11 Jun 2021 18:41

SWIFT seeks to transform its platform for monitoring of settlements in securities transactions

MOSCOW. June 11 (Interfax) - SWIFT is thinking about expanding its operations, planning to upgrade its platform for monitoring the settlement of securities transactions, according to a report from the payment system.

"Our goal is to improve securities transactions with enhanced platform capabilities, such as securities settlement monitoring, as well as analytical tools covering all assets: securities, cash and others. Such modernization of processes will help market participants to avoid disruptions in settlements and reduce the cost of doing business," the document reads.

In particular, SWIFT has identified three main areas to expand the functions of its platform for capital market transactions.

The first is the unified verification of securities settlement transactions. This refers to both extending standing settlement instructions (SSI) to the securities market and ISIN verification for companies on sanctions lists. In the future, the platform will also be able to provide such services for corporate actions, collateral and investment funds.

The second is the ability to track multi-asset transactions, both cash and securities, in real time, and produce common reports for clients.

Finally, the third area is the development of tokenized asset solutions. "We will be exploring collaboration with market participants in areas where tokenized assets and traditional instruments are merging. This includes addressing market fragmentation by developing the necessary standards to support the secure transfer of tokenized assets," the report reads.

The SWIFT platform will use API interfaces to provide capital market organizations with a package of services for securities processing, eliminating the need for them to develop such services themselves as well as invest money in their development.

"Participants in international capital markets are facing unprecedented challenges, which have become even more difficult because of the pandemic. Therefore, they now need to create a unified solution through which they can work more effectively with their clients. SWIFT is uniquely positioned to create a single platform that will enable more efficient execution of securities transactions with an enhanced platform for all market participants. As part of our strategy, we will leverage our co-op capabilities and experience while innovating to reduce costs for market participants and create new opportunities for seamless securities transactions," David Watson, SWIFT's Chief Strategy Officer, was quoted as saying in the statement.

SWIFT is an international interbank system for transmitting information and making payments.