Swift harmonises VP Securities network in Denmark 19 October 2017Toronto Reporter: Theo Andrew
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SWIFT has upgraded its connection to the central securities depositary (CSD) VP Securities in Denmark using ISO 20022 standards.
The enhancement, set to launch in 2018, means banks will face reduced costs by harmonising the network used to connect with other securities markets across the globe.
Previously, banks would have connect using their own protocol, creating inconsistencies and complexities for banks trading in Denmark.
SWIFT will also provide reverse billing, lowering the cost of reconciling invoices and providing greater transparency for VP Securities clients.
According to Birger Schmidt, chief commercial officer of VP securities, the service will aim to “offer communication and connectivity tools at a very competitive price to the market place”.
Swift has also enhanced its connectivity to the Norwegian central securities depository, Verdipapirsentralen ASA, potentially leading to increased transaction volume on SwiftNet from other networks.
The CSD market in Europe is facing increasing competition from initiatives such as Target2-Securities and Central Securities Depositary Regulation.
Schmidt said: “Our customers deserve to have a choice when selecting communication platforms. Our goal is to offer the different platforms at a very competitive price, which this agreement certainly ensures.”
“This is yet another important step in our International Organization for Standardization roadmap and will ensure a better business case for our customers to harmonising their business processes with the internationally standardised ISO format.”
SWIFT also announced that its global payments innovation (gpi) service surpassed two million payments in September.
Of the 120 banks signed up to its service, 24 banks are currently live and actively using SWIFT gpi, with the number expected to rise to 40 by the end of the year.
The platform includes a tracker, accessible through application programme interfaces (APIs), which allows banks to track gpi payments in real-time.
SWIFT are currently working on additional digital functions including stop and recall payment, allowing the transfer of payment data. The group is working closely with fintechs to help leverage APIs.
Christian Sarafidis, chief marketing officer at SWIFT, said: “The speed by which SWIFT gpi has become the new standard in cross-border payments is impressive. This is a direct result of the real value co-creation and collaborative innovation gpi can bring to banks and their corporate customers.”
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