Latest developments in Rouble Settlements via SWIFT

Tatiana Fateeva

Director for Business Development, Banking Sector

Russia, CIS & Mongolia

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Agenda

• Some statistics

• Rouble Settlements via

correspondent banking

• The Russian RTGS and SWIFT

Traffic patterns Russia CIS

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Trade

Treasury

Securities

Payments

Trade

Treasury

Securities

Payments

Volumes(MMsg)

Growth(percent)

Total

Russia_CIS

2,531 1,582 26

RUB customer payments market in Russia

• Only traffic in RUB is taken into account• Only Customer payments are taken into account (MT103s)• BIC8 country & BIC8 counterparty country = Russia

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2010

10

2010

11

2010

12

2011

01

2011

02

2011

03

2011

04

2011

05

2011

06

2011

07

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Evolution of RUB payments in Russia (# of msgs)

Evolution of RUB-payments in Russia

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Evolution of number of messages sent by the top 4 banks per month

201010 201011 201012 201101 201102 201103 201104 201105 201106 2011070

100,000

200,000

300,000

400,000

500,000

600,000

700,000

201010 201011 201012 201101 201102 201103 201104 201105 201106 2011070

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Evolution of number of messages received by the top 4 banks per month

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Agenda

• Some statistics

• Rouble Settlements via

correspondent banking

• The Russian RTGS and SWIFT

Payments Market Practice Group

• “RUR-6 guidelines” have been worked out on how to use the ISO-Standards to do Rouble Payments

• Includes – amongst others – the MT 101, 103, 202, category 9 messages and n92, n95 & n96 messages

• Includes transliteration table (updated in April 2011)

• Currently version 6

• Available on www.rosswift.ru

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Issue(s) with RUR-6.

• They are not mandatory.

• Not all banks are using latest version, so banks have to support different versions, depending on their counterparts.

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9

How to simply create & distribute standards-related documentation?

Not everything in a new standards release is relevant to my business.

How can I easily analyse the impact of a standards release or updated market practice on ALL my systems across all departments?

Information I need is scattered between base standards, market practices , MI specifications and bilateral agreements.

It is not evident to move my community to new market practices or new standards.

Market practice definitions require a lot of reading.

The total cost for standards (maintenance and new solutions) is very high.

Standards-related issues in your institution and your community

Creating and discussing our market practices and comparing them to other ones is a lot of work.

MyStandards: New standards management tools for the community

• Manage your own standards implementation and practice

• Share this information with your correspondents

• Get updates automatically and focus on what is relevant to you

• Content is basis for interoperability services and harmonization

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MyStandards: High level components

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Collaboration environment

Market practice editor

On-line browsing

Machine-readable formats

Analytical toolsMarket

practices

Dedicated Documentation

Base standards

Leverage the community

Make it easy to definepractice / capabilitiesSimplify understanding

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Agenda

• Some statistics

• Rouble Settlements via

correspondent banking

• The Russian RTGS and SWIFT

13

Message Flow Russian RTGS

CB of Russia Payments Application

ConverterCB of Russia –

ISO Formats and vice versa

SWIFT Backbone Network

SWIFT Backbone Network

CB of Russia VPN

CB of Russia VPN

Live since 19 August

2011

Current status

• Closed User Group (CUG) was created for the Russian RTGS over SWIFT

• V-shape is used

• LIVE since 19 August 2011

• 28-29 November a joint workshop on how to use SWIFT for the BESP system (Central Bank of Russia and SWIFT)

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Thank you