ISO 20022 The success of ISO 20022

ISO 20022 The success of ISO 20022 – Universal financial Industry message scheme ISO_20022_SV_v 58 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 58 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 58 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 58 Slide 4

The ISO 20022 recipe - For whom? Potential users and developers è communities of users looking for interoperability and more cost-effective communications < Message development organisations: CBI Consortium, FPL, RIXML, Fp. ML, IFX Forum, TWIST, SWIFT, Rosetta. Net, OAGi, ACORD, XBRL, EPASOrg, Berlin Group, ANBIMA, ASF, etc. < Market Infrastructures (MIs): DTCC, FED, EBA, Target, CLS, Euroclear, Clearstream, Omgeo, ECB, NBB, etc. < International or national standards setters: ISITC, ISO TC 68 WGs, UN/CEFACT, OMG, EPC, UK Payments Council, FFI, etc. There also catalysts for interoperability and convergence, such as SEPA, T 2 S, Giovannini, Mi. FID, e-Invoicing ISO_20022_SV_v 58 Slide 5

ISO 20022 The registration bodies < Registration Management Group - RMG (Overall governance) – 70 senior managers from 22 countries and 12 international organisations < Standards Evaluation Groups – SEGs (User representatives) – Securities (74 experts, 19 countries, 8 organisations) – Payments (56 experts, 17 countries, 5 organisations) – Cards and related retail financial services (33 experts, 15 countries, 4 organisations) – Trade Services (33 experts, 14 countries, 1 organisation) – Forex (27 experts, 11 countries, 3 organisations) < Technical Support Group – TSG (ISO 20022 technical advisors) – 27 experts from 10 countries and 5 international organisations < Registration Authority – RA (Maintaining ISO 20022 repository) ISO_20022_SV_v 58 Slide 6

ISO 20022 The registration process R M G m o n i t o r s ISO_20022_SV_v 58 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_SV_v 58 Bank Services Billing Cash Management Account Reporting Request Creditor Payment Activation Request Bank Account Management Change/Verify Account Identification Exceptions & Investigations Advice & Statement Credit Transfer Initiation Debtor Candidate ISO 20022 (in development) Creditor ISO 20022 Bank Services Billing Creditor Payment Activation Request Cash Management Change/Verify Account Identification Notification to Receive Credit Transfers / Direct Debits / Mandates Exceptions & Investigations Creditor Payment Activation Request Mandates Exceptions & Investigations Advice & Statement Debtor’s financial institution Direct Debit Initiation The ISO 20022 recipe is used! (1/11) Payments Creditor’s financial institution Cash Management Slide 8

The ISO 20022 recipe is used! (2/11) Payments message portfolio is growing! < 58 ISO 20022 messages approved and published: – – – – – < Candidate ISO 20022 messages under evaluation: – < Bank services billing Candidate ISO 20022 messages approved for development: – – – < Customer payment initiation Interbank payment clearing and settlement Payments exceptions & investigations Bank-to-customer cash management Mandates Change/verify account identification Bank account management Creditor payment activation request Cash account reporting request & notification messages Cash management Cash lodgement and withdrawal Real time payments Authorities financial investigations Account switching New development proposals: – Extended Remittance Advice messages ISO_20022_SV_v 58 Slide 9

The ISO 20022 recipe is used! (3/11) Card message portfolio is growing Authorisation (ATICA) Issuer Acceptor ISO_20022_SV_v 58 ATM terminal Management (IFX) ATMI transaction authorisation (IFX) POI Terminal Management (CAPE) POI transaction authorisation (CAPE) Acquirer ISO 20022 Candidate ISO 20022 (in development) Sale Management (CAPE) Slide 10

The ISO 20022 recipe is used! (4/11) Cards and related retail financial services < 18 ISO 20022 messages approved and published: – < Candidate ISO 20022 messages under evaluation: – < None Candidate ISO 20022 messages approved for development: – – – < Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal Management ATM interface for transaction processing and ATM management (IFX) Acquirer to issuer card messages (ATICA) Card Payments Exchanges (CAPE) - Sale-to-POI management New development proposal: – None ISO_20022_SV_v 58 Slide 11

