SWIFT in Russia

1. SWIFT in Russia and the
MIFC project.
Steven Palstermans, Head of Strategic Financial
Initiatives, Russia & CIS
BRBC Event, February, 4th 2014, Moscow

2. Agenda
Introduction – SWIFT and
SWIFT in Russia
Moscow – International
Financial Centre (MIFC)
SWIFT supporting MIFC
BRBC Event, February 4th 2014, Moscow
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3. SWIFT… the global provider of secure financial
messaging services
4bn+
10,000+
messages
per year
customers
18m
212
5x9
countries
availability
messages
per day:
22m
peak day
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
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5. Russian SWIFT traffic by Business Area
Trade Finance
0%
Treasury
8%
Securities
7%
Payments
85%
Sent and received traffic for Russian BICs, split per Business Area.
BRBC Event, February 4th 2014, Moscow
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6. Payments sent by Russia and the world
Growth in Russia 5 times larger than worldwide trend
160.00%
Russia
World
140.00%
120.00%
+137%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2007
2008
2009
2010
2011
2012
* Worldwide growth in payment transactions of 26 %
* All traffic in the payments business area sent by a Russian institution (in all currencies)
BRBC Event, February 4th 2014, Moscow
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7. Agenda
Introduction – SWIFT and
SWIFT in Russia
Moscow – International
Financial Centre (MIFC)
SWIFT supporting MIFC
BRBC Event, February 4th 2014, Moscow
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8. MIFC initial milestones
June 2013
Dec 2010
July - Nov
2010
2009
2008
The MIFC
Action Plan
launched
The 2020
Concept
introduced
BRBC Event, February 4th 2014, Moscow
The MIFC
Taskforce
formed +
MIFC Project
Groups
kicked off
The MIFC
International
Advisory
Board
appointed
The MIFC
Roadmap
approved by
Parliament
Source: www.mfc-moscow.com
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9. 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
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10. 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
BRBC Event, February 4th 2014, Moscow
For the economy:
For the society:
• 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
• 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
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11. MIFC - Organisational chart
President of Russia
Vladimir Putin
The Presidential Council for the
Financial Market Development
Chairman – I. Shuvalov
The Presidential
Executive Office
International Advisory Board for the
International financial center in Russia
Co-Chairs: H. Gref (Sberbank)
U. Rohner (Credit Suisse)
MIFC Taskforce
Head – Alexander Voloshin
Project Groups 1 – 7
BRBC Event, February 4th 2014, Moscow
- Project Group
Formation
- Submitting Head of
Project Group
candidates for
Approval to the
Presidential
Executive Office
- Approval of Project
Group member lists
Approval of
Head of
Project
Group
candidates
Head of Project Groups 1 – 7
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12. MIFC Working groups
7 workgroups established in 2010 to focus on different
areas:
1.
2.
3.
4.
5.
6.
7.
Financial infrastructure and financial markets regulation
Corporate law and governance, financial transaction taxes
Administrative procedures
CIS / Eurasian Economic Community (EEC) / Customs Union cooperation
Moscow Infrastructure Development
Moscow educational, health, cultural and social infrastructure development
MIFC Marketing
BRBC Event, February 4th 2014, Moscow
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13. Agenda
Introduction – SWIFT and
SWIFT in Russia
Moscow – International
Financial Centre (MIFC)
SWIFT supporting MIFC
BRBC Event, February 4th 2014, Moscow
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14. SWIFT’s value to MIFC
Experience
in
supporting
IFCs
ISO
Standardi
-sation
BRBC Event, February 4th 2014, Moscow
Financial
Messaging
Platform
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15. Payments Market Infrastructures
Status_Dec 2013
HVP only
Systems live on SWIFT
LVP only
Both HVP and LVP
Global
IPFA
Eurogiro
Central & Eastern Europe
Albania
Azerbaijan
Bosnia & Herzegovina
Bulgaria
Croatia
Hungary
Romania
Western Europe
Denmark
Iceland
Norway
Sweden
Switzerland
UK
North America
Canada
Central & Latin America
Bahamas
Barbados
Chile
CMCA
Colombia (service bureau)
Dominican Rep.
ECCB
El Salvador
Guatemala
Honduras
Trinidad & Tobago
Venezuela
Russia
Eurozone
Target 2
EBA Clearing (2 HVP, 1 LVP)
Austria
Belgium
Germany
Greece
Italy (2 LVP)
Spain
Ireland
The Netherlands
Latvia
Poland
Middle East
Lebanon
Bahrain
Israel
Jordan
Kuwait
Palestine
Qatar
Africa
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
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
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16. Status
Legend
Securities Market Infrastructures
YTD 2012
Count
S
22
10,000 - 1,000,000 msgs
M
20
1,000,000 - 10, 000,000 msgs
Live on SWIFT
Size
< 10,000 msgs
L
13
XL
8
>10, 000,000 msgs
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
80+ SMI
63 countries
Central & Eastern Europe
Armenia ⃰
Bulgaria
Croatia
Czech Republic
Hungary
Kazakhstan
Romania
Russian Federation
Slovakia
Slovenia
Ukraine
Middle East
Dubai
Israel
Kuwait ⃰
Lebanon
Qatar
Turkey
Africa
Egypt
Kenya
South Africa
Zimbabwe
Asia Pacific
Australia
China
Hong Kong
India
Indonesia
Japan
Korea
New Zealand
Singapore
Sri Lanka
Thailand
⃰ Countries’ SMI is connected but currently no securities traffic
Taking considerations of all services, i.e. FIN, IA, FA
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17. SWIFT’s medium to long term ambition
• 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.
BRBC Event, February 4th 2014, Moscow
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18. Steven Palstermans
Thank you!
Head of Strategic Financial Initiatives,
Russia & CIS
SWIFT
Avenue Adele 1
B-1310 La Hulpe
Belgium
T
D
F
M
E
W
BRBC Event, February 4th 2014, Moscow
+32 2 655 3111
+32 2 655 4099
+32 2 655 3752
+32 478 403023
+7 903 1646095
steven.palstermans@swift.com
swift.com
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