10101011010101010110101010101001011101010101010010111010101010101010010111001010101010110101010101 1110101010101010100101110010101010101110010111010101101010110101010101101010110101010101101010110 10101011010101010110101010010111010101010101010010111001010101010111001011101010101010101001011100101010101011 1001011100101010101011100101110101010101010110010111001010101010111001011101010101010101 10101011010101101010101011011010101101010110101010101101101010110101011010101010110110101011 1011010101010110110101011011011010101010110110101011011011010101010110110101011011011010101010110110 0010101011011010101101101101010101011011011011011010101010110110010110110101011011011010101010110110 010101011011010101101101101010101011011001010101101101010110110110101010101101100101010110110101011011011010101010110110 10110110101011011011010101101101010110110110101011011010101101101101010110110101011011011010 01010110110110101011011010101101100101011011011010101101101010110110010101101101101010110110101 1101101010110110010101101101101101010110110010101101101101101010110110010101101100110110 110110101011011001010110110110110101011011110110101011011001010110110110110101011011001010110110110110101011011 101101101010110110010101101101101010111011011010101101100101011011011010101110110110101011011001010110110110101011 10101110110110101011011001101011101101101010110110011010111011011010101101100110101110110110101011011001 110101011011001101011101101101010110110011010101101100110101110110110101011011001101010110110011010111011011010101101100 1100110101011011001101011101101100110101011011001101011101101100110101011011001101011101101100110101011011001101011101 10011010111011011001101010110110011010111011001101011101101100110101011011001101011101 011001101011101101100110101011011001101011011001101011101101100110101011011001101011011001101011101101100110101011011001101011 1100110101110110110011001101011101101100110011010111011011001100110101110110110011001101011101101100 10101011011001101011011001101011101101010101101100110101101100110101110110101010110110011010110110011010111011COMMON UNDERSTANDING ON 0 0110110011010111011001101100110101110110011011001101011101100110110011010111011001101100110101110110 11001101011011001101011101101010101100110101101100110101110110101010110011010110110011010111011010101011001INTERNATIONAL STANDARDS AND 101010101100110101101100110101110110101010101010101100110101101100110101110110101010101010101100110101 1010101011001101011011001101011101101010101010101011001101011011001101011101101010101010101011001101011011GATEWAYS FOR CENTRAL SECURITIES 00110101110110101010001101011101101010100011010111011010101000110101110110101010100110101110110101010DEPOSITORY AND REAL-TIME GROSS 101010101100110101101100110101110110101010101100110101101100110101110110101010101100110101101100110101110110 010110110011010111011010101011011001101011101101010101101100110101110110101010110110011010111011010SETTLEMENT (CSD–RTGS) LINKAGES 1 01101010101101100110101011010101011011001101010110101010110110011010101101010101101100110101 1011101101010101101101110110101010110110111011010101011011011101101010101101101110110101010110Cross-Border Settlement Infrastructure Forum 1 010110011010110110010110011010110110010110011010110110010110011010110110010110011010110110MAY 2019 001101011011001011001101011011000110101101100101100110101101100011010110110010110011010110110 101100110101101101011001101011011010110011010110110101100110101101101011001101011011010110011010110110 1011010110011010110110101100101101011001101011011010110010110101100110101101101011001011010110011010110110101100 0101101101011001011010110010110110101100101101011001011011010110010110101100101101101011001011010110 101100101101011001101101100101101011001101101100101101011001101101100101101011001101101100101101011001101 ASIAN DEVELOPMENT BANK COMMON UNDERSTANDING ON INTERNATIONAL STANDARDS AND GATEWAYS FOR CENTRAL SECURITIES DEPOSITORY AND REAL-TIME GROSS SETTLEMENT (CSD–RTGS) LINKAGES Cross-Border Settlement Infrastructure Forum MAY 2019 ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2019 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rigHts reserved. PublisHed in 2019. ISBN 978-92-9261-612-0 (print), 978-92-9261-613-7 (electronic) Publication Stock No. TCS190144-2 DOI: http://dx.doi.org/10.22617/TCS190144-2 The views expressed in tHis publication are tHose of tHe autHors and do not necessarily reflect tHe views and policies of the Asian Development Bank (ADB) or its Board of Governors or tHe