SWIFTNet Funds Messages:

Overview and Market Practice

SWIFT Standards Asia Pacific

Lisa Oconnor
Mieko Morioka

30 May 2017
SWIFTNet Funds Message Overview

2
 Funds Ecosystem

Hub /
Platform
Order Portfolio
Manager
Order
Confirm
Investor
Distributor Confirm
Transfer
Agent
Payment Instruction

Payment

Intermediary Cash Agent Fund Cash Agent Fund Accountant

Funds ISO messages FIN payment messages

3
Message Types

• 93 message types in Funds V5

 Account management (acmt.001 – 006)
 Cash management (camt.040 – 045)
 Reference data (reda.001 – 002, 004 – 005)
 Securities management (semt.001 – 007, 012, 041 - 042)
 Securities settlement (sese.001 – 014, 018, 019)
 Securities trade (setr.001 – 018, 047, 049, 051, 053, 055, 057 – 062, 064 – 066)

Major message version change in SR 2017

on the order (setr) messages

4
Message Identifiers

Message Name Identifier

Subscription Order Setr.010.001.03
Business area Version
Each time a message is
Number
maintained, the version
Variant number is incremented
Funds messages do not have variants,
therefore this is always ‘001’

ISO 20022 Business areas Funds messages comprise the:

setr Securities Trade
sese Settlement Instruction
reda Reference Data
acmt Account Management
semt Securities Management
camt Cash Management
[1] funds orders (setr)
[2] funds transfers (sese)
[3] funds/securities account management (acmt)
[4] price report (reda) funds passport (reda),
[5] fund cash forecast (camt)
[6] funds/securities statements (semt)

5
Messages for the Order Process

Name Identifier Name Identifier

MX (XML, ISO 20022) on SWIFTNet Funds MT (ISO 15022) on FIN

Solution
Subscription Order setr.010 Order to Buy or Sell 502
Redemption Order setr.004
Switch Order setr.013
Subscription Order Confirmation setr.012 Client Confirmation of 515
Purchase or Sale
Redemption Order Confirmation setr.006
Switch Order Confirmation setr.015
Order Instruction Status Report setr.016 Trade Status Message 509

There are other MXs in the order suite, for example, the bulk orders,
the order cancellations, the order confirmations, the order cancellation
status report.

6
Fund Order Process

Instructing Order Executing

Party Party

Order status Execution

Investor Distributor/ Transfer

Institutional Confirmation Agent / fund
investor administrator

Orders can be instructed with:

Subscription Order (setr.010) If using MT messages, it

will MT 502, but MT/MX
Redemption Order (setr.004) migration is taking place
Switch Order (setr.013) since 2007

7
Funds MT ISO 15022 to Funds MX ISO 20022 Migration

8,000,000
Sep 2016: of the total funds traffic: MX is 73.42% (Overall growth of 4%)
Customer readiness is 88.81%
7,000,000 Sep 2015: of the total funds traffic, MX was 67.56%.
Customer readiness was 85.39%
6,000,000

