swift in russia
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SWIFT in RussiaTRANSCRIPT
Steven Palstermans, Head of Strategic Financial
Initiatives, Russia & CIS
SWIFT in Russia and the
MIFC project.
BRBC Event, February, 4th 2014, Moscow
Agenda
Introduction – SWIFT and SWIFT in Russia
Moscow – International Financial Centre (MIFC)
SWIFT supporting MIFC
2 BRBC Event, February 4th 2014, Moscow
3
4bn+ messages
per year
10,000+ customers
18m messages
per day:
22m peak day
212 countries
5x9 availability
SWIFT… the global provider of secure financial
messaging services
BRBC Event, February 4th 2014, Moscow
4
SWIFT in Russia
• 1989: First customer, VEB
• Today: 600+ customers
• 2009: SWIFT office opened
• Traffic growth: 60% plus
• Domestic payments represent biggest business
BRBC Event, February 4th 2014, Moscow
Russian SWIFT traffic by Business Area
5
Sent and received traffic for Russian BICs, split per Business Area.
Payments 85%
Securities 7%
Trade Finance 0%
Treasury 8%
BRBC Event, February 4th 2014, Moscow
Payments sent by Russia and the world Growth in Russia 5 times larger than worldwide trend
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* Worldwide growth in payment transactions of 26 %
* All traffic in the payments business area sent by a Russian institution (in all currencies)
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
2007 2008 2009 2010 2011 2012
Russia World
+137%
BRBC Event, February 4th 2014, Moscow
Agenda
Introduction – SWIFT and SWIFT in Russia
Moscow – International Financial Centre (MIFC)
SWIFT supporting MIFC
BRBC Event, February 4th 2014, Moscow 7
MIFC initial milestones
2008
The 2020 Concept introduced
2009
The MIFC Action Plan launched
July - Nov 2010
The MIFC Taskforce formed +
MIFC Project Groups kicked off
Dec 2010
The MIFC International Advisory Board appointed
June 2013
The MIFC Roadmap approved by Parliament
Source: www.mfc-moscow.com
BRBC Event, February 4th 2014, Moscow 8
Key facts about MIFC
Government support
• The Government supports the MIFC project by assigning Ministry officials and members of other executive bodies to Project Groups.
Business stakeholders
• Experts from major Russian and international financial institutions. The creation of MIFC is sponsored and supported by all key policy makers.
Country wide
• The changes in legislation and regulation will apply throughout Russia. The experience and success of Moscow will be shared with the Russian regions.
Long-term
• The success of the project depends on the long-term performance indicators. Moscow should gain advanced positions in IFC ratings.
Source: www.mfc-moscow.com
BRBC Event, February 4th 2014, Moscow 9
Benefits
For the country:
• Stimulating the
development of the
Russian regions,
especially the financial
system
• Easier capital access
for Russian companies,
which means
investments into the
development of the
whole country
For the economy:
• Legislative base for financial market improvement
• Business climate improvement
• Financial industry development
• Market regulation improvement
• Better market infrastructure
• Market liquidity increase
• Optimization of investor tax burden
For the society:
• New job opportunities in finance
• Human resources development
• Education and science development
• New opportunities for entrepreneurs
• Social infrastructure development
• Cultural exchange, foreign professionals moving to Moscow
Source: www.mfc-moscow.com BRBC Event, February 4th 2014, Moscow 10
BRBC Event, February 4th 2014, Moscow 11 11
MIFC - Organisational chart
President of Russia
Vladimir Putin
The Presidential
Executive Office
The Presidential Council for the
Financial Market Development
Chairman – I. Shuvalov
MIFC Taskforce
Head – Alexander Voloshin
International Advisory Board for the
International financial center in Russia
Co-Chairs: H. Gref (Sberbank)
U. Rohner (Credit Suisse)
Project Groups 1 – 7 Head of Project Groups 1 – 7
Approval of
Head of
Project
Group
candidates
- Project Group
Formation
- Submitting Head of
Project Group
candidates for
Approval to the
Presidential
Executive Office
- Approval of Project
Group member lists
MIFC Working groups
7 workgroups established in 2010 to focus on different
areas:
1. Financial infrastructure and financial markets regulation
2. Corporate law and governance, financial transaction taxes
3. Administrative procedures
4. CIS / Eurasian Economic Community (EEC) / Customs Union cooperation
5. Moscow Infrastructure Development
6. Moscow educational, health, cultural and social infrastructure development
7. MIFC Marketing
BRBC Event, February 4th 2014, Moscow 12
Agenda
Introduction – SWIFT and SWIFT in Russia
Moscow – International Financial Centre (MIFC)
SWIFT supporting MIFC
BRBC Event, February 4th 2014, Moscow 13
SWIFT’s value to MIFC
BRBC Event, February 4th 2014, Moscow 14
ISO
Standardi
-sation
Financial
Messaging
Platform
Experience
in
supporting
IFCs
Payments Market Infrastructures Systems live on SWIFT
74 HVP systems (>243 Million pymts/year in 2012)
26 LVP systems (>8.8 Billion pymts/year in 2012)
2000+ banks in 90+ countries
Asia Pacific
Australia (2 HVP, 1 LVP)
Fiji
Hong Kong
New Zealand
Macau
Taiwan
Philippines
Papua New Guinea
Singapore
Sri Lanka
Thailand
Central & Eastern Europe
Albania
Azerbaijan
Bosnia & Herzegovina
Bulgaria
Croatia
Hungary
Romania
Russia Latvia
Poland North America
Canada
Central & Latin America
Bahamas
Barbados
Chile
CMCA
Colombia (service bureau)
Dominican Rep.
