End to End Solutions for Asset Management and Fund ... · PDF fileEnd to End Solutions for...
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End to End Solutions for Asset
Management and Fund Business
Processes
IMAS - SINGAPORE
July 06, 2009
3
SWIFT: the extranet for the financial
community
Platform
Non-profit
Cooperative
8600+
financial
institutions
Standards setting
body for electronic
financial messaging
(ISO standards)
SWIFTNet
Highly secure and resilient
4
• 209 countries
• 3.5 billion messages per year
• Average daily traffic 15.1 million messages
• Peak day of >16.5 million messages Sept 19h 2008
SWIFT in figures
5
SWIFT Reach: > 8600 financial institutions
Corporates
Investment Managers
ETC Providers
Payment Market Infrastructures
Brokers-dealers
Banks Custodians
Securities Market Infrastructures
Fund Administrators /
Registries
InsuranceCompanies
Fund Supermarkets
Pension providers
SWIFT
Investment managers on SWIFT
7
Investment Managers on SWIFT representing 76% of the global AUM
554
31
37
31
24
10
10
2,544
169
63
19
6
TOP401 and beyond
TOP201 to 400
TOP101 to 200
TOP51 to 100
TOP21 to 50
TOP11 to 20
TOP1 to 10
ON SWIFT NOT ON SWIFT
Investment Managers’ community on SWIFT
325382 414
457 491 698
2003 2004 2005 2006 2007 2008
AME33%
AP9%
EMEA58%
9
Investment Managers’Activity on SWIFT
1. Settlement & Reconciliation
2. Foreign Exchange
3. Payments & Money Market
4. Transfer Agency
5. Funds Distribution
6. Corporate Actions
7. Electronic Proxy Voting
8. Tax Reclamation (new)
Investment manager operations
•Investment strategy & decisionsresearch & analysis
risk analytics
•Pre-trade compliancelegal & master agreements
regulatory requirements/limits
•Order managementtrading
•Client serviceaccount management
portfolio administration & development
fund administration and distribution
11
fro
nt
offic
e
Risk
management
Investment manager operations
QDII Workshop – 12 June 2009 – CONFIDENTIAL 12
mid
dle
offic
e
Risk
management
•Order managementtrade support
allocation processing
trade financing
•Post-trade compliancemaster agreement conformity
•Pre-settlement & settlementreference data management
trade matching, confirmation / affirmation
settlement instructions
exceptions & investigations
Payments & cash management
Investment manager operations
• Portfolio accountingfund & portfolio accounting
Reconciliation & net asset valuation
performance measurement & attribution
•Risk managementliquidity & collateral management
compliance & regulatory reporting
•Administrationtransfer agency
13
ba
ck
offic
e
Risk
management
14
SWIFTNet
Business
Applications
SWIFT
interface
STP challenges
Message
flowsTechnical
Adapters
Data
Formats
Business
Processes
SWIFT Solutions
•Investment strategy & decisionsresearch & analysis
risk analytics
•Pre-trade compliancelegal & master agreements
regulatory requirements/limits
•Order managementTrading (MT, FIX, MX)
•Client serviceaccount management (Funds MX)
portfolio administration & development
fund administration and distribution (Funds MT and MX, Lite)
15
fro
nt
offic
e
SWIFT Solutions
QDII Workshop – 12 June 2009 – CONFIDENTIAL 16
mid
dle
offic
e
•Order managementtrade support
allocation processing (MT and FIX)
trade financing (FX and payment arrangement)
•Pre-settlement & settlementreference data management
trade matching, confirmation / affirmation (MT, MX and Accord)
settlement instructions (MT and MX)
exceptions & investigations
Payments & cash management (MT and MX)
SWIFT Solutions
• Portfolio accountingfund & portfolio accounting (MT and MX)
Reconciliation (MT and MX) &
