With a strong focus on harmonisation and straight-through processing, SWIFT plays an active role in market practices initiatives and provides expertise, products and services to support best practice
Consistency and industry harmonisation are imperative to increase straight-through-processing (STP), and to reduce cost and risk. In order to achieve this, a number of local and global market practice groups have been established. We play an active role in these groups, as well as supporting many initiatives to promote best practice across the industry.
Payments Market Practice Group (PMPG)
A global forum to drive better market practices, PMPG is focused on achieving full straight-through processing and improved customer service around the world. Collaborating with global market practitioners, and supported by SWIFT standards, PMPG is, among other activities, sponsoring the development of implementation guidelines for the use of ISO 20022 in high-value payment systems. These guidelines are published in MyStandards.
Estimating Market Practice Group (SMPG)
We facilitate the , an industry initiative which works to define harmonised market practise for the use of securities standards based on the ISO framework (ISO 15022 and ISO 20022). The goal of the SMPG is to enable end-to-end straight through processing of securities transactions.
FX Market Practice Group
Drawn from FX market experts from around the world, this group aims to improve market practice for FX. The focus of the group is on promoting correct usage of the existing message set, developing usage guides as required and analysing possible enhancements to the messages.
Common Global Implementation Market Practice (CGI-MP)
The CGI-MP initiative focuses on the harmonised use of ISO 20022 messages for corporate-to-bank activities. The goal: to simplify implementation for corporate users and promote wider acceptance of ISO 20022. We support the initiative by publishing documentation and actively participating in setting market practices.
The International Estimating Association for Institutional Trade Communication (ISITC)
brings together broker/dealers, custodians, investment managers, vendors/utilities and other industry professionals to develop proposed standards that are designed to enhance efficiencies in trade processing and related communications. Through collaboration, ISITC’s members reduce inefficiencies, lower risk and build shareholder value while developing and promoting the global securities industry. ISITC market practices covering several business processes and numerous SWIFT message types are published on their website.
- Estimating markets: MiFID II unbundling of charges – guidelines for securities messages
- Trade and supply chain. Our Trade Services Utility corporate-to-bank (TSU C2B) project focuses on the ability of corporations and financial institutions to exchange ISO 20022 messages.
- Treasury Markets: MiFID II Delegated Act Article 59 usage guidelines for treasury messages.
- Islamic finance. We’ve developed guidelines for the use of Murabaha messages in compliance with international Islamic finance standards.
Islamic Finance Rulebook
July 2015 saw the launch of the Islamic Finance Rulebook by SWIFT and the Association of Islamic Home Institutions Malaysia (AIBIM). The purpose of the Rulebook is to promote message standards and automation in the Islamic banking and finance market.
The Rulebook aims to provide greater clarity around the use of Shariah-compliant MT messages in order to expedite market harmonisation and increase straight-through processing.
Our existing solution for Commodity Murabahah can also be used to automate and standardise cash settlement flows and commodity trade flows. See our message usage guidelines for the Commodity Murabahah solution.
CNY Market Practice
We’re updating our offshore CNY guidelines to reflect requirements imposed by CNAPS2, the new Chinese real-time gross settlement system.
Various financial institution to financial institution market practice guidelines are contained within the SWIFT User Handbook. Refer to the relevant volumes to learn more.