unifi (iso 20022)
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UNIFI (ISO 20022). Introduction to ISO 20022 – UNIversal Financial Industry message scheme. UNIFI (ISO 20022). Agenda. UNIFI (ISO 20022): value proposition the standard registration bodies registration process the Repository The deployment of UNIFI Cross industry harmonisation - PowerPoint PPT PresentationTRANSCRIPT
Slide 1 UNIFI_(ISO_20022)_v18
UNIFI (ISO 20022)
UNIFI (ISO 20022)
Introduction to ISO 20022 – UNIversal Financial Industrymessage scheme
Slide 2 UNIFI_(ISO_20022)_v18
Agenda
UNIFI (ISO 20022):
– value proposition
– the standard
– registration bodies
– registration process
– the Repository The deployment of UNIFI Cross industry harmonisation Interoperability within the financial industry Q & A
Slide 3 UNIFI_(ISO_20022)_v18
The UNIFI value proposition (1/5)
ObjectiveTo enable communication interoperability between financial institutions, their market infrastructures and their end-user communities
Major obstacleNumerous overlapping standardisation initiatives looking at XML financial messages:
MDDL, FIX, FinXML, VRXML, RIXML, XBRL, FpML, IFX, TWIST,
SWIFT, RosettaNet, OAGi, ACORD, CIDX, etc.
Slide 4 UNIFI_(ISO_20022)_v18
Proposed solution
A single standardisation approach (methodology, process, repository) to be used by all financial standards initiatives
The UNIFI value proposition (2/5)
UNIFI (ISO 20022)
Slide 5 UNIFI_(ISO_20022)_v18
Convergence into ONE standard is the long term objective….
The UNIFI value proposition (3/5)
…but in the interim several standards need to coexist to enable quick response to competitive pressures and regulatory demands
Source: John Mersberg, IBM Corporation
Slide 6 UNIFI_(ISO_20022)_v18
Growth adds exponential complexity and expense…
The UNIFI value proposition (4/5)
RosettaNet
OAGi
TWIST
Proprietary format
SWIFTIFX
EDIFACT Without common building blocks:• Point-to-point connection• Data is mapped directly from one application to another• Costly, unscalable and difficult to implement and maintain• Process, routing, rules logic needs to be coded to specific message types42 interfaces = n * (n-1)
Source: John Mersberg, IBM Corporation
Slide 7 UNIFI_(ISO_20022)_v18
Standardised implementation reduces cost, time to effect change and improves overall performance…
Canonical message model =• True process integration• Reduced brittleness, faster to respond to change• Shared message services – single/shared parser, message independent rules engine, etc.• Unified monitoring / audit trail
RosettaNet
TWIST
SWIFTIFX
EDIFACT
Canonical Message Model(i.e. ISO 20022)
UNIFI aims at long term convergence, while facilitating short term coexistence…
14 interfaces = n * 2
Source: John Mersberg, IBM Corporation
The UNIFI value proposition (5/5)
OAGi Proprietary format
Slide 8 UNIFI_(ISO_20022)_v18
UNIFI - Illustrating business modelling
All institutions have their own sets of data objects
ISO standardises common data objects…
Account
Order
Date
…and groups them into ‘syntax-neutral’ message models, which...
Order
DateDate
XML ISO 15022
… can be ‘transformed’ in message formats in the desired syntax
FIX
EDIFACT
Slide 9 UNIFI_(ISO_20022)_v18
The UNIFI recipe – Major ingredients (1/2):
Modelling-based standards development
Syntax-specific design rules for XML
Reverse engineering approach
- Syntax-independent business standard- Validated by the industry
- Predictable and ‘automatable’- Protect standard from technology evolution
- Protect industry investment and ease interoperability- Prepare for future migration
Slide 10 UNIFI_(ISO_20022)_v18
The UNIFI recipe – Major ingredients (2/2):
Development / registration process
Repository on the ISO 20022 website
- Clearly identified activities and roles- Business experts and future users involved upfront
- Business Process Catalogue & Data Dictionary- Outside of official standard (maintained by
registration bodies)
www.iso20022.org
Slide 11 UNIFI_(ISO_20022)_v18
UNIFI – The five parts of ISO 20022
International Standard: Overall methodology and format specifications for inputs to and outputs from the ISO 20022 Repository
International Standard: Roles and responsibilities of the registration bodies
Technical Specification: ISO 20022 modelling guidelines
Technical Specification : ISO 20022 XML design rules
Technical Specification: ISO 20022 reverse engineering
Copies can be obtained from www.iso.org
Part 1:
Part 2:
Part 3:
Part 4:
Part 5:
Slide 12 UNIFI_(ISO_20022)_v18
Communities of users or organisations that want to develop UNIFI compliant messages to support their financial transactions
Submitting organisations
Could beACBIACORD ClearstreamCLS
EuroclearFEDFIXFpML
IFXISITCISTHMDDL
OAGIOmgeoSWIFT TWIST
Creation of a new set of UNIFI messages to support a specific transactionUpdate of existing UNIFI message sets to accommodate the evolution of the business
Reasons
UNIFI – The actors (1/2)
Etc.
