)Belgium (ELLIPS)Bosnia & Herzegovina (BIH)Botswana (RTGS)Bulgaria (BGN-RINGS)Canada (LVTS)Chile (Netting - LBTR)CLS BankCroatia (HSVP)

Latvia (LVL)Lesotho (RTGS)Luxemburg (LIPS)Malta (MARIS)Mauritius (MACSS)Morocco (RTGS)Namibia (NISS)Netherlands (TOP)New Zealand (AVP)Norway (NICS)Oman (RTGS)Philippines (PPS)Romania (REGIS)Singapore (MEPS+)Slovenia (SIPS)South Africa (BOP - RTGS - SAMOS)

Pakistan (RTGS) Hong Kong (RTGS)Fiji (RTGS)Central African States (BEAC) Nigeria (RTGS)Russian Federation (RTGS)

Live

Spain (NSLBE - SLBE)Sri Lanka (LankaSettle)Swaziland (RTGS)Sweden (RIX)Switzerland (Remote Gate)Tanzania (TISS)Thailand (BAHTNET/2)Trinidad & Tobago (SAFE-TT)Tunisia (RTGS)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)Eurosystem (TARTGET 2)Estonia (RTGS)Finland (BOF)France (CRI – PNS/TBF)Germany (RTGSPlus)Ghana (GISS)Greece (HERMES)Guatemala (RTGS)Hungary (VIBER)Ireland (IRIS)Israel (RTGS)Italy (BIREL)Jordan (RTGS)Kenya (KEPSS)Kuwait (RTGS)

Implementation

COMESA (RTGS) Georgia (RTGS)Palestine (RTGS) Kazakhstan (ISMT)Peru (RTGS) Lebanon (RTGS)Dominican Republic (RTGS) Mexico (RTGS)Egypt (ROSE (*)replacement)

Planning/Discussion

48

TARGET2: the SSP = Single Shared Platform

Interlinking via FINInterlinking via FIN

Bank A Bank B

Swift Net ServicesSwift Net Services

NCBs Ancillary Systems

49

Bank ABank B

payment messagepayment messageSWIFTNet SWIFTNet FIN CopyFIN Copy

Central SWIFT interfaceCentral SWIFT interface

Payment processingPayment processingBank ABank A Bank BBank B

SWIFTNet servicesSWIFTNet services FIN/FIN CopyFIN/FIN Copy

settlement settlement

requestrequest

authorisation/ authorisation/

refusalrefusal

SWIFTNetSWIFTNet

Payment Module (PM)

Information & controlInformation & control module (ICM)module (ICM)

Internal Internal payment systempayment system

SWIFT interfaceSWIFT interface

SWIFTNet InterActSWIFTNet InterAct

for Real-time cash managementfor Real-time cash management

SWIFTNet FileActSWIFTNet FileAct

for Real-time reportingfor Real-time reporting

SWIFTNet infrastructure for SSP(Y-Copy Topology )

SWIFTNet FINSWIFTNet FIN

SWIFTNet BrowseSWIFTNet Browse

for On-line visualisationfor On-line visualisation

of informationof information

50

Questions& answers

51

Thank you for your attention !Thanks also to the UGC for the kind cooperation .

Thank you for your attention !Thanks also to the UGC for the kind cooperation .

N.B. Do not forget toN.B. Do not forget to

SWITCH ON your GSM mobile phones…SWITCH ON your GSM mobile phones…

See you at the next User Group Meeting !See you at the next

User Group Meeting !

End of the UGM presentation End of the UGM presentation