UNIFI (ISO 20022)
Introduction to ISO 20022 –
UNIversal Financial Industry
message scheme
UNIFI (ISO 20022)
UNIFI_(ISO_20022)_v32
Slide 1
Agenda
 UNIFI (ISO 20022):
– value proposition
– the standard
– the actors
– the registration process
– the Repository
 UNIFI registration platform
 Cross industry harmonisation
 Interoperability within the financial industry
Q&A
UNIFI_(ISO_20022)_v32
Slide 2
The UNIFI value proposition (1/5)
Objective
To enable communication interoperability
between financial institutions, their market
infrastructures and their end-user communities
Major obstacle
Numerous overlapping standardisation initiatives
looking at XML financial messages:
MDDL, FIX, FinXML, VRXML, RIXML, XBRL, FpML, IFX, TWIST,
SWIFT, RosettaNet, OAGi, ACORD, CIDX, etc.
UNIFI_(ISO_20022)_v32
Slide 3
The UNIFI value proposition (2/5)
Proposed solution
A single standardisation approach (methodology,
process, repository) to be used by all financial
standards initiatives
UNIFI (ISO 20022)
UNIFI_(ISO_20022)_v32
Slide 4
The UNIFI value proposition (3/5)
Convergence into ONE standard is the long term
objective….
…but in the interim several standards need to
coexist to enable quick response to competitive
pressures and regulatory demands
UNIFI_(ISO_20022)_v32
Source: John Mersberg, IBM Corporation
Slide 5
The UNIFI value proposition (4/5)
Growth adds exponential complexity and expense…
EDIFACT
IFX
OAGi
TWIST
UNIFI_(ISO_20022)_v32
RosettaNet
Without common building
blocks:
• Point-to-point connection
SWIFT
• Data is mapped directly from
one application to another
Proprietary • Costly, unscalable and
difficult to implement and
format
maintain
• Process, routing, rules logic
needs to be coded to specific
message types
42 interfaces = n * (n-1)
Source: John Mersberg, IBM Corporation
Slide 6
The UNIFI value proposition (5/5)
Standardised implementation reduces cost, time to effect change
and improves overall performance…
EDIFACT
RosettaNet
IFX
OAGi
Canonical
Message Model
(i.e. ISO 20022)
TWIST
Canonical message model =
SWIFT
• True process integration
• Reduced brittleness, faster to
Proprietary respond to change
• Shared message services –
format
single/shared parser, message
independent rules engine, etc.
• Unified monitoring / audit trail
14 interfaces = n * 2
UNIFI aims at long term convergence,
while facilitating short term coexistence…
UNIFI_(ISO_20022)_v32
Source: John Mersberg, IBM Corporation
Slide 7
UNIFI - Illustrating business modelling
All institutions have
their own sets of
data objects
ISO standardises common
data objects…
…and groups them into ‘syntaxneutral’ message models, which...
… can be ‘transformed’ in
message formats in the
desired syntax
ISO 15022
EDIFACT
XML
UNIFI_(ISO_20022)_v32
FIX
Slide 8
The UNIFI recipe – Major ingredients (1/2):

Modelling-based standards development
- Syntax-independent business standard
- Validated by the industry

Syntax-specific design rules for XML
- Predictable and ‘automatable’
- Protect standard from technology evolution

Reverse engineering approach
- Protect industry investment and ease interoperability
- Prepare for future migration
UNIFI_(ISO_20022)_v32
Slide 9
The UNIFI recipe – Major ingredients (2/2):

Development / registration process
- Clearly identified activities and roles
- Business experts and future users involved upfront

