Scripted_ISO_20022_ppt_long_version_v67

8/7/2019 Scripted_ISO_20022_ppt_long_version_v67

1/52

Slide 1

Introduction to ISO 20022 Universal financial industrymessage scheme

ISO_20022_LV_v67

ISO 20022


2/52

Slide 2

Agenda

ISO 20022:

Value proposition

The standard

The actors The registration process

The Repository

ISO 20022 registration platform

Cross industry harmonisation

Interoperability within the financial industry

Q&A

ISO_20022_LV_v67


3/52

Slide 3

The ISO 20022 value proposition (1/5)

Objective

To enable communication interoperabilitybetween financial institutions , their market

infrastructures and their end-user communities

ISO_20022_LV_v67

Major obstacle

Numerous overlapping standardization initiativeslooking at XML financial messages:

MDDL, FIX, FinXML, VRXML, RIXML, XBRL, FpML, IFX, TWIST,

SWIFT, RosettaNet, EPC, OAGi, ACORD, CIDX, etc.


4/52

Slide 4ISO_20022_LV_v67


Proposed solution

A single standardisation approach (methodology,

process, repository) to be used by all financialstandards initiatives

ISO 20022


5/52



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


6/52


7/52


8/52


9/52

Slide 9

The ISO 20022 recipeMain 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

ISO_20022_LV_v67


10/52

Slide 10

The ISO 20022 recipeMain ingredients (2/2):

ISO_20022_LV_v67

Development / registration process

Clearly identified activities and roles

Business experts and future users involved upfront

Technical experts involved when required

Repository on the ISO 20022 website

Business Process Catalogue & Data Dictionary

Outside of official standard (maintained by registrationbodies)

www.iso20022.org


11/52

Slide 11

The six parts of ISO 20022

PART 1: International Standard: Overall methodology and format

specifications for inputs to and outputs for 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

PART 6: International Standard: Message transport characteristics

ISO_20022_LV_v67

Copies can be obtained from www.iso.org


12/52


13/52


ISO 20022: The actors (2/2)

Registration Management Group, RMG

Overall governance, court of appeal

Approve business justifications for new standards

Create Standard Evaluation Groups (SEGs)

Standards Evaluation Groups, SEGs

Represent future users in specific financial areas

Validate candidate message standards

Registration Authority, RA

Ensure compliance

Maintain and publish ISO 20022 Repository

Technical Support Group, TSG

Assist RMG, SEGs, RA and submitting organisations


14/52


ISO 20022The registration process (1/3)

Submitting

organisationFinancial industry group or standards body

Business

justificationBusiness justification

RMG Project approval & allocation to a SEG

SEGBusiness validation

RAOfficial registrationand publication

Repository

Dictionary

CatalogueOptional pilot testing

or first implementers

www.iso20022.org

R

M

G

m

o

n

i

to

r

sSubmitting

organisation

& users

Submitting

organisation& RA

Development & provisional registration


15/52


16/52

Slide 16

Users CRs Users introduce Change Requests to the RA

Submitting

organisation

Submitting organisation prepares Maintenance

Change Request with each CR implementation

SEGSEG screens Change Requests (CRs)

SEGSEG approval/rejection

Submitting

organisation

& RA

Development of new versions

SEGValidation of new versions

RARegistration and publication Repository

Dictionary

Catalogue

By June 1

By July 7

By August 21

By October 1

By December 1

By February 1

April-May

Timing

ISO 20022 registration process (3/3)Yearly maintenance process

First implementers

ISO_20022_LV_v67

Submitting

organisation& users


17/52

Slide 17

ISO 20022 - The Financial Repository

DataDictionary

Business Concepts

Message Concepts Data Types

Business Process Catalogue

Financial business process modelsFinancial business process models

Financial business transactions, including messagesFinancial business transactions, including messages

XML message schemasXML message schemas

ISO_20022_LV_v67

www.iso20022.org


18/52


19/52

Slide 19

ISO 20022 - The Deployment

Approval of the international standard

Selection of the Registration Authority

Set-up of the www.iso20022.org

Creation of Registration Management Group

Creation of the first Standards Evaluation Groups

Registration and publication of first ISO 20022 messages

ISO_20022_LV_v67

Ongoing: promotion to developers (standardizers, industry bodies)

and users (vendors, end-users)


20/52

Slide 20

ISO 20022How does it fit into the ISO structure?