net asset valuation (MX)
performance measurement & attribution
•Risk managementliquidity & collateral management (MT and MX)
compliance & regulatory reporting (MX)
•Administrationtransfer agency & settlement
17
ba
ck
offic
e
Risk
management
IMAS - July 2009 18
SUMMARY: SWIFT’s Securities offering
IBEI, CIVIC (Q408)
SSI (TBD)
IBEI, CIVIC (Q408)
SSI (TBD)
IBEI, CIVIC(Q408)
SSI (TBD)
IBEI, CIVIC(Q408)
SSI (TBD)
IBEI, CIVIC(Q408)
SSI (TBD)
IBEI, CIVIC (Q408)
SSI (TBD)Reference data
Corporate actions(now)
Market claims(TBD)
Proxy voting (now)
Portfolio recon.(now)
Clearing (now)
Trade confirms(now)
Hedge funds processes (2009)
Allocations (2009)
Transaction reporting (now)
Trading FIX (now)
Trading FIN (now)
Listed derivatives
Cash settlement and reporting (now)
Exception management (now)
Payment initiation(now)
Payments
Cash mgmt
Corporate actions (now)
Market claims (TBD)
Proxy voting (now)
Portfolio recon. (2009)
Lending & borrowing (now)
Repos (now)
Settlement processing, reconciliation and exceptions (now)
Trade confirms (now)
Hedge funds processes(2009)
Allocations (2009)
Transaction reporting (now)
Trading FIX (now)
Trading FIN (now)
Equities
Fixed income
Cash settlement and reporting (now)
Portfolio recon.(2009)
Trade confirms + matching
(now)
Hedge funds processes
(2009)
Allocations(2009)
Trade capture(Q308)
FX, MM
Cash settlement and reporting (now)
Portfolio recon.(2009)
Trade confirms + matching
(now)
Hedge funds processes
(2009)
Allocations(2009)
Trade capture(2009)
Commodities
Cash settlement and reporting (now)
Syndicated loan maintenance (2009)
Portfolio valuation(2009)
Portfolio recon.(2009)
Novation (2009)
Trade confirms + matching (now)
Hedge funds processes (2009)
Allocations (2009)
Trade capture
(2009)
OTC derivatives
Asset servicing& administrat.
Clearing &
Settlement
Post-trade / pre-settlem.
Pre-trade /
trade
IBEI, CIVIC (Q408)
SSI (TBD)
IBEI, CIVIC (Q408)
SSI (TBD)
IBEI, CIVIC(Q408)
SSI (TBD)
IBEI, CIVIC(Q408)
SSI (TBD)
IBEI, CIVIC(Q408)
SSI (TBD)
IBEI, CIVIC (Q408)
SSI (TBD)Reference data
Corporate actions(now)
Market claims(TBD)
Proxy voting (now)
Portfolio recon.(now)
Clearing (now)
Trade confirms(now)
Hedge funds processes (2009)
Allocations (2009)
Transaction reporting (now)
Trading FIX (now)
Trading FIN (now)
Listed derivatives
Cash settlement and reporting (now)
Exception management (now)
Payment initiation(now)
Payments
Cash mgmt
Corporate actions (now)
Market claims (TBD)
Proxy voting (now)
Portfolio recon. (2009)
Lending & borrowing (now)
Repos (now)
Settlement processing, reconciliation and exceptions (now)
Trade confirms (now)
Hedge funds processes(2009)
Allocations (2009)
Transaction reporting (now)
Trading FIX (now)
Trading FIN (now)
Equities
Fixed income
Cash settlement and reporting (now)
Portfolio recon.(2009)
Trade confirms + matching
(now)
Hedge funds processes
(2009)
Allocations(2009)
Trade capture(Q308)
FX, MM
Cash settlement and reporting (now)
Portfolio recon.(2009)
Trade confirms + matching
(now)
Hedge funds processes
(2009)
Allocations(2009)
Trade capture(2009)
Commodities
Cash settlement and reporting (now)
Syndicated loan maintenance (2009)
Portfolio valuation(2009)
Portfolio recon.(2009)
Novation (2009)
Trade confirms + matching (now)
Hedge funds processes (2009)
Allocations (2009)
Trade capture
(2009)
OTC derivatives
Asset servicing& administrat.
Clearing &
Settlement
Post-trade / pre-settlem.
Pre-trade /
trade
20
SWIFTNet
Business
Applications
SWIFT
interface
STP challenges
Message
flowsTechnical
Adapters
Data
Formats
Business
Processes
21
How to connect to SWIFTNet?
