Building your ISO implementation roadmap

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Emily Hensley
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1 for ISO Building your ISO implementation roadmap Kris Vanholst SWIFT 9 June 2015

2 Agenda ISO adoption trends Industry harmonisation Implementation considerations Building an ISO implementation roadmap ISO on SWIFT 2

3 FX Market Infrastructures Global ISO adoption Europe 200 initiatives Under discussion > planned > rollout > live 90 countries Asia Pacific Americas Middle East & Africa

4 Market Infrastructures Global ISO adoption 200 initiatives Under discussion > planned > rollout > live 90 countries 1 2 SWIFT is not mandating migration SWIFT will continue to support FIN

5 ISO adoption - context Market infrastructures MI FI FI customers Enable new services Streamline end-to-end business processes Facilitate regional integration Comply with MI Internal optimisation Flexible services to customers Financial institutions 5

6 Agenda ISO adoption trends Industry harmonisation Implementation considerations Building an ISO implementation roadmap ISO on SWIFT 6

Towards a harmonised use of ISO 20022 SWIFT s community

Provide a predictable environment for MI communities (versions,

7 Towards a harmonised use of ISO SWIFT s community management 2 1 Less variation, more global market practice Provide a predictable environment for MI communities (versions, release mgmt..) 3 Best practice sharing for community adoption & implementation 7

8 Implementation roadmap by Sibos SWIFT s Community Management What? Principles for harmonisation framework Why? FMIs need to collaborate and co-ordinate their efforts to minimise fragmentation. How? SWIFT will play a co-ordinating role and provide a platform to drive harmonisation What? FMIs are ready to collaborate with SWIFT and one another to realise greater harmonisation, according to the maturity of their ISO initiatives: Publish standards information in a consistent format Adhere where possible to global market practice Synchronize standards upgrades with industry MT release cycle Remain up-to-date with ISO standards release

Canadian Payments Association Clearstream Colombia ACH Deutsche Bundesbank DTCC EBA ECB Euroclear

9 SWIFT s Community Management Who? Principles for harmonisation framework APCA ASX Banca d Italia Bank of Canada Bank of England Canadian Payments Association Clearstream Colombia ACH Deutsche Bundesbank DTCC EBA ECB Euroclear Hong Kong Interbank Clearing IPFA JASDEC National Bank of Belgium NSD Russia Reserve Bank of South Africa SADC SGX The Clearing House US Federal Reserve VP Securities

SWIFT s Community Management Benefits for Financial Institutions Single window End-to-end solution Predictability of process Development and budget

10 SWIFT s Community Management Benefits for Financial Institutions Single window End-to-end solution Predictability of process Development and budget cycle alignment (already ingrained from MT process) Unified approach for all MIs Seamless integration of MI specifications with local SWIFT footprint 10

11 Agenda ISO adoption trends Industry harmonisation Implementation considerations Building an ISO implementation roadmap ISO on SWIFT 11

12 A bank s ISO landscape Your participation to Market Infrastructures Payments EURO1/ STEP1 ACH CENIT (CO) Impact? Different timelines Different scopes Different sets of messages 2018 & beyond Step2 Different market practice Baltic CSDs Different MI adoption strategies Securities Different roll-out approaches 12

MI adoption strategies Example: ISO 20022 HVP adoption strategy TARGET2 & EURO1/STEP1: Interim like-for-like Nov 2017 HVP MI strategy Adopt Implement & Test L I V E Phase 1 MT 20022 Live Use Full MX

13 MI adoption strategies Example: ISO HVP adoption strategy TARGET2 & EURO1/STEP1: Interim like-for-like Nov 2017 HVP MI strategy Adopt Implement & Test L I V E Phase 1 MT Live Use Full MX Like-for-like Like-for-like = an approach that reduces the richer functionality of ISO to the functionality currently covered by the MT messages. It is an intermediate step towards full implementation of ISO Full usage of MX

MI adoption strategies Example: ISO 20022 CSD adoption strategy Replacement of proprietary standards propri etary L I V E End CSD strategy Implement/ Test Use ISO 20022 Live

14 MI adoption strategies Example: ISO CSD adoption strategy Replacement of proprietary standards propri etary L I V E End CSD strategy Implement/ Test Use ISO Live New services Start Introducing ISO is typically a first step towards - Elimination of proprietary standards - Potential launch of new or updates services or functionalities

A bank s ISO 20022 landscape Your participation to Market

Payments EURO1/ STEP1 ACH CENIT (CO) 2018 & beyond 2017

15 A bank s ISO landscape Your participation to Market Infrastructures Your customers (corporates and banks) Payments EURO1/ STEP1 ACH CENIT (CO) 2018 & beyond Step & beyond Baltic CSDs Securities 15

A bank s ISO 20022 landscape Market Infrastructures How to Payments internalise

& budget for 2018 & beyond 2017 2016 2015 Step2 2015 2016 2017 MI implementations

16 A bank s ISO landscape Market Infrastructures How to Payments internalise ISO in your infrastructure EURO1/ STEP1 ACH CENIT (CO) How to prepare, plan & budget for 2018 & beyond Step MI implementations 2018 & beyond Baltic CSDs How to offer flexible services to your Securities customers 16

17 Agenda ISO adoption trends Industry harmonisation Implementation considerations Building an ISO implementation roadmap ISO on SWIFT 17

