SWIFT outlines strategic vision for smarter securities

  • New paper details SWIFT’s plans to transform platform for securities processing as part of its strategy for smarter securities
  • Explores industry need for a collaborative post-trade utility to facilitate, frictionless securities transactions
  • Will mitigate settlement fails, reduce costs and improve efficiency

Brussels/Dubai: SWIFT today published a paper detailing its vision for an enhanced capital markets platform as part of the organisation’s strategy. SWIFT is transforming its platform to meet industry demands for a collaborative post-trade utility that will enable smarter securities processing and feature expanded capabilities.

Institutions operating in global capital markets face the growing challenge of meeting the demands of customers for more efficient securities processing while contending with rising costs, increased regulatory burdens and heightened competition. The paper considers how numerous post-trade solutions have attempted to address these challenges in the past with limited success and outlines why SWIFT believes that a single, collaborative platform will revolutionise how capital markets firms service their customers and will drive efficiency across the industry as a whole.

The paper explains why the benefits of a single platform that functions at scale across markets are well-aligned with the needs of capital markets. Securities transactions will settle with greater visibility, new revenue generating opportunities will emerge, higher quality data will be made available, and the collaborative nature of the platform will spur innovation. 

As part of its strategy, SWIFT is leveraging its unique position as a global cooperative to make such a platform a reality. The enhanced SWIFT platform will use APIs to provide a set of common processing services that institutions have typically invested in individually, saving the industry time and enabling smarter, securities transactions. This transformation is already in progress and SWIFT is particularly focused on delivering end-to-end transaction tracking for securities settlement transactions and, real-time transactional information to support inventory management and visibility on holdings while exploring the potential of tokenised assets.

David Watson, Chief Strategy Officer at SWIFT, said: “Facing unprecedented disruption that has only been exacerbated by the pandemic, capital markets participants the world over require a collaborative, industry-wide solution to meet the evolving needs of customers. At SWIFT, we are uniquely positioned to deliver a fundamental transformation in securities processing through an enhanced platform that works for all. As part of our strategy, we will leverage the strength of our community and track record of responsible innovation to reduce industry costs and facilitate seamless securities transactions.”

About SWIFT:

SWIFT is a global member owned cooperative and the world’s leading provider of secure financial messaging services. We provide our community with a platform for messaging and standards for communicating, and we offer products and services to facilitate access and integration, identification, analysis and regulatory compliance. 

Our messaging platform, products and services connect more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories. While SWIFT does not hold funds or manage accounts on behalf of customers, we enable our global community of users to communicate securely, exchanging standardised financial messages in a reliable way, thereby supporting global and local financial flows, as well as trade and commerce all around the world. 

As their trusted provider, we relentlessly pursue operational excellence; we support our community in addressing cyber threats; and we continually seek ways to lower costs, reduce risks and eliminate operational inefficiencies. Our products and services support our community’s access and integration, business intelligence, reference data and financial crime compliance needs. SWIFT also brings the financial community together – at global, regional and local levels – to shape market practice, define standards and debate issues of mutual interest or concern. 

Headquartered in Belgium, SWIFT’s international governance and oversight reinforces the neutral, global character of its cooperative structure. SWIFT’s global office network ensures an active presence in all the major financial centres.