Evolution of Standards – ISO 20022
International Seminar on
Adoption of ISO 20022 for RTGS
Stephen Lindsay – Head of Standards, SWIFT
30th December 2013
ISO and Standards
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About ISO (1/3)
• International Organization for Standardization
• Formed after World War II (in 1946)
– 65 delegates from 25 countries met in London to discuss
standardization
About the name:
Because 'International
Organization for
Standardization' would have
different acronyms in different
languages (IOS in English, OIN
in French for Organisation
internationale de normalisation),
our founders decided to give it
the short form ISO. ISO is
derived from the Greek isos,
meaning equal. Whatever the
country, whatever the language,
the short form of our name is
always ISO.
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About ISO (2/3)
• Federation of 164 National Standards Bodies (NSBs), e.g.:
– Bureau of Indian Standards (BIS/India)
– British Standards Institute (BSI/UK)
– American National Standards Institute (ANSI/US)
• Formal liaison with 700 international/regional organisations,
such as UN, WTO, WCO, OECD, BIS, WB, ICC, CE, EC
• 150 staff based in Geneva and 50,000 volunteers from NSBs
and liaison organisations involved in 730 committees
(agriculture, industry, health, services, etc.)
• 19,500 international standards, 65 with a Registration Authority
(RA)
• TC68 – Financial Services: 31 NSBs, 51 standards (9 with an
RA), 13 liaison organisations (ANNA, UN/CEFACT, ECB, EPC,
Clearstream, Euroclear, FIX, ISDA, ISITC, SWIFT, Mastercard,
Visa, ITU)
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About ISO (3/3)
National Standards Bodies (BIS, BSI, ANSI, AFNOR, DIN, UNI, etc)
163 Countries
General Assembly
Central Secretariat
Council
Technical Management Board (TMB)
224 Technical
Committees
513
Subcommittees
2,516
Working Groups
TC
SC 4
Securities
SC 2
Security
WG
TC 68
Financial
Services
TC
WG
WG
WG WG WG
TC
SC 7
Banking
WG
WG
WG
WG4 & 5
ISO 20022
WG 6
LEI
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Some key ISO standards managed by TC68
and its subcommittees SC4 & SC7
TC/SC Standard
Description
RA
SC4
ISO 15022
Securities Messages
SWIFT
TC68
ISO 20022
Universal Financial Messages
SWIFT
TC68
ISO 17442
Legal Entity Identifier (LEI)
-
SC4
ISO 6166
International Securities Identification
Number (ISIN)
ANNA
SC7
ISO 9362
Business Identifier Code (BIC)
SWIFT
SC7
ISO 13616
International Bank Account Number (IBAN)
SWIFT
SC4
ISO 10383
Market Identifier Code (MIC)
SWIFT
SC7
ISO 8583
Financial cards
-
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SWIFT & ISO Messaging Standards
Timeline
Proprietary
MT
ISO 7775
• 1973 • 1984 – 1997
• Payments,
• Securities only
Cash, Treasury
& Trade
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ISO 15022
• 1999 • Securities only
ISO 20022
• 2004 • All markets
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About ISO 20022
• Grew out of ISO 15022:
– Notion of re-usable components (financial dictionary)
– Broader scope (all financial services)
– Syntax independent
– Extensible
• Methodology
– A ‘recipe’ for making financial messaging standards
– Latest version ISO 20022:2013
• Content
– Business Model
– Collection of message definitions
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The ISO 20022 Methodology
• Published in 8 parts by ISO
• Implemented by Registration Authority
The methodology distinguishes 3 layers:
Business / Conceptual
• Defines financial concepts, e.g., ‘Credit
Transfer’
Logical
• Defines e.g. credit transfer messages, to
serve the business process
Physical
• Defines physical syntax, e.g. XML
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Methodology - Business / Conceptual Layer
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Methodology - Logical Layer
Elements in the
Logical Layer refer to
the Business /
Conceptual layer for
their definitions
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Methodology - Physical Layer
XML
– The commonest syntax
for ISO 20022 but not
the only one
– Defined by an XML
Schema (XSD)
– Easy to integrate in
modern IT
environments
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Content – www.iso20022.org (1/2)
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Content – www.iso20022.org (2/2)
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ISO 20022 Governance
• Technical Committee 68 (TC68) [Conv.: K. McKenna]
– Registration Management Group (RMG) [Conv.: J. Whittle]
•
•
•
•
Submitters of new messages and maintenance requests
Registration Authority (RA)
Technical Support Group (TSG)
Standards Evaluation Groups (SEGs)
–
–
–
–
–
Payments
Securities
Cards
FX
Trade Services
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How to become a member of the RMG,
SEGs or TSG?
• RMG members are nominated by participating member*
countries and category ‘A' liaison organizations of ISO TC68 or
one of its subcommittees.
• SEG and TSG members are nominated by participating and
observer member countries or any category of liaison
organization of ISO TC68 or one of its subcommittees.
Nominations must be addressed to the ISO TC68 secretariat by
the national standards body of the country or by the liaison
organization that the member represents.
* India/BIS is a participating member in TC68.