5,000,000

4,000,000
MT
MX
3,000,000

2,000,000

1,000,000

0
Jul-08

Apr-09
Jul-09

Jul-10

Jul-11

Jul-12

Apr-13
Jul-13

Jul-14

Jul-15

Jul-16
Apr-08

Oct-08

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

Oct-12

Oct-13

Apr-14

Oct-14

Apr-15

Oct-15

Apr-16

Oct-16
Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16
8
Subscription Order
As an MX – setr.001
As an MT 502: <SbcptOrdr>
<MsgId>
MT 502 <Id>IN-10001</Id>
:16R:GENL <CreDtTm>2015-09-10T10:15:00</CreDtTm>
:20C::SEME//Order 1 </MsgId>
:23G:NEWM <MltplOrdrDtls>
:22F::TRTR//TRAD <InvstmtAcctDtls>
:16S:GENL <AcctId>111111</AcctId>
:16R:ORDRDET </InvstmtAcctDtls>
<IndvOrdrDtls>
:22H::BUSE//SUBS
<OrdrRef>Order 1</OrdrRef>
:22H::PAYM//APMT <FinInstrmDtls>
:22F::TOOR//MAKT <Id>
:22F::TILI//GTCA <ISIN>LU1234567890</ISIN>
:98A::EXPI//29991231 </Id>
:16R:TRADPRTY </FinInstrmDtls>
:95P::INVE//PEFILULL <AmtOrUnits>
:97A::SAFE//111111 <GrssAmt Ccy="EUR">1000</GrssAmt>
</AmtOrUnits>
:16S:TRADPRTY
<PhysDlvryInd>false</PhysDlvryInd>
:19A::ORDR//EUR1000, </IndvOrdrDtls>
:35B:ISIN LU1234567890 </MltplOrdrDtls>
:16S:ORDRDET </SbcptOrdr>
9
Order Status

As an MT 509: As an MX – setr.016
MT 509 <OrdrInstrStsRpt>
:16R:GENL <MsgId>
:20C::SEME//123456 <Id>EP-22-001</Id>
:23G:INST <CreDtTm>2015-09-10T10:30:00</CreDtTm>
:16R:LINK </MsgId>
:20C::RELA//Order 1 <StsRpt>
:16S:LINK <IndvOrdrDtlsRpt>
:16R:STAT <OrdrRef>Order 1</OrdrRef>
:25D::IPRC//PACK <OrdrSts>
:16S:STAT <Sts>PACK</Sts>
:16S:GENL </OrdrSts>
</IndvOrdrDtlsRpt>
</StsRpt>
</OrdrInstrStsRpt>

10
Subscription Order Confirmation (1)
Confirms 100 units of fund <SbcptOrdrConf> (setr.012)
MT 515
ISIN LU1234567890 at a <MsgId>
:16R:GENL
:20C::SEME//Deal 1
price of EUR10, trade date <Id>EP-22-004</Id>
14 Jan 2017, have been <CreDtTm>2015-10-14T14:00:00</CreDtTm>
:23G:NEWM
created for account 11111. </MsgId>
:22F::TRTR//TRAD The order reference is ‘Order
:16R:LINK <MltplExctnDtls>
1’. The deal reference is ‘Deal
:20C::RELA//Order 1 1’. The settlement amount is <InvstmtAcctDtls>
:16S:LINK EUR 1000, settlement 14 Jan <AcctId>111111</AcctId>
:16S:GENL 2017. </InvstmtAcctDtls>
:16R:CONFDET <IndvExctnDtls>
:98A::TRAD//20170114 NAV date <OrdrRef>Order 1</OrdrRef>
:98A::SETT//20170114 Cash date <DealRef>Deal 1</DealRef>
:90B::DEAL//ACTU/EUR10, <FinInstrmDtls>
:22H::BUSE//SUBS <Id><ISIN>LU1234567890</ISIN></Id>
:22H::PAYM//APMT
</FinInstrmDtls>
:16R:CONFPRTY
<UnitsNb>100</UnitsNb>
:95Q::INVE//111111
<TradDtTm>
:16S:CONFPRTY
:36B::CONF//UNIT/100, <Dt>2017-01-14</Dt>
:35B:ISIN LU1234567890 </TradDtTm>
:16S:CONFDET <DealgPricDtls>
:16R:SETDET <Tp>
:22F::SETR//TRAD <Cd>NAVL</Cd>
:16R:AMT </Tp>
:19A::SETT//EUR1000, <Val>
:16S:AMT <Amt Ccy="EUR">10</Amt></Val>
:16S:SETDET </DealgPricDtls> 11
Subscription Order Confirmation (2)
MT 515 Confirms 100 units of fund
:16R:GENL ISIN LU1234567890 at a
price of EUR10, trade date
:20C::SEME//Deal 1 <SttlmAmt Ccy="EUR">1000</SttlmAmt>
14 Jan 2017, have been
:23G:NEWM <PrtlyExctdInd>false</PrtlyExctdInd>
created for account 11111.
:22F::TRTR//TRAD The order reference is ‘Order <CumDvddInd>true</CumDvddInd>
:16R:LINK 1’. The deal reference is ‘Deal <PhysDlvryInd>false</PhysDlvryInd>
:20C::RELA//Order 1 1’. The settlement amount is </IndvExctnDtls>
:16S:LINK EUR 1000, settlement 14 Jan </MltplExctnDtls>
:16S:GENL 2017. </SbcptOrdrConf>
:16R:CONFDET
:98A::TRAD//20170114 NAV date
:98A::SETT//20170114 Cash date
:90B::DEAL//ACTU/EUR10,
:22H::BUSE//SUBS
:22H::PAYM//APMT
:16R:CONFPRTY
:95Q::INVE//111111
:16S:CONFPRTY
:36B::CONF//UNIT/100,
:35B:ISIN LU1234567890
:16S:CONFDET
:16R:SETDET
:22F::SETR//TRAD
:16R:AMT
:19A::SETT//EUR1000,
:16S:AMT
:16S:SETDET
12
Mapping Information on swift.com
Link to Mapping Document

