1 / 54

ISO 20022 (UNIFI)

ISO 20022. Introduction to ISO 20022 – Universal financial industry message scheme. ISO 20022 (UNIFI). Agenda. ISO 20022: value proposition the standard the actors the registration process the Repository ISO 20022 registration platform Cross industry harmonisation

bevis
Télécharger la présentation

ISO 20022 (UNIFI)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. ISO 20022 Introduction to ISO 20022 – Universal financial industry message scheme ISO 20022 (UNIFI) ISO_20022_LV_v39

  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_v39

  3. 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. The ISO 20022 value proposition (1/5) ISO_20022_LV_v39

  4. Proposed solution A single standardisation approach (methodology, process, repository) to be used by all financial standards initiatives The ISO 20022 value proposition (2/5) ISO 20022 ISO_20022_LV_v39

  5. The ISO 20022 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 Source: John Mersberg, IBM Corporation ISO_20022_LV_v39

  6. The ISO 20022 value proposition (4/5) Growth adds exponential complexity and expense… • Without common building blocks: • Point-to-point connection • Data is mapped directly from one application to another • Costly, unscalable and difficult to implement and maintain • Process, routing, rules logic needs to be coded to specific message types EDIFACT RosettaNet IFX SWIFT Proprietary format OAGi TWIST 42 interfaces = n * (n-1) Source: John Mersberg, IBM Corporation ISO_20022_LV_v39

  7. The ISO 20022 value proposition (5/5) Standardised implementation reduces cost, time to effect change and improves overall performance… • Canonical message model = • True process integration • Reduced brittleness, faster to respond to change • Shared message services – single/shared parser, message independent rules engine, etc. • Unified monitoring / audit trail EDIFACT RosettaNet IFX SWIFT Proprietary format Canonical Message Model (i.e. ISO 20022) OAGi TWIST 14 interfaces = n * 2 ISO 20022 aims at long term convergence, while facilitating short term coexistence… Source: John Mersberg, IBM Corporation ISO_20022_LV_v39

  8. Date Account Order All institutions have their own sets of data objects ISO standardises common data objects… Order Date …and groups them into ‘syntax-neutral’ message models, which... Date … can be ‘transformed’ in message formats in the desired syntax EDIFACT XML ISO 15022 FIX ISO 20022 Illustrating business modelling ISO_20022_LV_v39

  9. The ISO 20022 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 ISO_20022_LV_v39

  10. The ISO 20022 recipe Major ingredients (2/2): • 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 • registration bodies) www.iso20022.org ISO_20022_LV_v39

  11. The five parts of ISO 20022 International Standard: Overall methodology and format specifications for inputs to and outputs from the ISO 20022 Repository International Standard: Roles and responsibilities of the registration bodies Technical Specification: ISO 20022 modelling guidelines Technical Specification : ISO 20022 XML design rules Technical Specification: ISO 20022 reverse engineering Part 1: Part 2: Part 3: Part 4: Part 5: Copies can be obtained from www.iso.org ISO_20022_LV_v39

  12. ISO 20022 – The actors (1/2) Submitting organisations Communities of users or organisations that want to develop ISO 20022 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 ISO 20022 messages to support a specific transaction Update of existing ISO 20022 message sets to accommodate the evolution of the business ISO_20022_LV_v39

  13. ISO 20022 – 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 ISO 20022 Repository • Technical Support Group, TSG • Assist RMG, SEGs, RA and submitting organisations ISO_20022_LV_v39

  14. Financial industry group or standards body R M G m o n i t o r s Submitter Business justification Business justification Project approval & allocation to a SEG RMG Endorsement of scope and developers SEG Development & provisional registration Submitter & RA SEG RA Repository Dictionary Catalogue ISO 20022 The registration process (1/3) Business validation Official registration and publication Optional pilot testing or first implementers Submitter & users www.iso20022.org ISO_20022_LV_v39

  15. Financial industry group or standards body R M G m o n i t o r s Submitter Business justification Business justification Project approval & allocation to a SEG RMG Endorsement of scope and developers SEG Development & provisional registration Submitter & RA SEG RA Repository Dictionary Catalogue ISO 20022 The registration process (2/3) Candidate ISO 20022 messages Business validation ISO 20022 messages Official registration and publication Optional pilot testing or first implementers Submitter & users www.iso20022.org ISO_20022_LV_v39