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For more information see the TC68 Homepage
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ISO 20022 Adoption
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ISO 20022 Adoption – Payments MI & initiatives
From discussion to implementation
CPA, CA
Live
DK
CPA, CA
SEPA,EU
Live
UK
CH
US – retail
division of
FRB
US
CO
Live
IPFA
BOJNet,
JP
CNAPS2,
CN
PL
US
PE
Zengin,
JP
T2, EU
IN
BN
PG
SG
BR
SADC
CL
AU
ZA
Live
Lowvalue
Hybrid
Highvalue
NZ
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Status overview – Payments MI
Status
Planned live date
EU-SEPA
(33 countries)
Live
Live – end date 2014 (eurocountries)
IPFA
Live
Since 2010
IN - RTGS
Roll-out
2013
SADC
Planned
2014
JP-BOJNet
Roll-out
2015
ZA
Planned
2015
CH
Roll-out
2015-2018
AU-LVP
Planned
2017
T2
Committed
2017
CA-all payment systems
Roll-out
2020
CNAPS2
Under discussion
TBD
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ISO 20022 in the corporate-to-bank space
More than
60 banks
receiving
payment initiation
messages
(over SWIFT)
Around
70 members
(corporates and
banks)
defining
common global
implementation
guidelines
ISO 20022 Adoption ‘mApp’ for iPad
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Why adopt ISO 20022?
a global standard to meet local needs
ISO 20022 allows for more flexibility than MT to cater for
local/specific needs:
• Implementation guidelines
formal way to express market practice
• Extensions
• Right tools and services available to manage flexibility
ISO 20022 Awareness Training Live Meeting V01
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Who (and what) is driving ISO 20022
adoption?
• New initiatives
– Market infrastructures
– Global harmonization & regulation (e.g. SEPA in Europe)
– Automation in specific markets
(e.g. the ‘investment funds’ market)
• New players
– Corporates, fund managers
• New technology
– XML, SOA, web services
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How to adopt ISO 20022?
Managing diverging local implementations
• IsA risk
a risk
– but
still better
- Coordination
that can
be mitigated
by a coordinated
approach:
through working
• Collaboration and best practice sharing in working
group
defining
HVP
groups (e.g.
HVP implementation
guidelines)
implementation
• Services to help communities
migrate and
guidelines
implement (roadmap/creation of guidelines/mapping/etc)
- Best practice sharing
• Tools to facilitate sharing and harmonization
- Tools allow to harmonize MyStandards
- Mitigate risks
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Case Study: SEPA (1/2)
• Goal
– A single ‘domestic market’ for retail euro payments
– 33 countries – not all part of euro area or EU
– Principal instruments: Credit Transfer and Direct Debits
• Replace country-specific retail payment schemes
• Replace domestic standards with ISO 20022
– Bank-to-Bank
– Corporate-to-Bank
• Bank-to-bank, cross-border: live 2008
• Corporate-to-bank, domestic: end-date Feb 2014
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Case Study: SEPA (2/2)
• First major implementation of ISO 20022
• First phase successful, subsequent phases still ongoing
• Lessons learned:
– Importance of clear governance and ownership
– Need to involve all stakeholders
– Communication – clear and consistent messages
– Consider impact on legacy systems
– Clear market practice – formally defined
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SWIFT’s role(s) in ISO 20022
• Inventor of ISO 20022
• Principal submitter (80%+ of content submitted by SWIFT
Standards)
• Registration Authority
• Members of:
– TC68, SC2, SC4, SC7
– RMG
– SEGs
– TSG
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SWIFT’s ISO 20022-related services
•
•
•
•
Consulting services for submitters
Adoption and implementation consulting
Standards tools and technology (MyStandards)
Network provider:
– Connectivity
– Value-added services
•
•
•
•
Integration
Testing
Validation
Copy services
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Any Questions?
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Thank you
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Backup (Securities Adoption)
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ISO 20022 Adoption – Securities MI & Treasury MI –
From discussion to implementation
Live
Live
Live
CSD, EE
T2S, EU
NSD, RU
CSD, PL
Euroclear
CSD, LT
VP Sec
DK
DTCC, US
VP Lux
JASDEC, JP
[Post-trade]
CSD, LI
CN
Clearstream
Live
JASDEC &
TSE, JP
[Corp.Act]
VN
SGX, SG
Live
BN
ANBIMA, BR
CLS
ASX, AU
BR, CSD
Securities MI
Treasury MI
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Status overview – Securities & Treasury MI
Status
Planned live
date
FR-Euroclear / Funds
Live
Clearstream/Funds
Live
US- DTCC/Corporate Actions
Live
BR-Anbima
Live
AU- ASX-Corporate Actions
Roll-out
End 2013
JP- JASDEC – Post-Trade
Services
Roll-out
2014
JP –JASDEC + TSE –
Corp. Actions
Roll-out
2014
CLS
Roll-out
2014
T2S
Roll-out
2015
SG- SGX/Corporate Actions
Under discussion
TBD
BR – BM&FBOVESPA
Committed
TBD
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ISO 20022 Adoption – Funds (live traffic Jan-Oct 2012)
SE
FI
NO
GB
NL
IE
BE
US
ES
EE
DE
LU
CH
FR
KR
GR
IT
HK
TW
BM
SG
AU
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