Introduction to ISO ACG Seminar Colombo, May Alexandre Kech Head of Securities Market Infrastructures & Standards SWIFT APAC

Transcription

1 Introduction to ISO ACG Seminar Colombo, May 2015 Alexandre Kech Head of Securities Market Infrastructures & Standards SWIFT APAC

2 Agenda Introduction What is ISO 20022? Who is driving the adoption? Quiz

3 About SWIFT Industry owned, not-for-profit, financial services utility Co-operative organization serving the financial industry Provider of highly secure financial messaging services Financial standardization organization 3

4 In numbers Global reach with world-class performance 5.2 billion 11, Messages per year Customers Countries 24 50% 200+ Offices Securities related traffic Market Infrastructures 25M % Peak day message volume Corporates Availability 4

5 Community Securities Market Infrastructure SWIFT and ISO standards adoption Involved in all major global CSD s projects, APAC examples. Clearing & Settlement ISO strategy High level and detailed gap analysis review ISO governance support (maintenance and new) MyStandards Implementation support Trainings Corporate action (with TSE) Specification co-writing and maintenance ISO governance support MyStandards Corporate action Standards strategy Community engagement Specification writing and maintenance MyStandards Post-trade Standards strategy Collateral Management Specification co-writing and maintenance MyStandards Clearing & Settlement Standards strategy Specifications review MyStandards Implementation support Community engagement Corporate action Specification co-writing and maintenance ISO governance support Standards forums Customised trainings Standards consultancy Market practice discussion facilitation Standards forums Customised trainings Standards consultancy Market practice discussion facilitation Standards forums Customised trainings Standards consultancy Community workshops On boarding portal 5

6 Agenda Introduction What is ISO 20022? Who is driving the adoption? Quiz

7 Why ISO 20022? Payments Treasury & Trade Securities only Securities only Proprietary MT ISO 7775 ISO ISO FIN MT: Computerprocessable versions of telexes Paper-based Proprietary syntax Point-to-point One size fits all SWIFT only Reference standard Electronic Open, neutral syntax End-to-end transaction Market practice SWIFT + other organisations

8 What is ISO 20022? single standardisation approach (methodology, process, repository) to be used by all financial standards initiatives Recipe to create financial standards Body of content Business / Conceptual Defines business meaning of financial concepts, e.g., Credit Transfer Logical Defines e.g. credit transfer messages, to execute the business process Physical Defines physical syntax, e.g. XML Data dictionary Business models Catalogue of messages

9 Financial Repository 9

10 ISO Registration Process Submitting organisation Business Justification RMG Submitting Organisation & RA SEG RA Financial industry group or standards body Business Justification (approved by RMG) Project approval & allocation to a SEG Development & Provisional Registration Business Validation Candidate ISO messages Official Registration and Publication ISO messages Submitting Organisation & users Optional pilot testing or first implementers 10

11 What is XML? extensible Markup Language syntax that makes it possible to transport structured information consists of data and tags <Dt> </Dt> element Start-tag Data End-tag document consists of data marked up by tags an element is a group of start-tag/end-tag with the data in between 11

12 XML (extensible Markup Language) de facto standard syntax Supported by major vendors Off the shelf tools Facilitates technical interoperability An example of street address <PstlAdr> <AdrTp>BIZZ</AdrTp> <Dept>AccountsPayable</Dept> <StrtNm>ParkSt</StrtNm> <BldgNb>1</BldgNb> <PstCd>2000</PstCd> <TwnNm>Sydney</TwnNm> <Ctry>AU</Ctry> </PstlAdr> Auto-validation of message instance Character sets local language support Message size there are not the same limits as MT 12

13 Maintenance process built on strict business justifications and review process - leading to new versions of the messages More than 20 submitting organisations, besides SWIFT ISO message More than 320 catalogue ISO messages + SWIFT User Handbook MyStandards More than 320 messages, covering payments, securities, trade services, FX, cards 18 business areas EXAMPLE PAIN = Payment initiation = used in Corporate-to-bank PACS = Interbank clearing and settlement = used in HVP and LVP MI SESE = Securities settlement = used in Securities MI SEMT = Securities management = used in Securities MI

14 Standards are created globally and used locally Sese.023 Securities Settlement Transaction SMPG Country A Market Practice ISO messages Global market practice Local market practice Custodian or CSD specific requirements Institution -specific practice

15 Standards for market infrastructures - challenges Where can I find the latest version of specifications as well as the latest base standards? Member How to capture and maintain the specifications? How to manage releases? Do I need to plough through endless documents? How can I accelerate implementation? Member How to share information with our customers? Member How to assure quality? 15

16 MyStandards for market infrastructures The solution Increase efficiency & quality Understand and find all specifications on-line using a single channel Receive customized and consistent documentation for all specifications Member MyStandards Formalize and accelerate creation and maintenance of specifications Accelerate release and specification analysis Efficiently implement specifications (schema s) Test specifications during development Member Member Publish specifications using a single channel Test specifications over internet Improve customer service 16

