Introduction to financial standards ISO20022 - Cindy Foo
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Transcript of Introduction to financial standards ISO20022 - Cindy Foo
1
Evolution of standards
1977 1987 1995 2002 2004 2014
First MT over
SWIFT
100+ live
countries
ISO 7775 for
securitiesISO 15022
SWIFTNet
ISO 20022 first
edition
JASDEC
ASX
SGX
T2S
BOJNet
20151992
SEPA
2008
ISO 20022 new
edition
2013 2016
Financial standard = Common language to
automate financial transactions
ISO 20022 Overview
ISO 20022
Who ?
ISO 20022
Why ?
ISO 20022
When ?
ISO 20022
What ?
ISO 20022
Where ?
ISO 20022
How?
Proprietary MT ISO 7775 ISO 15022
Securities onlyPaymentsTreasury & Trade Securities only
• Paper-based
• Proprietary syntax
• Point-to-point
• One size fits all
• SWIFT only
ISO 20022
• Electronic
• Open, neutral syntax
• End-to-end transaction
• Market practice
• SWIFT + other organisations
• Reference standard
1973 1984 1999 20042000
FIN MT: Computer-
processable versions of
telexes
ISO 20022
Why ?
ISO 20022
What ?
• Defines business meaning of financial concepts, e.g., ‘Credit Transfer’
Business / Conceptual
• Defines e.g. credit transfer messages, to execute the business process
Logical
• Defines physical syntax, e.g. XML
Physical
single standardisation approach (methodology, process, repository)
to be used by all financial standards initiatives
Businessmodels
Data dictionar
y
Catalogue of
messages
Recipe to create financial standards Body of content
www.iso20022.org
ISO 20022
What ?
More than 320
ISO 20022
messages
www.iso20022.org
More than 20 submitting
organisations, besides
SWIFT
MyStandards
Maintenance process – built
on strict business
justifications and review
process - leading to new
‘versions’ of the messages
+ SWIFT
User Handbook
‘PAIN’ = Payment initiation = used in Corporate-to-bank
‘PACS’ = Interbank clearing and settlement = used in HVP and LVP MI
‘SESE’ = Securities settlement = used in Securities MI
‘SEMT’ = Securities management = used in Securities MI
18 business
areas
ISO 20022 message
catalogue
EXAMPLE
More than 320 messages,
covering payments,
securities, trade services,
FX, cards
ISO 20022
Who and
Where ?
ISO 20022
is increasingly adopted by key
players around the globe
IPFA
SEPA,EU
BR
DK
CH
US – retail
division of
FRB
CPA, CA
IPFA
T2, EU
AU
Zengin, JP
CNAPS2,
CN
IN
BOJNet, JP
Live
Live
NZ
SG
CO
PE
ISO 20022 Adoption – Payments MI & initiatives
From discussion to implementation
Live
PG
CL
UK
SADC
ZA
BN
US
Live
FI
SAEC
Live
Live
LiveBD
LiveLive
MYLive
DTCC, US
JASDEC, JP
[Post-trade]
Galgo, BR
T2S, EU
CSD, LI
EVK, EE
CSD, LT
ASX, AU
ISO 20022 Adoption – Securities MI & Treasury MI –
From discussion to implementation
CLS
Treasury MISecurities MI
SGX, SG
JASDEC &
TSE, JP
[Corp.Act]
VN
Live
CN
Live
Live
NSD, RU
VP Lux
VP Sec
DK
KDPW
CCP, PL
Live
Live
IN
HK
SADCID
LCH.Clearnet, UK
Euroclear, FI
Euroclear, ESES
NBB-SSS, BE
TW
KR
Live
Live
Live
Live
Live
MY
ISO 20022 Adoption – SWIFT for Funds
GB
CH
AU
TW
SE
FINO
IE
ES
ITGR
EE
BE
NL
LU
KRUS FR
DE
SG
HK
BM
ADAT
BS
LV
PL
This map shows countries where one or more players are
sending/receiving ISO 20022-based Funds transactions.
This includes major players such as Clearstream,
Euroclear, Benefit Trust Company Funds Messaging, etc
It’s all about the right standards
at the right time for the right
reason
ISO 20022
When ?
When to adopt ISO 20022?
Triggers:
Harmonization
(driven by regulation or innovation)
Renewal of legacy systems
Further automation required
Creation of new services
Interoperability with
other systems/players
12
Community collaboration
and management of local
implementations
ISO 20022
How ?
How to adopt ISO 20022
14
Coordinated approach:
– Market Practice Group - collaboration and best practice
sharing
– Implementation Programmes to help communities migrate
and adopt (roadmap, creation of guidelines, mapping, etc)
– Standards Management Tool - MyStandards to facilitate
sharing and harmonization of market practices
ISO 20022 Standards
Platform/infrastructure
Migration enablers
Services
Products
SWIFT: your one-stop-shop for ISO 20022
Complete
portfolio of
ISO 20022
standards
SWIFT is the
golden source of
ISO 20022
knowledgeRegistration authority
Contributor to content
In-depth knowledge of models,
data dictionary and messages
SWIFT has tools and
services for standards &
market practice
management
MyStandards & Readiness Portal
Contributes to market practice groups
Supports communities with adoption
SWIFT and ISO 20022
Insights into global adoption
All relevant business
domains
SWIFT has
unparalleled
expertise in
ISO 20022 adoption
Questions
Thank you
17
Cindy FooSenior Standards Specialist
SWIFT8 Marina View
Asia Square Tower 1, #28-04
Singapore
+65 6347 8000
+65 6347 8071
+65 8611 5708
www.swift.com
TDM
WE
