Can Swift Securities View be instrumental in reaching T+1?

Even though automation and straight-through processing rates have improved the securities industry over the last two decades, achieving transparency and end-to-end visibility throughout the settlement and reconciliation chain is still to be realized. Lacking a clear understanding of the security position throughout the securities settlement chain is akin to releasing an arrow into the darkness without being able to see the target.

Fortunately, the integration of IMS with the Swift Securities View, brings real-time visibility to transaction flow and trade status through its trade settlement Dashboard. Consequently, the timely actions can minimize intensity and duration of manual processes associated with exception handling and fail resolution procedures.

Can Swift Securities View be instrumental in reaching T+1?

Swift Securities View Explained :

Trade settlement activities where multiple parties are involved, suffers various inefficiencies leading to breaks resulting in-additional costs, and operational overheads and loss of credibility to the parties involved.
The Swift Securities View has the potential to override the current limitations of the workflow where information propagates only through parties that are directly associated. The transaction IDs that are engaged in the underlying messages have scope only between pairs of parties. Swift introduced the UTI that resolved this limitation by having a single ID to represent each trade across all parties and made the Swift Securities View possible through its API Services.
Swift Securities View Explained :

What does UTI stand for?

The UTI is a unique alphanumeric code assigned to a securities trade comprising up to 52 characters. This allows for end-to-end tracking throughout the lifecycle of the settlement. In the initial process, the ISO 15022 MT messages can be enriched to carry out the settlement data, including UTI, to exchange messages between counterparties. All parties continue to process and persist the UTI in all related Swift settlement messages throughout the process. In instances where no matching platform is accessible, firms can affirm trade allocation bilaterally, using channels like FIX messaging that facilitate the exchange of a Unique Transaction Identifier (UTI). Furthermore, within Swift settlement messages (ISO 15022 and ISO 20022), specific fields are designated to transmit the UTI throughout the settlement flow.

This ensures tracking, comparison, and alerting information at every step of the flow, from initiation and (un)matching to cancellation, partial settlement, and final settlement, involving all parties.
What does UTI stand for?

Why are we talking about Swift Securities View?

Envision a case where you want to trace the movement of goods and money throughout the supply chain. In this scenario, “monitoring systems” or “traceability systems” managed outside the periphery of an individual player, covering all parties, can convey the status, location, or progress of items, processes, to all.

Why IMS?

IMS is a Trade Processing Platform from ECS utilized by the Capital Markets community globally. It is Gold certified by Swift, equipped with services like trade matching, SSI Management, trade settlement workflows and well organized UI and Dashboards for full visibility and control. It also hosts a Swift Gateway and alternate data exchange hubs between Investment Managers, Custodians, Prime Brokers, and Banks.
The integration of IMS platform with the Swift Cloud Services enabled the Trade Settlement module to tap into all the information that is relevant to every trade being processed from all parties concerned.
Simultaneously, the platform manages and automates the entire trade settlement life cycle, comprising:
  •  Trade Allocation.
  • Status and Confirm Process.
  •  Trade Settlement.
  • Real-time Monitoring.
  • Events & Notifications.
  • Exception Handling.
  • Statement Services.
  • Statement Reconciliation.
  • View, Reports & Subscriptions.
  • Trade Match.
    (utilizing any service available in the industry)

Let's create an ecosystem where trade settlement activities can start moving from T+2 to Real-time.