Investment Operations

Swift Securities View Gains Momentum in Drive towards Seamless Post-Trade Settlement

SWIFT Securities View
  • Launched in January, Swift Securities View enables clear tracking across all steps of the settlement process
  • 34 of world’s biggest institutions have signed up, representing 630 million securities transactions per year
  • Global participants include HSBC, BNY Mellon, and Nomura Asset Management

Swift today confirmed strong and growing momentum for its new Swift Securities View service, which launched in January to bring a new level of transparency to post-trade processing and reduce costly settlement fails.

According to SWIFT, already 34 of the world’s leading financial institutions – which collectively represent more than 630 million securities transactions each year – have signed up for Swift Securities View, to quickly identify trades at risk of failing so they can take preemptive action. The service leverages an ISO-standard Unique Transaction Identifier (UTI) to link all Swift messages related to the same securities settlement flow in a transaction chain. This means that all participants – from asset managers, to brokers, to global custodians and CSDs – have access to automated tracking on both sides of a transaction.

The result, say analysts, is a more seamless experience and reduced likelihood of settlement fails that add operational costs of some USD 3 billion a year for the industry, a cost compounded by regulatory penalties such as those introduced by Central Securities Depository Regulation (CSDR) in Europe earlier this year.

In the few months since the service was launched, it already counts participants from all stages in the settlement process among its active members – including asset managers, outsourcers, brokers, global and sub-custodians.  “Industry-wide UTI adoption combined with the Securities View alert notifications could become key to timely settlement especially with the growing trend to shorten the settlement cycles across the globe,” said Steve Wager, Executive Manager, Global Head of Markets Management, BNY Mellon.

Financial institutions that have signed up to the service include: Abu Dhabi Investment Authority (ADIA), BNY Mellon, China Citic Bank, Citco Group of Companies, Credit Suisse, Custody Bank of Japan, Dinosaur Merchant Bank, Euronext Securities, First Abu Dhabi Bank, HSBC Securities Services, Legal & General Investment Management, Nomura Asset Management, Nomura Bank Luxembourg, Northern Trust Investment Operations Outsourcing, The Northern Trust Company and SEB. The Depository Trust & Clearing Corporation (DTCC) supports the service by generating the UTI for those trades confirmed over their central matching platform, CTM.

According to Jonathan Ehrenfeld, Head of Securities Strategy at Swift, the organization has collaborated with the community to deliver a service uniquely tailored to meet the specific challenges facing post-trade participants today – from avoiding regulatory penalties for late settlement to preparing for the adoption of T+1. “Swift Securities View is part of our strategy to enable instant, frictionless and interoperable transactions globally, and it promises to be a game changer for the industry, helping market participants increase settlement efficiency and set the bar for future innovation,” Ehrenfeld said.