Standards
MyStandards
MyStandards Readiness Portal
Standard Developer Kit
Standards MT
Standards MX
Development and Maintenance Process (29 April 2011)
General Information (30 May 2014)
Recommendations for Implementation of ISO 20022 Messages – Best Practices (10 November 2016)
Version and Release Management for ISO 20022 Messages – Best Practices (28 October 2016)
.. ..
Standards MT – Funds MT to MX Mapping (06 December 2013) This provides a guide on
Standards MT – MT and MX Equivalence Tables (01 July 2016) how to map from funds
Standards MX November 2016 MT 502, 515 and 509 to
Standards MX November 2015 the equivalent funds
Standards MX November 2014
order MX messages.
Standards MX November 2013
(Current version is on
Funds V03)
13
Mapping between Funds MT order and Funds MX order

Issues
• MTs were not designed for funds. MTs designed for securities.
• Despite creation of Funds MT template on how to use the messages,
impossible to know which fields are actually used and, in some cases, the
business content
• Impossible to have generic ‘one-fits-all’ translation/mapping rules – and we
do NOT support this
It is easier to do customised translation/mapping
rules with the proviso that:
• Customer provides large number of real examples of the ‘source’
messages.
• From this, the actual fields that are to be translated are known. When
necessary, customer informs us of the semantic meaning of field/s.
• Customer provides (when possible), the acceptable format/template
for the ‘target’ message.

14
SWIFTNet Funds SR 2017

15
Introduction

• The current versions of the funds MX order, status and confirmation

messages were introduced in November 2007.
• There has been maintenance on the funds messages, but restricted to
the account management (acmt), cash forecast (camt) and transfer
(sese) messages.
• However, the funds order, status and confirmation messages have not
been maintained for 10 years.
• This is because a maintenance freeze was put in place on the funds MX
order, status and confirmations to help with the migration of funds MT to
ISO 20022.
• In December 2015, the Funds Migration Advisory Group agreed that
this maintenance freeze is lifted.
• As a result, there is a maintenance on the funds MX order, status and
confirmation messages for November 2017.

16
Funds MX 2017 – mandatory release: summary of change requests

Total number of accepted ISO change requests = 56

Breakdown (approximate) #
Improvement to definitions, correction to usage rules (documentation 14
only)
New optional business functionality to support, for example, T2S, 24
hedge/alternative funds, regulation (for example, LEI), longer CSD
settlement chain
Changes to support better usability, for example, charges/ 8
commissions/taxes, cancellation, amendment
Changes to conform to ISO 20022, for example, remove XOR 3
constructs, eliminate BEI impact big
Usage rules (where applicable) - provision of formal expression of 4
rules for network validation
Other, for example, cosmetic improvements 3

