ISO 20022 The success of ISO 20022 Universal

ISO 20022 The success of ISO 20022 – Universal financial Industry message scheme 1 ISO_20022_SV_v 162

ISO 20022 The ISO recipe for 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 2 ISO_20022_SV_v 162

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… 3 ISO_20022_SV_v 162

Why ISO 20022? Convergence in the cooperative space Cooperative Space Competitive Space High Value Payments: RTGS, EURO 1 and CHIPS Financial Institutions FX and Money Markets: Public Administrators Rule Books, Clearing Houses, Processors Corporates Rule Books, Card Schemes, Cards Processors Financial Institutions Rule Books, CLS Public Administrators Commercial Payments: Cards: Bank A SME’s Tradefacilitation: ICC Rule Books, e-invoicing Corporates Bank B SME’s Cash: NCB rules, Industry Standards Merchants Securities: Rule Books, Exchanges, CCP’s CSD’s, Standardisation Consumers Certification & Networks: Merchants Consumers SWIFT Cooperative space for business rules ISO_20022_SV_v 162 Cooperative space for standards 4

The ISO 20022 recipe - For whom? Potential users and developers § Communities of users looking for interoperability and more costeffective communications § Message development organisations: ACORD, ANBIMA, ASF, Berlin Group, BIAN, CBI Consortium, Early Warning Services, FPL, Fp. ML, IFX Forum, nexo, OAGi, SWIFT, Tieto, TWIST, XBRL, etc. § Market Infrastructures (MIs): Bank of England, China Foreign Exchange Trade System, China Union. Pay, Clearstream, CLS, DTCC, EBA, European Central Bank, Banque de France, Banca de España, Deutsche Bundesbank, Banca d’Italia, Euroclear, FED, KDPW, Omgeo, Target, T 2 S, ESMA, ASX etc. § International or national standards setters: EPC, Federation of Finnish Financial Services (FFI), ISITC, ISO WGs, NPSO, Russian Corporate Market Practice Group (RU-CMPG), UN/CEFACT, South African Bureau of Standards (SABS), SPRING, SMPG etc. There also catalysts for interoperability and convergence, such as SEPA, T 2 S, Giovannini, Mi. FID, Mi. FIR, EMIR 5 ISO_20022_SV_v 162

ISO 20022 registration bodies § Registration Management Group - RMG § (Overall governance) § 81 senior managers from 21 countries and 18 international organisations § Standards Evaluation Groups – SEGs § (User representatives) § Securities (80 experts, 19 countries, 9 organisations) and Derivatives Sub. SEG (58 experts, 8 countries, 10 organisations) § Payments (72 experts, 18 countries, 10 organisations) § Cards and related retail financial services (33 experts, 16 countries, 5 organisations) § Trade Services (18 experts, 10 countries, 1 organisation) § Forex (19 experts, 8 countries, 3 organisations) § Technical Support Group – TSG § (ISO 20022 technical advisors) § 33 experts from 8 countries and 10 international organisations § Registration Authority – RA - SWIFT § (Maintaining ISO 20022 repository) 6 ISO_20022_SV_v 162

ISO 20022 The registration process Development Process R M G m o n i t o r s Submitting organisation Financial industry group or standards body Business justification RMG Submitting organisation & RA Project approval & allocation to a SEG Candidate ISO 20022 messages Development & provisional registration SEG Business validation RA Official registration and publication Submitting organisation & users Optional pilot testing or first implementers ISO 20022 messages Repository Dictionary Catalogue www. iso 20022. org 7 ISO_20022_SV_v 162

ISO 20022 registration process Yearly maintenance process Timing By June 1 Users CRs SEG screens Change Requests (CRs) By July 7 By August 21 Submitting organisation By October 1 SEG By December 1 By February - May ISO_20022_SV_v 162 Users introduce Change Requests to the RA Submitting organisation & RA SEG RA Submitting organisation & users Submitting organisation prepares ‘Maintenance Change Request’ with each CR implementation SEG approval/rejection Development of candidate new versions Provisional publication Validation of new versions Registration and publication First implementers www. iso 20022. org 8

ISO_20022_SV_v 162 Stand-Alone Remittance Advice Account Reporting Request Bank Services Billing Debtor S nt u o ISO 20022 c Ac Candidate ISO 20022 (in development) Creditor ng w hi itc 9 Stand-Alone Remittance Advice Bank Services Billing Notification to Receive Creditor Payment Activation Request Mandates Exceptions & Investigations Debtor’s bank Creditor Payment Activation Request Cash Management Account Switching Advice & Statement Financial Investigations Direct Debit Initiation Authorities Creditor Payment Activation Request Bank Account Management Change/Verify Account Identification Exceptions & Investigations Advice & Statement Credit Transfer Initiation The ISO 20022 recipe is used (1/11) Payments Credit Transfers / Direct Debits / Mandates Exceptions & Investigations Change/Verify Account Identification Creditor’s bank

The ISO 20022 recipe is used (2/11) Payments message portfolio § 132 ISO 20022 messages approved: § § § § § § § Customer payment initiation Interbank payment clearing and settlement Payments exceptions & investigations Bank-to-customer cash management Payments mandates Change/verify account identification Bank account management Creditor payment activation request Cash account reporting request & notification messages Bank services billing Authorities financial investigations Stand-alone remittance advice messages Cross-border transactions currency control reporting (CTCCR) Account Switching Cash Management Request to Pay (formery called E-invoice Presentment and Payment (EIPP) Services) (EPC) Candidate ISO 20022 messages under evaluation: API resource Account Access (STET/Berlin Group/OBIE/SWIFT) Candidate ISO 20022 messages approved for development: Payment pre-authorization (Pa. PA) Proxy for banking account numbers EMIP (Deutsche Bundesbank, Banca D’Italia & SWIFT) Tracking Business Transactions (SWIFT) Cheques and Charges (SWIFT) New development proposal: None 10 ISO_20022_SV_v 162

