SWIFT Publishes Framework for Cross-Border Protocol
SWIFT, the financial messaging network, has proposed a framework for a common protocol to improve European Union cross-border clearing and settlement.
The Brussels-based cooperative has published a consultation paper outlining the proposed framework, which has been developed in response to the Giovannini Group report to improve efficiency of EU cross-border clearing and settlement.
In its 2003 report, the Giovannini Group identified 15 barriers to efficient cross-border clearing and settlement and asked SWIFT to define a solution to eliminate Barrier 1, which covers national differences in information technology and interfaces used by clearing and settlement providers.
SWIFT published its paper after two years of research involving European infrastructures, key institutional participants and a number of organizations.
SWIFT is now seeking feedback on the scope and potential structure of a solution that will ultimately lead to a standard protocol for communication within the European Clearing and Settlement industry.
The consultation period will last from Jan. 5 through April 15. SWIFT expects that the final protocol definition and implementation road map will be published in 2006.