17
Order Message Identifier List – old versions & new versions
Name Current messages New messages
1 Redemption Bulk Order setr.001.001.03 setr.001.001.04
2 Redemption Bulk Order Cancellation Request setr.002.001.03 setr.002.001.04
3 Redemption Bulk Order Confirmation setr.003.001.03 setr.003.001.04
4 Redemption Order setr.004.001.03 setr.004.001.04
5 Redemption Order Cancellation Request setr.005.001.03 setr.005.001.04
6 Redemption Order Confirmation setr.006.001.03 setr.006.001.04
7 Subscription Bulk Order setr.007.001.03 setr.007.001.04
8 Subscription Bulk Order Cancellation Request setr.008.001.03 setr.008.001.04
9 Subscription Bulk Order Confirmation setr.009.001.03 setr.009.001.04
10 Subscription Order setr.010.001.03 setr.010.001.04
11 Subscription Order Cancellation Request setr.011.001.03 setr.011.001.04
12 Subscription Order Confirmation setr.012.001.03 setr.012.001.04
13 Switch Order setr.013.001.03 setr.013.001.04
14 Switch Order Cancellation setr.014.001.03 setr.014.001.04
15 Switch Order Confirmation setr.015.001.03 setr.015.001.04
16 Order Instruction Status Report setr.016.001.03 setr.016.001.04
17 Order Cancellation Status Report setr.017.001.03 setr.017.001.04
18 Request For Order Status Report setr.018.001.03 setr.018.001.04
19 Subscription Order Confirmation Cancellation Instruction setr.047.001.01 setr.047.001.02
20 Subscription Bulk Order Confirmation Cancellation Instruction setr.049.001.01 setr.049.001.02
21 Redemption Order Confirmation Cancellation Instruction setr.051.001.01 setr.051.001.02
22 Redemption Bulk Order Confirmation Cancellation Instruction setr.053.001.01 setr.053.001.02
23 Switch Order Confirmation Cancellation Instruction setr.055.001.01 setr.055.001.02
24 Order Confirmation Status Report setr.057.001.01 setr.057.001.02
25 Request For Order Confirmation Status Report setr.058.001.01 setr.058.001.02
Subscription Order Confirmation Amendment - withdrawn setr.048.001.01
Subscription Bulk Order Confirmation Amendment - withdrawn setr.050.001.01
Redemption Order Confirmation Amendment - withdrawn setr.052.001.01
Redemption Bulk Order Confirmation Amendment - withdrawn setr.054.001.01 18
Switch Order Confirmation Amendment - withdrawn setr.056.001.01
Alternative (Hedge) Funds – the story
2008 SWIFT developed hedge funds messages and put into the SWIFTNet Funds solution.
A market practice was developed for the these SWIFT messages, called ‘SHARP’.
2014 The Swiss community (SCFS) submitted a CR to ISO for addition of hedge funds
functionality to ‘mutual funds messages’
2015 SWIFT was requested to get the hedge funds messages ISO approved and SWIFT
began the submission work.
In the meantime, a market practice, called GAIA, had been developed for the use of the
mutual funds order messages for hedge/alternative funds. This market practice:
• was well received
• covers 80% of hedge/alternative funds scenarios.
• but in some cases, the market practices specifies a work-around
2016 CR 0454 approved by ISO.
Agreed by SMPG IF and subsequently IF ET that the GAIA specification should be
leverage and form the basis of how the mutual funds messages are to be updated for
hedge/alternative funds functionality in support of CR 0454.
SWIFT withdrew the submission for its hedge funds messages from ISO. *1
The 2017 Funds MXs contain the agreed functionality for hedge funds
(*1 The SWIFT hedge funds messages will remain on the SWIFT network until no longer used.)
19
Subscription Order – basic message before and after

