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 Presentation title dd month yyyy Confidentiality: xxx 2 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. 3 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) 4 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 TC SC 7 Banking WG WG WG WG WG4 & 5
ISO 20022 WG 6 LEI 5 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 - Presentation title dd month yyyy Confidentiality: xxx 6 SWIFT & ISO Messaging Standards Timeline Presentation title dd month yyyy Confidentiality: xxx
7 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 Presentation title dd month yyyy Confidentiality: xxx 8 The ISO 20022 Methodology Published in 8 parts by ISO Implemented by Registration Authority
The methodology distinguishes 3 layers: Presentation title dd month yyyy Confidentiality: xxx 9 Methodology - Business / Conceptual Layer Presentation title dd month yyyy Confidentiality: xxx 10 Methodology - Logical Layer Elements in the Logical Layer refer to the Business / Conceptual layer for their definitions Presentation title dd month yyyy Confidentiality: xxx 11
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 Presentation title dd month yyyy Confidentiality: xxx 12 Content www.iso20022.org (1/2) Presentation title dd month yyyy Confidentiality: xxx 13
Content www.iso20022.org (2/2) Presentation title dd month yyyy Confidentiality: xxx 14 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 Presentation title dd month yyyy Confidentiality: xxx 15 Presentation title dd month yyyy Confidentiality: xxx 16 Presentation title dd month yyyy Confidentiality: xxx 17 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. Presentation title dd month yyyy Confidentiality: xxx 18 For more information see the TC68 Homepage Presentation title dd month yyyy Confidentiality: xxx 19 ISO 20022 Adoption
Presentation title dd month yyyy Confidentiality: xxx 20 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 21 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
CA-all payment systems Roll-out 2020 CNAPS2 Under discussion TBD 22 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 Presentation title dd month yyyy Confidentiality: xxx 24 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 25 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 26 How to adopt ISO 20022? Managing diverging local implementations
IsA risk that can be mitigated by a coordinated a risk but still better - Coordination 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 27 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 Presentation title dd month yyyy Confidentiality: xxx 28 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 Presentation title dd month yyyy Confidentiality: xxx 29 SWIFTs 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 Presentation title dd month yyyy Confidentiality: xxx 30 SWIFTs 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 Presentation title dd month yyyy Confidentiality: xxx 31 Any Questions? Presentation title dd month yyyy Confidentiality: xxx 32 Thank you Presentation title dd month yyyy Confidentiality: xxx 33
Backup (Securities Adoption) Presentation title dd month yyyy Confidentiality: xxx 34 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 35 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
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