ISO 20022 The success of ISO 20022

ISO 20022 The success of ISO 20022 – Universal financial Industry message scheme ISO_20022_SV_v 115 Slide 1

ISO 20022 The ISO recipe for all financial messages ISO 20022 - Universal financial industry message scheme, the recipe: § syntax neutral business modelling methodology § syntax specific design rules § industry led development/registration process § financial repository on www. iso 20022. org § reverse engineering approach to ease coexistence ISO_20022_SV_v 115 Slide 2

Why ISO 20022? Supports convergence and co-existence ISO 15022 IFX ISO 15022 TWIST IFX TWIST Message model MDDL Fp. ML FIX Long term we want one standard, but in the interim several standards need to co-exist… ISO_20022_SV_v 115 Slide 3

Why ISO 20022? Convergence in the cooperative space Competitive Space Cooperative Space Competitive Space High Value Payments: RTGS, EURO 1 and CHIPS Financial Institutions FX and Money Markets: Rule Books, CLS Commercial Payments: Public Administrators Rule Books, Clearing Houses, Processors Cards: Rule Books, Card Schemes, Cards Processors Corporates Bank A SME’s Tradefacilitation: ICC Rule Books, e-invoicing Corporates Bank B SME’s Cash: NCB rules, Industry Standards Merchants Securities: Merchants Rule Books, Exchanges, CCP’s CSD’s, Standardisation Consumers Certification & Networks: Consumers SWIFT Cooperative space for business rules Cooperative space for standards ISO_20022_SV_v 115 Slide 4

The ISO 20022 recipe - For whom? Potential users and developers è communities of users looking for interoperability and more costeffective communications < Message development organisations: ACORD, ANBIMA, ASF, Berlin Group, BIAN, CBI Consortium, Early Warning Services, FPL, Fp. ML, IFX Forum, nexo A. I. S. B. L (formerly EPASOrg), OAGi, SWIFT, Tieto, TWIST, XBRL, etc. < Market Infrastructures (MIs): China Foreign Exchange Trade System, China Union. Pay, Clearstream, CLS, DTCC, EBA, ECB-Banque de France-Banco de España-Deutsche Bundesbank, Euroclear, FED, Omgeo, Target, T 2 S, ESMA, etc. < International or national standards setters: Danish Bankers Association, EPC, Federation of Finnish Financial Services (FFI), ISITC, ISO WGs, Payments UK, Russian Corporate Market Practice Group (RU-CMPG), UN/CEFACT, South African Bureau of Standards (SABS), SPRING, etc. There also catalysts for interoperability and convergence, such as SEPA, T 2 S, Giovannini, Mi. FID, Mi. FIR, EMIR ISO_20022_SV_v 115 Slide 5

ISO 20022 The registration bodies < Registration Management Group - RMG (Overall governance) – 70 senior managers from 21 countries and 14 international organisations < Standards Evaluation Groups – SEGs (User representatives) – Securities (71 experts, 17 countries, 9 organisations) and Derivatives Sub. SEG (51 experts, 8 countries, 10 organisations) – Payments (58 experts, 19 countries, 6 organisations) – Cards and related retail financial services (30 experts, 15 countries, 3 organisations) – Trade Services (28 experts, 12 countries, 1 organisation) – Forex (19 experts, 8 countries, 3 organisations) < Technical Support Group – TSG (ISO 20022 technical advisors) – 29 experts from 8 countries and 8 international organisations < Registration Authority – RA (Maintaining ISO 20022 repository) ISO_20022_SV_v 115 Slide 6

ISO 20022 The registration process Development Process R M G m o n i t o r s ISO_20022_SV_v 115 Submitting organisation Business justification RMG Submitting organisation & RA Financial organisation or standards body Business justification Project approval & allocation to a SEG Candidate ISO 20022 messages Development & provisional registration SEG Business validation RA Official registration and publication Submitter & users Optional pilot testing or first implementers ISO 20022 messages Repository Dictionary www. iso 20022. org Catalogue Slide 7

