SWIFT pilots Securities View to boost post-trade efficiency
28 September 2022 Brussels
Image: AdobeStock/Cybrain
SWIFT has completed a pilot of its Securities View project designed to eliminate settlement fails and to improve transparency in post-trade processing.
This aims to provide market participants with an integrated view of a securities trade across the transaction lifecycle, providing capacity to flag trades that run a high risk of failing.
The service uses an ISO-standard unique transaction identifier (UTI) to mark the progress of securities across the trade lifecycle, enabling automated tracking of both sides of the transaction.
SWIFT reports that it is encouraging use of the UTI to promote standardised data use across the post-trade area, delivering greater transparency to post-trade processing as part of measures to promote instant, frictionless and interoperable transactions globally.
It has completed the pilot phase of the project, with participation from a wide range of global securities services providers, market infrastructure specialists and buy-side firms, including ABN Amro Clearing Bank, BlackRock, BNP Paribas, BNY Mellon, Citi, Credit Suisse, Euroclear, Euronext, HSBC, J.P. Morgan, Northern Trust, Optiver, Pershing and SEB.
The service is expected to be released for broad market adoption during 2023.
SWIFT’s head of securities strategy, Vikesh Patel, says: “SWIFT Securities View does more than just empower our customers to identify and rectify discrepancies in settlement transactions; it sets the blueprint and foundation for a new industry standard to radically transform the industry, just as SWIFT gpi continues to do for cross-border payments.
“Our early pilot results show this potential and further strengthen our mission of making transactions instant and frictionless, across all industries.”
Jeff King, head of core custody product at Citi Securities Services, adds: “With the roll out of the Central Securities Depositories Regulation (CSDR) in Europe and the planned move to T+1 in Asia and the US, it is becoming increasingly important to ensure settlement efficiency and having transactions match and settle on time.
“The inclusion of the Unique Transaction Identifier within the settlement lifecycle data communication and the adoption of SWIFT’s Securities View Service within the industry facilitates heightened transparency earlier in the settlement lifecycle, allowing matching issues to be discovered higher up the settlement chain, rather than waiting on matching updates to come back from CSDs and market infrastructures.”
HSBC’s global head of middle office for securities services, Paul Baybutt comments: “Wider adoption of the Unique Transaction Identifier should improve visibility for market participants to identify transactions that might be at risk of failing and address potential settlement issues quicker and even before they occur.
“Expanding the use of UTIs should therefore make it more efficient for service providers, such as ourselves, to respond to client queries about the status of their transactions — which is ever more important with the implementation this year of the Settlement Discipline Regime.”
This aims to provide market participants with an integrated view of a securities trade across the transaction lifecycle, providing capacity to flag trades that run a high risk of failing.
The service uses an ISO-standard unique transaction identifier (UTI) to mark the progress of securities across the trade lifecycle, enabling automated tracking of both sides of the transaction.
SWIFT reports that it is encouraging use of the UTI to promote standardised data use across the post-trade area, delivering greater transparency to post-trade processing as part of measures to promote instant, frictionless and interoperable transactions globally.
It has completed the pilot phase of the project, with participation from a wide range of global securities services providers, market infrastructure specialists and buy-side firms, including ABN Amro Clearing Bank, BlackRock, BNP Paribas, BNY Mellon, Citi, Credit Suisse, Euroclear, Euronext, HSBC, J.P. Morgan, Northern Trust, Optiver, Pershing and SEB.
The service is expected to be released for broad market adoption during 2023.
SWIFT’s head of securities strategy, Vikesh Patel, says: “SWIFT Securities View does more than just empower our customers to identify and rectify discrepancies in settlement transactions; it sets the blueprint and foundation for a new industry standard to radically transform the industry, just as SWIFT gpi continues to do for cross-border payments.
“Our early pilot results show this potential and further strengthen our mission of making transactions instant and frictionless, across all industries.”
Jeff King, head of core custody product at Citi Securities Services, adds: “With the roll out of the Central Securities Depositories Regulation (CSDR) in Europe and the planned move to T+1 in Asia and the US, it is becoming increasingly important to ensure settlement efficiency and having transactions match and settle on time.
“The inclusion of the Unique Transaction Identifier within the settlement lifecycle data communication and the adoption of SWIFT’s Securities View Service within the industry facilitates heightened transparency earlier in the settlement lifecycle, allowing matching issues to be discovered higher up the settlement chain, rather than waiting on matching updates to come back from CSDs and market infrastructures.”
HSBC’s global head of middle office for securities services, Paul Baybutt comments: “Wider adoption of the Unique Transaction Identifier should improve visibility for market participants to identify transactions that might be at risk of failing and address potential settlement issues quicker and even before they occur.
“Expanding the use of UTIs should therefore make it more efficient for service providers, such as ourselves, to respond to client queries about the status of their transactions — which is ever more important with the implementation this year of the Settlement Discipline Regime.”
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