Swift for Securities Market Infrastructures
Supporting more than 120 SMIs on Swift with standardised, secure, reliable financial messaging
Swift for Securities Market Infrastructures
Overview
Swift helps Securities Market Infrastructures (SMIs) across the globe to automate trade clearing, settlement, custody, asset management, risk management and regulatory reporting functions. Securities infrastructures including ASX, Clearstream, DTCC, Euroclear, T2S, SIS, and Strate, all rely on Swift to safely transport their transactions.
Responding to structural shifts within the securities market infrastructure landscape
Securities market infrastructures (SMIs) include Central Securities Depositories (CSDs), Securities Settlement Systems (SSS), Trade Repositories (TR) and Central Counterparties (CCPs).
Challenges they face include the need to be more cost-efficient, offer new services, adopt new standards and replace legacy systems, and need to address market and regulatory reforms that demand a more efficient use of liquidity, collateral and new reporting requirements. As ISO 20022 becomes the international market standard, there is also the challenge of ensuring a global approach to adoption.
The evolving geopolitical landscape and growing risk of cyberattacks make it ever more critical for SMIs to demonstrate higher levels of risk management, transparency and operational resilience.
ASX
The Australian Securities Exchange (ASX) is a key Swift user in Asia Pacific. ASX’s equity CSD, ASX Settlement (CHESS system) uses Swift for payment settlement with the RTGS system.
ASX has also expanded its corporate action notification service to include near real time ISO 20022 format corporate action notifications over SwiftNet. This initiative also introduced efficiencies to the issuer announcement process and operations, by allowing issuers to input structured information to feed directly into ASX’s internal systems.
The benefits and abilities of ISO 20022 to capture more data in a structured format, were among the reasons that ISO20022 was selected for this initiative.
ASX’s debt CSD, Austraclear, uses Swift for securities, payment and corporate action MT messages. Austraclear has also implemented a tri-party Collateral Management service, and RMB (Renminbi) payment and securities settlement service using MT messaging over SwiftNet.
JASDEC
Japan Securities Depository Center (JASDEC) went live with ISO 20022 on SwiftNet on 6 January 2014, the first major SMI to use the international standard for end-to-end settlement.
Swift for Euroclear
Leveraging Swift for Euroclear services
Euroclear is the world's largest provider of domestic and cross-border settlement and related services for bond, equity and fund transactions.
Swift offers secure messaging services and products to connect to several of Euroclear’s services:
EasyWay over Swift Web Access
Introduction
Swift WebAcces can be used for simple, reliable, highly-secure connectivity to EasyWay, Euroclear’s new web-based access tool. By leveraging your existing Swift connectivity, expertise and processes, you can get up and running on EasyWay in a quick, easy and cost-effective way.
Benefits
- Leverage Swift’s fully resilient infrastructure based on our SwiftNet messaging infrastructure and Secure IP Network (backed by a choice of 4 network providers)
- Rely on the highest levels of availability, reliability and security to connect to EasyWay.
- Secure your WebAccess sessions to EasyWay using Swift PKI certificates stored on your HSMs or on personal tokens.
- Use Swift as your single window and rely on an already installed and tested infrastructure.
- Benefit from easy and seamless adoption: just select your preferred method to secure the operations (with HSM or personal tokens) and follow the more detailed guidelines provided in the Getting Started guide.
- Leverage your existing Fixed Fee programme.
- Benefit from 24x7 customer support.
- Getting Started with EasyWay
- over Swift Web Access
Ordering
In order to get access to EasyWay over Swift Web Access, a Service
Subscription Form will need to be completed for test and live environments.
Documentation
The Getting Started guide provides a full overview of the necessary steps for the successful adoption of Easyway over Swift Web Access.
New to Swift?
If you are not already connected, we have solutions to get you connected quickly to Swift and EasyWay (such as Alliance Lite2). Please contact your local Swift office for more information on the best way forward for you.
ESES via SwiftNet
Introduction
Swift connectivity to the Euroclear Settlement for Euronext-zone Securities (ESES) platform is an excellent opportunity to leverage your investment in SwiftNet.
Our connectivity solution is easy to integrate and operate, with minimal time, effort and investment needed. By choosing Swift for your ESES connectivity, you will be re-using the same tried and tested SwiftNet services and infrastructure that already serve other areas of your business.
Benefits
- Leverage Swift’s fully resilient infrastructure based on SwiftNet messaging infrastructure and Secure IP Network (backed by a choice of 4 network providers.
- Rely on the highest levels of availability, reliability and security.
- A standardised environment, compliant with key European harmonisation initiatives, such as Giovannini, the European Commission's Code of Conduct, MiFID and T2S.
- Cost-effective reuse of your infrastructure.
- Reduce risk by leveraging in-house expertise and knowledge.
- Flexible connectivity packages for new Swift users, including the option of either a direct or indirect (for example, via a Service Bureau) connection.
- Benefit from 24x7 customer support.
Using Swift services to connect to the ESES platform
ESES communications are possible through two different channels:
- EuroclearConnect for STP:
- ISO15022 via FIN
- ISO20022 via InterAct
- MQ (via TDA)
- FileAct (for file transfer).
- EuroclearConnect for screens: this manual interface can be used for settlement, payments and custody.
Ordering
In order to get access ESES over SwiftNet, you need to subscribe to the Test and Live Services.
More information
For information about ESES, please contact Euroclear.
For information about connecting to ESES via Swift, please contact your Swift Account Manager or reach out to one of our local Swift offices.
CREST over SwiftNet
Introduction
CREST is the real-time settlement system for UK, Irish and international securities and government bonds. It has over 10 000 members.
Euroclear UK & Ireland is the central securities depository (CSD) of the UK, Ireland, Jersey, Guernsey and the Isle of Man. Its CREST system provides settlement and related services for a wide range of corporate and government securities. Among other advanced features CREST users can take advantage of real-time settlement, delivery versus payment, securities borrowing, lending and collateral management facilities and corporate actions processing.
The settlement system supports multiple currencies and settles transactions in UK, Irish, Jersey, Guernsey and Isle of Man exchange traded and over the counter securities, as well as international equities and bonds.
Swift has been an accredited supplier of network services to users of CREST since its inception in 1996, providing a single interface to all the features of the settlement system.
Benefits
The CREST over Swift service includes:
- Swift’s highly secure and resilient Swift network as a transport mechanism between the customer and CREST
- Swift Alliance, an interface to the Swift network which can forward to the CREST system both interactive messages from the CREST software and files from a customer host
- CREST software for the preparation of CREST messages and Swift supplied workstation software
- Supporting tools such as customer host mainframe interfaces to Swift Alliance for CREST data exchange
- 24x7 customer support
- The opportunity to further leverage existing Swift pricing and discount schemes
More information
If you are an existing customer of Swift, please contact your Account Manager, who can answer any questions you may have about the service and guide you through the subscription and on-boarding process.
If you are not a Swift customer yet, we have solutions to get you connected to Swift, and CREST, quickly and easily. Please contact our London office to find out more.