Repository on the ISO 20022 website
- Business Process Catalogue & Data Dictionary
- Outside of official standard (maintained by
registration bodies)
www.iso20022.org
UNIFI_(ISO_20022)_v32
Slide 10
UNIFI – The five parts of ISO 20022
Part 1:
International Standard: Overall methodology and format
specifications for inputs to and outputs from the ISO 20022
Repository
Part 2:
International Standard: Roles and responsibilities of the
registration bodies
Part 3:
Technical Specification: ISO 20022 modelling guidelines
Part 4:
Technical Specification : ISO 20022 XML design rules
Part 5:
Technical Specification: ISO 20022 reverse engineering
Copies can be obtained from www.iso.org
UNIFI_(ISO_20022)_v32
Slide 11
UNIFI – The actors (1/2)
Submitting organisations
Communities of users or organisations that want to
develop UNIFI compliant messages to support their
financial transactions
Could be
ACBI
Clearstream
CLS
EPAS
Euroclear
FIX
FpML
IFX
ISITC
ISTH
MDDL
OAGI
Omgeo
SWIFT
TWIST
TBG5
Etc.
Reasons
Creation of a new set of UNIFI messages to support a
specific transaction
Update of existing UNIFI message sets to accommodate
the evolution of the business
UNIFI_(ISO_20022)_v32
Slide 12
UNIFI – The actors (2/2)
 Registration Management Group, RMG
–
–
–
Overall governance / court of appeal
Approve business justifications for new standards
Create Standards Evaluation Groups (SEGs)
 Standards Evaluation Groups, SEGs
–
–
Represent future users of specific financial areas
Validate message standards
 Registration Authority, RA
–
–
Ensure compliance
Maintain and publish UNIFI Repository
 Technical Support Group, TSG (to be created)
–
Assist RMG, SEGs, RA and submitting organisations
UNIFI_(ISO_20022)_v32
Slide 13
UNIFI - The registration process (1/3)
R
M
G
Submitter
Financial industry group or standards body
Business
justification
Business justification
RMG
m
o
n
i
t
o
r
s
SEG
Submitter
& RA
SEG
RA
Submitter
& users
Project approval & allocation to a SEG
Endorsement of scope and developers
Development & provisional registration
Business validation
Official registration
and publication
Optional pilot testing
or first implementers
Repository
Dictionary
Catalogue
www.iso20022.org
UNIFI_(ISO_20022)_v32
Slide 14
UNIFI - The registration process (2/3)
R
M
G
Submitter
Financial industry group or standards body
Business
justification
Business justification
RMG
m
o
n
i
t
o
r
s
SEG
Submitter
& RA
SEG
RA
Submitter
& users
Project approval & allocation to a SEG
Endorsement of scope and developers
Candidate UNIFI messages
Development & provisional registration
Business validation
UNIFI messages
Official registration
and publication
Optional pilot testing
or first implementers
Repository
Dictionary
Catalogue
www.iso20022.org
UNIFI_(ISO_20022)_v32
Slide 15
UNIFI - The registration process (3/3)

UNIFI
Registration
Management Group
Business
justification
UNIFI
Standards
Evaluation Groups
UNIFI
Registration
Authority
ISTH
Omgeo
UNIFI Financial
Repository
Data
Dictionary

Business
Process
Catalogue
UNIFI
messages

Securities
Business
models
CLS
SWIFT

UNIFI
Users
Payments
Candidate
UNIFI
messages
Euroclear
Trade Services
ISITC
ACBI
www.iso20022.org
Forex
UNIFI_(ISO_20022)_v32
Slide 16
UNIFI – The Financial Repository
Data Dictionary
- Business Concepts
- Message Concepts
- Data Types
Business Process Catalogue
- Financial business process models
- Financial business transactions, including messages
- XML message schemas
www.iso20022.org
UNIFI_(ISO_20022)_v32
Slide 17
Continuing with today’s agenda
UNIFI (ISO 20022)
UNIFI registration platform
UNIFI_(ISO_20022)_v32
Slide 18
UNIFI - The deployment

Approval of the international standard 

Selection of the Registration Authority 

Set-up of www.iso20022.org

Creation of Registration Management Group 

Creation of the first Standards Evaluation Groups 

Registration and publication of first ‘UNIFI messages’ 

