Swift has gathered a group of seven pilot banks to trial its new XML message standards for investment fund processing over the IP-based SwiftNet network.
The new message type has been created in an effort to raise standardisation and automation in the Asia Pacific and European investment fund market. Swift estimates that the direct cost of manual processing in the European investment funds industry alone is EUR1 billion.
Banca Intesa, Bank of Ireland Securities Services, Barclays Global Investors, BNP Paribas Securities Services, Citco Bank, SEB and UniCredito Italiana have confirmed their intention to pilot the service, which will be launched in Q4 2003.
Kieran Dolan, head of marketing for Citco Bank Dublin, a global custodian for funds, has been utilising Swift ISO 15022 messages for dealing and confirmation since 1997. "We firmly believe that the new XML messages will allow us to further improve client service by reducing cost and operational risk."
The SwiftNet solution for funds combines the new XML standards with InterAct and FileAct for one-to-one or bulk transfers. The XML standard covers domestic and cross-border funds as well as a broad range of processes, such as account opening/maintenance, orders confirmation, transfers, price reports, cash flow reports, statements of transactions, holdings and commissions and static data.
Frederic Perard, head of product development at BNP Paribas Securities Services, says the new XML messages will extend the benefits of automation into new business flows, "such as fund accounting and into domestic markets where we operate, such as the UK, France and Luxembourg".