  16. ISO 20022 The registration process (3/3)  Business justification ISO 20022 Registration Management Group ISO 20022 Standards Evaluation Groups ISO 20022 Registration Authority ISTH Omgeo ISO 20022 Financial Repository Securities  Business models CLS ISO 20022 Users Payments SWIFT Data Dictionary  Candidate ISO 20022 messages Euroclear Trade Services  ISO 20022 messages Business Process Catalogue ISITC Forex ACBI www.iso20022.org Cards ISO_20022_LV_v39

  17. ISO 20022 – 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 ISO_20022_LV_v39

  18. ISO 20022 registration platform Continuing with today’s agenda ISO 20022 ISO_20022_LV_v39

  19. ISO 20022 - The deployment • Approval of the international standard • Selection of the Registration Authority  • Set-up ofwww.iso20022.org • Creation of Registration Management Group  • Creation of the first Standards Evaluation Groups  • Registration and publication of first ‘ISO 20022 messages’  Ongoing: promotion to developers (standardisers, industry bodies) and users (vendors, end-users) ISO_20022_LV_v39

  20. ISO 20022 – How does it fit into the ISO structure? ISO Technical Committee TC68 Financial Services SC2 Security SC4 Securities SC7 Banking ISO 20022 RMG WG4 ISO 20022 Review TSG RA RMG members nominated by P-member countries and A-liaison organisations TSG & SEG members nominated by all member countries and liaison organisations SEG Securities SEG Trade Services SEG Payments SEG FX SEG Cards ISO_20022_LV_v39

  21. ISO 20022 Registration Management Group • Members -52 senior managers from: • 19 countries: AT, AU, BR, 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 five SEGs: Payments and Securities in 2005, Trade Services and Forex SEGs in 2006, Cards & Related Retail Financial Services in 2008 • Approval of 35 development projects ISO_20022_LV_v39

  22. ISO 20022 – The Payments SEG (1/3) • Members – 42 experts • 14 countries: AT, AU, CH, DE, DK, FI, FR, GB, IT, 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) • Approved:C2B payment initiation (SWIFT/ISTH), Interbank credit transfers and direct debits (SWIFT), Exceptions and investigations (SWIFT), B2C advice & statement (ISTH/ISITC) • Under evaluation: Payments maintenance 2009 (SWIFT, ISTH, ISITC) • Next:Change/verify account identification (GUF), E-mandates (SWIFT), Cash management (SWIFT), Creditor payment activation request (ACBI), Bank account management (SWIFT) ISO_20022_LV_v39

  23. ISO 20022 – The Payments SEG (2/3) covering instruments such as: Payments Credit transfers covering actors such as: Cheques Financial institutions Private & corporate customers Direct debits Clearing houses & RTG systems Central banks Payment ‘factories’ ISO_20022_LV_v39

  24. ISO 20022 – The Payments SEG (3/3) Clearing & settlement including business areas such as: Interbank transfers via correspondent banking or ACHs, high value payments, low value bulk payments, RTGS, etc. Payment initiation Communications between the ordering customer and its bank, etc. Payments Cash management between various actors: …to the ordering & beneficiary customers, reconciliation, exceptions & investigations handling. Account opening, standing orders, transaction and account information, advices & statements from … ...the account servicing institutions to account owners, including reporting from the financial institution… ISO_20022_LV_v39

  25. ISO 20022 – The Securities SEG (1/3) • Members – 59 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: Chad Spitler, BGI • Approved: Investment funds (SWIFT), Transaction regulatory reporting (SWIFT), Proxy voting (SWIFT), Issuer’s agents communication for CA (Euroclear) • Under evaluation: Pre-trade/trade (SWIFT/FPL), Fund processing passport report (SWIFT), Proxy voting maintenance 2009 (SWIFT) • Next: Total portfolio valuation statement (ISITC), 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), Alternate funds (SWIFT) ISO_20022_LV_v39

