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Swift Securities View: Paving the Way for Seamless Transactions

The asset management industry has long grappled with challenges in securities settlement. Operational inefficiencies, heightened risks, and escalating costs have cast a shadow over the industry’s pursuit of truly seamless transactions. In response, Swift Securities View is emerging as a transformative service, one that can revolutionize securities settlement. Swift Securities View, a new service developed by Swift, represents a paradigm shift with its ability to provide end-to-end tracking of securities transactions, bringing unprecedented transparency and efficiency to settlement.

The Need for Transparency in Securities Settlement

The lack of transparency is a persistent hurdle in securities settlement, creating operational risks and settlement fails. Swift Securities View aims to provide much greater transparency for all the steps in the settlement journey. Settlement fails are always a looming threat, especially with the global shift toward shorter securities settlement cycles, and they require timely issue identification and resolution. This urgency is further underscored by regulatory requirements, such as the Central Securities Depository Regulation (CSDR), which imposes penalties for late settlement.

Swift Securities View

Swift Securities View employs the Unique Transaction Identifier (UTI), an ISO standard, to enable automated end-to-end tracking of transactions by all market participants involved. This innovation not only transforms post-trade processing but aligns with the industry’s trajectory toward “zero-touch” processing. Real-time visibility into transaction location and status empowers market participants to identify and resolve issues promptly, which reduces operational risks and costs, improves straight-through processing, and enhances settlement efficiency.

The success of Swift Securities View is evident in its broad adoption last year among more than 50 leading financial institutions, including HSBC, BNY Mellon, and Nomura Asset Management. This journey started with a pilot program in 2022, followed by a full launch in January 2023. Today, the service contributes to more than 630 million securities transactions annually. In fact, its widespread adoption spans the entire settlement chain, including asset managers, brokers, global custodians, and central securities depositories. Notably, the service is not merely a response to previous challenges. Rather, it sets the stage for future innovation and efficiency in securities settlement.

Swift Securities View and Regulatory Compliance

Regulatory compliance is a critical focal point for market participants, especially with impending shorter securities settlement cycles. In this respect, Swift Securities View positions itself as a strategic ally for buy-side firms, offering increased transparency and more timely issue resolution. By supporting both standardization and interoperability, the service is an invaluable tool in the rapidly evolving regulatory landscape. CSDR penalties for late settlement underscore the importance of Swift Securities View even more, especially its ability to address compliance requirements proactively.

Benefits for Buy-Side Firms

Buy-side firms stand to gain substantial benefits from Swift Securities View. The service facilitates compliance with regulatory requirements, reduces settlement fails, and enhances risk management. End-to-end tracking of securities transactions allows faster issue identification and prevents costly settlement fails. The interoperability and flexible connectivity options provided by Swift Securities View align with the industry’s broader goals of seamless integration and digital transformation. By adopting the Swift Securities View, buy-side firms not only reduce operational risk but also position themselves at the forefront of innovation in securities settlement processes.

Looking Ahead

Swift Securities View is catalyzing a critical transformation in the securities industry with its comprehensive solution to longstanding challenges in securities settlement. Beyond its immediate impact on settlement efficiency, Swift Securities View will play a pivotal role in upcoming regulatory requirements, particularly in the era of shorter settlement cycles. Its ability to provide transaction transparency, support interoperability, and facilitate end-to-end tracking makes it a true game-changer for market participants seeking higher efficiency, lower operational risk, and increased innovation.

As the industry braces for the transition to T+1 settlement, the role of Swift Securities View becomes even more significant. By ensuring seamless post-trade settlement and minimizing the risk of settlement fails and financial penalties, Swift Securities View will be a cornerstone for the future of securities settlement. Swift Securities View not only addresses today’s most urgent challenges but also establishes an industry standard that prioritizes efficiency, transparency, and innovation for years to come.

How IVP Can Help

By leveraging the power of automation, the IVP Cash Management Solution seamlessly integrates with Swift to provide a comprehensive and fully customizable solution for processing payments. It allows funds to harness the power of Swift Securities View within existing cash management workflows while delivering a wide range of features.

Learn more about the IVP Cash Management Solution right now or contact us at sales@ivp.in to set up a live or online demo.

Cash Management Solution

A customizable cash management solution for processing payments and monitoring balances via STP. This ISO 20022-compliant solution centralizes balances for unified risk control and regulatory compliance and ensures that counterparty data is validated once and then made instantly available for future automated payments based on configurable rules. A comprehensive and customizable solution for cash settlements, balance monitoring, and straight-through processing (STP). Our cash management solution includes features like SWIFT payment processing and ensures that counterparty data is validated once and then made instantly available for future automated payments based on configurable rules. The solution centralizes all balances, providing unified risk control and regulatory compliance.

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