Underlying all Bolero Services is a unique infrastructure (Bolero Open4Trade) which is designed specifically to enable the secure, guaranteed exchange of trade information and contractually binding trade documents. This core infrastructure enables the practical delivery of automation and collaboration to all trade counterparties.
Developed jointly by SWIFT and Bolero, the Core Messaging Platform (CMP) was designed specifically for electronic collaboration of trade documents (in contrast to the SWIFT service which is designed to handle instructions, not documents). As a result the Bolero technology is independent of all SWIFT services and implements a range of additional capabilities necessary to provide solutions for the more complex trade and trade finance collaborative process.
Bolero services were originally hosted by SWIFT in its secure data centres as part of the joint venture collaboration agreement which established the Bolero company. During 2010, the operation of all Bolero services was transitioned to a specialist global hosting partner in order to provide further scalability, increased disaster recovery, 24*7 global support, high availability and SAS 70 compliance.
The Bolero infrastructure (Bolero Open4Trade) consists of five primary components; the Core Messaging Platform, the Bolero Rulebook, the Title Registry, the Bolero Collaboration Libraries and the Bolero Compliance and Matching engine:
Core Messaging Platform
The Core Messaging Platform provides for secure multi-bank electronic communication between all parties involved in a trade or trade finance transaction. Designed specifically for the secure and non-repudiable communication of electronic trade documents, each message corresponds 1:1 with the actual corporate-bank-corporate business process (no need to send multiple messages or use separate electronic channels, or abstract the message in any way) and each message can contain up to 30 electronic documents. Core features of the CMP include:
| Feature | Description |
| Guaranteed Delivery | The Bolero message offers a guaranteed delivery of the message. For each step in the delivery of the message a corresponding response is generated using the Bolero Messaging protocols |
| Message Validation | Each incoming message is validated prior to forwarding it to the destination. Typical validations are; sender validity, receiver(s) validity, document consistency, message size, document origin, message integrity |
| Non repudiation | Every message is digitally signed using PKI technology. Every Bolero user has his/her own set of private and public keys. Due to the nature of the private key certifying the public key, the Bolero offers non-repudiation of the sending of the messages and the documents they carry |
| Legally Binding Documents | Bolero documents can be either draft documents or final documents. The final documents are legally binding documents and the Bolero Rulebook defines their usage |
| Delivery Notification | Bolero messaging offers delivery and non-delivery notification. For each message a delivery timeout can be specified. In case the user has not picked up the message in the time specified in the message, the CMP informs the sender of the message about the late delivery of the message. The CMP also informs the sender of the message when the receiver has picked up the message. |
| Document Validation | Each Bolero document included in a Bolero message is validated against the Document Type Definition (DTD). In case of non-compliance, the document is rejected and the reason for the rejection is passed back to sender of the message. |
| Document Originality | Once a final document has been accepted by the CMP, the CMP validates every time that document is forwarded again that its contents has not been altered. In case the document has been altered the CMP rejects the incoming message carrying the document. |
| Trusted Time | The CMP operates a Trusted Time function; i.e. the CMP time stamps each message |
Rulebook
One of the main reasons why the use of electronic commerce has not increased in line with technological capability is that there is little law governing its use. The existing world of e-commerce is characterised by a large number of bi-lateral contracts, many of which embody different approaches and principles.
A key component of the Bolero service is the provision of a unique legal framework.
Companies use electronic commerce in the absence of specific international and national legislation, but the absence of legal clarity has slowed acceptance. The exchange of data electronically itself does not pose a problem, but when the data represents contracts, negotiable instruments or payments, a clear legal framework is required for these transactions to work. The Bolero Rulebook establishes a contractually binding set of rules which all Users of the Bolero service are required to sign. It provides a legal framework allowing Users to replicate the legal results currently achieved in a paper environment.
The Bolero Rulebook was developed following a comprehensive feasibility study into the legal issues to which the concept of Bolero gives rise. The study was undertaken by Allen & Overy and Richards Butler, two major international law firms based in London and represents probably one of the most extensive studies ever undertaken into electronic commerce related legal issues.
The Rulebook is a multi-lateral contract that binds each User to every other user in relation to their use of the Bolero service. The purpose of this contract, which is at the core of the Core Messaging Platform (CMP) structure, is to ensure that every User agrees to be governed by a common set of rules enshrining the key elements of the Bolero service. For example, that Users agree, as between each other, that electronic communications will be treated as valid, that no User will deny that it sent a message bearing its digital signature and that messages so signed will bind the User (the company).
