SWIFTNet™ Potential Impact by Business
Investment managers, broker-dealers, custodians, securities depositories and clearing organizations, and stock exchanges rely on SWIFT to reduce the complexity, risk and cost of their domestic and international transactions. SWIFT provides standardized communications, formats and connectivity throughout the lifecycle of a transaction-from trade through to settlement and custody services. SWIFTNet™ provides opportunities for companies to use a single connection and security models and avoid the need to maintain multiple systems that are proprietary to their individual banks.
The market infrastructures most interested in adopting SWIFTNet are more than 50% securities-related, such as depositories and exchanges. It is in their best interests that the SWIFTNet-capable client on the trading or investment side, transmits to Citi in an identical platform and standard. As the trading or investment chain proceeds, the message is delivered over an identical platform and within established standards to the custodian. This provides reduced risk, improved efficiencies and cost savings.
For corporate clients who use CitiDirect® for Securities Services, and did not previously have access to the SWIFT Networks and platforms, SWIFT is offering a SWIFTNet Closed User Group (CUG) facility. The member administered CUG allows corporate clients to leverage FIN as a standard messaging capability and SWIFTNet as a distribution platform.
Citi has purchased a SWIFTNet CUG to enable its corporate and otherwise non-SWIFT eligible clients to use SWIFT. Examples of business areas where this new capability can be used include securities transaction initiation and confirmation, activity, status and portfolio reporting, and cash balance reporting.
Corporate clients have wanted access to SWIFT for some time, but by nature of their financial activities, the SWIFT networks and messaging platforms were not available. SWIFT, by virtue of the SWIFTNet Closed User Group (CUG) facility, is now available to Citi's corporate clients.
Citi has purchased a CUG to enable its corporate and otherwise non-SWIFT eligible clients to use SWIFT. The member administered CUG allows corporate clients to leverage FIN as a standard messaging capability and SWIFTNet as a distribution platform. With SWIFTNet and SWIFTNet FIN, the message is delivered over an identical platform and within established standards. This provides reduced risk, cost savings and improved efficiencies.
Examples of business areas where this new capability can be used include payment initiation, payments and cash balance reporting.
Citi Private Banking
The migration to SWIFTNet and SWIFTNet FIN while transparent to our Private Banking clients, nevertheless benefits them through the internal efficiencies it provides Citi.
Global Asset Management
To our Global Asset Management clients, the migration to SWIFTNet and SWIFTNet FIN enhances our reporting capabilities and enables us to serve larger accounts and clients by connecting each component of the financial services industry.