Ongoing: promotion to developers (standardisers, industry bodies)
and users (vendors, end-users)
UNIFI_(ISO_20022)_v32
Slide 19
UNIFI – How does it fit into the ISO
structure?
ISO Technical Committee TC68
Financial Services
SC2
SC4
SC7
Security
Securities
Banking
RMG members nominated by
P-member countries and Aliaison organisations
TSG & SEG members
nominated by all member
countries and liaison
organisations
UNIFI_(ISO_20022)_v32
UNIFI
RMG
WG4
UNIFI Review
TSG
SEG
Securities
SEG
Payments
RA
SEG
Trade Services
SEG
FX
Slide 20
UNIFI – Registration Management Group
 Members - 50 senior managers from:
– 18 countries: AT, AU, CA, CH, DE, DK, FI, FR, GB, IT, JP,
KR, LU, NL, NO, SE, US, ZA.
– 9 liaison organisations: Clearstream, Euroclear, FPL,
FpML, ISITC, SWIFT, TWIST, UN/CEFACT/TBG5, VISA.
 Convener: Gerard Hartsink, ABN Amro (NL); Vice-convener:
Bob Blair, JPMorgan Chase (US); Secretary: Cynthia Fuller,
X9 (US)
 Meetings: twice a year
 Key decisions:
– Creation of Payments and Securities SEGs in 2005
– Creation of Trade Services and Forex SEGs in 2006
– Approval of 26 projects (Business Justifications)
UNIFI_(ISO_20022)_v32
Slide 21
UNIFI – The Payments SEG (1/3)
 Members – 39 experts
– 13 countries: AT, AU, CH, DE, DK, FI, FR, GB, NL, NO,
SE, US, ZA
– 5 liaison organisations: Euroclear, IFX, SWIFT, TWIST,
UN/CEFACT/TBG5
 Convener: Len Schwartz, ABN Amro (NL); Vice-convener:
Bob Blair, JP Morgan Chase (US); Secretary: Deb
Hjortland, FRB (US)
 Kick-off meeting: in June 2005
 Approved: C2B payment initiation (SWIFT/ISTH), Interbank
credit transfers and direct debits (SWIFT), Exceptions and
investigations (SWIFT), B2C advice & statement
(ISTH/ISITC)
 Next: Change/Verify Account Identification (GUF), Cash
management (SWIFT)
UNIFI_(ISO_20022)_v32
Slide 22
UNIFI – The Payments SEG (2/3)
covering instruments such as:
Credit
transfer
s
Payments
covering actors such as:
Cheque
s
Direct
debits
Debit &
credit
cards
Private &
corporate
customers
Payment
‘factories’
UNIFI_(ISO_20022)_v32
Financial
institution
s
Clearing
houses &
RTG
systems
Central
banks
Slide 23
UNIFI – The Payments SEG (3/3)
including business areas such as:
Clearing & settlement
Payment initiation
Retail /
commercial
payments,
communications
between the
ordering
customer and its
bank, etc.
Payments
Cash management between various actors:
Account
opening,
standing orders,
transaction and
account
information,
advices &
statements from
…
UNIFI_(ISO_20022)_v32
Interbank
transfers via
correspondent
banking or
ACHs, high
value payments,
low value bulk
payments,
RTGS, etc.
...the account
servicing
institutions to
account
owners,
including
reporting from
the financial
institution…
…to the
ordering &
beneficiary
customers,
reconciliation,
exceptions &
investigations
handling.
Slide 24
UNIFI – The Securities SEG (1/3)
 Members – 54 experts
– 16 countries: AU, CA, CH, DE, DK, FI, FR, GB, JP, LU, NL, NO, SE,
TR, US, ZA
– 7 liaison organisations: Clearstream, Euroclear, ISDA/FpML, ISITC,
FISD/MDDL, FPL, SWIFT
 Convener: Karla McKenna, Citigroup (US); Vice-convener: Didier
Hermans, Euroclear; Secretary: Dana Brants, SWIFT
 Kick-off meeting: in June 2005
 Approved: Investment funds (SWIFT), Transaction regulatory reporting
(SWIFT), Proxy voting (SWIFT)
 Under evaluation: Pre-trade/trade (SWIFT)
 Next: Total portfolio valuation statement (ISITC), Issuer’s agents
communication for CA (Euroclear), Post-trade (Omgeo), Registration &
holder identification (Euroclear), Market claims & automatic
transformations (Euroclear), Corporate actions (SWIFT), Settlement &
reconciliation (SWIFT), Securities issuance (Euroclear), Triparty
collateral management (SWIFT), Fund processing passport report
(SWIFT)
UNIFI_(ISO_20022)_v32
Slide 25
UNIFI – The Securities SEG (2/3)
covering instruments such as:
Securities
covering actors such as:
Equities
Fixed
income
Funds
Derivatives
UNIFI_(ISO_20022)_v32
Investment
managers,
distributors,
transfer
agents, fund
administrator
s
Market
Data
Providers
Stock
exchanges
, ETC
providers
Service
bureaux
Broker /
dealers
Custodians
Regulators
CSDs,
ICSDs
Clearing
houses,
CCPs
Slide 26
UNIFI – The Securities SEG (3/3)
including business areas such as:
Clearing
&
settlemen
t
Initiation
, pretrade
Securities
Custody
Income,
corporate
actions,
market data,
proxy voting
Securities management
Account
opening,
standing orders,
transaction and
account
information,
advices &
statements,
queries &
investigations
UNIFI_(ISO_20022)_v32
Trade,
posttrade
Collateral management
Collateral,
repos,
securities
lending &
borrowing
Slide 27
Looking at the advantages UNIFI (ISO 20022)
brings over ISO 15022
UNIFI (ISO 20022):

