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FTF NEWS PREVIEWS SIBOS (Continued from Page 31)Q AQ AQ ASmartStream, Darryl Twiggs, executive vice president, product managementCould we talk a little bit about a paradigm shift you’re seeing? Why do you think that’s happening?When we look at what’s happening with the banks today, there’s enormous pressure to cut operational costs, the cost of ongoing support for their existing systems. Each of the clients that we talk to, including new clients, have a plethora of systems which are often individual purchasing systems for a particular asset type.Banks end up with many hundreds, if not thousands, of solutions that they have to support. We’re doing a very active drive to rationalize the number of systems that a bank has to support. We’ve seen the emergence of externalized utilities, which we participate in.There’s a paradigm shift from batch-based file processing delivered by FTP, to message-based processing, which is then consumed by whatever service requires that information. The result of that is that banks can then reduce their support costs.What SWIFT-related operations trend do you foresee for 2015?We’ve seen, certainly through 2014, a much higher demand for ISO 20022 messaging.Why is there a greater acceptance of 20022?ISO 20022 messages were a big step toward a more enriched message, a more fit-for-purpose message, as 20022 is really giving individual organizations the ability, for the first time, to do the further detail and context around the message.So the greater detail surrounding any particular instrument or transaction improves the efficiency and understanding and business use of that data. You would expect to see fewer discrepancies via that message.XSP (SunGard), Brendan P. Farrell Jr., executive vice president and general managerQ What SWIFT-related product trends have you seen among your clients for this year?A We are seeing a continued migration toward 20022, with more firms moving beyond the proof-of-concept phase and beginning to highlight one or two pilot projects. Having tools that can facilitate this process has helped firms greatly.DTCC transformation and the SWIFT 20022 format are making inroads and have, for many firms, already become the de facto messaging format for intersystem communication. Some challenges remain, however. Updating all of the systems dependent upon the legacy DTCC CCF [Computer-to-Computer Facility] feeds remains a large challenge for many firms. Whereas technology solutions offer assistance to customers by bridging the gap from the CCF format to the 20022 format, many firms have come forward seeking to expand this approach by converting the 20022 feed into the CCF file.Q What will be the hot SWIFT-related ops trends for 2015? A Reducing total cost of ownership in the securities servicingspace will continue to be a big trend in 2015.Financial services firms are looking to utilize managed services and business process as a service (BPaaS) to help reduce spending large sums of money on replicating non-differentiating processes so they can focus on their core competencies.Another area is the progression of ISO 20022 and SWIFT’s plans around ISO 15022 coexistence.Q Why do you think these trends are underway?A The primary reason is economics. We are seeing multiple trends away from self-hosting and self-management (applications, processes, services) which are brought on by competitive pressures, economics and commercial considerations and a desire to offer better and more complete solutions to customers. The move toward greater 20022 acceptance supports the trend of reducing manual or siloed processes and increasing automation and integration; having a consistent and flexible data standard is crucial for operations to scale.32FALL 2014 | FTF NEWS MAGAZINE