SWIFT for Payment Market Infrastructures Short version 7 Stephane Ernst, Market Manager for HVPMIs Sep 2010

Basic concept of RTGS the continuous (real-time) settlement of funds individually on an order-by-order basis (without netting). 2 Real Time Gross Settlement Settlement processing Settlement finality an act that discharges obligations in respect of funds or securities transfers between two or more parties. A settlement may be final or provisional. settlement which is irrevocable and unconditional. SWIFT for HVPMI Offering Presentation – Confidentiality: Public

3 Payment transaction processing Payment transaction processing Liquidity Management Liquidity Management Participant administration Participant administration Reporting Management Reporting Management Business and operational functions of RTGS Transaction inputValidation Clearing & Settlement Notification Liquidity management Reserve management Payment investigation Profile managementReference data OperationalStatisticalRegulatory SWIFT for HVPMI Offering Presentation – Confidentiality: Public

4 SWIFT’s 5-pillars offering for Payment Market Infrastructures Connect PKI,HSM Interfaces Messaging Services Consulting Training Customer Support FIN, InterAct,FileAct, Browse Copy FIN, InterAct,FileAct, Browse Copy Alliance Interfaces Integration tools Alliance Interfaces Integration tools Security Alliance Connect Bronze/Silver/ Gold A comprehensive solution Your Payment Market Infrastructure system SWIFT for HVPMI Offering Presentation – Confidentiality: Public

5 Low-value payment MI High-value payment MI Direct Participants Central bank Participants ACH SWIFT offering for high value payments MIs Indirect Participants SWIFT offers Standards (MT, MX) Messaging (FIN, FINCopy, FileAct, FileAct Copy, InterAct, Browse, Mail) Connectivity (SAA,SAG,SSA,SAL) SWIFT Support Payments processing Cash management Reference data Reporting Generic secure communication Govt Entities CSD SWIFT for HVPMI Offering Presentation – Confidentiality: Public

6 MT 1xx, 2xx MT 9xx Ordering customer Ordering customer’s financial institution Beneficiary customer’s financial institution Payments market standards Beneficiary customer Credit Transfers (Bulk and Single) Cash Management Direct Debits (Bulk and Single) Exceptions and Investigations Cash Mgmt (Adv & Stat) Direct Debit Initiation Except & Investigations Credit Transfer Initiation UNIFI MX MT 9xxMT 101 MT-based MT 9xx Cash Mgmt (Adv & Stat) Except & Investigations MT  MX/ISO  COEXISTENCE  Payments market standards SWIFT committed to support today and tomorrow standards SWIFT for HVPMI Offering Presentation – Confidentiality: Public

77 The store-and-forward messaging service, FIN InterAct using MX UNIFI messages FINCopy is the most relevant solution for high-value payment systems wolrdwide SWIFTNet FIN/InterAct V-topology Internal Payment system Participant A SWIFT interface Participant B SWIFT interface Payment processingCentral web server Central institution Payment instruction Notification message Bank A Bank B FIN/InterAct transaction flow Payment transaction processing: Payment per payment SWIFTNet FIN Copy Internal Payment system Participant A SWIFT interface Participant B SWIFT interface Payment processingCentral web server Bank A Bank B FIN Copy transaction flow Payment message Payment message (settled) Settlement request Central institution Authorisation/ refusal SWIFT for HVPMI Offering Presentation – Confidentiality: Public

88 InterAct, provides interactive exchange of instructions between counterparties –Transfer funds between accounts –Change priorities of queued payments –Modify intra-day credit limits to better manage liquidity and collateral throughout the day in real time Browse, provides secure browsing to access the market infrastructures to monitor –Current positions of the settlement account –Foreign exchange and credit risk exposures –Transaction flow and status Cash management and participant administration SWIFTNet Internal Payment system Participant A SWIFT interface Participant B SWIFT interface Payment processingCentral web server Central institution InterAct real-time information exchange and control Bank A Bank B Browse online Info query SWIFT for HVPMI Offering Presentation – Confidentiality: Public

99 Report management, where volume and flexible structure are essential FileAct is ideal for exchanges of –Large reports: business, statistical or regulatory reports –Raw data –Directories FIN Inform can supplement FIN to report transaction Report & directory management SWIFTNet Internal Payment system Participant A SWIFT interface Participant B SWIFT interface Payment processingCentral web server Central institution FileAct for reporting Bank A Bank B FileAct for reporting FileAct for bulk reporting SWIFT for HVPMI Offering Presentation – Confidentiality: Public

