1. ISO 20022 The success of ISO 20022 – Universal financial Industry
message scheme
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2. ISO 20022 The ISO recipe for all financial messages
ISO Universal financial industry message scheme, the recipe:
syntax neutral business modelling methodology
syntax specific design rules
industry led development/registration process
financial repository on
reverse engineering approach to ease coexistence
ISO is not a suite of message standards but a recipe proposed by ISO to develop message standards for all domains of the financial industry.
The recipe contains the ingredients shown.
The most innovative characteristic of ISO is its modelling methodology which decouples the business standard from the physical message formats. The models evolve with the business, while the formats evolve with the technology to benefit from the latest innovations with regard to automation, ease of implementation, openness and cheapness of products, etc. This ISO recipe offers a better, cheaper and faster way of developing and implementing message standards.
The business modelling is done in the Unified Modelling Language (UML). The syntax specific design rules cover the conversion of UML to XML (eXtended Markup Language).
The combination of the first and last ingredients (the business modelling methodology and the reverse engineering approach) makes the ISO recipe a unique development tool kit. It proposes a single target (convergence) while offering at the same time a tool to ease interoperability with other existing message sets (coexistence).
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3. Why ISO 20022? Supports convergence and co-existence
IFX
ISO 15022
MDDL
TWIST
FIX
FpML
Message
model
IFX
TWIST
Message
model
MDDL
FpML
FIX
When standards are developed independently of each other, ‘translating’ from one standard to another requires to map data directly from one application to another and vice-versa. This is costly, unscalable and difficult to implement and maintain. Each time you add a new standard to support, it increases the complexity and cost exponentially.
Using a single message model as a master model reduces the translation effort since each standard only needs to translate to the master to ensure a link with any other standard.
Such an approach of developing syntax-independent business models is the core of the ISO standard…
Longer term, the physical ISO messages generated from the model would become the one and only standard we are looking for. While getting there, the message model helps co-existence. Furthermore, if it is more efficient to use another syntax for a particular business area or a particular market segment, starting from the ISO message models to generate the messages in this other syntax ensures that the business information will flow smoothly from one message to another whichever the syntax used to transport this business information.
Long term we want one standard,
but in the interim several standards need to co-exist…
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4. 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
Public
Admini-
strators
Commercial Payments:
Rule Books, Clearing Houses,
Processors
Public
Admini-
strators
Bank A
Bank B
Cards:
Rule Books, Card Schemes,
Cards Processors
Corporates
Corporates
Tradefacilitation:
ICC Rule Books, e-invoicing
SME’s
SME’s
Cash:
NCB rules, Industry Standards
Merchants
The ISO standardisation effort takes place in the cooperative space. As such it allows all financial players to maintain their competitive edge.
Merchants
Securities:
Rule Books, Exchanges, CCP’s
CSD’s, Standardisation
Consumers
Consumers
Certification & Networks:
SWIFT
Cooperative space for business rules
Cooperative space for standards
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5. 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, OMG, EPC, UK Payments Council, etc.
To whom is the ISO recipe targeted?
The ISO platform is available to all developers of message standards (they don’t need to be affiliated to ISO). And the ISO message standards are freely and publicly available to all communities of users.
The goal is to attract all developers of financial message standards. They will continue to focus on their domain of expertise and keep their Intellectual Property Rights (IPR) on the ISO compliant messages they develop while all together offering the community a range of messages in the same language, as if they were developed by a single body.
The organisations ‘in yellow’ on the slide have already engaged in ISO message development.
Market infrastructures (ACHs, RTGS, [I]CSDs, etc.) are adopting and pushing developers to embrace the ISO standard for the benefit of their common customers.
Industry initiatives and regulatory requirements, such as the European e-Invoicing initiative, SEPA, Target2-Securities, Giovannini and MiFID, which all look for open standards to support their harmonisation of business practices, are all recommending adoption of ISO 20022…
There are also catalysts for interoperability and convergence, such as SEPA, T2S, Giovannini, MiFID, e-Invoicing
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6. ISO 20022 The registration bodies
Registration Management Group - RMG
(Overall governance)
70 senior managers from 22 countries and 12 international organisations
Standards Evaluation Groups – SEGs
(User representatives)
Securities (73 experts, 19 countries, 8 organisations)
Payments (57 experts,17 countries, 5 organisations)
Cards and related retail financial services (34 experts, 15 countries, 4 organisations)
Trade Services (34 experts, 14 countries, 1 organisation)
Forex (27 experts, 11 countries, 3 organisations)
Technical Support Group – TSG
(ISO technical advisors)
25 experts from 10 countries and 5 international organisations
Registration Authority – RA
(Maintaining ISO repository)
The industry is directly involved in the acceptance, review and evaluation of candidate ISO messages submitted by the submitting organisations.
The Registration Management Group (RMG) is the highest registration body. It is made up of senior industry experts nominated by ISO countries and international organisations in liaison with ISO. All together, they represent all sectors of the financial industry. The RMG monitors the overall registration process. It approves the business justifications introduced by submitting organisations that want to develop new ISO messages. It also initiates the creation of the Standards Evaluation Groups (SEGs).
The Standards Evaluation Groups (SEGs) are groups of industry experts nominated by ISO countries and liaison organisations, which each represents the future users of ISO messages in a particular financial domain. Their role is to ensure that the candidate ISO messages actually address the needs of the future users.
