Slide 1 ISO_20022_SV_v30 ISO The success of ISO – Universal financial Industry message scheme
Slide 2 ISO_20022_SV_v30 ISO The ISO recipe for all financial messages ISO Universal financial industry message scheme, the recipe: syntax neutral business modelling methodology syntax specific design rules industry led development/registration process financial repository on reverse engineering approach to ease coexistence
Slide 3 ISO_20022_SV_v30 ISO MDDL TWIST FIX FpML IFX Why ISO 20022? Supports convergence and co-existence IFX ISO MDDL TWIST FIX FpML Message model Long term we want one standard, but in the interim several standards need to co-exist… Message model
Slide 4 ISO_20022_SV_v30 Bank ABank B Competitive Space Competitive Space 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 Public Admini- strators Financial Institutions Public Admini- 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
Slide 5 ISO_20022_SV_v30 The ISO recipe - For whom? Potential users and developers communities of users looking for interoperability and more cost-effective communications Message development organisations: CBI Consortium, FIX, FinXML, VRXML, RIXML, FpML, IFX Forum, TWIST, SWIFT, RosettaNet, OAGi, ACORD, ISTH, XBRL, EPAS Consortium, etc. Market Infrastructures (MIs): DTCC, FED, EBA, Target, CLS, Euroclear, Omgeo, ECB, NBB, etc. International or national standards setters: ISITC, ISO TC68 WGs, UN/CEFACT TBG5, OMG, EPC, etc. There are also catalysts for interoperability and convergence, such as SEPA, Giovannini, MiFID, e-Invoicing
Slide 6 ISO_20022_SV_v30 ISO The registration bodies Registration Management Group - RMG (Overall governance) –69 senior managers from 21 countries and 12 international organisations Standards Evaluation Groups – SEGs (User representatives) –Payments (52 experts,17 countries, 5 organisations) –Securities (77 experts, 19 countries, 8 organisations) –Forex (30 experts, 14 countries, 4 organisations) –Trade (25 experts, 13 countries, 2 organisations) –Cards and related retail financial services (26 experts, 12 countries, 3 organisations) Technical Support Group – TSG (ISO technical advisors) –28 experts from 11 countries and 5 international organisations Registration Authority – RA (Maintaining ISO repository)
Slide 7 ISO_20022_SV_v30 ISO The registration process Submitter Financial organisation or standards body Business justification Business justification RMG Project approval & allocation to a SEG Submitter & RA Development & provisional registration SEG Business validation RA Official registration and publication Repository Dictionary Catalogue Optional pilot testing or first implementers RMGmonitorsRMGmonitors Submitter & users Candidate ISO messages ISO messages
Slide 8 ISO_20022_SV_v30 The ISO recipe is used! (1/10) Payments Debtor Debtor’s financial institution Creditor’s financial institution ISO Creditor Cash Management Direct Debits / Credit Transfers Exceptions & Investigations Credit Transfer Initiation Exceptions & Investigations Direct Debit Initiation Candidate ISO (in development) Advice & Statement Exceptions & Investigations Cash Management Change/Verify Account Identification Mandates Creditor Payment Activation Request Bank Account Management
Slide 9 ISO_20022_SV_v30 37 ISO messages approved and published: –Customer payment initiation –Interbank payment clearing and settlement –Payments exceptions & investigations –Bank-to-customer cash management –Mandates –Change/verify account identification 21 Candidate ISO messages under evaluation: –Bank account management –Creditor payment activation request Candidate ISO messages approved for development: –Cash management –Cash account reporting request & notification messages New development proposals: –Remittance advice messages –Cash lodgement and withdrawal The ISO recipe is used! (2/10) Payments message portfolio is growing!
Slide 10 ISO_20022_SV_v30 ISO messages approved and published: –none Candidate ISO messages under evaluation: –none Candidate ISO messages approved for development: –ATM interface for transaction processing and ATM management –Card payments exchanges (CAPE) –Acquirer to issuer card messages (ATICA) New development proposal: –none The ISO recipe is used! (3/10) Cards and related retail financial services
Slide 11 ISO_20022_SV_v30 The ISO recipe is used! (4/10) Securities - equities and fixed income Custodian Pre-trade / Trade (FIX/SWIFT) I/CSD Settlement & Reconciliation (SWIFT) Seller Clearing agent Buyer ISO ISO Candidate ISO (in development) Issuers’ Agent Issuers’ Agent Communication (Euroclear) Post-Trade (Omgeo/SWIFT) CCP Clearing (FPL/SWIFT) Registrar Registration Communication (Euroclear) Corporate Actions (SWIFT) Reconciliation TPV Statement (ISITC/SWIFT) Settlement (SWIFT) Reconciliation (SWIFT) Corporate Actions (SWIFT) Settlement (SWIFT) Corporate Actions (SWIFT) Settlement & Reconciliation (SWIFT) Market Claims (Euroclear) Regulators Transaction Regulatory Reporting (SWIFT)
Slide 12 ISO_20022_SV_v30 Fund accountant Institutional investor Investment manager Transfer agent Fund Cash Forecast Report Price Report Account Management ISO Candidate ISO (in development) New plan manager Old plan manager PEP/ISA/Portfolio Transfers The ISO recipe is used! (5/10) Securities - investment funds (CIV) Order & Confirmation & Status Transfer & Confirmation & Status Statements FPP report provider, e.g. Fund manager FPP report user, e.g. Fund distributor Request for Fund Report FPP Report Alternative Funds Order, Confirm & Status
Slide 13 ISO_20022_SV_v30 145 ISO messages approved and published: –Investment funds distribution –Securities transaction regulatory reporting –Proxy voting –Issuers’ agents communication –Fund processing passport report –Securities settlement and reconciliation –Securities corporate actions Candidate ISO messages under evaluation: –Securities pre-trade/trade Candidate ISO messages approved for development: –Total portfolio valuation statement –Securities registration and holder identification –Securities market claims and automatic transformation –Securities issuance –Triparty collateral management –Alternative funds –Securities post-trade –Settlement modification/replace and allegement response –TARGET2-Securities –CCP Clearing New development proposals: none The ISO recipe is used! (6/10) Securities message portfolio is growing!
Slide 14 ISO_20022_SV_v30 The ISO recipe is used! (7/10) Forex FX order Ordering party Settlement party custodian Trading party Trading party FX & Loan/Deposit Advice & Allocations Loans and deposits Foreign exchange and currency options Interest rate swaps Central Settlement System NDF and Foreign Exchange Option Notifications NDF Opening and Valuation Notifications and Foreign Exchange Option Premium Notifications MTs FpML CUG (Trade Notifications) ISO 20022
Slide 15 ISO_20022_SV_v30 15 ISO messages approved and published: –Forex notifications Candidate ISO messages under evaluation: –none Candidate ISO messages approved for development: –none New development proposals: –none The ISO recipe is used! (8/10) FX message portfolio is growing!
Slide 16 ISO_20022_SV_v30 Seller’s bank Buyer’s bank TSU Trade Services Management Candidate ISO (in development) ISO Buyer Seller e-Invoice Invoice Financing Request EBPP The ISO recipe is used! (9/10) Trade Services e-Invoice
Slide 17 ISO_20022_SV_v30 53 ISO messages approved and published: –Invoice financing request –Trade services management Candidate ISO messages under evaluation: –none Candidate ISO messages approved for development: –E-invoice New development proposals: –none The ISO recipe is used! (10/10) Trade message portfolio is growing!
Slide 18 ISO_20022_SV_v30 & & uestions A nswers