ISO 20022 registration process Yearly maintenance process Timing By June 1 By July 7 By August 21 By October 1 By December 1 By February 1 By April-May Users CRs SEG Submitting organisation & RA SEG RA Submitting organisation & users ISO_20022_SV_v 115 Users introduce Change Requests to the RA SEG screens Change Requests (CRs) Submitting organisation prepares ‘Maintenance Change Request’ with each CR implementation SEG approval/rejection Development of new candidate versions. Provisional publication Validation of new versions Registration and publication First implementers Repository Dictionary Catalogue Slide 8

ISO_20022_SV_v 115 Stand-Alone Remittance Advice Account Reporting Request Bank Services Billing Debtor c ISO 20022 Ac t un o wi S t i ch ng Candidate ISO 20022 (in development) Creditor Stand-Alone Remittance Advice Bank Services Billing Notification to Receive Creditor Payment Activation Request Account Switching Mandates Cash Management Exceptions & Investigations Debtor’s bank Advice & Statement Financial Investigations Direct Debit Initiation Authorities Creditor Payment Activation Request Bank Account Management Change/Verify Account Identification Exceptions & Investigations Advice & Statement Credit Transfer Initiation The ISO 20022 recipe is used! (1/11) Payments Credit Transfers / Direct Debits / Mandates Exceptions & Investigations Change/Verify Account Identification Creditor Payment Activation Request Creditor’s bank Slide 9

The ISO 20022 recipe is used! (2/11) Payments message portfolio is growing! < < 75 ISO 20022 messages approved: – Customer payment initiation – Interbank payment clearing and settlement – Payments exceptions & investigations – Bank-to-customer cash management – Payments mandates – Change/verify account identification – Bank account management – Creditor payment activation request – Cash account reporting request & notification messages – Bank services billing – Authorities financial investigations – Stand-alone remittance advice messages – Cross-border transactions currency control reporting (CTCCR) Candidate ISO 20022 messages under evaluation: none Candidate ISO 20022 messages approved for development: – Cash management – Account switching – Mandate status list – Payment pre-authorization (Pa. PA) – Payments mandates – supplement – Payment status request New development proposals: Proxy for Banking Account Numbers ISO_20022_SV_v 115 Slide 10

The ISO 20022 recipe is used! (3/11) Card message portfolio is growing Authorisation (ATICA) Issuer Acceptor ISO_20022_SV_v 115 ATM terminal Management ATMI transaction authorisation POI Terminal Management (CAPE) POI transaction authorisation (CAPE) Acquirer ISO 20022 Candidate ISO 20022 (in development) Sale Management (CAPE) Slide 11

The ISO 20022 recipe is used! (4/11) Cards and related retail financial services < 67 ISO 20022 messages approved: – – – < Candidate ISO 20022 messages under evaluation – < Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal Management ATM interface for transaction processing and ATM management Acquirer to issuer card messages (ATICA – first version) Dispute Resolution in Cards Fee Collection Candidate ISO 20022 messages approved for development: – – – Card Payments Exchanges (CAPE) - Sale-to-POI management Payment Tokens Management Exchanges (TOKE) Acquirer to issuer card messages (ATICA – second version) ISO_20022_SV_v 115 Slide 12

The ISO 20022 recipe is used! (5/11) Securities - equities and fixed income Buyer Pre-trade / Trade (FIX/SWIFT) Seller Post-Trade (Omgeo/SWIFT) CCP Clearing (FPL/SWIFT) Regulators Settlement Corporate (SWIFT) Actions (SWIFT) Reconciliation TPV Statement (ISITC/SWIFT) Transaction Regulatory Reporting (SWIFT) Settlement (SWIFT) ISO 20022 Candidate ISO 20022 (in development) ISO 15022 Corporate Actions (SWIFT) Reconciliation (SWIFT) I/CSD Custodian Settlement & Reconciliation (SWIFT) Issuers’ Agent Corporate Communication Actions (Euroclear) (SWIFT) Settlement & Reconciliation (SWIFT) Clearing agent Issuers’ Agent ISO_20022_SV_v 115 Slide 13

The ISO 20022 recipe is used! (6/11) Securities - investment funds (CIV) Old plan manager Portfolio Transfers New plan manager Fund accountant Price Report Order & Confirmation & Status Institutional investor Transfer & Confirmation & Status Transparency of Holdings Statements Account Management Prospectus or FPP report user, e. g. Fund distributor Request for Fund Report FPP Report Prospectus or FPP report provider, e. g. Fund manager ISO_20022_SV_v 115 Transfer agent Fund Cash Forecast Report Investment manager ISO 20022 Candidate ISO 20022 (in development) Slide 14

