HSBC is among a few Asian banks that, in December, will begin piloting a new standards engine offered over the SWIFT network. The Trade Services Utility TSU is a central matching and rules based messaging system that allows banks to send and swap information electronically, giving them the power to offer value-added services to importers and exporters.
The engine has been developed in response to a global shift away from traditional forms of trade finance such as letters of credit. As buyers and sellers have moved to dealing on open account, banks have been disintermediated in the trade cycle.
SWIFT decided to establish a trade services advisory...
