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 • 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 (MIC) Ref Data

ISO 10962 Classification of Financial Instruments (CFI) Ref Data

ISO 13616 International Account Number (IBAN) Ref Data

ISO 15022 Securities Messages Info Xchange

ISO 17442 (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