governments tHey represent. ADB does not guarantee tHe accuracy of the data included in this publication and accepts no responsibility for any consequence of tHeir use. THe mention of specific companies or products of manufacturers does not imply tHat tHey are endorsed or recommended by ADB in preference to others of a similar nature tHat are not mentioned. By making any designation of or reference to a particular territory or geograpHic area, or by using tHe term “economy” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under tHe Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/ By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess This CC license does not apply to non-ADB copyrigHt materials in tHis publication. If tHe material is attributed to another source, please contact tHe copyrigHt owner or publisher of tHat source for permission to reproduce it. ADB cannot be Held liable for any claims tHat arise as a result of your use of tHe material. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyrigHt permission for your intended use tHat does not fall witHin tHese terms, or for permission to use tHe ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: In this report, international standards for naming conventions—International Organization for Standardization (ISO) 3166 for economy codes and ISO 4217 for currency codes—are used to reflect the discussions of the ASEAN+3 Bond Market Forum to promote and support the implementation of international standards in financial transactions in the region. ASEAN+3 comprises tHe Association of SoutHeast Asian Nations (ASEAN) plus tHe People’s Republic of CHina, Japan, and the Republic of Korea. ADB recognizes “hong Kong” as hong Kong, CHina; “Korea” as tHe Republic of Korea; “CHina” as tHe People’s Republic of China; and “Vietnam” as Viet Nam. The currencies of ASEAN+3 as defined in ISO 4217 are tHe Brunei dollar (BND), Cambodian riel (KhR), CHinese renminbi (CNY), hong Kong dollar (HKD), Indonesian rupiaH (IDR), Japanese yen (JPY), Korean won (KRW), Lao kip (LAK), Malaysian ringgit (MYR), Myanmar kyat (MMK), Philippine peso (PhP), Singapore dollar (SGD), Thai baht (ThB), and Vietnamese dong (VND). Contents Tables and Figures v Acknowledgments vi Statement from the Chairs of the Cross-Border Settlement Infrastructure Forum vii Abbreviations viii Overview 1 PART 1: International Standards for CSD–RTGS Linkages 3 1 Introduction 3 2 International Standards to Be Used for CSD–RTGS Linkages 4 2.1 ISO 20022, for Messages 4 2.2 ISO 3166, for Country Codes 5 2.3 ISO 4217, for Currency Codes 5 2.4 ISO 6166, for Securities Numbering 5 2.5 ISO 9362, for Financial Institution Identification 6 2.6 ISO 8601, for Date and Time Format 8 3 Remaining Challenges 8 3.1 Identification of Cross-Border Messages 8 3.2 OtHer International Standards 9 3.3 Account-Numbering Conventions 9 4 Possible Opportunities 9 PART 2: User Requirements and Technical Specifications for GatewaYs for CSD–RTGS Linkages 12 1 Introduction and Background 12 2 Overview of CSD–RTGS Linkages 13 2.1 Cross-Border Delivery-versus-Payment Linkage 13 2.2 Cross-Border CSD Linkage 14 2.3 Payment-versus-Payment Linkage 15 Contents iv 3 Possible Requirements and Specifications for GatewaYs 16 3.1 Outline of User Requirements 16 3.2 Possible TecHnical Specifications 17 3.3 Interoperability througH the Adoption of International Standards 18 3.4 Cross-Border Network Connecting CSD and RTGS Systems 18 3.5 Cross-Border Business Continuity Planning and Cybersecurity 19 3.6 OtHer Specifications 19 4 Conclusions 20 Appendixes 1 Possible GatewaY Features 21 2 Basic Concept for Network Providers 24 References 27 Tables and Figures Tables 1 ASEAN+3 Country Codes, Currency Codes, and National Numbering Agencies 6 2 BICFIs of Central Securities Depository and Real-Time Gross Settlement System Operators in ASEAN+3 7 Figures 1 Structure of the Report 2 2 Central Securities Depository–Real-Time Gross Settlement Linkages Model 3 3 Financial Market Infrastructure Transformation into a Regional Settlement Intermediary 10 4 Central Securities Depository and Real-Time Gross Settlement Gateway Function 12 5 Cross-Border Delivery-versus-Payment 14 6 Cross-Border CSD Linkage 15 7 Payment-versus-Payment Linkage 15 8 Cross-Border Connections 19 A1.1 Possible Gateway Configuration 21 A1.2 Gateway Security 23 A2 Network Provider 24 Acknowledgments The Asian Development Bank (ADB), as Secretariat of tHe Cross-Border Settlement Infrastructure Forum (CSIF), would