  26. ISO 20022 – The Securities SEG (2/3) covering instruments such as: Securities Equities Service bureaux covering actors such as: Fixed income Broker / dealers Investment managers, distributors, transfer agents, fund administrators Funds Custodians Deriva-tives Regulators CSDs, ICSDs Stock exchanges, ETC providers Market Data Providers Clearing houses, CCPs ISO_20022_LV_v39

  27. ISO 20022 – The Securities SEG (3/3) including business areas such as: Clearing & settlement Trade Initiation, pre-trade Trade, post-trade Securities Issuance Securities Custody Securities management Income, corporate actions, market data, proxy voting Account opening, standing orders, transaction and account information, advices & statements, queries & investigations Collateral management Collateral, repos, securities lending & borrowing ISO_20022_LV_v39

  28. Looking at the advantages ISO 20022 brings over ISO 15022 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 ISO 20022 standard ! ISO_20022_LV_v39

  29. ISO 20022 – The FX SEG (1/3) • Members – 26 experts • 11 countries: AU, CA, CH, FR, GB, NL, NO, SE, TR, US, ZA • 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) ISO_20022_LV_v39

  30. ISO 20022 – The FX SEG (2/3) covering instruments such as: Foreign eXchange Spot Trading portals, matching services providers covering actors such as: Swaps Hedge funds Investment managers Forward Custodians Currency Options Dealers Application providers CLS and CLS settlement members Industry associations (ISDA) Money brokers ISO_20022_LV_v39

  31. ISO 20022 – The FX SEG (3/3) including business areas such as: Trade: order, execution, allocation, affirmation, etc. Pre-trade: IOI, quotes, etc. Post-trade: confirmation, matching, assignment, novation, etc. Foreign eXchange Notification of trades to third parties Clearing and Settlement, including netting and related reporting Trigger events, option exercises ISO_20022_LV_v39

  32. ISO 20022 The Trade Services SEG (1/3) • Members – 26 experts • 13 countries: AU, CA, 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) ISO_20022_LV_v39

  33. ISO 20022 The Trade Services SEG (2/3) covering products… Trade Services Collection …and services such as: Documentary credit Reconciliation (A/R, A/P), remittance data Open Account Trading Letter of credit e-Invoicing EBPP Guarantee Pre/post-shipment financing & factoring Purchase order, transport documents Invoice financing ISO_20022_LV_v39

  34. ISO 20022 The Trade Services SEG (3/3) including actors such as: Financial Institutions Private and corporate customers (treasurers) Associations providing rules and master agreements (eg IFSA, ICC) Trade Services Risk management entities Trade facilitators: chambers of commerce, insurance co, freight forwarders, carriers, customs, factoring co Application providers ISO_20022_LV_v39

  35. ISO 20022 – The Cards & Related Retail Financial Services SEG (1/3) • Members – 22 experts • 9 countries: AT, AU, CH, DE, FI, FR, GB, NL, SE • 3 liaison organisations: IFX, Mastercard, VISA • Convener: Chris Starr, APACS (GB); Vice-convener: Sheri Brandon, RBS (NL); Secretary: Reinhard Herwig, SRC (DE) • Kick-off meeting: on 23-24 October 2008 • Next: ATM interface for transaction processing and ATM management (IFX Forum), Card Payments Exchanges (EPAS Consortium) ISO_20022_LV_v39

  36. ISO 20022 – The Cards & Related Retail Financial Services SEG (2/3) covering instruments… Cards and Retail Debit card …and actors as: Charge and credit card Acceptor (merchant, retailer) Card holder Prepaid card Card issuer Hard- and Software providers Card scheme Acquirer Intermediary agent ISO_20022_LV_v39

  37. ISO 20022 – The Cards & Related Retail Financial Services SEG (3/3) including business areas such as: Transactions between merchants and acquirers, and cardholders and issuers that support authorization, clearing, reversal, chargeback, dispute processing, etc. Transactions between acquirers and card issuers Similar messages transacted on internet or from mobiles or other personal devices ATM processes such as authorization, processing, ATM management and inventory POI messages for payments, administrative and device related services ISO_20022_LV_v39

  38. ISO 20022 – Technical Support Group • Members – 22 experts • 8 countries: BR, CN, FI, FR, GB, NL, US, ZA • 4 liaison organisations: FPL, Mastercard, SWIFT, VISA • Convener: Derek Lasalle, JP Morgan Chase (US); Vice-convener: Paul Hojka, APACS (GB); Secretary: Kris Ketels, SWIFT • Kick-off meeting: on 23-24 October 2008 • Mission: help RMG, RA, SEGs and Submitting Organisations with technical matters ISO_20022_LV_v39

