International Standards in the Financial Industry
Paul Janssens
12 May 2016 The global provider of secure financial messaging services
Standards in the Financial Industry - SEMIC Rome 2016 Our offering to the community Messaging
Standards
Integration Shared & Interfaces Services
Standards in the Financial Industry - SEMIC Rome 2016 The standards journey
Payments Securities only Securities only All markets Treasury & Trade
Proprietary MT ISO 7775 ISO 15022 ISO 20022
1973 1984 1999 2004
• Paper-based • Reference standard • Proprietary syntax • Electronic • Point-to-point • Open, neutral syntax • One size fits all • End-to-end transaction • SWIFT only • Market practice Standards in the Financial Industry - SEMIC Rome 2016 • SWIFT + other organisations 4 ISO standards
Standard Description Type ISO 6166 International Securities Identification Number (ISIN) Ref Data
ISO 8583 Financial cards Info Xchange
ISO 9362 Business Identifier Code (BIC) Ref Data
ISO 10383 Market Identifier Code (MIC) Ref Data
ISO 10962 Classification of Financial Instruments (CFI) Ref Data
ISO 13616 International Bank Account Number (IBAN) Ref Data
ISO 15022 Securities Messages Info Xchange
ISO 17442 Legal Entity Identifier (LEI) Ref Data
ISO 18774 Financial Instruments Short Name (FISN) Ref Data
ISO 20022 Universal Financial Messages Info Xchange
Standards in the Financial Industry - SEMIC Rome 2016 5 ISO 20022 is
. a methodology for the development of message standards based on business process modelling . a central financial repository (dictionary + catalogue of messages)
Standards in the Financial Industry - SEMIC Rome 2016 6 The ISO 20022 Methodology
Scope The methodology distinguishes 3 layers:
Business / Conceptual Data dictionary • Defines business meaning of financial concepts, e.g., ‘Credit Transfer’
Logical Catalogue of • Defines e.g. credit transfer messages, to serve the business messages process
Physical
• Defines physical syntax, e.g. XML Syntax
Standards in the Financial Industry - SEMIC Rome 2016 7 Standard Content – www.iso20022.org
Standards in the Financial Industry - SEMIC Rome 2016 8 Methodology - Business / Conceptual Layer
Standards in the Financial Industry - SEMIC Rome 2016 9 Elements refer to the Business / Conceptual layer for the definitions
Standards in the Financial Industry - SEMIC Rome 2016 10 Global Standards – Local usage
‘AUTH’-auth.030.001.01 ISO 20022 EMIR Trade Report messages Global ESMA guidelines market practice Local Country specific templates market practice
Reporting Agent’s RA- implementation specific with NCA specification practice
Standards in the Financial Industry - SEMIC Rome 2016 11 11 My Standards Platform
Fragmentation and Global Standards: change of industry MT/MX/ISO 20022 A lot of options messaging specifications
Cost of onboarding new Market practices Different customers or migrating communities standards Implementation used in different The same problem applies guidelines ways across different channels (SWIFT, host-to-host, e- banking) Change over time
Standards in the Financial Industry - SEMIC Rome 2016 www.swift.com
Standards in the Financial Industry - SEMIC Rome 2016 13