SWIFT for Asset Managers – PVCB

Capital

Focus on your core business &

Scale your business with SWIFT

Oct, 2020
Who is SWIFT?

User-owned
cooperative

Headquarter
Brussels, Belgium

Overseen by
central banks of G10 and G20

Connecting 11,000+ Financial Institution Groups

and Corporates globally

COMMUNITY PLATFORM STANDARDS

A co-operative A provider of
highly secure Financial
serving
Financial Messaging Standardisation
the financial industry
Services Organization

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 Glance
SWIFT At A
Across the globe Achieve STP in
Reconciliations

Reconcile and validate your account

for the security holding and cash
balance through a single gateway
11,000+ 6,000+ 70% of Top 50 with your multi-custodian banks
institutions Securities investment Managers in
Users the Tower Watson ranking

Greater Automation for Post Trade Liquidity Management

Processing
Manage all your payments, FX, and
Automate your post trade processing statements activities through one
and settlement to streamline your single, standardised communication
operations by reducing manual platform
interventions with the greater visibility
of post-trade processing activities

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SWIFT Connectivity: A Single Standardised Gateway
Multiple Channels Single Standardised Gateway

Banks Banks

Financial Intermediaries Financial Intermediaries

Asset Manager (Brokers/Custodian Banks)
(Brokers/Custodian Banks)

z
Fund Distributor Fund Distributor

Different protocols, channels & systems Single standardised gateway

• High operational costs • Lower Cost and manage risks
• No global visibility on cash / assets • Transparency and visibility on cash / assets
• Lack of automation of trade transactions • Increased control and security
• Impossible to centralise and not scalable • Secure and resilient streamlined communication
• Multiple connectivity channels and formats channel with counterparties
• Complicated traceability and compliance • Scalable solutions with flexible integration
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MT Standards & Commonly used MT by Asset Managers

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Sample flows in Asset managers

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Automating Asset Managers back-office with SWIFT
End-to-end Message Solutions Payments,
receipts, FX
Broker confirmations
Settlement
Bank

Trade
Instruction

Confirmation Trade
Confirmation

Funds
Distributor
Funds Solution
Subscriptions, Settlement
Redemptions, Reconciliation
Price (I)CSD
Corporate Action
Transfers Market
etc Asset Managers Infrastructure

Corporate
Payments, Action
receipts, FX
confirmations
Cash Mgmt & Custodian/
Instructions/
Payment Trustee
Settlement/
reconciliation/
Bank confirmation/
reporting/
statements
Trade
Global/ sub- Reporting
custodian
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Zooming-in: Common Messaging Flows – Full STP
EQ, FI, FX and MM instruments

Buy Securities

Client Confirmation of Purchase (MT515)

Asset Manager Broker
FX Confirmation
(MT300) Settlement Instruction (MT541)
Settlement Status (MT548)
Deposit
Confirmation Settlement Confirmation (MT545)
(MT320) FX deal Deposit
Securities Statement (MT 535)
Confirmation
(MT320) Corp Action (Cash dividend, interest) (MT564)
Notice to Receive (MT210)
FX Confirmation Settlement
FX Settlement Instruction (MT304)
(MT300)
/Confirmation
Deposit Settlement Instructions (MT321)
/Reconciliation
Cash Balance (MT 940)

Fund Cash Credit Transfer (MT103)

SWAP Bank Global Custodian/

Trustee

Settlement
/Confirmation
/Reconciliation

Settlement
/Confirmation CSD
Sub-Custodian
/Reconciliation
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Practical Use Cases for Asset Mangers

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Use Cases for Asset Managers

Use Case #1 Use Case #2 Use Case #3 Use Case #4 Use Case #5

The lack of the visibility
of cash positions across
their bank accounts
globally
Exposed to operational &
counterparty risk due to
non-real-time
confirmation on post-
trade and asset servicing
High volumes of The lack of visibility of Inefficiency in manual
payments and receipts funds movement results intensive reconciliation of
lead to challenges in in holding large securities positions
reconciliation and cash unnecessary working against information from
management capital buffers to meet custodians
payment obligations

Solution: Solution: Solution: Solution: Solution:

With your own unique SWIFT can provide a Receive SWIFT MT950 SWIFT gpi helps with SWIFT MT535
SWIFT code, you are cost-effective connection (account statement) from real-time payment (Statement of Securities
able to receive timely to multiple counterparties your banks via one tracking, status with full Holdings) via SWIFT
electronic account to streamline and channel to efficiently transparency. from your multi-
statement via one single automate your post trade reconcile cash positions custodian banks for
channel so you can flows (settlement and for better liquidity timely reconciliation and
enhance your cash corporate actions management full visibility on
visibility and optimize instruction/confirmation/n securitiess holdings
your funding and liquidity otification)
needs

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 www.swift.com

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