BEFORE - setr.010.001.03 AFTER - setr.010.001.04

<SbcptOrdrV03> <SbcptOrdr>
<MsgId> <MsgId>
<Id>DA456</Id> <Id>DA456</Id>
<CreDtTm>2016-09-15T10:30:00</CreDtTm> <CreDtTm>2016-09-15T10:30:00</CreDtTm>
</MsgId> </MsgId>
<MltplOrdrDtls> <MltplOrdrDtls>
<InvstmtAcctDtls> <InvstmtAcctDtls>
<AcctId> <AcctId>111111</AcctId> Replacement of
<Prtry> </InvstmtAcctDtls> obsolete message
<Id>111111</Id>
</Prtry>
component (less
</AcctId> levels of tags)
</InvstmtAcctDtls>
<IndvOrdrDtls> <IndvOrdrDtls>
<OrdrRef>Order 1</OrdrRef> <OrdrRef>Order 1</OrdrRef>
<FinInstrmDtls> <FinInstrmDtls>
<Id> <Id>
<ISIN>LU1234567890</ISIN> <ISIN>LU1234567890</ISIN>
</Id> </Id>
</FinInstrmDtls> </FinInstrmDtls>
<NetAmt Ccy="EUR">5000</NetAmt> <AmtOrUnits>
<NetAmt Ccy="EUR">5000</NetAmt>
XOR 
</AmtOrUnits> choice
<PhysDlvryInd>false</PhysDlvryInd> <PhysDlvryInd>false</PhysDlvryInd>
<ReqdSttlmCcy>EUR</ReqdSttlmCcy> <ReqdSttlmCcy>EUR</ReqdSttlmCcy>
<ReqdNAVCcy>EUR</ReqdNAVCcy> <ReqdNAVCcy>EUR</ReqdNAVCcy>
</IndvOrdrDtls> </IndvOrdrDtls>
</MltplOrdrDtls> </MltplOrdrDtls>
</SbcptOrdrV03> </SbcptOrdr> 20
 Subscription Order Confirmation – basic message before and after
<SbcptOrdrConfV03> <SbcptOrdrConf>
<MsgId> <MsgId>
<Id>FD589748</Id><CreDtTm>2016-09-15T11:30:00</CreDtTm> <Id>FD589748</Id><CreDtTm>2016-09-15T11:30:00</CreDtTm>
</MsgId> </MsgId>
<MltplExctnDtls> <MltplExctnDtls>
<InvstmtAcctDtls> <InvstmtAcctDtls> Replacement
<AcctId> <AcctId>111111</AcctId>
<Prtry> </InvstmtAcctDtls>
obsolete
<Id>111111</Id> message
</Prtry> component (less
</AcctId>
</InvstmtAcctDtls> levels of tags)
<IndvExctnDtls> <IndvExctnDtls>
<OrdrRef>Order 1</OrdrRef> <OrdrRef>Order 1</OrdrRef>
<DealRef>Deal 1</DealRef> <DealRef>Deal 1</DealRef>
<FinInstrmDtls> <FinInstrmDtls>
<Id><ISIN>LU1234567890</ISIN></Id> <Id><ISIN>LU1234567890</ISIN></Id>
</FinInstrmDtls> </FinInstrmDtls>
<UnitsNb> <UnitsNb>500</UnitsNb> Less levels of tags
<Unit>500</Unit>
</UnitsNb>
<TradDtTm><Dt>2016-07-15</Dt></TradDtTm> <TradDtTm><Dt>2016-07-15</Dt></TradDtTm>
<DealgPricDtls> <DealgPricDtls>
<Tp>NAVL</Tp> <Tp>
<Cd>NAVL</Cd> XOR  choice
</Tp>
<Val> <Val>
<Amt Ccy="EUR">10</Amt> <Amt Ccy="EUR">10</Amt>
</Val> </Val>
</DealgPricDtls> </DealgPricDtls>
<SttlmAmt Ccy="EUR">5000</SttlmAmt> <SttlmAmt Ccy="EUR">5000</SttlmAmt>
<PrtlyExctdInd>false</PrtlyExctdInd> <PrtlyExctdInd>false</PrtlyExctdInd>
<CumDvddInd>true</CumDvddInd> <CumDvddInd>true</CumDvddInd>
<PhysDlvryInd>false</PhysDlvryInd> <PhysDlvryInd>false</PhysDlvryInd>
</IndvExctnDtls> </IndvExctnDtls>
</MltplExctnDtls> </MltplExctnDtls> 22
</SbcptOrdrConfV03> </SbcptOrdrConf>
Order Instruction Status Report – basic message ‘before’ and ‘after’