Builds on the ISO 15022 data dictionary concept and registration
infrastructure, but strengthens the monitoring by the industry

Uses a more robust, syntax independent development
methodology based on UML modelling of business processes
and transactions

Uses XML as the syntax for the actual physical messages

Has a wider scope than ISO 15022, which is only for securities
messages

Is in line with directions taken by other industries (UN/CEFACT)
Syntax independent business modelling
is key to the UNIFI (ISO 20022) standard !
UNIFI_(ISO_20022)_v32
Slide 28
UNIFI – The FX SEG (1/3)
 Members – 26 experts
– 11 countries: AU, CA, CH, DE, FR, GB, NL, NO, SE, TR,
US
– 3 liaison organisations: FPL, ISITC, SWIFT
 Convener: Ludy Limburg, ABN Amro (NL); Vice-convener:
Tony Smith, JP Morgan Chase (UK); Secretary: Joshua
Derrick, SWIFT
 Kick-off meeting: in September 2006
 Approved: Forex notifications (CLS)
UNIFI_(ISO_20022)_v32
Slide 29
UNIFI – The FX SEG (2/3)
covering instruments such as:
Foreign eXchange
covering actors such as:
Spot
Swaps
Forward
Investment
managers
Currenc
y
Options
Custodians
Dealers
Money
brokers
UNIFI_(ISO_20022)_v32
Hedge
funds
Trading
portals,
matching
services
providers
CLS and
CLS
settlement
members
Applicatio
n
providers
Industry
association
s (ISDA)
Slide 30
UNIFI – The FX SEG (3/3)
including business areas such as:
Pretrade:
IOI,
quotes,
etc.
Trade:
order,
execution,
allocation,
affirmation
, etc.
Foreign eXchange
Notification
of trades to
third parties
UNIFI_(ISO_20022)_v32
Trigger
events,
option
exercises
Post-trade:
confirmation,
matching,
assignment,
novation, etc.
Clearing and
Settlement,
including
netting and
related
reporting
Slide 31
UNIFI – The Trade Services SEG (1/3)
 Members – 23 experts
– 12 countries: AU, CH, DE, DK, FI, FR, GB, IS, IT, NL,
US, ZA
– 2 liaison organisations: ISITC, SWIFT
 Convener: Katja Lehr, IFSA (US); Vice-convener:
Dominique Pierre Barthares, BNP Paribas (FR); Secretary:
Jim Wills, SWIFT
 Kick-off meeting: in September 2006
 Approved: Invoice Financing Request (ACBI), Trade
Services Management (SWIFT)
 Next: e-Invoice (UN/CEFACT/TBG5)
UNIFI_(ISO_20022)_v32
Slide 32
UNIFI – The Trade Services SEG (2/3)
covering products…
Trade Services
Collection
…and services such as:
Documentar
y credit
Letter of
credit
Open
Account
Trading
Guarante
e
UNIFI_(ISO_20022)_v32
Reconciliation
(A/R, A/P),
remittance data
EBPP
e-Invoicing,
EBPP
Purchase
order,
transport
documents
Pre/postshipment
financing
& factoring
Invoice
financing
Slide 33
UNIFI – The Trade Services SEG (3/3)
including actors such as:
Private and
corporate
customers
(treasurers
)
Financial
Institutions
Trade Services
Risk
managemen
t entities
UNIFI_(ISO_20022)_v32
Application
providers
Associations
providing rules
and master
agreements
(eg IFSA, ICC)
Trade facilitators:
chambers of
commerce,
insurance co, freight
forwarders, carriers,
customs, factoring
co
Slide 34
Continuing with today’s agenda
UNIFI (ISO 20022)
Cross-industry harmonisation
UNIFI_(ISO_20022)_v32
Slide 35
Harmonising across all industries
with UN/CEFACT
United Nations/CEFACT –
Centre for trade facilitation and e-business