Slide 13 UNIFI_(ISO_20022)_v18
UNIFI – The actors (2/2)
Registration Management Group, RMG– Overall governance / court of appeal
– Approve business justifications for new standards
– Create Standards Evaluation Groups, SEGs
Standards Evaluation Groups, SEGs– Represent future users of specific financial areas
– Validate message standards
Registration Authority, RA– Ensure compliance
– Maintain and publish UNIFI Repository
Slide 14 UNIFI_(ISO_20022)_v18
UNIFI - The registration process (1/3)
Submitter Financial industry group or standards body
Business justification
Business justification
RMGProject approval & allocation to a SEG
SEGEndorsement of scope and developers
Submitter & RA
Development & provisional registration
SEG Business validation & technical assessment
RA Official registration
Repository
Dictionary
Catalogue
Publication
www.iso20022.org
RMG
monitors
Slide 15 UNIFI_(ISO_20022)_v18
UNIFI - The registration process (2/3)
Submitter Financial industry groups & standards bodies
Business justification
Business justification
RMGProject approval & allocation to a SEG
SEGEndorsement of scope and developers
Submitter & RA
Development & provisional registration
SEG Business validation & technical assessment
RA Official registration
Repository
Dictionary
Catalogue
Publication
www.iso20022.org
RMG
monitors
Candidate UNIFI messages
UNIFI messages
Slide 16 UNIFI_(ISO_20022)_v18
UNIFIStandards
Evaluation Groups
ISTH
MDDL
FpML
SWIFT
FIX
ISO WGs
TBG5
DataDictionary
BusinessProcess
Catalogue
www.iso20022.org
UNIFI FinancialRepository
UNIFIRegistration
Management Group
Securities
Payments
UNIFIRegistration
Authority
UNIFIUsers
Businessmodels
Candidate
UNIFImessages
Business
justification
UNIFI
messages
UNIFI - The registration process (3/3)
Slide 17 UNIFI_(ISO_20022)_v18
UNIFI – The Repository
The Financial RepositoryThe Financial Repository
Data DictionaryData Dictionary - Business Concepts - Message Concepts - Data Types
Business Process CatalogueBusiness Process Catalogue - Financial business process models- Financial business transactions, including messages- XML message schemas
www.iso20022.org
Slide 18 UNIFI_(ISO_20022)_v18
Continuing in today’s agenda
The deployment of UNIFI
UNIFI (ISO 20022)
Slide 19 UNIFI_(ISO_20022)_v18
Approval of the international standard Selection of the Registration Authority Set-up of www.iso20022.org
Creation of Registration Management Group Creation of the first Standards Evaluation Groups
Registration and publication of first ‘UNIFI messages’
UNIFI - The deployment
Ongoing: promotion to developers (standardisers, industry bodies) and users (vendors, end-users)
Slide 20 UNIFI_(ISO_20022)_v18
UNIFI – How does it fit into the ISO structure?
ISO Technical Committee TC68Financial Services
UNIFIRMG
SEGPayments
SEGSecurities
RA
SEG
RMG members nominated by P-member countries and A-liaison organisations
SEG members nominated by all member countries and liaison organisations
SC7Core
banking
SC4Securities
SC2Security
SC6Retail
WG4UNIFI Review
Slide 21 UNIFI_(ISO_20022)_v18
Members - 47 senior managers from:
– 17 countries: AT, AU, CA, CH, DE, DK, FI, FR, GB, JP, KR, LU, NL, NO, SE, US, ZA.
– 9 liaison organisations: Clearstream, ECBS, Euroclear, FIX, FpML, ISITC, SWIFT, TWIST, UN/CEFACT/TBG5.
