Standardised business flows for securities market infrastructures

Clearing and settlement

Clearing and settlement of securities trades in both Delivery-vs.-Payment mode (DVP) and Free-of-Payment mode (FoP) between the account owner (trade counterparty, including CCPs) and its account servicer, whether an (I)CSD or a custodian. 

Securities Reconciliation

Communication flows for position / portfolio reconciliation 

• Statement of holdings - reporting on the quantity and identification of securities and other holdings, which the account servicer holds for the account owner at a specified moment in time 
• Statement of transactions - providing the details of any increases and / or decreases of holdings, which may have occurred over a specified period of time 
• Statement of pending transactions - providing the account owner with the details of pending increases and / or decreases in the quantity of holdings, at a specified moment in time 
• Statement of intra-position advices - providing the account owner with the details of any intra-position transfers (movement of securities within a holding) for a specified period of time 
• Statement of open orders - identifying orders which have not yet been fully executed

Collateral Management

Swift’s collateral management messages support bilateral, tri-party, CSD/CCP clearing models and all trade-generated exposures, e.g. OTC derivatives, Repos and Securities Lending.Message types include:

• Collateral claim
• Collateral proposal 
• Collateral substitution

Corporate Actions

Communication flows between the CSD and the participant, for the notification and instruction of asset servicing events. These span the full range of distribution, redemption and voluntary corporate actions. 

Message types include: 

• Corporate action notification
• Corporate action narrative for complex events
• Corporate action instruction
• Corporate action confirmation
• Corporate action status and processing advice 

Post-trade matching and netting

Communication flows between the clearing members and their CCPs for post-trade matching and netting with a set of messages that facilitate trade position management and the preparation of the trade settlement. 

Message types include: 

• Trade confirmations and status 
• Trade notifications and statements
• Position management 

Regulatory Trade Reporting

As Regulatory Trade Reporting for OTC Derivative trades has been mandated by the US Dodd-Frank Act and European Market Infrastructure Regulation (EMIR), Swift helps the community comply with regulations by providing the following solutions: 

• FIN Copy & FIN Inform - a solution that copies an existing Swift trade message sent to the counterparty, and automatically sends the copy to the Trade Repository 
• InterAct Store and Forward - intra-day message by message reporting 
• FileAct - to submit end of day files 
• LEI - unique identification of the legal entities undertaking the trade 

Cash and liquidity management 

Swift supports all the communication flows for the cash and liquidity management related to the payment of the liabilities, fees and liquidity obligations related to securities trades, spanning funds transfer and cash reporting using cash accounts at a Paying Agent or directly at the Central Bank

• Credit transfer and direct debit
• Advice of cash movements related to a trade operation
• Nostro reconciliation and referencing Fees / Charges