ECCB
El Salvador
Guatemala
Honduras
Trinidad & Tobago
Venezuela
Western Europe
Denmark
Iceland
Norway
Sweden
Switzerland
UK
Eurozone
Target 2
EBA Clearing (2 HVP, 1 LVP)
Austria
Belgium
Germany
Greece
Italy (2 LVP)
Spain
Ireland
The Netherlands
Middle East
Lebanon
Bahrain
Israel
Jordan
Kuwait
Palestine
Qatar
Angola
Algeria
Botswana
BEAC
COMESA
Egypt
Gambia
Ghana
Kenya
Lesotho
Mauritius
Morocco
Namibia
Nigeria
Sierra Leone
South Africa
SADC
Swaziland
Tanzania
Tunisia
Uganda
Zambia
Zimbabwe
BCEAO
Status_Dec 2013
HVP only
LVP only
Both HVP and LVP
15
Global
IPFA
Eurogiro
Africa
80+ SMI
63 countries
Securities Market Infrastructures Live on SWIFT
16
Africa
Egypt
Kenya
South Africa
Zimbabwe
Asia Pacific
Australia
China
Hong Kong
India
Indonesia
Japan
Korea
New Zealand
Singapore
Sri Lanka
Thailand
Central & Eastern Europe
Armenia
Bulgaria
Croatia
Czech Republic
Hungary
Kazakhstan
Romania
Russian Federation
Slovakia
Slovenia
Ukraine
North America
Canada
USA
Central & Latin America
Argentina
Brazil
Chile
Mexico
Ecuador
Uruguay
Western Europe
Denmark
Estonia
Latvia
Lithuania
Norway
Sweden
Switzerland
United Kingdom
Eurozone
Austria
Belgium
Finland
France
Germany
Greece
Ireland
Italy
Luxemburg
Netherlands
Poland
Portugal
Spain
Cyprus
Malta
Middle East
Dubai
Israel
Kuwait
Lebanon
Qatar
Turkey
Status YTD 2012
Legend Size Count
< 10,000 msgs S 22
10,000 - 1,000,000 msgs M 20
1,000,000 - 10, 000,000 msgs L 13
>10, 000,000 msgs XL 8
Countries’ SMI is connected but currently no securities traffic
Taking considerations of all services, i.e. FIN, IA, FA
SWIFT’s medium to long term ambition
BRBC Event, February 4th 2014, Moscow 17
• Increase market share in the domestic Financial Services Business
Domain.
• Active usage of SWIFT for domestic payments in Russia for both RTGS
and retail (ACH); as well as C2B.
• Strengthen the relevance of SWIFT as strategic partner in the development
towards MIFC through:
– Participation in Working Groups
– Consulting
– Physical Implementation
• Further investigate the possibilities for Go Local Russia.
Thank you!
18 BRBC Event, February 4th 2014, Moscow
Steven Palstermans
Head of Strategic Financial Initiatives,
Russia & CIS
SWIFT Avenue Adele 1
B-1310 La Hulpe
Belgium
+32 2 655 3111
+32 2 655 4099
+32 2 655 3752
+32 478 403023
+7 903 1646095
swift.com
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