In addition, the Rulebook provides the legal rules that underpin the system for the ability to transact electronic Bills of Lading (Bolero Bills of Lading) through an application that mirrors the rights and obligations of those Users in relation to the international carriage of goods (Importers and Exporters, banks, carriers, forwarders and other intermediaries).
Bolero Collaboration Libraries
Bolero has taken the lead in delivering the full advantage of electronic commerce (including eUCP) by developing a comprehensive set of electronic trade documents, known as BoleroXML and based on the XML syntax. These BoleroXML documents are founded upon a common business model that is technology-independent. BoleroXML is a source standard for ebXML.
BoleroXML is a validated, global, cross-industry standards solution that allows all parties in a trade chain to interact seamlessly with each other by automating their information exchange, all within a secure environment.
Bolero has comprehensively mapped all the end-to-end flows related to each Trade Finance instrument (Export L/C, Import L/C, Guarantees, Documentary Collections) providing a rich structured BoleroXML data format for each business flow. These standards are partly ‘externalisations’ of interbank SWIFT messaging and other local standards, but extended to meet the full structured data requirements of both corporate and bank participants. The one-to-one relationship between a BoleroXML format and the related process substantially simplifies interoperability, automation, and validation.
The document standards related to a specific instrument (Export L/C for example) are aggregated into an Export L/C ‘Collaboration Library’. A Collaboration Library exists for each area of trade finance supported by the Bolero service. New Collaboration Libraries are added for new Bolero services.
The Collaboration Libraries are core to providing interoperability, external mapping into other formats and to the comprehensive validation of all documents sent over the Bolero channel.
In addition to the structured documents contained in the Bolero Collaboration Libraries, Bolero also supports a complete range of other structured and unstructured trade documents. Unstructured documents can be presented in any format, including all Microsoft, pdf, image and text formats.
Bolero also provides translation services that enable any-to-any translation of structured formats to both standard formats like DTA and SWIFT and user specific formats.
Title Registry
The Bolero Title Registry provides a repository and workflow for the creation and transfer of negotiable title documents. The Title Registry represents the world’s only implementation of a service enabling a fully electronic negotiable Bill of Lading.
The Title Registry is an application for recording and transferring the rights and obligations contained in a Bolero Bill of Lading.
The Bolero Bill of Lading possesses all the attributes of an electronic waybill but with all the benefits of control and pledging capability associated with paper Bills of Lading.
Full Functionality
The Title Registry and Bolero Bill of Lading provide a fully functional equivalent to the paper Bill of Lading. The Bolero Bill of Lading can be created, transferred, amended, and surrendered. In each case, only authorised companies can instruct the Title Registry to complete a transaction.
Enhanced Security Interest
While a paper Bill of Lading can be transferred to a bank for settlement of a Documentary Credit, it only provides appropriate security when the bill is endorsed to the bank. In the Title Registry, this security interest is enhanced through the addition of a Pledgee. A Pledgee is a party whose rights and obligations over the Bolero Bill of Lading are exercised only when the pledge is enforced.
Automatic Notifications
The Title Registry not only acts on instructions by authorised companies, but it also acknowledges the actions taken and automatically notifies affected parties. This enables operational controls to prevent sending the Bolero Bill of Lading to the wrong party, as well internal auditing of all activities.
Managing amendments
The Title Registry prevents all amendments, unless authorised by the originating carrier, thus eliminating the potential for fraudulently altered Bills of Lading. When the Title Registry receives an amendment request, it suspends all actions on the Bolero Bill of Lading until the carrier grants or denies the amendment. The Title Registry also supports combining, splitting and switching Bolero Bill of Ladings in addition to normal one-to-one amendments.
Endorsement chains
In the paper world, an endorsement chain includes all parties involved in the Bill of Lading. The Title Registry also maintains an endorsement chain for each Bolero Bill of Lading, reflecting the transfer of rights and obligations between parties. In addition, the Title Registry also maintains a timestamp of each endorsement in the endorsement chain so that a fully accurate record of the Bolero Bill of Lading is provided.
Reconciliation and Compliance Engine
Bolero includes a powerful and comprehensive document reconciliation and compliance engine that can be configured for both traditional and open account trade document matching requirements. The layered architecture allows rapid implementation of unique rule sets without altering the underlying infrastructure.
It is used as a fully automated compliance engine at the heart of the Bolero Supply Chain Finance Application as well as being the engine to support compliance checking and document pre-checking for documents presented under an Export LC.