Convener: Sandy Throne, DTCC (US); Vice-convener: Gerard Hartsink, ABN Amro (NL)
Meetings: Jan 2005, Sep 2005, Jan 2006, May 2006 Key decisions:
– Creation of a Payments and a Securities SEGs – Creation of Trade Services SEG in 2006 – Approval of first 13 projects (Business Justifications)
UNIFI – Registration Management Group
Slide 22 UNIFI_(ISO_20022)_v18
Members – 30 experts
– 13 countries: AT, AU, CH, DE, DK, FI, FR, GB, NL, NO, SE, US, ZA
– 4 liaison organisations: Euroclear, IFX, SWIFT, UN/CEFACT/TBG5 Convener: Len Schwartz, ABN Amro (NL); Vice-convener: Bob Blair,
JPMorganChase (US) Kick-off meeting in June 2005 Approved: C2B payment initiation (SWIFT/ISTH) Under evaluation: Exceptions and investigations (SWIFT), Direct Debits
(SWIFT) Next: Interbank credit transfers (SWIFT), Cash management
(SWIFT/ISTH)
UNIFI – The Payments SEG (1/3)
Slide 23 UNIFI_(ISO_20022)_v18
UNIFI – The Payments SEG (2/3)
Payments Payments Credit
transfers
covering instruments such as:
Direct debits
Cheques
Debit & credit cards
covering actors such as:
Private & corporate customers
Financial institution
s
Central banks
Clearing houses &
RTG systems
Payment ‘factories’
Slide 24 UNIFI_(ISO_20022)_v18
PaymentsPayments
including business areas such as:
Retail / commercial payments,
communications between the
ordering customer and its
bank, etc.
Interbank transfers via
correspondent banking or ACHs, high
value payments, low value bulk
payments, RTGS, etc.
Account opening,
standing orders, transaction and
account information, advices &
statements from …
Payment initiation
Clearing & settlement
Cash management between various actors:
...the account servicing
institutions to account owners,
including reporting from the financial institution…
…to the ordering & beneficiary customers,
reconciliation, exceptions & investigations
handling.
UNIFI – The Payments SEG (3/3)
Slide 25 UNIFI_(ISO_20022)_v18
Members – 39 experts
– 12 countries: CA, CH, DE, DK, FR, GB, LU, NL, NO, SE, US, ZA
– 7 liaison organisations: Clearstream, ECBS, Euroclear, ISDA/FpML, ISITC, MDDL, SWIFT
Convener: Karla McKenna, Citigroup (US); Vice-convener: Didier Hermans, European Banking Federation (BE)
Kick-off meeting in June 2005 Approved: Investment Funds (1) (SWIFT) Under evaluation: Pre-trade/trade (SWIFT) Next: Investment Funds (2) (SWIFT), Total Net Asset Value Statement (ISITC),
Proxy voting (SWIFT), Issuer’s agent communication for CA (Euroclear)
UNIFI – The Securities SEG (1/3)
Slide 26 UNIFI_(ISO_20022)_v18
Securities Securities Equities
covering instruments such as:
Funds
Fixed income
covering actors such as:
Investment managers, distributors,
transfer agents, fund administrator
s
Broker / dealers
Regulators
Custodians
Stock exchanges
, ETC providers
Deriva-tives
Clearing houses, CCPs
CSDs, ICSDs
Market Data
Providers
Service bureaux
UNIFI – The Securities SEG (2/3)
Slide 27 UNIFI_(ISO_20022)_v18
including business areas such as:
Account opening,
standing orders, transaction and
account information, advices &
statements, queries &
investigations
Income, corporate actions,
market data, proxy voting
Collateral, repos, securities
lending & borrowing
Securities management
Custody
Collateral management
Initiation, pre-trade
Trade, post-trade
Clearing &
settlement
Securities Securities
UNIFI – The Securities SEG (3/3)
Slide 28 UNIFI_(ISO_20022)_v18
UNIFI (ISO 20022):UNIFI (ISO 20022): builds on the ISO 15022 data dictionary concept and registration
infrastructure, but strengthens the monitoring by the industry uses a more robust, syntax independent development
methodology based on UML modelling of business processes and transactions
uses XML as the syntax for the actual physical messages has a wider scope than ISO 15022, which is only for securities
messages is in line with directions taken by other industries (UN/CEFACT)
Looking at the advantages UNIFI (ISO 20022) brings over ISO 15022
Syntax independent business modelling is key to the UNIFI (ISO 20022) standard !
