Messaging Project
SWISS Forum for Financial Standards
October 17, 2013
Donald Pudney, Credit Suisse
Agenda
− Setting the scene, including environment and project overview
− Project management recap and our Messaging Project Objectives
− Examples of the challenges faced
• Scope, counterparties, flows, validation and transformation
− Closing thoughts
October 17, 2013 Donald Pudney, Credit Suisse 2
Preliminary Remarks
The following slides….
− … represent my personal views as Project Manager
− … cover items required to successfully implement a «messaging
project»
− … are examples for illustrative purposes only
− … do not represent an official Credit Suisse position
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Setting the Scene
Myself – Donald Pudney
− Chartered Accountant, originally from South Africa
− Happily settled in Switzerland since 1997
− Varied program/ project management roles in multinational companies
− Not a “Messaging” specialist
− New parent as just had a son
Messaging Project Overview
− Replacement of MINT platform and enablement of new standards
− Message flows dealt with; SEPA, Funds, FIN (migration started)
− Multiple locations of upstream applications and centralised messaging
platform
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Overview - Global Messaging Hub (GMH)
Moscow
Warsaw
Vienna
Gibraltar
London
Mexico City
Sao Paulo
Mumbai
Islamabad Shanghai
Jakarta
Tokyo
Singapore Sydney
Toronto
New York
Bahamas
Cayman Isl.
Bermuda
Guernsey
Paris
Monaco
Milano
Luxembourg Frankfurt
Madrid
Istanbul
Dubai
Taipei
Seoul
Hong Kong
Cyprus
Zurich
Credit Suisse operates a global financial messaging platform centrally out of Zurich to support the
financial messaging needs of all divisions and locations globally. Serves some 90 Credit Suisse branches
in more than 30 locations. The hub enables Credit Suisse to run B2B transactions with up to 8000 SWIFT
participants in over 200 countries. Branches generate approximately 400 Million SWIFT messages per
year, including large value payments, stock exchange transactions and other critical business content such
as intra-day transactions status.
Coverage of Businesses and Standards
Credit Suisse covers various businesses (e.g. payments, funds, securities, FX, etc.)
With clients having different networking capabilities (e.g. SWIFT, PSN, FIX, SIC, Secom, PostFinance, etc.)
In multiple locations with different standards bodies and market practices (e.g. Swiss, SEPA, French, Japan etc.)
October 17, 2013 Donald Pudney, Credit Suisse
examples of differing market practices
5
AMH Workbench
Message Handling AMH STP Engine
Short Term Archive
External Connectors
Internal Connectors
Business Support
Archiving
Anonymization
Sanction Filter
Monitoring
Authorization
DWH
SWIFT
Net
Other
networks
Message
Store
Audit
Trail
IB/PB Business
Applications globally
Key Characteristics
High volume message hub
STP engine for automated
message processing
Workbench for exception
handling
High resilience
Well integrated into Credit Suisse
infrastructure
Internal connector layer for
integration with applications
External connector layer for
integration with external
networks
Horizontal scalability
Service architecture
SEPA FIN FIP
Financial Messaging Platform (FMP)
Overview of vertical and horizontal interfaces
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Project Management Recap and Our Project Objectives
What is Project Management - To utilize knowledge, skills, tools and
techniques to project activities to meet the project requirements*
Managing a project * typically includes
− Identifying requirements
− Addressing the various needs, concerns, and expectations of the
stakeholders as the project is planned and carried out
− Balancing the completing project constraints including, but not limited
to: Scope, quality, schedule, budget, resources and risk
Our specific Messaging Project objectives
− Replacement of this messaging hub, with a new application
− Enable the messaging hub to handle new global messaging standards
− Ensure operational continuity of the current messaging requirements
October 17, 2013 Donald Pudney, Credit Suisse * Source: PMBOK ® Guide 7
Examples of the Challenges Faced (1/4)
Funds business moving from FIN to ISO 20022
October 17, 2013 Donald Pudney, Credit Suisse
1 Legacy
2 Counterparties
3 Flows
4 Validation
5
Transformation
Challenge
Upstream applications are not in project scope
Driven by different market practice and/or timeline
Duplication of flows for same business
Multiple standards to follow (e.g. market practice
or bilateral agreements)
Business logic for mapping table selection
required to be built into upstream applications
Topic Implication for project
Scope creep, increase in delivery risk
No direct control, increase in delivery risk
Increased costs and risk for design, testing,
etc.
Increased costs due to massive increase in
complexity
Scope creep, Increase in delivery risk
1 2
3
4
4
5
Project Scope
Funds
Example –
Similar
challenges in
Payments
8
Examples of the Challenges Faced (2/4)
Scope and Counterparties issues
October 17, 2013 Donald Pudney, Credit Suisse
1 Legacy
2 Counterparties
Challenge
Upstream applications not in messaging project
scope
Priorities for upgrades not always aligned
Migration to new standards very complex as all
previous bilateral agreements have to be catered
for or eliminated
Counterparties can be in different markets, etc.
Backwards compatibility between standards
limited
Topic Options or considerations
Strategic priorities of messaging and
business need to be aligned, not in project
scope
Impacts heavily in validation scenarios
Differing payments standards across Europe
Community based mapping working groups
1 2
Messaging Project Scope
9
Examples of the Challenges Faced (3/4)
Duplication of flows and selection table (only outbound shown)
October 17, 2013 Donald Pudney, Credit Suisse
3 Flows
Challenge
Duplication of flows for same business (co-
existence)
MT: 3 FIN funds messages
MX: 18 XML funds messages
Incoming – XML much richer and upstream
systems can’t handle the information (prior to
upgrade)
Outgoing – extra data fields might be required by
client that have to be added (sourcing)
Topic Options or considerations
Increased costs and risk for design, testing,
etc.
Both have to be maintained going forward
until co-existence eliminated
Decision table as to which flow should be
followed can be very complex
Persistence of data
3
10
Examples of the Challenges Faced (4/4)
Validation and Transformation data requirements
October 17, 2013 Donald Pudney, Credit Suisse
4 Validation
5
Transformation
Challenge
Bilateral agreements require multiple validation
schema
Interpretation opportunities create confusion
Business logic for mapping table selection
required to be built into upstream applications
MX format more information rich than MT
Incoming – truncation and/or persistence
Outgoing – data sourcing
Topic Options or considerations
Increased costs due to massive increase in
complexity
Upstream apps to send all data required to
make transformation (complicated business
logic)
4
4
5
11
Closing Thoughts
Implementation of a new standard
− Gives an opportunity to rework “old” processes and applications with “new”
− Should not be under-estimated as is costly, time-consuming and covers multiple stakeholders (internal and external)
− Is filled with uncertainty and interpretation possibilities
− Experience gathered as implementation happens, steep learning curve
− ISO 20022 implemented in various flavours e.g. SEPA, Funds, new SIC
− Participants across various markets and locations are impacted by all deviations from the standard, regardless of the size of the deviation
− Front-to-back “buy-in” required and not just standards or Messaging specialists
“A standard is a “dream”, however many market practices are a “nightmare”
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Q&A
October 17, 2013 Donald Pudney, Credit Suisse 13