Slide 1 ISO_20022_SV_v101 ISO 20022 The success of ISO 20022 – Universal financial Industry message scheme

Slide 1 ISO_20022_SV_v101

ISO 20022

The success of ISO 20022 – Universal financial Industrymessage scheme


ISO 20022The ISO recipe for all financial messages

ISO 20022 - Universal financial industry message scheme, the recipe:

syntax neutral business modelling methodology

syntax specific design rules

industry led development/registration process

financial repository on www.iso20022.org

reverse engineering approach to ease coexistence


ISO 15022

MDDL

TWIST

FIX

FpML

IFX

Why ISO 20022?Supports convergence and co-existence

IFX

ISO 15022

MDDL

TWIST

FIX

FpML

Message model

Long term we want one standard, but in the interim several standards need to co-exist…

Message model


Bank A Bank B

CompetitiveSpace

CompetitiveSpace

Cooperative Space

SME’s

Tradefacilitation:ICC Rule Books, e-invoicing

Cash:NCB rules, Industry Standards

Securities:Rule Books, Exchanges, CCP’s

CSD’s, Standardisation

High Value Payments:RTGS, EURO1 and CHIPS

Cards:Rule Books, Card Schemes,

Cards Processors

Certification & Networks:SWIFT

Commercial Payments:Rule Books, Clearing Houses,

Processors

Financial Institutions

Corporates

Merchants

Consumers

PublicAdmini-strators

Financial Institutions

PublicAdmini-strators

Corporates

SME’s

Merchants

Consumers

Cooperative space for business rules

Cooperative space for standards

FX and Money Markets:Rule Books, CLS

Why ISO 20022?Convergence in the cooperative space


The ISO 20022 recipe - For whom?Potential users and developers communities of users looking for interoperability and more cost-

effective communications

Message development organisations: ACORD, ANBIMA, ASF, Berlin Group, BIAN, CBI Consortium, Early Warning Services, FPL, FpML, IFX Forum, nexo A.I.S.B.L (formerly EPASOrg), OAGi, SWIFT, Tieto, TWIST, XBRL, etc.

Market Infrastructures (MIs): China Foreign Exchange Trade System, China UnionPay, Clearstream, CLS, DTCC, EBA, ECB-Banque de France-Banco de España-Deutsche Bundesbank, Euroclear, FED, Omgeo, Target, T2S, etc.

International or national standards setters: Danish Bankers Association, EPC, Federation of Finnish Financial Services (FFI), ISITC, ISO WGs, Payments UK, Russian Corporate Market Practice Group (RUCMPG), UN/CEFACT, etc.

There are also catalysts for interoperability and convergence, such as SEPA, T2S, Giovannini, MiFID, e-Invoicing


ISO 20022 The registration bodies Registration Management Group - RMG

(Overall governance)– 65 senior managers from 21 countries and 11 international organisations

Standards Evaluation Groups – SEGs(User representatives)– Securities (59 experts, 16 countries, 7 organisations)– Payments (65 experts, 19 countries, 6 organisations)– Cards and related retail financial services (34 experts, 14 countries, 5

organisations)– Trade Services (33 experts, 13 countries, 1 organisation)– Forex (23 experts, 9 countries, 3 organisations)

Technical Support Group – TSG(ISO 20022 technical advisors)– 26 experts from 11 countries and 4 international organisations

Registration Authority – RA(Maintaining ISO 20022 repository)


ISO 20022 The registration processDevelopment Process

Submitting organisation

Financial organisation or standards body

Business justification

Business justification

RMGProject approval & allocation to a SEG


& RA

Development & provisional registration

SEG Business validation

RAOfficial registrationand publication

Repository

Dictionary

CatalogueOptional pilot testingor first implementers

RMG

monitors

Submitter& users

www.iso20022.org

Candidate ISO 20022 messages

ISO 20022 messages

Slide 8

Users CRs Users introduce Change Requests to the RA


Submitting organisation prepares ‘Maintenance Change Request’ with each CR implementation

SEGSEG screens Change Requests (CRs)

SEG SEG approval/rejection


& RA

Development of new versions

SEGValidation of new versions

RA Registration 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 Yearly maintenance process