Created in 1997 to improve world-wide co-ordination
of trade facilitation across all industries

Focusing on international standards for electronic
transactions (e.g., ebXML venture with OASIS)

Promoting technology neutral business modelling and
a central repository of core components
Ultimate goal is that UNIFI provides the financial portion
of the UN/CEFACT repository
UNIFI_(ISO_20022)_v32
Slide 36
Harmonisation between ISO and
UN/CEFACT
 2004:
– TC68, TBG5 and SWIFT sign a cooperation agreement to
investigate alignment in line with the objectives of the ‘MoU
on e-Business’
– A workplan is agreed between the signatories
 2005:
– Recommendation for alignment of methodologies
– Trial submission from UNIFI to UN/CEFACT
 2006:
– WG4 takes over technological alignment
 2007:
– First official submission from UNIFI to UN/CEFACT
 2008:
– Customer-to-bank payment components harmonised and
accepted in UN/CEFACT core component library
UNIFI_(ISO_20022)_v32
Slide 37
Long term convergence goal
A single ISO-UN/CEFACT approach
UNIFI
Registration
Management Group
UNIFI
Standards
Evaluation Groups
UNIFI
Registration
Authority
UN / CEFACT
(All Industries)
UNIFI
Users
ISTH
Omgeo
UN/CEFACT Registry/
Repository
UNIFI Financial
Repository
Securities
Business
Requests
Core
Components
Data
Dictionary
TBG17
Harmonisation
Common
Business
Processes
Business
Process
Catalogue
CLS
SWIFT
Payments
Euroclear
Message
Models
Trade Services
ISITC
ACBI
www.iso20022.org
Forex
UNIFI_(ISO_20022)_v32
Slide 38
Continuing with today’s agenda
UNIFI (ISO 20022)
Interoperability within
the financial industry - securities
UNIFI_(ISO_20022)_v32
Slide 39
Two overlapping standards to support the
end-to-end transaction
FIX
Trade
FIX
Messages





Indication
Quotation
Order
Execution
(Pre-)Allocation
Confirmation
Settlement
Reconciliation