Slide 29 UNIFI_(ISO_20022)_v18
Continuing in today’s agenda
Cross industry harmonisation
UNIFI (ISO 20022)
Slide 30 UNIFI_(ISO_20022)_v18
Created in 1997 to improve world-wide co-ordination of
trade facilitation across all industries
Focusing on international standards for electronic
transactions (e.g., ebXML venture with OASIS)
Promoting technology neutral business modeling and
a central repository of core components
Harmonising across all industries with UN/CEFACT
Ultimate goal is that UNIFI provides the financial portion of the UN/CEFACT repository
United Nations/CEFACT – Centre for trade facilitation and e-business
Slide 31 UNIFI_(ISO_20022)_v18
2004:
– TC68, TBG5 and SWIFT sign a cooperation agreement to investigate alignment in line with the objectives of the ‘MoU on e-Business’
– A workplan is agreed between the signatories 2005:
– Recommendation for alignment of methodologies– Trial submission from UNIFI to UN/CEFACT
2006:– WG4 will pursue technological alignment– Real submission from UNIFI to UN/CEFACT
Harmonisation between ISO and UN/CEFACT
Slide 32 UNIFI_(ISO_20022)_v18
UNIFIStandards
Evaluation Groups
ISTH
MDDL
FpML
SWIFT
FIX
ISO WGs
TBG5
CoreComponents
CommonBusiness
Processes
DataDictionary
BusinessProcess
Catalogue
ebXML Registry/Repository
www.iso20022.org
UNIFI FinancialRepository
UNIFIRegistration
Management Group
Securities
Payments
UN / CEFACT(All Industries)
UNIFIRegistration
Authority
UNIFIUsers
BusinessRequests
MessageModels
TBG17Harmo-nisation
Long term convergence goal A single ISO-UN/CEFACT approach
Slide 33 UNIFI_(ISO_20022)_v18
Continuing in today’s agenda
Interoperability within
the financial industry - securities
UNIFI (ISO 20022)
Slide 34 UNIFI_(ISO_20022)_v18
Messages
IndicationQuotation
OrderExecution
(Pre-)AllocationConfirmation
SettlementReconciliation
ISO 15022
Trade ISO 15022
FIX
Two overlapping standards to support the end-to-end transaction
FIX
Slide 35 UNIFI_(ISO_20022)_v18
Executing Party
Trade Counterparty
Ordering Party
Trade Counterparty
Ordering Party
Execution (FIX)
Order (FIX)
Execution (FIX)
Order (ISO 15022)
Execution (ISO 15022)
Order (FIX)
Order (ISO 15022)
Execution (ISO 15022)
Working towards co-existence and convergence
Slide 36 UNIFI_(ISO_20022)_v18
SingleOrder
SingleExecution
UNIFI
NewOrder -single
ExecutionReport
MT 502
MT 513
FIX ISO 15022
Order
Execution
Working towards co-existence and convergence
Slide 37 UNIFI_(ISO_20022)_v18
FIX
Order to buy/sell
Security
Quantity
Limit price
Expiry date
Account USD
Executed quantity
Executed price
Execution date
Settlement date
OR
DE
RE
XE
CU
TIO
N
32 = 750
31 = 110; 15 = USD
75 = YYYYMMDD
64 = YYYYMMDD
54=1
22 = 4; 48 = <ISIN>
38 = 1000
44 = 112; 40 = 2
432 = YYYYMMDD
1 = myAccount
ISO 15022
:22F::BUSE//BUYI
:35B::<ISIN>
:36B::ORDR//UNIT/1000
:90B::LIMI//ACTU/USD112
:98A::EXPI//YYYYMMDD
:97A::CASH//myAccount
:36B::CONF//UNIT/750
:90B::DEAL//ACTU/USD110
:98A::TRAD//YYYYMMDD
:98A::SETT//YYYYMMDD
Working towards co-existence and convergence
UNIFI
Side/BUYI
ISIN/<ISIN>
OrderQuantity3/Quantity
Order3/OrderPrice/Price1
OrderExpiryDate
AccountIdentification
ExecutedTradeQuantity
ExecutedTradePrice
TradeDate
SecuritiesSettlement1/Date
Slide 38 UNIFI_(ISO_20022)_v18
Executing Party
Trade Counterparty
Ordering Party
Trade Counterparty
Ordering Party
Execution (FIX)
Order (FIX)
Execution (FIX)
Order (ISO 15022)
Execution (ISO 15022)
Order (FIX)
Order (ISO 15022)
Execution (ISO 15022)
Execution (FIX)
Order (FIX)
Execution (FIX)
Order (UNIFI)
Execution (UNIFI)
Order (FIX)
Order (UNIFI)
Execution (UNIFI)
Working towards co-existence and convergence
Slide 39 UNIFI_(ISO_20022)_v18
Continuing in today’s agenda
Interoperability within
the financial industry - payments
UNIFI (ISO 20022)
Slide 40 UNIFI_(ISO_20022)_v18
Working towards interoperability and convergence
Let’s look at one concrete example from payments area: a customer may need to adapt to the format of the banks…
Customer A
Bank A
Bank B
Bank C
Proprietary format
SWIFTMT 101
IFX format
Slide 41 UNIFI_(ISO_20022)_v18
…or banks may need to accept many formats…
Bank AProprietary format
IFX formatCustomer A
Customer C
Customer B
SWIFTMT 101
Working towards interoperability and convergence
Slide 42 UNIFI_(ISO_20022)_v18
SWIFT MT
UNIFI Core Payment Kernel model
The reverse engineering produces a canonical UNIFI message model and ‘convergence tables’
Proprietary
TWIST OAGi
IFX
Working towards interoperability and convergence
Slide 43 UNIFI_(ISO_20022)_v18
Adopting UNIFI facilitates convergence and co-existence
IFX
MT 101
Working towards interoperability and convergence
UNIFI
Core Payment
Kernel
Core Payment
Kernel
IFX
MT 101