First implementersSubmitting organisation

& usersISO_20022_SV_v101


The ISO 20022 recipe is used! (1/11)Payments

Debtor

Debtor’s bank

Creditor’sbank

ISO 20022

Creditor

Cash Management

Credit Transfers / Direct Debits / Mandates

Exc

eptio

ns &

Inv

estig

atio

ns

Cre

dit

Tra

nsf

er I

nitia

tion

Exc

eptio

ns &

Inv

estig

atio

ns

Dire

ct D

ebit

Ini

tiatio

n

Candidate ISO 20022 (in development)

Adv

ice

& S

tate

men

t

Adv

ice

& S

tate

men

t

Exceptions & Investigations

Acc

ount

Rep

ortin

g R

eque

st

Not

ifica

tion

to R

ecei

ve

Cha

nge/

Ve

rify

Acc

ount

Ide

ntifi

catio

n

Man

date

s

Cre

dito

r P

aym

ent

Act

ivat

ion

Re

ques

t

Cre

dito

r P

aym

ent

Act

ivat

ion

Re

ques

t

Ban

k A

ccou

nt M

anag

emen

t

Sta

nd-A

lone

Rem

ittan

ce A

dvic

e

Change/Verify Account Identification

Creditor Payment Activation Request

Ban

k S

ervi

ces

Bill

ing

Ban

k S

ervi

ces

Bill

ing

Account Switching

Account S

witching

Authorities

Financial Investigations

Sta

nd-A

lone

Rem

ittan

ce A

dvic

e

Slide 10

64 ISO 20022 messages approved:– Customer payment initiation– Interbank payment clearing and settlement– Payments exceptions & investigations– Bank-to-customer cash management– Mandates– Change/verify account identification– Bank account management– Creditor payment activation request– Cash account reporting request & notification messages – Bank services billing– Authorities financial investigations– Stand-alone remittance advice messages

11 candidate ISO 20022 messages under evaluation– Cross-border Transactions Currency Control Reporting (CTCCR)– Financial Institution Direct Debit

Candidate ISO 20022 messages approved for development:– Cash management– Account switching– Mandate Status List– Payment Pre-Authorization (PaPA)

New development proposals: – None

The ISO 20022 recipe is used! (2/11)Payments message portfolio is growing!

ISO_20022_SV_v101

Slide 11

The ISO 20022 recipe is used! (3/11)Card message portfolio is growing

Acceptor

Acquirer Issuer

ISO 20022

Authorisation (ATICA)P

OI

tran

sact

ion

aut

horis

atio

n (C

AP

E)


PO

I T

erm

inal

Man

age

men

t (C

AP

E)

Sale Management (CAPE)

ISO_20022_SV_v101

AT

MI

tran

sact

ion

aut

hor

isat

ion

AT

M

term

inal

Man

agem

ent

Slide 12

44 ISO 20022 messages approved:– Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal

Management

– ATM interface for transaction processing and ATM management

13 candidate ISO 20022 messages under evaluation– Acquirer to issuer card messages (ATICA)

Candidate ISO 20022 messages approved for development:– Card Payments Exchanges (CAPE) - Sale-to-POI management

– Dispute Resolution in Cards Fee Collection

– Payment Tokens Management Exchanges (TOKE)

The ISO 20022 recipe is used! (4/11)Cards and related retail financial services

ISO_20022_SV_v101


The ISO 20022 recipe is used! (5/11)Securities - equities and fixed income

Custodian

Pre-trade / Trade (FIX/SWIFT)

I/CSD

Settlement & Reconciliation

(SWIFT)

Seller

Clearingagent

Buyer

ISO 15022

ISO 20022 Candidate ISO 20022 (in development)

Issuers’ Agent

Issuers’ Agent Communication

(Euroclear)

Post-Trade (Omgeo/SWIFT) CCP Clearing (FPL/SWIFT)

CorporateActions(SWIFT)

ReconciliationTPV Statement(ISITC/SWIFT)

Settlement(SWIFT)

Reconciliation(SWIFT)

Corporate

Actions(SWIFT)

Settlement(SWIFT)

CorporateActions(SWIFT)

Settlement & Reconciliation

(SWIFT)

Regulators

Transaction Regulatory Reporting (SWIFT)


Fundaccountant

Institutional investor

Investmentmanager

Transferagent

Fund Cash Forecast Report

Price Report

Account Management

ISO 20022


New plan manager

Old plan manager

PEP/ISA/Portfolio Transfers

The ISO 20022 recipe is used! (6/11)Securities - investment funds (CIV)

