About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

SWIFT Launches SSI Initiatives to Reduce Settlement Errors and Increase Automation

Subscribe to our newsletter

SWIFT, the financial messaging provider for more than 9,500 financial institutions and corporations in 209 countries, today announced the roll-out of a range of new initiatives designed to reduce costly settlement errors and improve the rates of automation of Standing Settlement Instructions (SSIs).

SWIFT’s initiatives are a response to the industry need for greater efficiency in SSI processing. SSIs are agreements between two financial institutions that fix the receiving agents of each counterparty. They make for speedy payment and settlement, but SSIs are frequently changed, which results in settlement errors and payment rejections. Research jointly conducted by SWIFT and 12 of its customer banks suggests there are currently about 40 million such payment errors every year, costing the financial industry an estimated USD700 million.

SWIFT has therefore launched a global SSI repository, designed to be the most accurate such resource available to the financial industry. The multiple sources and sophisticated selection strategies used will ensure that an institution’s SSIs are complete, accurate and able to be replicated with ease. An SSI directory for retail payments based on the repository will be updated and published on a monthly basis. At a later stage, SWIFT will also launch an SSI directory for treasury in the FX and money markets sectors.

The second initiative is the creation of a standard messaging format for distribution of cash SSI updates, available from November this year. The message format will be structured, validated and authenticated, and allow senders to either specify a list of recipients for the notification, or to inform the broader SWIFT community.

Third, SWIFT now offers a diagnostics service that informs customers when counterparty SSIs held in their payment applications are incorrect and details corrective measures. The service, which was unveiled at Sibos in October 2010, validates a customer’s current list of counterparty SSIs against multiple information sources to provide a reliable picture of their accuracy.

Commenting on the raft of SSI initiatives, Patrik Neutjens, Head of Reference Data at SWIFT, said: “The lack of a single source for SSI information has led to payment failures, costing banks considerable time and money. In the age of automation and real-time reporting, it is crucial that this situation improves.”

“These three initiatives will provide a comprehensive solution to some of the problems with changing SSIs. SWIFT’s efforts will drastically improve the situation, culminating in a standard message format to allow banks and other financial institutions to efficiently update each other on changes to their SSI arrangements. This message format will ensure that only relevant parties are informed of the changes and prevent financial institutions being overwhelmed with irrelevant updates.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to optimise the business value of your data using agile data governance

Data governance is transforming from a risk management and compliance tool with limited and prescriptive controls, to a solution that can help you optimise the business value of your data. In this role, data governance must scale to manage rising volumes of data, more and different data types, and changing user requirements, while continuing to...

BLOG

Machine-Executable Regulations Promise Improved Data Quality and Efficiency in Reporting

Ensuring data quality for regulatory reporting is an ongoing headache for many financial institutions, but solutions that could ease the pain are emerging. We talk to Sassan Danesh, a member of the Derivatives Service Bureau (DSB) management team, about approaches to regulatory data quality issues using machine-executable validation rules ahead of his keynote at next...

EVENT

Data Management Summit Europe Virtual (Redirected)

The Data Management Summit Europe Virtual brings together the European data management community to explore the latest challenges, opportunities and data innovations facing sell side and buy side financial institutions.

GUIDE

The Data Management Implications of Solvency II

This special report accompanies a webinar we held on the popular topic of The Data Management Implications of Solvency II, discussing the data implications for asset managers and their custodians and asset servicers. You can register here to get immediate access to the Special Report.