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Industry roundup: 3 September

SGX, HSBC and Temasek complete pilot digital bond for Olam International

Singapore Exchange (SGX), working together with HSBC Singapore and Temasek, has completed its first digital bond issuance on SGX’s digital asset issuance, depository and servicing platform, successfully replicating a S$400m 5.5-year public bond issue and a follow-on S$100m tap of the same issue by Olam International. 

SGX used DAML, the smart contract language created by Digital Asset, to model the bond and its distributed workflows for issuance and asset servicing over the bond’s lifecycle. SGX’s solution uses smart contracts to capture the rights and obligations of parties involved in issuance and asset servicing, such as arrangers, depository agents, legal counsel and custodians. The digital bond used HSBC’s on-chain payments solution which allows for seamless settlement in multiple currencies to facilitate transfer of proceeds between the issuer, arranger and investor custodian.

Key efficiencies observed within the pilot include timely ISIN (identifier) generation, elimination of settlement risk (for issuer, arranger and investors), reduction in primary issuance settlement (from 5 days to 2 days) as well as automation of coupon and redemption payments and registrar functionality. 

Building on this digital issuance, SGX says it will work with issuers, arrangers, custodian banks and investors to digitalise bond issuance, depository and asset servicing, progressively growing the fixed income ecosystem.

 

ACI Worldwide, Capsys and T-Systems support Hungary’s real-time payments

ACI Worldwide has announced that it powers approximately 75% of Hungary’s real-time payments, after the successful go-live of the country’s domestic real-time scheme. The scheme mandates that all transactions below HUF10m (US$34,000) must be processed immediately. Hungary is among numerous countries in Eastern Europe poised for an explosion in real-time payments growth, with several Hungarian banks and intermediaries leveraging ACI’s Real-Time Payments solution to capitalise on the expected rise in digital transaction volumes.

ACI customers in Hungary, including OTP Bank, Erste Bank Hungary (EBH) and Takarékinfo, have all connected to the country’s domestic real-time scheme, marking a transition from the batch-based legacy system, IG2. The go-live has been supported by ACI partners Capsys and T-Systems.

Long-standing customer OTP Bank is leveraging ACI’s Real-Time Payments solution to connect to the scheme; the solution offers a complete range of capabilities for processing real-time payments, including origination, processing, clearing, fraud detection and connectivity on a single platform. In addition, OTP uses ACI’s API Manager capabilities.

Takarékinfo, a Hungarian banking IT systems integrator, is also using ACI’s Real-Time Payments solution to connect three top 10 Hungarian banking groups to the new scheme - the Takarek Group (uniting more than 120 former savings cooperatives across the country), Budapest Bank and MKB Bank. Since the go-live, the real-time payments system has performed well. The go-live has also been supported by Capsys and T-Systems.

Erste Bank Hungary (EBH), another long-standing ACI customer and a member of Erste Group, is using ACI’s Retail Payments solution to meet real-time balance compliancy requirements for the domestic real-time scheme and PSD2. In addition, the bank uses the ACI Payments Risk Management solution to reduce fraud losses and to satisfy PSD2 requirements.

 

Global Payments signs multi-year agreement with Wells Fargo Bank

Global Payments, a provider of payment technology and software solutions, has announced that TSYS, its issuer solutions business, has renewed its agreement with Wells Fargo, the fourth largest bank in the US.

As part of the multi-year agreement, TSYS will continue to provide a range of processing and support services for the bank’s commercial card portfolio. Wells Fargo has utilised TSYS’ payments processing platform since 1995.

“We continue to benefit from the flexibility and power of TSYS’ innovative payments solutions, along with the support of Global Payments, as we look to further simplify, streamline and digitise the overall experience for our commercial card customers,” said Mary Mazzochi, senior vice president and manager, Commercial Card Product Suite at Wells Fargo.

Terms of the agreement were not disclosed.

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