Editing SWIFT (section)

==Operations==
[[File:SWIFT 2021 logo.svg|thumb|SWIFT logo before 2023]]

Swift acts as a carrier of the "messages containing the payment instructions between financial institutions involved in a transaction".{{R|ScottZachariadis|p=35}}<ref name=":2">{{Cite news |last1=Kowsmann |first1=Patricia |last2=Talley |first2=Ian |date=2022-02-26 |title=What Is Swift and Why Is It Being Used to Sanction Russia? |language=en-US |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/swift-banking-system-sanctions-biden-11645745909 |access-date=2022-02-27 |issn=}}</ref> However, the organisation does not manage accounts on behalf of individuals or financial institutions, and it does not hold funds from third parties.{{R|ScottZachariadis|p=1-2}} It also does not perform [[Clearing (finance)|clearing]] or [[Settlement (finance)|settlement]] functions.{{R|ScottZachariadis|p=1-2, 35}}<ref name=":2" /> After payment has been initiated, it must be settled through a [[payment system]], such as [[T2 (RTGS)|T2]] in Europe.{{R|ScottZachariadis|p=36}} In the context of cross-border transactions, this step often takes place through [[Correspondent account|correspondent banking accounts]] that financial institutions have with each other.{{R|ScottZachariadis|p=35}}

SWIFT means several things in the financial world: 
# a [[Secure transmission|secure network]] for transmitting messages between financial institutions;
# a set of syntax standards for financial messages (for transmission over SWIFTNet or any other network)
# a set of connection software and services allowing financial institutions to transmit messages over SWIFT network.

Under 3 above, SWIFT provides [[turnkey|turn-key]] solutions for members, consisting of [[Client (computing)|linkage clients]] to facilitate connectivity to the SWIFT network and [[Graphical user interface|CBTs or "computer-based terminals"]] which members use to manage the delivery and receipt of their messages. Some of the more well-known interfaces and CBTs provided to their members are:

* SWIFTNet Link (SNL) software which is installed on the SWIFT customer's site and opens a connection to SWIFTNet. Other applications can only communicate with SWIFTNet through the SNL.
* Alliance Gateway (SAG) software with interfaces (e.g., RAHA = Remote Access Host Adapter), allowing other software products to use the SNL to connect to SWIFTNet
* Alliance WebStation (SAB) desktop interface for SWIFT Alliance Gateway with several usage options:
*# administrative access to the SAG
*# direct connection SWIFTNet by the SAG, to administrate SWIFT Certificates
*# so-called Browse connection to SWIFTNet (also by SAG) to use additional services, for example, the Eurosystem's T2
* Alliance Access (SAA) and Alliance Messaging Hub (AMH) are the main messaging software applications by SWIFT, which allow message creation for [[ISO 15022|FIN messages]], routing and monitoring for FIN and [[ISO 20022|MX messages]]. The main interfaces are FTA (files transfer automated, not FTP) and MQSA, a [[WebSphere MQ]] interface.
* The Alliance Workstation (SAW) is the desktop software for administration, monitoring and FIN message creation. Since Alliance Access is not yet capable of creating MX messages, Alliance Messenger (SAM) has to be used for this purpose.
* Alliance Web Platform (SWP) as new thin-client desktop interface provided as an alternative to the existing Alliance WebStation, Alliance Workstation (soon){{when|date=April 2018}} and Alliance Messenger.
* Alliance Integrator is built on [[Oracle Corporation|Oracle]]'s [[Java Caps]] which enables customer's back-office applications to connect to Alliance Access or Alliance Entry.
* Alliance Lite2 is a secure and reliable, cloud-based way to connect to the SWIFT network which is a light version of Alliance Access specifically targeting customers with low volume of traffic.

===Services===
There are four key areas that SWIFT services fall under in the financial marketplace: [[Security (finance)|securities]], [[treasury]] & [[Derivative (finance)|derivatives]], trade services, and payments & cash management.