BEFORE - setr.016.001.03 AFTER - setr.016.001.04

<OrdrInstrStsRptV03> <OrdrInstrStsRpt>
<MsgId> <MsgId>
<Id>182434</Id> <Id>18245</Id>
<CreDtTm>2016-09-15T10:40:00</CreDtTm> <CreDtTm>2016-09-15T10:40:00</CreDtTm>
</MsgId> </MsgId>
<StsRpt>
<IndvOrdrDtlsRpt> <IndvOrdrDtlsRpt>
XOR 
<OrdrRef>Order 1</OrdrRef> <OrdrRef>Order 1</OrdrRef> choice
<OrdrSts>
<Sts>PACK</Sts> <Sts>PACK</Sts> XOR 
</OrdrSts> choice
</IndvOrdrDtlsRpt> </IndvOrdrDtlsRpt>
</OrdrInstrStsRptV03> </StsRpt>
</OrdrInstrStsRpt>

24
Order Instruction Status Report – basic message ‘before’ and ‘after’

BEFORE - setr.016.001.03 AFTER - setr.016.001.04

<OrdrInstrStsRptV03> <OrdrInstrStsRptV04>
<MsgId> <MsgId>
<Id>182435</Id> <Id>182435</Id>
<CreDtTm>2016-09-15T10:40:00</CreDtTm> <CreDtTm>2016-09-15T10:40:00</CreDtTm>
</MsgId> </MsgId>
<StsRpt>
<IndvOrdrDtlsRpt> <IndvOrdrDtlsRpt> XOR 
<OrdrRef>Order 2</OrdrRef> <OrdrRef>Order 2</OrdrRef> choice
<OrdrSts>
<Rjctd> <Rjctd> XOR 
<XtndedRsn>Reason as text</XtndedRsn> <AddtlInf>Reason as text</AddtlInf> choice
</Rjctd> </Rjctd>
</OrdrSts>
</IndvOrdrDtlsRpt> </IndvOrdrDtlsRpt>
</StsRpt>
</OrdrInstrStsRptV03> </OrdrInstrStsRptV04>

25
Optional Impacts: Confirmations – charge and commission

BEFORE - setr.012.001.03 AFTER - setr.012.001.04

[0.1] Charge General Details [0.1] Transaction Overhead
[0.1] Total Amount Of Charges [0.1] Total Overhead Applied New concept

[1.n] Charge Details [0.1] Total Fees

[0.1] Total Taxes
[0.1] Commercial Agreement
[0.1] Commission General Details Reference
[0.1] Total Amount Of Commissions [0.n] Individual Fee
[1.n] Commission Details [0.n] Individual Tax

[0.1] Tax General Details

[0.1] Total Amount Of Taxes
[0.1] Taxable Income Per Dividend
[0.1] EU Capital Gain
[0.1] Percentage Of Debt Claim
[0.n] Tax Details
[0.1] Informative Tax Details
[0.1] Taxable Income Per Dividend
[0.1] EU Capital Gain
[0.1] Percentage Of Debt Claim
[0.n] Individual Tax

Charges, commissions and tax sequences replaced by Transaction Overhead. Tax elements
differentiated between those that are provided for information only and those that cause an
impact on the settlement amount of the transaction. 26
Optional Impacts: Confirmations – charge and commission EXAMPLE 1

BEFORE - setr.012.001.03 AFTER - setr.012.001.04

FEND charge of EUR 100 FEND charge of EUR 100.

<ChrgGnlDtls> <TxOvrhd>
<ChrgDtls> <IndvFee>
<Tp>FEND</Tp> <Tp>
<Amt Ccy="EUR">100</Amt> <Cd>FEND</Cd>
</ChrgDtls> </Tp>
<ApldAmt Ccy="EUR">100</ApldAmt>
<InftvInd>false</InftvInd>
</IndvFee>
</TxOvrhd>

28
Optional Impacts: Confirmations – charge and commission EXAMPLE 2

BEFORE - setr.012.001.03 AFTER - setr.012.001.04

Discount is EUR 30. Basic FEND charge is EUR 100.

