Incentage - SWIFTNet Funds

The Investment-Funds Market Today

Increasing variation in instruments - and increasing volumes together with decreasing margins put pressure on the funds industry to standardise processing. When combined with the relatively high manual effort in funds processing, the need for an industry initiative was overwhelming. A recent estimate (from Feri Fund Market Information Limited) suggests that volumes will increase by 50% over the next 5 years.

SWIFT Gets Involved

SWIFT has sponsored initiatives to standardise funds information transfer requirements. Currently, they support standards for two initiatives - Funds templates - based on their traditional FIN messages - and more recently the SWIFTNet Funds solution based on SWIFT´s new XML standards.

SWIFTnet Funds

The SWIFTNet Funds solution offers some very attractive advantages to potential participants. Substantial effort has been put into the development of new Funds specific standards. These standards are based on UNIFI (ISO 20022) - SWIFT´s open XML standards - and consequently benefit from a common well-defined structure. The new solution operates on SWIFTNet - a highly secure and reliable network.

Incentage Involved

Incentage now has a strong focus on accelerating the adoption by the funds industry of this important initiative. We have been working closely with SWIFT on the new XML based standards, on connectivity to SWIFTNet - and on business analysis of the issues facing funds participants. We have a deep experience of XML - having worked on XML projects since the standard became popular - and having completed research for universities. We also have very deep experience of SWIFT at all levels - having worked closely with them over the past decade.

Incentage helps Funds industry participants to:

Provide fully integrated solutions of the highest quality without the need to program
Minimize the effort involved in participating in the SWIFTNet Funds solution.
Avoid the headache of changing (improving) standards. Incentage keeps you to date with emerging standards - and assesses the impact for you.
Provide fully integrated solutions that are always at the forefront of standards and technology
Benefit from our experience with SWIFTNet and the SWIFT Standards XML.
Incentage is a member of the SPIFA group for funds processing standardisation.
Benefit from Incentage´s experience and know-how in general application integration

Comprehensive Standard

This initiative is the first from SWIFT to focus so directly on the needs of the funds industry. As a result a comprehensive set of focused messages have been defined. In the first phase, the messages listed in this table have been agreed and released. More messages to cover transfers and further reporting are already planned for the next phases in 2004 & 2005.

Need For Changes?

Potential participants in this initiative will need to make sure that their own processing systems can provide and process the data required for the messages which are appropriate to them. With Incentage, they need not worry about the syntax. Incentage can go to the source of the data - be it on a database, in MQ messages or on proprietary systems - and transform that data into fully valid messages. It can also highlight missing data, enhance incompatible data and consolidate diverse data.

Example

Incentage OMS Solution

As an example, a customer may have an Order management system which already has most of the information required for Subscription, Redemption and Switch messages in the new Funds initiative. Using Incentage, they can get that data in its existing format - and then transform it to the appropriate XML message using the Incentage Funds functionality. In addition, the SWIFTNet connectivity options of Incentage can be used to transport the messages to the appropriate counterparts using SWIFTNet.

Investment Protection

SWIFT will supply the market with more and more message types, which will cover specific requirements of the funds business.
Incentage participates on committees for the promotion of SWIFTNet Funds and is committed to supporting the initiative in full. So, all customers who use Incentage to participate in the early phases will be upgraded for the later phases with minimal effort.

Not Just Funds XML

Even thought SWIFT will provide many useful and critical applications, it will remain necessary to communicate with systems on other networks and supplied by other service providers. Incentage provides you with the flexibility to have a true single window. You will be able to connect to FIX, proprietary networks or in-house systems in a flexible rules driven way while also benefiting from the services provided on SWIFTNet.