ISO 20022
The success of ISO 20022 –
Universal financial Industry
message scheme
ISO_20022_SV_v45
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.iso20022.org
 reverse engineering approach to ease coexistence
ISO_20022_SV_v45
Slide 2
Why ISO 20022?
Supports convergence and co-existence
ISO 15022
IFX
ISO 15022
TWIST
IFX
TWIST
Message
model
MDDL
FpML
FIX
MDDL
FpML
FIX
Long term we want one standard,
but in the interim several standards need to co-exist…
ISO_20022_SV_v45
Slide 3
Why ISO 20022?
Convergence in the cooperative space
Competitive
Space
Cooperative Space
Competitive
Space
High Value Payments:
RTGS, EURO1 and CHIPS
Financial
Institutions
Financial
Institutions
FX and Money Markets:
Rule Books, CLS
Commercial Payments:
Public
Administrators
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_v45
Slide 4
The ISO 20022 recipe - For whom?
Potential users and developers

communities of users looking for interoperability and
more cost-effective communications

Message development organisations: CBI Consortium, FIX,
RIXML, FpML, IFX Forum, TWIST, SWIFT, RosettaNet,
OAGi, ACORD, XBRL, EPASOrg, Berlin Group, ANBIMA,
etc.

Market Infrastructures (MIs): DTCC, FED, EBA, Target, CLS,
Euroclear, Omgeo, ECB, NBB, etc.

International or national standards setters: ISITC, ISO TC68
WGs, UN/CEFACT TBG5, OMG, EPC, UK Payments
Council, etc.
There are also catalysts for interoperability and convergence, such
as SEPA, T2S, Giovannini, MiFID, e-Invoicing
ISO_20022_SV_v45
Slide 5
ISO 20022
The registration bodies

Registration Management Group - RMG
(Overall governance)
– 72 senior managers from 22 countries and 13 international organisations

Standards Evaluation Groups – SEGs
(User representatives)
– Payments (53 experts,17 countries, 6 organisations)
– Securities (76 experts, 20 countries, 8 organisations)
– Forex (26 experts, 13 countries, 4 organisations)
– Trade Services (29 experts, 14 countries, 1 organisation)
– Cards and related retail financial services (30 experts, 14 countries, 4
organisations)

Technical Support Group – TSG
(ISO 20022 technical advisors)
– 28 experts from 11 countries and 5 international organisations

Registration Authority – RA
(Maintaining ISO 20022 repository)
ISO_20022_SV_v45
Slide 6
ISO 20022
The registration process
R
M
G
m
o
n
i
t
o
r
s
ISO_20022_SV_v45
Submitting
organisation
Business
justification
RMG
Financial organisation or standards body
Business justification
Project approval & allocation to a SEG
Candidate ISO 20022 messages
Submitting
organisation
& RA
Development & provisional registration
SEG
Business validation
RA
Official registration
and publication
Submitter
& users
ISO 20022 messages
Optional pilot testing
or first implementers
Repository
Dictionary
www.iso20022.org
Catalogue
Slide 7
ISO_20022_SV_v45
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)
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
Creditor
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: none
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
Card clearing payment messages (CCPay)
Real time payments
Bank services billing
New development proposals:
–
Remittance advice messages
ISO_20022_SV_v45
Slide 9
The ISO 20022 recipe is used! (3/11)
Card message portfolio is growing
Authorisation (ATICA)
Issuer
Acceptor
ISO_20022_SV_v45
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

15 ISO 20022 messages approved and published:
–

Candidate ISO 20022 messages under evaluation:
–

Card Payments Exchanges (CAPE) - Terminal management
Candidate ISO 20022 messages approved for development:
–
–
–

Card payments exchanges (CAPE) – Acceptor to Acquirer
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_v45
Slide 11
The ISO 20022 recipe is used! (5/11)
Securities - equities and fixed income
Seller
Buyer
Pre-trade / Trade (FIX/SWIFT)
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)
Issuers’ Agent
ISO_20022_SV_v45
Settlement &
Reconciliation
(SWIFT)
Registration
Communication
(Euroclear)
Registrar
Market
Claims
(Euroclear)
Clearing
agent
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
Prospectus or
FPP report
provider, e.g.
Fund manager
ISO_20022_SV_v45
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!

145 ISO 20022 messages approved and published:
–
–
–
–
–
–
–

Candidate ISO 20022 messages under evaluation:
–

Securities pre-trade/trade
Candidate ISO 20022 messages approved for development:
–
–
–
–
–
–
–
–
–
–
–
–

Investment funds distribution
Securities transaction regulatory reporting
Proxy voting
Issuers’ agents communication
Fund processing passport report
Securities settlement and reconciliation
Securities corporate actions
Total portfolio valuation statement
Securities registration and holder identification
Securities market claims and automatic transformation
Securities issuance
Triparty collateral management
Alternative funds
Securities post-trade
Settlement modification/replace and allegement response
TARGET2-Securities
CCP Clearing
Collateral management
Investment fund prospectus
New development proposal: Securities management accounting book-entry
Slide 14
The ISO 20022 recipe is used! (8/11)
Forex
Ordering
party
ISO 20022
MTs
FpML CUG (Trade Notifications)
FX order
Interest rate swaps
Trading
party
Foreign exchange and currency options
Loans and deposits
FX & Loan/Deposit
Advice & Allocations
Settlement
party
custodian
NDF Opening and Valuation
Notifications and
Foreign Exchange Option Premium
Notifications
NDF and Foreign
Exchange Option
Notifications
Trading
party
NDF and Foreign
Exchange Option
Notifications
Central
Settlement
System
ISO_20022_SV_v45
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_v45
Slide 16
The ISO 20022 recipe is used! (10/11)
Trade Services
Financial Invoice
Seller’s
bank
Buyer’s
bank
Financial
Invoice
TSU
Financial
Invoice
Invoice
Financing
Request
ISO 20022
Candidate ISO 20022 (in development)
Financial Invoice
Buyer
ISO_20022_SV_v45
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:
– none

New development proposals:
– Demand guarantees and standby letters of credit
ISO_20022_SV_v45
Slide 18
Who is interested by ISO 20022?
From 1 April to 30 September
2010, www.iso20022.org had over
62,000 visits from 162 countries
%
Continent
Visits
Europe
42,037 67.4%
Asia
9,199 14.8%
Americas
8,676 13.9%
Oceania
1,463 2.3%
Africa
ISO_20022_SV_v45
971 1.6%
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
Country
France
USA
UK
Germany
Belgium
India
Finland
Netherlands
Sweden
Japan
Switzerland
Australia
Italy
Hong Kong
China
Poland
Canada
Denmark
Spain
Slovenia
Singapore
Austria
Brazil
Ireland
Russia
Visits
8,269
6,674
6,642
5,645
3,436
2,491
2,265
2,264
1,996
1,934
1,888
1,381
1,250
979
872
871
772
767
757
707
680
635
632
532
475
54,814
%
13%
11%
11%
9%
6%
4%
4%
4%
3%
3%
3%
2%
2%
2%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
88%
Slide 19
www.iso20022.org
uestions
&A
nswers
[email protected]
ISO_20022_SV_v45
Slide 20