  39. Cross-industry harmonisation Continuing with today’s agenda ISO 20022 ISO_20022_LV_v39

  40. 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 Goal is to establish interoperability between ISO 20022 and UN/CEFACT repositories ISO_20022_LV_v39

  41. 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 ISO 20022 to UN/CEFACT • 2006: • WG4 takes over technological alignment • 2007: • First official submission from ISO 20022 to UN/CEFACT • Project of submission from UN/CEFACT to ISO 20022 • 2008: • Customer-to-bank payment components harmonised and accepted in UN/CEFACT core component library ISO_20022_LV_v39

  42. A single ISO-UN/CEFACT approach ISO 20022 Registration Management Group ISO 20022 Users ISO 20022 Standards Evaluation Groups ISO 20022 Registration Authority ISTH UN / CEFACT (All Industries) Omgeo UN/CEFACT Registry/ Repository ISO 20022 Financial Repository Securities CLS Business Requests TBG5 Finance and TBG17 Harmo- nisation Payments SWIFT Core Components Data Dictionary Euroclear Trade Services Message Models Common Business Processes Business Process Catalogue ISITC Forex ACBI www.iso20022.org Cards ISO_20022_LV_v39

  43. Interoperability within the financial industry - securities Continuing with today’s agenda ISO 20022 ISO_20022_LV_v39

  44. ISO 15022 FIX FIX ISO 15022             Two overlapping standards to support the end-to-end transaction Trade Messages Indication Quotation Order Execution (Pre-)Allocation Confirmation Settlement Reconciliation ISO_20022_LV_v39

  45. Order (FIX) Order (ISO 15022) Order (FIX) Order (ISO 15022) Execution (FIX) Execution (ISO 15022) Execution (FIX) Execution (ISO 15022) Working towards co-existence and convergence Ordering Party Trade Counterparty Executing Party Trade Counterparty Ordering Party ISO_20022_LV_v39

  46. ISO 20022 Single Order Single Execution Working towards co-existence and convergence FIX ISO 15022 Order New Order - single MT 502 Execution Execution Report MT 513 ISO_20022_LV_v39

  47. Working towards co-existence and convergence FIX ISO 20022 ISO 15022 Order to buy/sell Security Quantity Limit price Expiry date Account USD 54=1 22 = 4; 48 = <ISIN> 38 = 1000 44 = 112; 40 = 2 432 = YYYYMMDD 1 = myAccount Side/BUYI ISIN/<ISIN> OrderQuantity3/Quantity Order3/OrderPrice/Price1 OrderExpiryDate AccountIdentification :22F::BUSE//BUYI :35B::<ISIN> :36B::ORDR//UNIT/1000 :90B::LIMI//ACTU/USD112 :98A::EXPI//YYYYMMDD :97A::CASH//myAccount ORDER Executed quantity Executed price Execution date Settlement date 32 = 750 31 = 110; 15 = USD 75 = YYYYMMDD 64 = YYYYMMDD ExecutedTradeQuantity ExecutedTradePrice TradeDate SecuritiesSettlement1/Date :36B::CONF//UNIT/750 :90B::DEAL//ACTU/USD110 :98A::TRAD//YYYYMMDD :98A::SETT//YYYYMMDD EXECUTION ISO_20022_LV_v39

  48. Order (FIX) Order (FIX) Order (ISO 15022) Order (FIX) Order (FIX) Order (ISO 15022) Order (ISO 20022) Execution (FIX) Execution (FIX) Execution (ISO 15022) Order (ISO 20022) Execution (FIX) Execution (FIX) Execution (ISO 15022) Execution (ISO 20022) Execution (ISO 20022) Working towards co-existence and convergence Ordering Party Trade Counterparty Executing Party Trade Counterparty Ordering Party ISO_20022_LV_v39

  49. Interoperability within the financial industry - payments Continuing with today’s agenda ISO 20022 ISO_20022_LV_v39

  50. 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… ISO_20022_LV_v39

More Related