SWIFT released today on behalf of the Independent Advisory Group (IAG) the final recommendation for the communication protocol designed to eliminate Giovannini Barrier 1 in the European securities Clearing & Settlement market.
In October 2005, SWIFT published the draft recommendation for a common communication protocol. Industry response was unanimous in agreeing that the draft protocol, based on the ISO 15022 and 20022 standards, would eliminate Barrier 1. Additionally, the vast majority of institutions and infrastructures responding to the draft publication indicated their intent to implement the solution over the specified 5 year time horizon. The project will now move into the implementation phase with the proposed creation of an infrastructure roadmap showing how compliance will be achieved.
Andrew Douglas, manager of market reform initiatives at SWIFT, was responsible for reviewing the responses against the draft and preparing the final version of the protocol for publication. "Direct input has been received from market infrastructures, financial institutions, industry associations, regulators and many other players from across the European Union as well as from markets outside the European Union," he says. "The level of support and contribution made to the communication protocol released today, ensures that it is an industry designed solution."
Dr. Alberto Giovannini, CEO, Unifortune Asset Management SGR and Chairman of the Giovannini Group, remarks, "the value of the results achieved so far is that they have been achieved through a very broad and very efficient consultation process, so that everybody knows why and how the changes have been made. What is missing is the adoption of the changes. But that will come."
Creation of the Protocol precedes the hard work of implementation. James P. Donovan, Head of Securities Industry Division, SWIFT comments, "I can confirm to the industry that SWIFT will continue to offer its full support to the success of this initiative towards the creation of a more efficient, cost effective and lower risk financial industry for Europe and beyond."
For more information: www.swift.com