HSBC has gone live with FIXML and ISO 20022 traffic on SWIFT for domestic clearing and settlement on SGX, enabling the bank to use a single channel for domestic and cross-border messaging.
SWIFT says HSBC is the first bank to send FIXML messages via SWIFT for clearing purposes.
HSBC’s selection of SWIFT will enable the bank to improve straight-through-processing (STP) and efficiency as the bank will be moving from batch processing into messaging.
Using SWIFT as a single channel for all cross-border and domestic communications will provide HSBC with a single view on all their messages and a cost-effective infrastructure.
“The consolidation of inbound and outbound messaging traffic in Singapore through one channel has enabled HSBC to achieve straight-through processing across the entire post trade execution flow for securities,” says Tony Lewis, HSBC Head of Securities Services for Singapore.
“This translates into more timely reporting to clients on their matching and settlement status. It also means that clients can leverage our technology and harness the benefits of driving efficiencies by integrating their workflows with us. Importantly, a key achievement is our ability to offer institutional clients seamless connectivity in Singapore, as part of our strategy to provide them with opportunities for greater integration with market infrastructures such as the SGX.”
Nico Torchetti, SGX Head of Market Services, Equities & Fixed Income, said: “In line with SGX’s efforts to introduce international best practices to the Singapore securities market, we are pleased that our securities post-trade modernization initiative has translated into greater workflow efficiencies and more timely information for our members, including HSBC.
“HSBC successfully launched its trading-clearing business model on SGX’s new post-trade systems, and further consolidated its post-trade processing using SWIFTNet and SGX clearing and settlement APIs.
“This is the first SWIFTNet implementation, and will be followed by other members in the coming months. Members will have the flexibility in structuring and operating their securities trading and clearing business; they can not only use their preferred application infrastructure, but can also choose how they connect to SGX, such as through SWIFTNet.”