The ISO 20022 recipe is used (3/11) Card message portfolio Authorisation (ATICA) Issuer Acceptor ATM terminal Management ATMI transaction authorisation POI Terminal Management (CAPE) POI transaction authorisation (CAPE) Acquirer ISO 20022 Candidate ISO 20022 (in development) Sale Management (CAPE) 11 ISO_20022_SV_v 162

The ISO 20022 recipe is used (4/11) Cards & retail financial services § 128 ISO 20022 messages approved: § Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal Management § ATM interface for transaction processing and ATM management § Acquirer to issuer card messages (ATICA – first version) § CASP - Card Sale to POI ISO 20022 Protocol § Acquirer to issuer card messages (ATICA – second version) § EU Strong Customer Authentication Exemptions Extension (ISO TC 68 SC 9 TG 1) § Candidate ISO 20022 messages under evaluation: § None § Candidate ISO 20022 messages approved for development: § Payment Tokens Management Exchanges (TOKE) 12 ISO_20022_SV_v 162

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) Financial Instruments and Transactions Regulatory Reporting (ESMA) ISO 20022 Candidate ISO 20022 (in development) ISO 15022 Settlement (SWIFT) Corporate Actions (SWIFT) Reconciliation (SWIFT) I/CSD Custodian Settlement & Reconciliation (SWIFT) Issuers’ Agent Corporate Communication Actions (Euroclear) (SWIFT) Settlement & Reconciliation (SWIFT) Issuers’ Agent ISO_20022_SV_v 162 Clearing agent 13

The ISO 20022 recipe is used (6/11) Securities - investment funds (CIV) Old plan manager Portfolio Transfers New plan manager Fund accountant Price Report Order & Confirmation & Status Institutional investor Transfer & Confirmation & Status Transparency of Holdings Statements Account Management Prospectus or FPP report user, e. g. Fund distributor Request for Fund Report FPP Report Prospectus or FPP report provider, e. g. Fund manager ISO_20022_SV_v 162 Transfer agent Fund Cash Forecast Report Investment manager ISO 20022 Candidate ISO 20022 (in development) 14

The ISO 20022 recipe is used (7/11) Securities message portfolio § 300 ISO 20022 messages approved and published: § Investment funds § Proxy voting § Issuers’ agents communication § Securities settlement and reconciliation, including ISO 15022 variants § Securities corporate actions, including ISO 15022 variants § Securities post-trade § Total portfolio valuation report § CCP Clearing § Collateral management § Money Market Statistical Reporting (MMSR) § Transparency of holdings § SSI for Securities, Payments & FX § Financial instruments and transactions regulatory reporting (Mi. FID II / Mi. FIR) § CSDR-Settlement Internaliser Report and Article 7 § TARGET 2 -Securities § Securities markets regulatory reporting message sets - Benchmark Reporting § Shareholder Identity Disclosure (SMPG/SWIFT) § CCP supervisory reporting § Securities Financing Transactions Regulatory Reporting (SFTR) § Financial instruments and transactions regulatory reporting (EMIR) § Target 2 -Securities (Intra-Balance) § CSDR Buy-In Reporting (KDPW/SWIFT) § Market Claims (SMPG/SWIFT) § Candidate ISO 20022 messages under evaluation: None § Candidate ISO 20022 messages approved for development: § ASX CHESS Replacement § Triparty Collateral Management (Banca de Espana/SWIFT) ISO_20022_SV_v 162 15

The ISO 20022 recipe is used (8/11) Forex Trading system ISO 20022 Candidate ISO 20022 (in development) MTs Ordering party Fp. ML CUG (Trade Notifications) FX order Interest rate swaps Trading party FX & Loan/Deposit Advice & Allocations Loans and deposits Derivatives FX Spot, Forward & Swap instructions NDF and FX Option instructions (archived) Central Settlement or Netting System Trading party s ons t atu ati en St tific ym on no d pa siti n an d po atio an orm inf Settlement party custodian Foreign exchange instruments n an otific Sta tu d an pa ation s y d inf pos men s or ma ition t tio n Trade capture 16 ISO_20022_SV_v 162

The ISO 20022 recipe is used (9/11) FX message portfolio § 27 ISO 20022 messages approved and published: § Post Trade FX messages § FX Post-Trade Confirmation § FX Post-Trade Capture § Candidate ISO 20022 messages under evaluation: § None § New development proposals § None ─ None 17 ISO_20022_SV_v 162

The ISO 20022 recipe is used (10/11) Trade Services Buyer’s bank Seller’s bank Ta x ISO_20022_SV_v 162 Seller ep t po rt or Inv Buyer R Re to Se e oic c Fa g rin c rvi ic ax ISO 20022 es vo e. T TSU In Invoice Financing Request ices v r e e. S Trad gement a Man Factoring Services Trad e Man Services agem ent Tax Authority

The ISO 20022 recipe is used (11/11) Trade message portfolio § 88 ISO 20022 messages approved: § Invoice financing request § Trade services management § Demand guarantees and standby letters of credit § Factoring services § Invoice Tax Report § Candidate ISO 20022 messages under evaluation: § None § Candidate ISO 20022 messages approved for development: § None § New development proposals: § None 19 ISO_20022_SV_v 162

www. iso 20022. org uestions A & nswers iso 20022 ra@iso 20022. org 20 ISO_20022_SV_v 162