ISO_20022_LV_v67

ISO Technical Committee TC68

Financial Services

ISO 20022

RMG

SEG

Payments

SEG

Securities

RA

SEG

FX

RMG members nominated by

P-membercountries and A-

liaison organisations

TSG & SEG members

nominated by all member

countries and liaison

organisations

SC7Banking

SC4Securities

SC2Security WG4

ISO 20022Review

SEGTrade Services

TSG

SEG

Cards


21/52


22/52


23/52


24/52


PaymentsPayments

Including business areas such as:

Communicationsbetween the

orderingcustomer and its

bank, etc.

Interbanktransfers via

correspondentbanking orACHs, high

value payments,low value bulkpayments,RTGS, etc.

Accountopening,standing orders,transaction and

accountinformation,advices &

statements from

Payment initiation

Clearing & settlement

...the accountservicinginstitutions to

accountowners,including

reporting fromthe financial

institution

to theordering &beneficiarycustomers,

reconciliation,exceptions &investigations

handling.

ISO 20022 The Payments SEG (3/3)

Cash Management between various actors:


25/52


26/52

Slide 26

ISO 20022 The Securities SEG (2/3)

ISO_20022_LV_v67

SecuritiesSecuritiesEquities

Covering instruments such as:

Funds

Fixedincome

Covering actors such as:

Investmentmanagers,distributors,

transferagents, fund

administrators

Broker /dealers

Regulators

Stockexchanges,

ETCproviders

Deriva-tives

Clearing

houses,CCPs

CSDs,ICSDs

Market

DataProviders

Custodians

Service

bureaux


27/52

Slide 27

ISO 20022 The Securities SEG (3/3)

ISO_20022_LV_v67


Accountopening,

standing orders,transaction andaccount

information,advices &

statements,queries &

investigations

Income,

corporateactions,market data,proxy votingCollateral,

repos,securitieslending &borrowing

Custody

Collateral management

TradeInitiation,

pre-trade

Trade,post-trade

Clearing&

settlement

SecuritiesSecurities

SecuritiesIssuance


28/52

Slide 28

Looking at the advantages ISO 20022brings over ISO 15022

ISO 20022: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 processesand transactions

Uses XML as the syntax for the actual physical messages

Has a wider scope than ISO 15022, which is only for securitiesmessages

Is in line with directions taken by other industries (UN/CEFACT)

ISO_20022_LV_v67

Syntax independent business modelling

is key to the ISO 20022 standard !


29/52

Slide 29

Members 29 experts

13 countries: AU, CA, CH, DE, FI, FR, GB, NL, NO,RU, TR, US, ZA

4 liaison organisations: FISD, FPL, ISITC, SWIFT

Convener: Ludy Limburg, ABN Amro (NL); Vice-convener: Tony Smith, JP Morgan Chase (UK);Secretary: vacant

Kick-off meeting: in September 2006

Approved: Forex notifications (CLS)

ISO_20022_LV_v67

ISO 20022 The FX SEG (1/3)


30/52

Slide 30


ISO_20022_LV_v67

Foreign eXchangeForeign eXchangeSpot

Covering instruments such as:

Forward

Swaps

Covering actors such as:

Investmentmanagers

Hedgefunds

Dealers

Custodians

CLS andCLS

settlementmembers

CurrencyOptions

Industry

associations(ISDA)

Applicationproviders

Money

brokers

Tradingportals,

matchingservicesproviders


31/52




Clearing andSettlement,

includingnetting and

relatedreporting

Post-trade:

confirmation,

matching,assignment,

novation, etc.

Notificationof trades tothird parties

Pre-trade:

IOI,

quotes,etc.

Triggerevents,option

exercises

Trade:

order,execution,allocation,affirmation,

etc.