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'''Securities'''
* SWIFTNet FIX (obsolete)
* SWIFTNet Data Distribution
* SWIFTNet Funds
* SWIFTNet Accord for Securities (''end of life October 2017'')<ref name="swift.com">{{Cite web |date=26 November 2015 |title=Accord |url=https://www.swift.com/our-solutions/a-to-z/accord |access-date=15 August 2016 |archive-date=26 August 2016 |archive-url=https://web.archive.org/web/20160826055927/https://www.swift.com/our-solutions/a-to-z/accord |url-status=dead }}</ref>
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'''Treasury and derivatives'''
* SWIFTNet Accord for Treasury (''end of life October 2017'')<ref name="swift.com" />
* SWIFTNet Affirmations
* SWIFTNet CLS Third Party Service
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'''Cash management'''
* SWIFTNet Bulk Payments
* SWIFTNet Cash Reporting
* SWIFTNet Exceptions and Investigations
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'''Trade services'''
* SWIFTNet [[Trade Services Utility]]
{{col-end}}

Swift Ref, the global payment reference data utility, is SWIFT's unique reference data service. Swift Ref sources data directly from data originators, including central banks, code issuers and banks making it easy for issuers and originators to maintain data regularly and thoroughly. SWIFTRef constantly validates and cross-checks data across the different data sets.<ref>{{Cite web|url=http://www.surecomp.com/value-added.html|archiveurl=https://web.archive.org/web/20180328002738/http://www.surecomp.com:80/value-added.html|archivedate=28 March 2018|title=Value-Added Alliances|website=Surecomp}}</ref>

===Operations centres===
The SWIFT secure messaging network is run from three [[data centre]]s, located in the United States, the Netherlands, and Switzerland. These centres share information in [[Real-time computing|near real-time]]. In case of a failure in one of the data centres, another is able to handle the traffic of the complete network. SWIFT uses [[submarine communications cable]]s to transmit its data.<ref name="harvard">{{Cite web |last=Sechrist |first=Michael |date=23 March 2010 |title=Cyberspace in Deep Water: Protecting Undersea Communication Cables By Creating an International Public-Private Partnership |url=https://www.belfercenter.org/sites/default/files/legacy/files/PAE_final_draft_-_043010.pdf |archive-url=https://web.archive.org/web/20180312083233/https://www.belfercenter.org/sites/default/files/legacy/files/PAE_final_draft_-_043010.pdf |archive-date=2018-03-12 |url-status=live |publisher=[[Belfer Center for Science and International Affairs]] |quote=For example, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which describes itself as "the global provider of secure financial messaging services", uses undersea fiber-optic communications cables to transmit financial data between 208 countries}}</ref>

Shortly after opening its third data centre in Switzerland in 2009,<ref>{{Cite news |date=16 September 2008 |title=SWIFT: SIBOS issues |publisher=SWIFT |url=http://www.swift.com/sibos2008/sibos_2008_learn_discuss_debate/sibos_issues/Sibos_Issues_20080916.pdf |url-status=dead |archive-url=https://web.archive.org/web/20151107043453/http://www.swift.com/sibos2008/sibos_2008_learn_discuss_debate/sibos_issues/Sibos_Issues_20080916.pdf |archive-date=7 November 2015}} p. 12.</ref> SWIFT introduced a new distributed architecture with two messaging zones, European and Trans-Atlantic, so data from European SWIFT members no longer mirrored the U.S. data centre.<ref>{{Cite news |date=6 June 2008 |title=Distributed architecture |publisher=SWIFT |url=http://www.swift.com/products_services/industry_initiatives/distributed_architecture |access-date=31 August 2013 |archive-date=17 August 2013 |archive-url=https://web.archive.org/web/20130817100653/http://www.swift.com/products_services/industry_initiatives/distributed_architecture/ |url-status=dead }}</ref> European zone messages are stored in the Netherlands and in part of the Swiss operating centre; Trans-Atlantic zone messages are stored in the United States and in another part of the Swiss operating centre that is segregated from the European zone messages. Countries outside of Europe were by default allocated to the Trans-Atlantic zone but could choose to have their messages stored in the European zone.
{| class="wikitable"
|+ Data centres
! SN
! SWIFT data centres
! Type
|-
| 1
| [[Zoeterwoude]], [[Netherlands]]
| OPC (Operating Centre)
|-
| 2
| [[Culpeper, Virginia]], [[United States]]
| OPC (Operating Centre)
|-
|3
| [[Diessenhofen]], [[Switzerland]]<ref>Multiple sources:

* {{Cite web |last=Ritter |first=Dieter |title=Startschuss für Rechenzentrum |url=https://www.tagblatt.ch/ostschweiz/frauenfeld-munchwilen/startschuss-fuer-rechenzentrum-ld.961906 |access-date=2022-02-16 |website=[[St.Galler Tagblatt]] |date=15 March 2013 |language=de}}
* {{Cite news |title=Das Daten-Fort-Knox am Rhein |language=de |work=[[Tages-Anzeiger]] |url=https://www.tagesanzeiger.ch/wirtschaft/das-datenfortknox-am-rhein/story/13175743 |access-date=2022-02-16 |issn=1422-9994}}
* {{Cite web |last=Hettich |first=Barbara |title=Swift: Der Rohbau steht |url=https://www.tagblatt.ch/ostschweiz/frauenfeld-munchwilen/swift-der-rohbau-steht-ld.964476 |access-date=2022-02-16 |website=St.Galler Tagblatt |date=13 December 2011 |language=de}}
* {{Cite web |last=Ritter |first=Dieter |title=Swift: Mit dem Bau begonnen |url=https://www.tagblatt.ch/ostschweiz/frauenfeld-munchwilen/swift-mit-dem-bau-begonnen-ld.965892 |access-date=2022-02-16 |website=St.Galler Tagblatt |date=18 March 2011 |language=de}}</ref>
| OPC (Operating Centre)
|-
|4
| [[Hong Kong]]
| Command and control
|}

===SWIFTNet network===
SWIFT moved to its current IP network infrastructure, known as SWIFTNet, from 2001 to 2005,<ref>{{Cite news |title=SWIFT History |publisher=SWIFT |url=http://www.swift.com/about_swift/company_information/swift_history.page?lang=en |access-date=11 January 2009 |archive-date=26 December 2012 |archive-url=https://web.archive.org/web/20121226183922/http://www.swift.com/about_swift/company_information/swift_history.page?lang=en |url-status=dead }}</ref> providing a total replacement of the previous [[X.25]] infrastructure. The process involved the development of new protocols that facilitate efficient messaging, using existing and new message standards. The adopted technology chosen to develop the protocols was [[XML]], which now provides a wrapper around all messages legacy or contemporary. The communication protocols can be broken down into:

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'''InterAct'''
*SWIFTNet InterAct Realtime
*SWIFTNet InterAct Store and Forward
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'''FileAct'''
* SWIFTNet FileAct Realtime
* SWIFTNet FileAct Store and Forward
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'''Browse'''
* SWIFTNet Browse
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SWIFT provides a centralized store-and-forward mechanism, with some transaction management. For bank A to send a message to bank B with a copy or authorization involving institution C, it formats the message according to standards and securely sends it to SWIFT. SWIFT guarantees its secure and reliable delivery to B after the appropriate action by C. SWIFT guarantees are based primarily on high redundancy of hardware, software, and people.

During 2007 and 2008, the entire SWIFT network migrated its infrastructure to a new protocol called SWIFTNet Phase 2. The main difference between Phase 2 and the former arrangement is that Phase 2 requires banks connecting to the network to use a Relationship Management Application (RMA) instead of the former [[bilateral key exchange]] (BKE) system. According to SWIFT's public information database on the subject, RMA software should eventually prove more secure and easier to keep up-to-date; however, converting to the RMA system meant that thousands of banks around the world had to update their international payment systems to comply with the new standards. RMA completely replaced BKE on 1 January 2009.