The ISO 20022 recipe is used! (7/11) Securities message portfolio is growing! < 189 ISO 20022 messages approved and published: – – – – < Candidate ISO 20022 messages under evaluation: – < Financial instruments and transactions regulatory reporting Candidate ISO 20022 messages approved for development: – – < Investment funds Securities transaction regulatory reporting Proxy voting Issuers’ agents communication Securities settlement and reconciliation, including ISO 15022 variants Securities corporate actions, including ISO 15022 variants Securities post-trade Total portfolio valuation report CCP Clearing Collateral management Money Market Statistical Reporting (MMSR) Transparency of holdings SSI for Securities, Payments & FX TARGET 2 -Securities Financing Transactions Regulatory Reporting (SFTR) New development proposals: – none ISO_20022_SV_v 115 Slide 15

The ISO 20022 recipe is used! (8/11) Forex Trading system ISO 20022 Candidate ISO 20022 (in development) MTs Ordering party Fp. ML CUG (Trade Notifications) FX order Interest rate swaps Trading party FX & Loan/Deposit Advice & Allocations Loans and deposits Derivatives FX Spot, Forward & Swap instructions NDF and FX Option instructions (archived) Central Settlement System ISO_20022_SV_v 115 Trading party s ons t atu ati en St tific ym n no d pa atio an orm inf Settlement party custodian Foreign exchange instruments n an otific Stat d us a inf pay tions orm me ati nt on Trade capture Slide 16

The ISO 20022 recipe is used! (9/11) FX message portfolio is growing! < 23 ISO 20022 messages approved and published: – Post Trade FX messages – FX Post-Trade Confirmation – FX Post-Trade Capture < Candidate ISO 20022 messages under evaluation: – None < Candidate ISO 20022 messages approved for development: – Post Trade FX - Supplement < New development proposals ─ None ISO_20022_SV_v 115 Slide 17

The ISO 20022 recipe is used! (10/11) Trade Services Buyer’s bank Seller’s bank or t t ep or Se R ep Ta x. R to c Fa g rin c rvi Ta x Tax Authority Inv ISO 20022 Candidate ISO 20022 (in development) es oi ce oic e TSU In v Invoice Financing Request es ervic e. S Trad gement a Man Factoring Services Trad e Man Services agem ent Buyer ISO_20022_SV_v 115 Seller Slide 18

The ISO 20022 recipe is used! (11/11) Trade message portfolio is growing! 86 ISO 20022 messages approved: – Invoice financing request – Trade services management – Demand guarantees and standby letters of credit – Factoring services – Invoice Tax Report < Candidate ISO 20022 messages under evaluation: – None < Candidate ISO 20022 messages approved for development: – None < New development proposals: – None < ISO_20022_SV_v 115 Slide 19

Who is interested by ISO 20022? From 2 Oct 2015 to 2 Oct 2016, www. iso 20022. org had 600, 000 visits from 341, 101 visitors from 206 countries 2 Oct 15 – 2 Oct 16 Continent Europe Asia Americas Oceania Africa ISO_20022_SV_v 115 Number of visits 324, 376 96, 661 89, 270 17, 674 14, 366 % 59. 6% 17. 8% 16. 4% 3. 3% 2. 6% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Country/Territory United States United Kingdom India Germany France Spain Switzerland Italy Sweden Australia Netherlands Belgium Singapore Canada Norway Russia Japan Poland South Africa Denmark Finland Hong Kong Brazil Sessions 67, 332 49, 343 40, 246 31, 141 30, 739 26, 323 23, 715 22, 917 16, 798 16, 262 14, 420 13, 108 9, 790 9, 789 8, 974 8, 535 7, 998 7, 570 7, 406 6, 812 6, 743 6, 263 5, 487 % 13% 9% 7% 6% 6% 5% 4% 4% 3% 3% 3% 2% 2% 2% 1% 1% 80% Slide 20

www. iso 20022. org uestions & A nswers iso 20022 ra@iso 20022. org ISO_20022_SV_v 115 Slide 21