Backup Real-Time Gross Settlement (BRTGS)

Efficient and reliable RTGS contingency solution for Financial Market Infrastructures to support mission critical systems in the event of unforeseen scenarios.

The Need for Additional RTGS Resilience

The global RTGS ecosystem is currently composed of various types of solutions, ranging from dated legacy first generation solutions, to highly advanced, state of the art RTGS solutions, which are tailored to not only single market but regional as well.

Financial Market Infrastructure Operators are under pressure to ensure that their mission critical systems can withstand severe natural disasters, terrorist activities and grid failures which could potentially disable the whole payments settlement environment, usually comprised of a production and a traditional backup site. Moreover, there has been an increasing threat of cyber-attacks on entities that, until now, were not targets of sophisticated malware and back door attacks.

The Montran Backup RTGS Solution

The Montran Backup RTGS is a new Montran product offering, built to meet stringent resiliency and contingency needs of Financial Market Infrastructure Operators all over the world, running as a differentiated stand by or hot backup for their mission critical RTGS operations.

It is specifically designed to meet and exceed the resilience and disaster recovery readiness standards of today's Central Banks and HVPS Operators, by providing, amongst others, a technologically diverse platform, minimal disruption to the participating stakeholders in the event of a switch, and private cloud hosted environment.

Settlement Capabilities

The Montran BRTGS inherits all the advanced settlement capabilities that Montran has incorporated into the stand alone RTGS product over the last 20 years.

The Backup RTGS handles high volumes of payments and combines efficiency and reliability of service with sound position maintenance and advanced liquidity management features.

New liquidity saving features include highly efficient multilateral offsetting for streams of payments of lower priority by settling such groups at predetermined intervals, thus reducing the liquidity required for the Participants involved.

Integration with Existing Financial and RTGS Environments

The BRTGS can be offered in a number of variants:

  • A standard RTGS Backup resilience service that can be updated with a set of running balances and offer regular payment submission and import capabilities.
  • An enhanced version of the RTGS Backup resilience service, fully customized and integrated into the local financial environment. The Backup RTGS can be plugged in to be used either as contingency, or as an eventual replacement of the existing RTGS environment, with minimal disruption to the external participants and stakeholders.

The Backup RTGS supports a number of message standards and message transport mechanisms: FIN MT/ISO 20022, FIN-Copy/V-Mode topologies, over SWIFT or VPN networks.

Synchronization with the Existing Infrastructure

The Montran Backup RTGS solution provides a set of standard APIs based on MQ and Web Services for existing systems to feed payments to the Backup RTGS system either in real-time, or through other arrangements.

Bi-directional synchronization of liquidity positions and transactions to and from the Montran BRTGS system can be effected at fixed schedules or in real-time, per capabilities of the existing RTGS infrastructure.

Contingency Payment Submission Capabilities

Contingency modules provide manual or automated RTGS payment upload capabilities for stakeholders, be it regular participants, clearing-houses, or securities depositories.

  • Features
  • Modules
  • Security
  • Hosted Solution

Features of the Montran Backup RTGS

  • Modular component structure to meet the individual financial environment requirements, allowing for flexibility in designing the right contingency and resilience solution
  • A technologically diverse platform
  • Optionally offered as a managed service (SaaS) solution
  • Operator and Participants connectivity over a contingency network
  • Independent storage arrangements
  • Adequate payment processing capacity in terms of daily volumes and peak capabilities
  • Minimal disruption to the direct participants in the event of a switch
  • Private cloud hosting capabilities
  • Payment entry and processing using standard FIN MT and ISO 20022 message formats
  • A multi-currency and multi-lingual system
  • Full support for SWIFTNet FIN, Browse, InterAct and FileAct services
  • Proven capabilities of interfacing with leading Core Banking System solutions
  • Operational reliability with backup and contingency arrangements
  • Complete audit trail, recovery and reporting facility

Backup RTGS Core Modules

  • Central RTGS Engine - The highly optimized and efficient core settlement engine also running on clustered environments for maximum performance and reliability.
  • Central Payment Originator System - The centrally running server application with a thin-client architecture provides users with the ability to capture, import and export all RTGS transaction types.
  • The RTGS Gateway - The most cost-effective solution for achieving STP with the Participant's Core Banking/Treasury Management Systems, feeding payments to and receiving payments from the RTGS included in the standard Backup RTGS license. Featuring standard and open interconnection APIs, the Gateway software is downloaded onto the Participant RTGS webstations to securely transfer batches or individual payments to the Backup RTGS or Payment Originator System.

Security

  • System security based on PKI with smart card or e-Token access
  • Enforces digital signature of payments between the Participants and Backup RTGS, to ensure integrity, authenticity and non-repudiation
  • Communications between the RTGS and other systems are encrypted using SSL/TLS
  • System access credentials include digital certificates that are stored on Smartcards/e-Tokens

Backup RTGS Hosted Solution Option

  • Hosting in a secure, private cloud
  • High-availability features
  • Quick deployment
  • No up-front infrastructure related costs


Architecture
  • Server application components written in Java and running in an enterprise environment, Java EE application server
  • Interoperability through the use of standardized Java API (JDBC, JMS, JTA, JCA), Interface adapters, and SOA integration platform supporting Java™
  • Platform independent solution supporting: Windows, UNIX, Linux, AIX, z/OS
  • A modern, rich, easy to use browser based "thin client" user interface
  • Database agnostic solution supporting: MS SQL Server, Oracle, IBM DB2, and others