Of Special Interest
20th September 2011
SWIFT Letters of Credit automated settlement
Several global major banks are to be amongst the founding users of the SWIFT electronic trade settlement system according to media reports. This will achieve a long held goal of many banks to finally fully automate Letters of Credit.
SWIFT is holding a series of meetings this week to finalise the settlement rules. It is reported that 17 major banks have already agreed to participate. The founders include Bank of China, Deutsche Bank, JPMorgan Chase, Korea Exchange Bank, Mitsubishi UFJ Financial Group and Standard Chartered Bank.
The service will benefit customers by reducing settlements times from 15 days to 3 days under the plan. Customers are hoping for lower fees also.