Page 8 - Eurogiro News Sep 2012_web version

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Activity Calendar
Summer/Autumn 2010
Members gain from transparency and efficiency
when settling multiple currencies
Eurogiro News
Eurogiro News is a magazine for the promotion of
information, ideas and knowledge within the Eurogiro
community and is published quarterly by:
Eurogiro A/S
Telegade 1, 1.
DK – 2630 Taastrup, Denmark
Editor-in-Chief: Søren Rose
Production & subscription manager:
Hanne S. Basset, [email protected]
Final editing: September 2012
ISSN: 1727-7450
29 October – 1 November 2012
SIBOS in Osaka, Japan
8 November 2012
Eurogiro Security Seminar in Singapore,
Republic of Singapore
15 – 17 January 2013
Global Forum on Remittances in Bangkok,
Activity Calendar
Although Eurogiro has made every effort to ensure
the accuracy of this publication, neither it nor any
contributor can accept any legal responsibility
whatsoever for consequences that may arise from
errors or omissions or any opinions or advice given.
Statements in adverts represent advertisers’ views.
No part of this publication may be photocopied or
otherwise reproduced without the written consent of
Eurogiro is a global payments community. We
connect posts, banks and other payment handlers.
The services we offer allow members to initiate from
or disburse to any payment product in the world.
We facilitate a member-driven cooperation to create
business opportunities for our members.
Visit our website:
The Multicurrency settlement option, which Deutsche Bank provides to the Eurogiro members,
brings global scope and transparency on FX rates into the Eurogiro settlement services. Christian
Westerhaus is asked what the newly-introduced service (MCSSP) means to Eurogiro members
The MCSSP is a new service to the Eurogiro
community. Who do you foresee being the
pioneers for MCSSP?
Many Eurogiro members already have widely-
experienced the advantages of the single
Settlement Service (SSP), whether it is for
EUR or USD. The Multi-Currency functionality
is an extension of the existing SSP service to
expand the universe of settlement currencies.
This provides all the existing SSP users with a
unique and rather easy opportunity to become
MCSSP pioneers on the sender or on the
receiver side.
Why should an existing SSP user add-on the
MCSSP functionality?
On one hand, there is increasing pressure in
the industry to have full transparency for con-
sumers, for example, the Dodd-Frank-Act in
the US. On the other hand, MCSSP creates
new revenue streams for the sending institu-
tion as well as for the receiving institution. For
the sender it provides transparent end-to-end
pricing with upfront information on the FX
rate. This is a competitive advantage which
establishes yourself as a credible payment
provider in many more currencies than you
may offer today. For the receiver the MCSSP
creates additional payment inflows, without
the need of cumbersome documentation
What does it mean to implement MCSSP?
MCSSP is simple to implement, especially for
institutions using the ESSP or the USSP ser-
vice already. As the existing USD or EUR ac-
counts of the sending member can be used
there is no need for opening new accounts.
The sender will get a daily FX rate sheet for
instance via e-mail. The FX rate may directly
be used for the consumer information as the
sender’s FX spread is included in the rate.
The settlement process is the same as ESSP
and USSP. The sending member forwards the
payment instruction to the receiving member
as today in the currency selected by the
receiver. Also, the sending member needs to
forward the settlement instruction for the total
currency amount to Deutsche Bank to initiate
a debit drawdown from the sender’s USD
account. The receiving member only needs to
update the Standard Settlement Instructions.
Likely this is the receiver’s home currency,
and the settlement is done through the local
clearing. The receiving institution may obtain
a settlement notification free of charge.
What does MCSSP mean for the Eurogiro
MCSSP is a good example of how the in-
novative force within the Eurogiro community
can be transformed into a product offering for
the benefit of its members. It also underlines
Eurogiro’s ability to adapt its core products to
the ever evolving market needs and trends.
Christian Westerhaus is Global Head of
Cash Product Management and EMEA
Regional Head of Product Management
for Deutsche Bank’s Global Transaction
Banking (GTB) business. Christian has
been an active member of various global
and European industry committees. In
addition to his product roles, Christian
acts as member of the Board of the EBA
Clearing Company and has recently been
appointed to the Board of Eurogiro