17 A summary The power of ISO The standard is being used! Key concepts Everyone can participate Ease of integration Syntaxindependent model Future-proof Greater automation Allows for interoperability End-to-end businesscentric approach 17

18 Operational benefits of ISO > Richness of the data - greater automation and precision > Repository and reusable components ease of integration > XML syntax - easy processing and lower integration cost > Supplementary Data Component - extensibility > Character sets - supports local languages > Authentication digital signatures > Etc. 18

19 Agenda Introduction What is ISO 20022? Who is driving the adoption? Quiz

20 Who is using ISO 20022? A free IOS tablet app, (also as PDF and high-level slide presentation) that provides an overview of initiatives adopting ISO Brought to you by the ISO Registration Authority ISO Facilitating adoption and fostering dialogue > 65 initiatives > Information provided by initiative* owners > Covers all regions & business segments > Easy to use, contribute to and maintain * Initiatives who plan to adopt the official ISO messages registered on

21 ISO is being used MIs around the globe lead the way Compliance with regulation/ harmonization ENTER Globalization/ alignment with other major initiatives Modernization/ upgrade of [end-toend] services Renewal of legacy systems Interoperability for MImembers with multiple MIconnections Reputation

22 Securities NBB-SSS T2S Wave 1 SADC SSS SIX eurosic SADC Mobile-to-Mobile NSD Russia CA Baltic CSDs Euroclear ESES T2S Wave 2 New BOJ-NET KSEI C-Best Renewal ACH CENIT (CO) SIX SIC NPP AU T2S Wave 3 T2S Wave 4 Target2 Payments India Live on SWIFT Euroclear FI Central Bank of Ecuador SADC EFT VPS DK VP LU CPA SGX Post-Trade settl. EBA EURO1/STEP1 ISO initiatives timeline HVP LVP CN SEPA IN FAST SG IPFA BN ETDA TH Zengin JP NZ CO Sorb net UK Nets DK JASDEC TSE & JASDEC KDPW (PL) Galgo (BR) EVK (EE) DTCC ASX LCH. Clearnet Live

23 ISO Adoption Securities MI & Treasury MI From discussion to implementation Live DTCC, US LCH.Clearnet, UK T2S, EU Euroclear, ESES NBB-SSS, BE VP Lux Euroclear, FI VP Sec DK Live KDPW CCP, PL CSD, LI EVK, EE Live CSD, LT CN NSD, RU KR TW HK Live JASDEC, JP [Post-trade] JASDEC & TSE, JP [Corp.Act] Live SGX, SG Live BN Live CLS Galgo, BR SADC ID ASX, AU Securities MI Treasury MI Snapshot Jan

24 ISO Adoption Payments MI & initiatives From discussion to implementation FI EC CPA, CA US retail division of FRB CO US UK DK T2, EU SEPA,EU CH SA Live IN CNAPS2, CIPS CN Zengin, JP BOJNet, JP Live Live IPFA PE CL BR ZA SADC SG BN AU PG Live NZ Snapshot Jan

25 ISO adoption in the corporate-to-bank space NL SE US CA UK BE IE FR IT PT DK SEPA ES FI DE AT LU SK CH RU CN HK KR JP MX SG Almost 100 members (corporates and banks) defining common global implementation guidelines Based on CGI guidelines ZA SWIFT for Corporates Cash management AU More than 60 banks in 27 countries receiving payment initiation messages Snapshot Jan 2015

26 ISO Adoption SWIFT for Funds SE NO FI AD IE GB BE NL LU DE CH LV EE PL AT US BM BS ES FR IT GR HK KR TW SG This map shows countries where one or more players are sending/receiving ISO based Funds transactions. This includes major players such as Clearstream, Euroclear, Benefit Trust Company Funds Messaging, etc AU Snapshot Jan

27 ISO for Trade SWIFT BPO/TSU SE US CA UK ES NL FR BE SI IT CH DE GR MT TR JO LB CN KR JP TW CL AR BR NG ZA OM QA IN UAE MU PK LK MY TH SG VN HK PH ID AU Snapshot Jan 2015 This map shows countries where one or more banks are sending/receiving ISO based BPO/TSU transactions.

28 SWIFT: Supporting ISO adoption from start to finish MyStandards Readiness Portal Strategy Design Internal preparation Testing Go Live Operate Business Case Business and Technical Impact assessment Solution design New message development & registration Implementat ion services Testing assistance Community testing services Go Live assistance Support Services Health Check Community consultation and implementation strategy Gap analysis Business mapping Market practice management Integration services IPLA AMH / Access End-to-end project management Training and knowledge transfer Generic ISO courses and Initiative specific training 28