Order & Confirmation & Status

Transfer & Confirmation & Status

Statements

Prospectus or FPP report provider, e.g. Fund manager

Prospectus or FPP report user, e.g. Fund distributor

Request for Fund Report

FPP Report

Alternative Funds Order, Confirm & Status

Transparency of Holdings

Slide 15

178 ISO 20022 messages approved and published:– Investment funds distribution – Securities transaction regulatory reporting– Proxy voting – Issuers’ agents communication – Securities settlement and reconciliation– Securities corporate actions– Securities post-trade– Total portfolio valuation report– CCP Clearing– Collateral management

11 Candidate ISO 20022 messages under evaluation:– Money Market Statistical Reporting (MMSR) – SSI for Securities, Payments & FX– Transparency of holdings

Candidate ISO 20022 messages approved for development:– Alternative funds– TARGET2-Securities– S&R and CA - ISO 15022 variants

New development proposals:– Market Claims

The ISO 20022 recipe is used! (7/11)Securities message portfolio is growing!

ISO_20022_SV_v101


The ISO 20022 recipe is used! (8/11) Forex

FX order

Orderingparty

Settlementparty

custodian

Trading party

Trading party

FX & Loan/Deposit Advice & Allocations

Loans and deposits

Foreign exchange instruments

Interest rate swaps

Central Settlement System

Status

notifications

and payment

information

Stat

us

notif

icat

ions

and

paym

ent

info

rmat

ion

FX Spot, Forward & Swap instructionsNDF and FX Option instructions (archived)

MTs

FpML CUG (Trade Notifications)

ISO 20022

Deriv-atives


Trade capture

Trading system


15 ISO 20022 messages approved and published:– Post Trade FX messages

8 candidate ISO 20022 messages under evaluation:– FX Post-Trade Confirmation

– FX Post-Trade Trade Capture

Candidate ISO 20022 messages approved for development:

– None

New development proposals– None

The ISO 20022 recipe is used! (9/11)FX message portfolio is growing!


Seller’s bank

Buyer’s bank

TSU

Trade Services Management

Trade Services

Management


ISO 20022

Buyer Seller

Financial Invoice

Invo

ice

Fin

anci

ng R

eque

st

The ISO 20022 recipe is used! (10/11)Trade Services

Fin

anci

al

Invo

ice

Fin

anci

al

Invo

ice

Financial Invoice

Fac

tori

ng S

ervi

ces

Factoring Services

TaxAuthority

Invo

ice

Tax

Rep

ort

Invoice Tax Report


85 ISO 20022 messages approved:

– Invoice financing request

– Trade services management

– Financial invoice

– Demand guarantees and standby letters of credit

– Factoring services Candidate ISO 20022 messages under evaluation:

– None Candidate ISO 20022 messages approved for development:

– Invoice Tax Report New development proposals:

– None

The ISO 20022 recipe is used! (11/11)Trade message portfolio is growing!


From 11 Oct 2014 to 11 Oct 2015, www.iso20022.org had 499,211 visits from 310,554 visitors from 206 countries

Who is interested by ISO 20022?

11 Oct 14 – 11 Oct 15

ContinentNumber of

visits%

Europe 291,239 58.3%Asia 91,938 18.4%Americas 89,260 17.9%Oceania 14,062 2.8%Africa 11,074 2.2%

Country/Territory Sessions %1 United States 66,772 13%2 United Kingdom 47,101 9%3 India 38,067 8%4 France 32,754 7%5 Germany 29,905 6%6 Switzerland 21,846 4%7 Spain 18,129 4%8 Italy 16,161 3%9 Belgium 14,798 3%10 Netherlands 13,655 3%11 Sweden 13,392 3%12 Australia 12,732 3%13 Singapore 9,010 2%14 Canada 8,898 2%15 Russia 8,532 2%16 Japan 8,415 2%17 Finland 7,654 2%18 Poland 6,993 1%19 Brazil 6,977 1%20 Norway 6,512 1%21 Denmark 5,587 1%22 Austria 5,160 1%23 South Africa 5,071 1%24 Hong Kong 4,869 1%25 Czech Republic 4,103 1%26 Lithuania 3,790 1%27 Portugal 3,640 1%28 China 3,575 1%29 Thailand 3,359 1%

85.64%


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Documents

Slide 1 ISO_20022_SV_v101 ISO 20022 The success of ISO 20022 – Universal financial Industry message scheme