Basic FEND charge is EUR 100. Discount is EUR 30.
Actual (applied) charge is EUR 70.
Ambiguous - Some
<ChrgGnlDtls> put 70, some put 100 <TxOvrhd>
<ChrgDtls> <IndvFee>
<Tp>FEND</Tp> <Tp>
<Amt Ccy="EUR">100</Amt> <Cd>FEND</Cd>
</ChrgDtls> </Tp>
<ChrgDtls> <StdAmt Ccy="EUR">100</StdAmt>
<Tp>DISC</Tp> <DscntDtls>
<Amt Ccy="EUR">30</Amt> <Amt Ccy="EUR">30</Amt>
</ChrgDtls> </DscntDtls>
</ChrgGnlDtls> <ApldAmt Ccy="EUR">70</ApldAmt>
<InftvInd>false</InftvInd>
Not possible to explicitly specify charge
</IndvFee>
type to which the DISC is applied.
</TxOvrhd>

29
SWIFTNet Funds Message Documentation

Link to Solution UHB: https://www2.swift.com/uhbonline/books/hub/httoc.htm

Each release contains, at
the time of publication, only
Solutions
the most recent versions of
Funds MX (for the forthcoming
Standards MX - technical – Message Definition Reports and Schemas cycle)
Standards MX – General Information
Funds 5.0 (2017)
MX Order V03 to V04 Equivalency Tables (20 January 2017) How to map from v03 to v04
MX Order V04 Summary Of Changes (24 March 2017) NEW
Message Definition Reports and Schemas (24 February 2017) Final schemas
Message Definition Reports and Schemas (Advance Information) (2 December 2016)
Service Description (2 December 2016)
Funds 4.9 (2016) Documentation - versions of acmt
Message Definition Reports and Schemas (15 April 2016) & sese MXs live November 2016
Service Description (15 April 2016)
Funds 4.8 (2015)
Message Definition Reports and Schemas (20 February 2015)
Service Description (23 January 2015)
Funds 4.7 (2014)
Message Definition Reports and Schemas (30 May 2014)
Service Description (29 August 2014)
Funds 4.5 (2013)
32
Message Definition Reports and Schemas (31 May 2013)
SWIFTNet Funds Market Practice

33
Securities Market Practice Group (SMPG) Investment Funds (IF)

Yes

SMPG
&
MyStandards

34
Standards are created globally and used locally:
market practice and variants

‘PACS’-
pacs.008.001.04 ISO 20022
FI to FI Customer messages
Credit Transfer
Global
market
HVP-guidelines practice
Local
T2 implementation market
guidelines practice

Bank’s T2 Bank-
implementation specific
practice
with
customers/bank’s
internal specification
35
SMPG – Background and History

The Securities Market Practice Group, SMPG, has been in

existence since 1998 (17 years old).

The investment funds (IF) sub-group of SMPG was

launched in 2005 at the Frankfurt SMPG meeting, so it is
now 10+ years old.

36
SMPG Overall

Steering Committee

SMPG - Investment Funds Working Group

NMPG – National Market Practice Groups

Asset managers, distributors,

intermediaries, platforms, transfer agents,
administrators, etc.

37
SMPG Organisation – Steering Committee

Chairperson Karla McKenna(US)

Vice Chairperson Rudolf Siebel (DE)
General Secretary Jacques Littre(SWIFT)
Programme Director Evelyne Piron (SWIFT)

Regional Directors

Americas Asia EMEA

Jason Brasile (US) Hiroaki Okumura (JP) Paola Deantoni (IT)
Armin Borries (DE)

38
 SMPG Working Groups

CO-CHAIRS FACILITATORS
Trade Initiation
& Confirmation
(Dormant)
SMPG
Settlement & Marcin ZawistowskiEvelyn Piron
Working Reconciliation Axelle Wurmser
Groups
Corporate Bernard Lenelle Jacques Littre
Actions Christine Strandberg
Investment Nadine Muhigiri J. Chapman
Funds Charles Boniver

Nadine Muhigiri steps down in April 2017

39
SMPG Investment Funds Working Group

The scope and focus of investment fund SMPG is defined as:

Will be expanded
“Collective investment schemes traded on to include
primary markets on behalf of the fund.” hedge/alternative
funds)
This excludes secondary market transactions on
investment funds.

