Slide 1 Frank Vandamme Senior Manager, Standards SWIFT UNIFI (ISO 20022) “ creating interoperability for the financial industry” OASIS Symposium, San Francisco, 9 May 2006

Slide 2 SWIFT  SWIFT  Society for Worldwide Interbank Financial Telecommunication –Community –Community: financial institutions active in payments, securities, treasury and trade services –Network –Network: secure and reliable network application –Standards –Standards: standardized information flows (messages)  Some figures: –Established in 1973 –7,850 users in 204 countries –More than 11 million messages per day –Yearly growth more than 10%

Slide 3 A typical business transaction Business transaction = all communication to fulfil request from originator to beneficiary Please pay CORP USD (net) by 31 Aug 2005, for invoice “corp2_143”. Indicate a difference of USD with the requested amount due to non-delivery of one article

Slide 4 A typical business transaction Please pay CORP USD (net) by 31 Aug 2005, for invoice “corp2_143”. Indicate a difference of USD with the requested amount due to non-delivery of one article Payment initiation Statement What is required to make this business transaction work? All necessary communications are foreseen All required information can be obtained and/or forwarded where and when necessary Credit confirmation Investigation Inerbank settlement Interbank settlement Response Interbank transfer Statement Credit transfer instruction

Slide 5 Standards landscape in the financial industry EACT FPML ISDA IFSA Treasury TWIST SWIFT Bolero ICC IIBLP UNCITRAL IFSA Trade Finance EAN/UCC SWIFT FIX ISITC-IOA ISSA SMPG SIA FISD/MDDL G30 Giovannini BMA Securities SWIFT EPC/ECBS ISTH IFX RosettaNet/PMP OAGi X12 Payments Fedwire CHIPS TCH NACHA SWIFT TC68/SC4 WG8 & WG11 TC68/SC6&7 CEFACT/ TBG5 TC68/SC4&7 CEFACT/ TBG15 W3C UN/CEFACT MoU/MG OMG ISO OASIS

Slide 6 OAGi IFX EPC ISTH Edifact X12 A typical business transaction … impacted by the standards landscape Swift FedWire ? ? ? ? ? ? ? ? ? ? ?

Slide 7 UNIFI (ISO 20022) Building towards a common approach EACT FPML ISDA IFSA Treasury TWIST SWIFT Bolero ICC IIBLP UNCITRAL IFSA Trade Finance EAN/UCC SWIFT FIX ISITC-IOA ISSA SMPG SIA FISD/MDDL G30 Giovannini BMA Securities SWIFT EPC/ECBS ISTH IFX RosettaNet/PMP OAGi X12 Payments Fedwire CHIPS TCH NACHA SWIFT TC68/SC4 WG8 & WG11 TC68/SC6&7 CEFACT/ TBG5 TC68/SC4&7 CEFACT/ TBG15 W3C UN/CEFACT MoU/MG OMG ISO OASIS UNIFIISO20022

Slide 8 UNIFI (ISO 20022) Main drivers  Improve quality –Ensure end-to-end interoperability –Support diversity (market practices) –Improve STP (Straight Through Processing) –Reduce ambiguity –Increase business focus  Reduce implementation costs (& TCO) –Reduce impact of proprietary technology –Increase automation capabilities –Reduce impact of maintenance  Improve time-to-market Make it better, faster & cheaper

Slide 9 UNIFI (ISO 20022) Major components UNIFI objective = develop standardised information flows  Modelling-based standards development (UML)  Repository (data dictionary & business process catalogue)  Syntax-specific design rules (XML)  Registration process  Reverse engineering approach Parts 1 & 2 Technical Specifications 1, 2 & 3

Slide 10 UNIFI (ISO 20022) Standards development methodology  Three layered approach  Business-oriented  Communication needs  End-to-end view  Formal notation (UML)  Representation-neutral  Implementation-neutral  Foster reuse (dictionary)  Involve industry experts Business Analysis Requirements Analysis Logical Analysis Logical Design Technical Design Technical Implementation Understand the business What is the communication problem Define the solution Refine the solution Generate message formats (automated)

Slide 11 ISO Standards Repository DATA DICTIONARYBUSINESS PROCESS CATALOGUE UNIFI (ISO 20022) Standards repository are described with use BUSINESS AREAS support execution of BUSINESS TRANSACTIONS BUSINESS CONCEPTS MESSAGE CONCEPTS DATA TYPES are derived from

Slide 12 UNIFI (ISO 20022) UML-to-XML conversion UML (class diagram) XML (schema)

Slide 13 UNIFI (ISO 20022) Registration bodies Registration Authority (RA) ISO Communities of users & developers Standards Evaluation Groups (SEGs) Securities Payments ISO … Registration Management Group (RMG) ISO ISO Repository Data Dictionary Business Process Catalogue ISO

Slide 14 UNIFI Standards Evaluation Groups ISTH MDDL FpML SWIFT FIX ISO WGs TBG5 Core Components Common Business Processes Data Dictionary Business Process Catalogue ebXML Registry/ Repository UNIFI Financial Repository UNIFI Registration Management Group Securities Payments UN / CEFACT (All Industries) UNIFI Registration Authority UNIFI Users Business Requests Message Models TBG17 Harmo- nisation UNIFI (ISO 20022) Long term convergence goal under investigation

Slide 15 UNIFI (ISO 20022) Interoperability based on modelling … Order Date Account Order Date XML FIX FpML Edifact SWIFT

Slide 16 UNIFI (ISO 20022) … and reverse engineering FIX, FpML, SWIFT, … Complete & Update Order Date RepositoryCompare Account Order Date Convergence InformationSupportcoexistence XML FIX, FpML, SWIFT, …

Slide 17 UNIFI (ISO 20022) Conclusion  Improving interoperability today –Registration bodies are up and running –More than twenty countries and organisations  Building for the future through ISO TC68 / WG4 –Identifying further alignment and enhancements –Active participation of organisations like OMG, UN/CEFACT, FpML, SWIFT, TWIST, MDDL, … Financial industry is achieving interoperability through UNIFI UNIFIISO20022