ABN Amro Clearing and Japan’s Nomura Asset Management were the pilots as SWIFT tested a new way of seeing where a security is at while a trade is settling. The solution makes use of the recently standardised “unique transaction identifier”, the UTI. At the Sibos conference, representatives presented the outcome.
When a seller and a buyer send their settlement instructions to different CSDs, it is hard to get the deal finalised. This is one of the cases that could occur less often, if SWIFT’s vision for its new “Securities View” service becomes reality. The idea is to use the unique transaction identifier that is part of the emerging ISO 20022 standard, to make it possible to monitor the status of trades through the settlement cycle.
Koshiro Abe, from Nomura Asset Management’s operations strategy department, was on stage in Amsterdam on Tuesday, together with ABN Amro Clearing analyst Hüseyin Böler. Koshiro Abe lined out some details of the pilot setup. Custodians, brokers, CSDs and investment managers were all involved. The flow ended up visible in the graphical user interface of the Swift Securities View application. The tested use cases were similar to the usual ones in Nomora Asset Management’s daily post-trade settlement operations.