Alliance LiteSimplified, Internet based,
secure Apps
SWIFTNet
Users
Internet
Private
infrastructureSWIFTNet connectivity
infrastructure owned and
operated by the customerApps
SWIFTNet
Users
VPN LL and Internet
Shared
infrastructureSWIFTNet connectivity
infrastructure owned and
operated by third party
Apps
SWIFTNet
Users Shared infra
provider
VPNVPN
In order to achieve full automation, your institution should notBall park Figures – Private & Shared Connectivity
SWIFTNet Access Kit (SAA) 50,000 19,400
SWIFTNet Entry Kit (SAE) 24,700 14,400
SWIFTNet Gateway Kit (SAG) 22,150 13,550
SWIFTNet Link Kit (SNL) 9,200 11,000B
IC/D
ocu
me
nta
tio
n
Ce
rtific
ate
s
Se
cu
rity
ha
rdw
are
Inte
rface
so
ftw
are
( *)
Co
mm
un
ica
tio
n
So
ftw
are
( *)
One time
fee
(EUR)
Annual
fee
(EUR)
SWIFTNet Remote Kit 17,100 5,500
SWIFTNet Essentials Kit 1,525 2,725
Ne
two
rk
Co
nn
ectio
n
QDII Workshop – 12 June 2009 – CONFIDENTIAL 24
Integrator Information
Add SWIFTNet
Header
and send to
SWIFTNet
Receive from
SWIFTNet
Integration Features
SWIFT
Messaging
SWIFT
Messaging
Transform,
validate
and route
Capture Business
data
Transform,
validate
and
route
Dispatch
Business
Data
Process Management
Reference Data
An integration framework for SWIFTA
llian
ce
Acce
ss
Business
data
Business
data
Busin
ess a
pplic
atio
n(s
)
Relationships with vendor
Pre
Tra
de
/Tra
de
FIX engines
Javelin
Financial Fusion
Cameron
Fujitsu
LineData
SolutionForge
OMS buy-side
McGregor
DST
Charles River
Advent
SunGard
EzeCastle
LineData
OMS sell-side
SunGard
S1
Bloomberg
GL Trade
NYFix
RoyalBlue
EAI
CheckFree
Financial Fusion
SunGard
Tibco
WebMethods
Core STPS
ETC
Thomson
FMC
DTC
ISMA
Reconciliation
Smartstream
SunGard
Accurate
CityNetworks
Post T
rade
Se
ttle
me
nt
Back office IMI
Thomson
SunGard
OAMS
DST
Simcorp
Trema
Princeton
Back office B/D
GL Trade
Misys
ADP Wilco
RoyalBlue
Back office Custodian
Vermeg
TCS/TKS
SunGard
SDS
EAI
CheckFree
SunGard
Bravura
Singularity
SeeBeyond
SwissRisk
IBM
Reconciliation
Smartstream
SunGard
Accurate
CityNetworks
Se
rvic
ing
CA application
Vermeg
Tata
Smartstream
Xcitek
Mondas
EAI
WebMethods
CheckFree
Singularity
Smartstream
Trace
FTI
ADP
CheckFree
Trace
Relationships with key Industry Body
Name Who Region
EFAMAEuropean Funds and Asset Management Association
Target to consolidate position as key supporters of ISO20022 for fundsEurope
PIMAPEP & ISA Investment Managers Association
Target to assist in the lobbying of UK government for dematerialisationEurope
ISITCInternational Securities Association for Institutional Trade Communications
Target to drive forwards operational efficiency with large US/Global firmsN America
IFIAIrish Fund Industry Association
Target to agree ISO20022 as the standard for hedge fund administrationEurope
ALFIAssociation of the Luxembourg Funds Industry
Target to lobby cross border fund distributors to adopt ISO20022 for fundsEurope
AFACAsian Fund Automation Consortium
Target to lobby Asian fund distributors to adopt ISO20022 for fundsAsia
SIFMATBC
Target to drive forward initiatives & relationship with important new bodyN America
DTCCDepository Trust & Clearing Company
Target to agree to work together in derivatives, hedge & mutual fund sectorsN America