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 58 Slide 12

The ISO 20022 recipe is used! (6/11) Securities - investment funds (CIV) Old plan manager PEP/ISA/Portfolio Transfers New plan manager Fund accountant Price Report Order & Confirmation & Status Alternative Funds Order, Confirm & Status Transfer & Confirmation & Status Institutional investor Statements Account Management Request for Fund Report Prospectus or FPP report user, e. g. Fund distributor FPP Report Fund Prospectus or FPP report provider, e. g. Fund manager ISO_20022_SV_v 58 Transfer agent Fund Cash Forecast Report Investment manager ISO 20022 Candidate ISO 20022 (in development) Slide 13

The ISO 20022 recipe is used! (7/11) Securities message portfolio is growing! < 155 ISO 20022 messages approved and published: – – – – – < Candidate ISO 20022 messages under evaluation: – < Investment funds distribution Securities transaction regulatory reporting Proxy voting Issuers’ agents communication Fund processing passport report Securities settlement and reconciliation Securities corporate actions Securities post-trade Total portfolio valuation report Settlement modification/replace and allegement response Securities pre-trade/trade Candidate ISO 20022 messages approved for development: – – – < Alternative funds TARGET 2 -Securities CCP Clearing Collateral management Investment fund prospectus SSI for Securities, Payments & FX New development proposal: – Securities management accounting book-entry ISO_20022_SV_v 58 Slide 14

The ISO 20022 recipe is used! (8/11) Forex Ordering party ISO 20022 MTs Fp. ML CUG (Trade Notifications) FX order Trading party Interest rate swaps Foreign exchange and currency options Loans and deposits FX & Loan/Deposit Advice & Allocations Settlement party custodian NDF and Foreign Exchange Option Notifications NDF Opening and Valuation Notifications and Foreign Exchange Option Premium Notifications Trading party NDF and Foreign Exchange Option Notifications Central Settlement System ISO_20022_SV_v 58 Slide 15

The ISO 20022 recipe is used! (9/11) FX message portfolio is growing! < 15 ISO 20022 messages approved and published: – Forex notifications < Candidate ISO 20022 messages under evaluation: – none < Candidate ISO 20022 messages approved for development: – none < New development proposals: – none ISO_20022_SV_v 58 Slide 16

The ISO 20022 recipe is used! (10/11) Trade Services Financial Invoice Buyer’s bank Financial Invoice Tra de S ervi gem ces ices Man age men t TSU e d Tra v Ser na Ma ent Financial Invoice Seller’s bank Invoice Financing Request ISO 20022 Candidate ISO 20022 (in development) Buyer ISO_20022_SV_v 58 Financial Invoice Seller Slide 17

The ISO 20022 recipe is used! (11/11) Trade message portfolio is growing! < 54 ISO 20022 messages approved and published: – Invoice financing request – Trade services management – Financial invoice < Candidate ISO 20022 messages under evaluation: – none < Candidate ISO 20022 messages approved for development: – Demand guarantees and standby letters of credit – Factoring services < New development proposals: – None ISO_20022_SV_v 58 Slide 18

Who is interested by ISO 20022? From 1 May 2011 to 31 October 2011, www. iso 20022. org had 73, 000 visits from over 39, 000 visitors from 163 countries 1 May ‘ 11 – 31 Oct ‘ 11 Continent Visits % Europe 46, 341 64. 5% Asia 11, 421 15. 9% Americas 11, 369 15. 8% Oceania 1, 674 2. 3% Africa 1, 022 1. 4% ISO_20022_SV_v 48 ISO_20022_SV_v 58 1 May ‘ 11 – 31 Oct ‘ 11 Country Visits % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 USA France UK Germany India Belgium Switzerland Japan Netherlands Sweden Slovenia Finland Australia Italy Singapore Canada Hong Kong China Spain Poland Brazil Denmark Russia Austria Norway 8, 665 8, 509 7, 348 5, 797 3, 482 3, 320 2, 900 2, 299 2, 200 2, 164 1, 658 1, 604 1, 553 1, 409 1, 198 1, 195 1, 026 991 972 955 838 785 676 659 627 12% 10% 8% 5% 5% 4% 3% 3% 3% 2% 2% 2% 1% 1% 1% 62, 830 86% Slide 19

www. iso 20022. org uestions & A nswers iso 20022 ra@iso 20022. org ISO_20022_SV_v 58 Slide 20