A phased approach to implementation Building an ISO 20022 roadmap 6 7 Roadmap for implementation Design to-be model Work out implementation plans (iterative process) Address current and future

18 A phased approach to implementation Building an ISO roadmap 6 7 Roadmap for implementation Design to-be model Work out implementation plans (iterative process) Address current and future requirements by leveraging technology Make an overview of all initiatives 4 Identify & involve all stakeholders 5 Gap analysis Review As-Is Consider implementation options Get visibility on current and future ISO initiatives in other geographies & business areas Translation at the edge, core system revamp, silo based What are the gaps to be addressed and what are the constraints Understand impact on business applications, shared services, infrastructure and integration Engage with all stakeholders across business lines and departments to ensure a holistic view 18

19 ISO impact assessment service Build a strategic roadmap for your organisation Making an informed ISO decision Cost / ROI Risk Company Strategy ISO landscape Regulations Internal ongoing & planned Projects Knowledge base Local markets Global Market FTE Availability Deadlines Client requirements

ISO 20022 solution design service Design your strategic ISO 20022 infrastructure by applying an enterprise architecture approach, putting four views on an organisation together Business processes &

20 ISO solution design service Design your strategic ISO infrastructure by applying an enterprise architecture approach, putting four views on an organisation together Business processes & activities use.. Data that must be collected, organized, safeguarded,and distributed using.. Applications such as custom or off-the-shelf software tools that run on Technology such as computer systems and networks Governance, process flows Build on ISO business model Middleware, manual processing, connectors & converters Sizing of systems and connections, Recovery and resiliency

21 MyStandards for you and your customers Your customers MI A You MyStandards & readiness portal MI B MyStandards & readiness portal MI multi-format documentation MI integration components (XSDs, deployment packs) MI CUG set-up & joining MI self-service internet testing + + Compare and analyse versions Compare and analyse market practice of multiple market infrastructures + + Create your own internal and customer guidelines Offer your customers the same easy onboarding experience

22 Agenda ISO adoption trends Industry harmonisation Implementation considerations Building an ISO implementation roadmap ISO on SWIFT 28

23 Onboarding process Member-Administered Closed User Group (MA-CUG) Market Infrastructure setting up the CUG Join SWIFT Service approval request (to SWIFT Board) Service administration agreement Define service features Service Profile Form (SPF) Participants - joining the CUG Join SWIFT Fill out Message Service Subscription Form (MSSF) Service bureau customers mention the SNL of the SB Service administrator (the MI) approves/rejects All information available on swift.com > Ordering 29

Alliance Access Optional patch/release 7.1.

business usage guidelines) Fields specified in usage guidelines

24 Alliance Access Optional patch/release Before (current behaviour) All fields shown After (with injected business usage guidelines) Fields specified in usage guidelines shown MyStandards Nordics and Baltics Access user group May 2015 Confidentiality: SWIFT community 31

25 ISO Adoption Summary of potential back office integration models B/O SWIFT Interface B/O is adapted to fully adopt MX MT or Internal formats MX generation MX MX MI over ISO B/O SWIFT Interface B/O stays MT based. MT/MX mapping is handled by the SWIFT interface MT format MT MT/MX mapping package MX MI Over ISO B/O stays MT based. MT/MX mapping is handled in separate middleware B/O MT format MT Middleware MT/MX mapping package MX SWIFT/ Other interface MX MI Over ISO

Alliance Portfolio Overview ISO 20022 support All manual operations support ISO20022 Financial Applications Routing via specific routing keywords Web Platform GUI support Back-Office Support XMLv2

26 Alliance Portfolio Overview ISO support All manual operations support ISO20022 Financial Applications Routing via specific routing keywords Web Platform GUI support Back-Office Support XMLv2 supports ISO20022 over MQHA, SOAPHA and File transfer. New developers guide focuses on ISO20022 and XMLv2 Management Access Integration My Applications Gateway InterAct & FileAct real-time and store-and-forward Retry mechanism for real-time RMA available Custom integration via Integration Platform 34

27 Access support for ISO Good to know Deployment Packages Are service specific Can be obtained from download centre MyStandards Are required for Manual entry Pretty display/printing Validating for STP flows that a message is part of the service 35

28 Access support for ISO What is not available out-of-the-box Reference Data Bank File is today FIN oriented No directory with DN s to be used Reach Plus directory is under development Processing content of FileAct messages Bulk/debulk Custom signatures No message validation like for FIN (for STP flows) Only validation for proper XML No syntax validation No semantic validation Limited GUI support for messages with extensions 36

29 Why SWIFT for ISO 20022? for ISO Forty years of community expertise Efficient community management Unique tools and established processes to support communities Unequalled contribution to ISO Only worldwide value-added network designed specifically for ISO Trusted consulting partners for more ISO initiatives globally than anyone else Standards expertise Resilient messaging platform Highest standards of reliability, availability and security Selected as platform provider for key ISO initiatives in payments and securities SWIFT - the trusted source for your ISO initiative

30 Questions?

ISO Adoption Global trends

ISO Adoption Global trends ISO 20022 Adoption Global trends Margaux Monforti, ISO 20022 Business Development, SWIFT Wednesday, 28 October 2015, Bucharest ISO 20022 adoption Market Infrastructures Market Infrastructures Financial