Latest developments in Rouble Settlements via SWIFT

1. Latest developments in Rouble Settlements via SWIFT Tatiana Fateeva Director for Business Development, Banking Sector Russia, CIS & Mongolia

2. Agenda • Some statistics • Rouble Settlements via correspondent banking • The Russian RTGS and SWIFT

3. Russia_CIS Traffic patterns Russia CIS Volumes (MMsg) 2,531 1,582 26 Trade Treasury Securities Payments Growth (percent) Trade Treasury Securities Payments Total

4. RUB customer payments market in Russia Evolution of RUB payments in Russia (# of msgs) • Only traffic in RUB is taken into account • Only Customer payments are taken into account (MT103s) • BIC8 country & BIC8 counterparty country = Russia

5. Evolution of RUB-payments in Russia Evolution of number of messages sent by the top 4 banks per month Evolution of number of messages received by the top 4 banks per month

6. Agenda • Some statistics • Rouble Settlements via correspondent banking • The Russian RTGS and SWIFT

7. Payments Market Practice Group • “RUR-6 guidelines” have been worked out on how to use the ISO-Standards to do Rouble Payments • Includes – amongst others – the MT 101, 103, 202, category 9 messages and n92, n95 & n96 messages • Includes transliteration table (updated in April 2011) • Currently version 6 • Available on www.rosswift.ru

8. Issue(s) with RUR-6. • They are not mandatory. • Not all banks are using latest version, so banks have to support different versions, depending on their counterparts.

9. Standards-related issues in your institution and your community Not everything in a new standards release is relevant to my business. The total cost for standards (maintenance and new solutions) is very high. Market practice definitions require a lot of reading. Creating and discussingourmarket practices and comparingthem to otheronesis a lot of work. Information I need is scattered between base standards, market practices , MI specifications and bilateral agreements. How can I easily analyse the impact of a standards release or updatedmarket practice on ALL mysystemsacross all departments? How to simplycreate & distribute standards-related documentation? It is not evident to move mycommunity to new market practices or new standards.

10. MyStandards: New standards management tools for the community • Manage your own standards implementation and practice • Share this information with your correspondents • Get updates automatically and focus on what is relevant to you • Content is basis for interoperability services and harmonization

11. MyStandards: High level components Leverage the community Collaboration environment On-line browsing Base standards Make it easy to define practice / capabilities Simplify understanding Market practices Market practice editor Analytical tools Machine-readable formats Dedicated Documentation

12. Agenda • Some statistics • Rouble Settlements via correspondent banking • The Russian RTGS and SWIFT

13. Message Flow Russian RTGS CB of Russia Payments Application Converter CB of Russia – ISO Formats and vice versa Live since 19 August 2011 CB of Russia VPN SWIFT Backbone Network

14. Current status • Closed User Group (CUG) was created for the Russian RTGS over SWIFT • V-shape is used • LIVE since 19 August 2011 • 28-29 November a joint workshop on how to use SWIFT for the BESP system (Central Bank of Russia and SWIFT)

15. Thank you