Settlement and reconciliation
Use Swift to automate settlement and reconciliation of domestic and cross-border securities transactions, reducing costs and risks
Settlement and reconciliation
Reach counterparties worldwide across the post-trade transaction chain
Swift’s settlement and reconciliation messaging solution uses globally-recognised communication standards to connect you to your counterparties, intermediaries and market infrastructures.
The solution automatically connects asset managers and brokers, global custodians and local agents, and settlement participants and market infrastructures such as T2S, CSDs, CCPs and trade repositories.
Settlement transactions covered include repurchase agreements, portfolio transfers, internal account movements, collateral exchanges and corporate actions distribution.
Dedicated reconciliation messages cater for all aspects of settlement reporting activity to advise, instruct and confirm the movement of securities. They also report on the status of pending settlement instructions, movements and holdings.
Wide variety
The settlement messages include repurchase agreements, portfolio transfers, internal account movements, collateral exchanges and corporate actions distribution.
Automated and standardised reporting
Improve visibility and transparency of your operations through each pre-settlement stage - and for all post-settlement reporting activity.
Connect to Target2
A complete solution for T2S, including integration solutions, all at attractive pricing and with minimal upfront cost.
Understanding T+1 settlement
Markets are shortening the settlement cycle from settling two days after the execution date, to just one day after execution as a T+1 settlement cycle. This is born out of the need for faster, more efficient settlements and is expected to be the global norm soon.
The Unique Transaction Identifier and its value in securities settlement
While the securities industry has improved its straight-through-processing (STP) rates over the last few decades, more work is still needed.
A lack of transparency and poor end-to-end visibility on the status of securities transactions along the settlement and reconciliation value chain continue to be a challenge.
This creates inefficiencies and costs at a time when margins and revenues are squeezed.
This is compounded further by regulatory and market initiatives, such as the EU’s Central Securities Depositories Regulation (CSDR) and the decision by some markets to shorten their settlement cycles to T+1, and possibly even T+0.
The Unique Transaction Identifier (UTI) can play a vital role in helping the securities industry overcome some of these hurdles.