10 SWIFT can support a converged system using Y-topology SWIFTNet Internal Payment system Participant A SWIFT interface Participant B SWIFT interface Payment processingCentral web server Central institution Bank A Bank B Settlement request Authorization/rejection Payment file message settled Payment file message Settlement request Authorization/rejection Payment message settled Payment message FIN Y-topology for transaction-per-transaction payment flow FileAct Header copyY-topology for Bulk or Batch payments flow SWIFT for HVPMI Offering Presentation – Confidentiality: Public

11 SWIFT can support converged system using V-topology FIN/InterAct V-topology for transaction-per-transaction payment flow Internal Payment system Participant A SWIFT interface Participant B SWIFT interface Payment processingCentral web server Central institution Notification message Bank A Bank B Payment instructions by File Payment instruction by transaction FileAct V-topology for Bulk or Batch payments flow SWIFT for HVPMI Offering Presentation – Confidentiality: Public

PROJECT MANAGEMENT End-to-end project management SERVICE DESIGN Requirement & Technical Design Specification TRAINING MI & Participant trained SERVICE IMPLEMENTATION Messaging Services implemented PARTICIPANT DEPLOYMENT Member Messaging Services implemented SERVICE OPERATIONAL READINESS Messaging services Go-Live SERVICE OPERATION Easy live SWIFT services for payment market infrastructures What 12 Ordering and provisioning (*) Alliance portfolio installation of the MI SWIFTNet Messaging prototyping Integration SWIFT Alliance/application Member registration follow-up Supporting documentation Deployment of the MI participants Products MI implementation Testing support Operational procedures Customer support packs Project Management plan Monitoring Problem management Reporting Messaging landscape analysis Payments STP review Technical design Integration design Business Continuity planning Disaster recover process design Design Security Best Practices SWIFT for HVPMI Offering Presentation – Confidentiality: Public

Delivering value and peace of mind PROJECT MANAGEMENT SERVICE DESIGN PARTICIPANT DEPLOYMENT TRAINING SERVICE OPERATIONAL READINESS SERVICE OPERATION SWIFT services for payments 13SWIFT for HVPMI Offering Presentation – Confidentiality: Public

14 SWIFT support successful PMI transformations Adopting SWIFT provides…. SWIFT for PMIs - 28 October 2009 High-value payment MI Central bank Participants Direct Participants Low-value payment MI ACH Indirect Participants CSD Govt Entities ParticipantsDirect Participants Participants/members with State-of-the-art Reliability, Resiliency, Security and Customer Support Right trusted third party services Global reach and the interoperability Business flexibility Participants/members with State-of-the-art Reliability, Resiliency, Security and Customer Support Right trusted third party services Global reach and the interoperability Business flexibility HVPMIs with High resilience and security Business &operational cost efficiency Comprehensive solution Risk reduction Focus on core service Global and community reach HVPMIs with High resilience and security Business &operational cost efficiency Comprehensive solution Risk reduction Focus on core service Global and community reach

SWIFT for High value payment market infrastructures Live system market Status… Africa AngolaAlgeriaBotswana Central African States (BEAC)Egypt GhanaKenyaLesotho MauritiusMoroccoNamibia Sierra LeoneSouth Africa Swaziland TanzaniaTunisia Uganda ZambiaZimbabwe West African States (BCEAO) Asia Pacific Australia Fiji Hong Kong New Zealand Philippines Singapore Sri Lanka Thailand Central & Eastern Europe Albania Azerbaijan Bosnia & Herzegovina Bulgaria Croatia Hungary Romania Latvia North America Canada US (TCH) Central & Latin America Bahamas Barbados Chile Dominican Rep. ECCB El Salvador Guatemala Trinidad & Tobago Venezuela Western Europe Denmark Eurozone (EBA- EURO1/STEP1 &TARGET2) Norway Sweden Switzerland UK Middle East Bahrain Israel Jordan Kuwait Oman UAE (DIFC) Systems on Y Copy topology 62 systems 90+ countries 62 systems 90+ countries 15SWIFT for HVPMI Offering Presentation – Confidentiality: Public

16 Thank you! SWIFT for HVPMI Offering Presentation – Confidentiality: Public Q&A