Giovannini high level gap analysis complete

Another milestone achieved towards removing Barrier 1

SWIFT has published its final report on the high level gaps in ISO messaging, as part of its continued commitment to removing Giovannini Barrier 1. This year long consultative exercise has been completed according to the schedule agreed in the original protocol recommendation.

"We were very pleased by the level of review and good response rate. Feedback indicates that, in the majority of cases, clearing and settlement processes are well covered by the ISO standards, and we have clear guidance as to how they need to evolve," notes Jamie Shay, Head of Securities Standards at SWIFT. The main gaps in ISO messaging are in clearing; and whilst the vast majority of core settlement and asset servicing processes are covered by existing ISO messages, high-level gaps exist in a few other areas, such as securities reference data and auto-collateralisation.

Next steps

The gap analysis process has provided an insight into the industry's priorities for enhancing ISO messaging. In particular, it is clear that attention needs to be focussed on elimination of high level gaps, and on efforts to increase the rate of adoption of ISO messages in the market worldwide.

SWIFT was strongly encouraged to reach out to institutions and market infrastructures outside Europe, to ensure that the recommendations for removing Barrier 1 become recognised and implemented by all markets around the world. "We believe that talking to ACSDA and other non-European groups can help keep ISO international standards relevant globally," says Mary Ann Callahan, president of ACSDA (The Americas' Central Securities Depository Association).

The SMPG (Securities Market Practice Group) also remains committed to helping SWIFT and the community achieve their common goals. "Both the existing SMPG market practice guidelines and the SWIFT Giovannini gap analysis will help us to remove Giovannini Barrier 1. SMPG continues to support SWIFT and other similar organisations in their efforts to harmonise and enrich both market practices and standards for the securities industry," comments Genevy Dimitrion, chairperson of SMPG.

SWIFT remains on track to deliver the standards to eliminate key high-level gaps by the March 2011 deadline set in the Giovannini Protocol.

If you have any questions or require further clarification on the Giovannini gap analysis, please contact david.mellett@swift.com.