Foreign eXchangeForeign eXchange


32/52

Slide 32

Members 29 experts

14 countries: AU, CA, CH, DE, DK, FI, FR, GB, IS, IT,JP, NL, US, ZA

2 liaison organisations: ISIT

C, SW

IFT

Convener: Tapani Turunen, Tieto (FI) Vice-convener:Peter Potgieser, ABN Amro (NL); Secretary: Jim Wills,SWIFT

Kick-off meeting: in September 2006

Approved: Invoice Financing Request (CBI Consortium),Trade Services Management (SWIFT), Financial Invoice(UN/CEFACTTBG5)

ISO_20022_LV_v67

ISO 20022The Trade Services SEG (1/3)


33/52


34/52

Slide 34

ISO 20022The Trade Services SEG (3/3)

ISO_20022_LV_v67

Including actors such as:

Trade facilitators:chambers of

commerce, insuranceco, freight forwarders,

carriers, customs,factoring co

Associationsproviding rules

and masteragreements

(eg IFSA, ICC)

Private andcorporatecustomers

(treasurers)

Applicationproviders

FinancialInstitutions

Trade ServicesTrade Services

Riskmanagement

entities


35/52


36/52


37/52


38/52

Slide 38

ISO 20022 Technical Support Group

Members 29 experts

11 countries: BR, CN, FI, FR, GB, JP, KR, NL, RU,US, ZA

5 liaison organisations: Euroclear, FPL, Mastercard,SWIFT, VISA

Convener: Derek Lasalle, JP Morgan Chase (US); Vice-convener: Paul Hojka, APACS (GB); Secretary: KrisKetels, SWIFT

Kick-off meeting: on 23-24 October 2008

Mission: help RMG, RA, SEGs and SubmittingOrganisations with technical matters

ISO_20022_LV_v67


39/52

Slide 39

Continuing with todays agenda

ISO_20022_LV_v67

ISO 20022

Cross-industry harmonisation


40/52


Harmonising across all industrieswith UN/CEFACT

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 anda central library of core components

Goal is to establish interoperability between ISO 20022 and

UN/CEFACT repositories

United Nations/CEFACT Centre for trade facilitation and e-business


41/52

Slide 41

2004: TC68, TBG5 and SWIFT sign a MoU to investigateharmonisation

2005: Trial submission from ISO 20022 to UN/CEFACT

2006: ISO TC68/WG4 takes over technological alignment

2007: Official submission from ISO 20022 to UN/CEFACT 2008: Customer-to-bank payment components harmonised and

accepted in UN/CEFACT core component library

2009: The cooperation is placed under the umbrella of the MoU on e-Business

2010: Official submission of a financial e-invoice message fromUN/CEFACT to ISO 20022

ISO_20022_LV_v67

Harmonisation between ISO andUN/CEFACT


42/52


ISO 20022RegistrationManagement Group

ISO 20022Registration

Authority

ISO 20022StandardsEvaluation

Groups

Securities

Payments

Trade services

Forex

Cards

TBG5

Finance

and

TBG17

Harmo-

nisation

IFX

TBG5

CLS

SWIFT

Euroclear

EPASOrg

ISO 20022

users

ISO 20022 Financial

Repository

Data

Dictionary

Business

Process

Catalogue

www.iso20022.org

A single ISO-UN/CEFACT approach

UN/CEFACTRegistry/Repository

Core

Component

Library

Common

Business

Processes

UN / CEFACT

(all industries)

Business

models

Candidate

ISO 20022

messages


43/52


Continuing with todays agenda

Interoperability within

the financial industry

ISO 20022


44/52

Slide 44

All institutions havetheir own sets of

data objects

and groups them into syntax-neutral message models, which...

ASN.1 FpML

can be transformed in

message formats in the

desired syntax

FIX

ISO 20022

ISO standardizes common

data objects

ISO_20022_LV_v67

Using ISO 20022 modelling to reach

interoperability


45/52


Card payments

ISO 20022 compliance at model level

Repository

Dictionary

Catalogue

Payments clearing& settlement

ISO 20022message

models

ISO 20022

Dictionary

ASN.1 syntax ISO 20022 XML syntax

physical

message

representation


46/52


47/52


48/52


49/52


50/52


SWIFT MT

The reverse engineering produces a canonical ISO 20022

message model

Proprietary

TWIST OAGi

IFX

Interoperability in the customer-to-bankpayment domain

ISO 20022Core Payment

Kernel model


51/52


52/52

Documents

Scripted_ISO_20022_ppt_long_version_v67