It was decided to follow the 80/20 rule and focus on

the 80%. But if a country has a specific issue in the
“20%”, then it would be looked at.

ISO 20022 is the standard on which work is to be

focused.
40
SMPG Investment Funds Working Group – how we did it

• Funds was first SMPG group to work with XML

standard
• Very few had adopted it in 2005
• We had to find our way!
• No tools to help us specify market practice for the
XML standard
• Had to work manually (painful)
• Many education-type sessions
• SMPG took the lead to define market practice for the
order process
• To some extent, SMPG still takes the lead if a
particular standard is not used very much

41
Market Practice Process

Review, discussion,
refinement
SMPG Publish
Collate common elements, MyStandards
identify further opportunities SMPG IF *1
for harmonisation

Publish
NMPGs Analyse & document MyStandards
local practices NMPG CC IF *1

*1 May also be published on www.smpg.com

42
SMPG Investment Funds Working Group - Participation

Market
Australia Italy Infrastructure
Brazil Luxembourg s

Denmark Norway
France Spain
Germany Sweden
Great Britain Switzerland
AFAC (HK) Participation in past
Contact via SWIFT, HK
office Ireland The Ireland
Funds
New (it is hoped) Austria NMPG was
‘reactivated
’ in 2016
Singapore Taiwan 43
SMPG Investment Funds Working Group – NMPG Convenors

Country Convenor / Vice-convenor Organisation

AU NAB
BR Ana Abidor Anbima
CH Rainer Vogelgesang Six Group
DE Eduard Schroder BNP Paribas
DK Niels W. Hougaard, Bjorn Jensen VP
ES Rafael Higueruelo Islan, Juan Carlos Gallego All Funds
FR Valerie Vaudel BNP Paribas
GB Ben Cocks, David Aspinall Altus, Skandia
IT Andrea Milanesio Pine 3
LU RBC
NO Svein R. Borgersen, Pal Bergquist VPS, VPS
SE Henrik Staffas Skandia
-- Nadine Muhigiri – steps down April 2017 ECLR
-- Tomas Bremin CEDE
SG
AFAC

44
SMPG Meeting Schedule

Global SMPG (S & R, CA and Funds) – physical meeting

twice a year
Typically, the investment funds WG attends the global meeting when held in
Europe.
If investment funds does not join the global meeting, then a separate
investment funds physical meeting is held. For example, when SMPG was in
Toronto (2011), funds held its own meeting in London.
In some years, the investment Funds working group may meet more than twice,
for example, in 2017.

SMPG Investment Funds WG - Monthly conference calls

Once a month, the third Tuesday, 1400 CET.

NMPGs Investment Funds – as appropriate.

45
Publication of Market Practice

Today, the prime publication mechanism for market

practice is MyStandards (more later).

Information about events and minutes documents

are published on www.smpg.info. In addition, some
markets publish market practice documents on
smpg.info.

46
www.smpg.info – Home Page

Global SMPG Meeting

April 26 – 28, 2017, Dublin

Information about events and minutes documents published on

www.smpg.info. Some NMPGs also publish documents on smpg.info.

47
www.smpg.info – Market Practices & Documents

48
www.smpg.info – Folders for Investment Funds

If Singapore NMPG
Investment Funds
wants to publish on
smpg.info, a folder for
Singapore will be
added
49
 Publication of Global Market Practice – SMPG IF

Publication mechanism is MyStandards.

The Funds MX
order marker
practice will be
updated for
funds SR 2017 in
Q1-2, 2017

50
Publication of Funds National Market Practice

ABI Lab IT IF
AFAC
Almus
Findel LU IF
Each Funds NMPG has its
NMPG AU NZ IF
NMPG BR IF
own group on MyStandards.
NMPG CH IF SCFS
NMPG DE IF This group is managed by the
NMPG DK IF
NMPG FR IF
NMPG GB IF
NMPG itself, not SWIFT,
NMPG IE IF
NMPG IT IF
although SWIFT gives support
NMPG LU IF ALMUS
NMPG NO IF
NMPG DR IF
SMPG IF
51
Thank you!

52