UNIFI_(ISO_20022)_v32
ISO 15022
ISO 15022






Slide 40
Working towards co-existence and
convergence
Ordering
Party
Trade
Counterparty
Executing
Party
Trade
Counterparty
Order
(FIX)
Execution
(FIX)
UNIFI_(ISO_20022)_v32
Ordering
Party
Order
(ISO 15022)
Order
(FIX)
Order
(ISO 15022)
Execution
(FIX)
Execution
(ISO 15022)
Execution
(ISO 15022)
Slide 41
Working towards co-existence and
convergence
FIX
ISO 15022
UNIFI
Order
New
Order single
MT 502
Single
Order
Execution
Execution
Report
MT 513
Single
Execution
UNIFI_(ISO_20022)_v32
Slide 42
Working towards co-existence and
convergence
EXECUTION
ORDER
FIX
UNIFI
Order to buy/sell
54=1
Security
22 = 4; 48 = <ISIN> ISIN/<ISIN>
:35B::<ISIN>
Quantity
38 = 1000
OrderQuantity3/Quantity
:36B::ORDR//UNIT/1000
Limit price
44 = 112; 40 = 2
Order3/OrderPrice/Price1
:90B::LIMI//ACTU/USD112
Expiry date
432 = YYYYMMDD
OrderExpiryDate
:98A::EXPI//YYYYMMDD
Account USD
1 = myAccount
AccountIdentification
:97A::CASH//myAccount
Executed quantity
32 = 750
ExecutedTradeQuantity
:36B::CONF//UNIT/750
Executed price
31 = 110; 15 = USD ExecutedTradePrice
:90B::DEAL//ACTU/USD110
Execution date
75 = YYYYMMDD
TradeDate
:98A::TRAD//YYYYMMDD
Settlement date
64 = YYYYMMDD
SecuritiesSettlement1/Date
:98A::SETT//YYYYMMDD
UNIFI_(ISO_20022)_v32
Side/BUYI
ISO 15022
:22F::BUSE//BUYI
Slide 43
Working towards co-existence and
convergence
Ordering
Party
Trade
Executing
Trade
Ordering
Counterparty
Party
Counterparty
Party
Order
Order
Order
Order
(FIX)
(ISO 15022)
(FIX)
(ISO 15022)
Execution
(FIX)
Execution
(FIX)
Execution
(ISO 15022)
Execution
(ISO 15022)
Order
(FIX)
Order
(FIX)
Order
(UNIFI)
Order
(UNIFI)
Execution
(FIX)
Execution
(FIX)
Execution
(UNIFI)
Execution
(UNIFI)
UNIFI_(ISO_20022)_v32
Slide 44
Continuing with today’s agenda
UNIFI (ISO 20022)
Interoperability within
the financial industry - payments
UNIFI_(ISO_20022)_v32
Slide 45
Working towards interoperability and
convergence
Bank A
IFX format
Proprietary format
Bank B
Customer A
SWIFT
MT 101
Bank C
Let us look at one concrete example from payments area:
a customer may need to adapt to the format of the banks…
UNIFI_(ISO_20022)_v32
Slide 46
Working towards interoperability and
convergence
Customer A
IFX format
Proprietary format
Bank A
Customer B
SWIFT
MT 101
Customer C
…or banks may need to accept many formats…
UNIFI_(ISO_20022)_v32
Slide 47
Working towards interoperability and
convergence
Proprietary
TWIST
UNIFI
Core Payment
Kernel model
SWIFT MT
OAGi
IFX
The reverse engineering produces a canonical UNIFI message
model and ‘convergence tables’
UNIFI_(ISO_20022)_v32
Slide 48
Working towards interoperability and
convergence
Core
Payment
Kernel
IFX
IFX
Core
Payment
Kernel
Adopting UNIFI facilitates convergence and co-existence
UNIFI_(ISO_20022)_v32
Slide 49
www.iso20022.org
uestions
&A
nswers
iso20022ra@iso20022.org
UNIFI_(ISO_20022)_v32
Slide 50