The Technical Support Group (TSG) is composed of technical experts nominated by ISO countries and liaison organizations, who can advise the submitting organizations and the other ISO registration bodies on technical matters related to the use of the ISO recipe, eg, modelling guidelines, usage of XML, repository management, impact of innovations, etc.
The Registration Authority (RA) is the guardian of the ISO financial repository. SWIFT has been nominated by ISO to provide the RA services. The RA supports the submitting organisations in their development effort, ensures compliance of the developed models and performs the transformation of message models into compliant XML schemas. The RA is also responsible for the maintenance of the ISO website ( which contains detailed information on the ISO message portfolio and the status of all ISO projects.
The RMG and the first two SEGs were initiated in 2005 and the next two SEGs in 2006, while the last SEG and the TSG were created in As you can see from the figures on the slide, ISO is quite successful in attracting the interest of the industry worldwide.
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7. ISO 20022 The registration processM G m o n i t r s
Submitting organisation
Financial organisation or standards body
Business
justification
Business justification
RMG
Project approval & allocation to a SEG
Candidate ISO messages
Submitting organisation
& RA
Development & provisional registration
SEG
Business validation
ISO messages
This is an illustration of the process for development and registration of new sets of messages. There is a more detailed description of it on
The entry point of the registration process is the preparation of a ‘Business Justification’ by the organisation that wants to develop the messages (the “submitting organisation”). The Business Justification must describe the high level scope of the messages to be developed and the reason why they are expected to benefit the industry.
The Business Justification is reviewed by the SEGs and the RMG. The RMG will decide whether the proposed development fits into the ISO spectrum, does not duplicate the already existing messages and is indeed beneficial to the community. If the request is approved, the RMG decides which SEG(s) will be in charge of the evaluation of the messages, once developed.
The submitting organisation develops ISO compliant business and message models. The RA assists the submitting organisation during this phase in order to ensure that the models are compliant and use the right components from the Data Dictionary. If need be, the RA may create additional dictionary items. When the development is completed, the RA generates the XML schemas and prepares a comprehensive documentation for the SEG.
Based on this documentation, the SEG(s) evaluates the candidate ISO messages. The main goal of the SEG(s) is to get the buy-in of the future users from a business perspective. The submitting organisation is participating to the evaluation to help the SEG understand the proposed solution and address any question that would be raised by the SEG members.
When/if the SEG approves the messages, the RA proceeds to the official registration of the message components in the ISO Data Dictionary and publishes the new ‘ISO messages’ in the Business Process Catalogue on
When messages are first piloted or implemented, first users are invited to comment on the ‘technical implementability’ of the messages and the accuracy of the documentation published on the website. Possible changes or corrections requested by first implementers will be evaluated by the SEG, the RA and the submitting organisation and may lead to changes to the messages and/or documentation.
All along, the RMG monitors the work and if need be, arbitrates any disputes.
Once the Business Justification is approved by the RMG, and as long as the messages have not been approved by the SEG, the messages are called ‘candidate ISO messages’. Once they are approved by the SEG for publication, the messages are called ‘ISO messages’ or ‘ISO compliant messages’.
Official registration
and publication RA
Repository
Dictionary
Catalogue
Optional pilot testing
or first implementers
Submitter
& users
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8. The ISO 20022 recipe is used! (1/11) Payments
Credit Transfers / Direct Debits / Mandates
Exceptions & Investigations
Creditor’s financial institution
Debtor’s financial institution
Change/Verify Account Identification
Creditor Payment Activation Request
Cash Management
Exceptions & Investigations
ISO 20022
Advice & Statement
Change/Verify Account Identification
Bank Account Management
Creditor Payment Activation Request
Account Reporting Request
Notification to Receive
Mandates
Cash Management
Credit Transfer Initiation
Advice & Statement
Exceptions & Investigations
Creditor Payment Activation Request
Direct Debit Initiation
Candidate ISO (in development)
This is an overview of the current ISO offering to support the Payments market. The picture shows the various flows of information exchanged by the parties to initiate, execute and report the execution of a payment. The yellow arrows are already covered by approved ISO messages, while the blue arrows are still candidate ISO messages.
In September 2005, the Payments SEG approved the very first set of ISO messages covering the area of ‘customer to bank credit transfer initiation’, which included the so-called ‘core payment kernel’ developed jointly by SWIFT, TWIST, IFX and OAGi.
In June 2006, the SEG approved a new version of the payment initiation messages, including direct debits as well as the interbank direct debit and credit transfer messages. The interbank messages were developed by SWIFT and will be used in the new SEPA environment.
In July 2006, the SEG approved a set of messages developed by SWIFT to cover exceptions and investigations in the payments area.
In March 2007, the SEG approved 3 bank to customer advice and statement messages developed jointly by SWIFT, TWIST, IFX, OAGi and ISITC.
In March 2009, the SEG approved a new version of the whole ISO Payments message set, to accommodate change requests received from the user base.
In August 2009, the SEG approved four Mandate messages developed by SWIFT to initiate and maintain payment mandates.
In December 2009, the SEG approved a set of 3 messages developed by the the French SWIFT Users Group to inform payment initiators of a change in the account identification of their counterpart or verify the account of the beneficiary before instructing a payment.
In March 2010, the SEG approved 15 Bank Account Management messages developed by SWIFT to enable corporate clients to open a bank account with their bank and maintain related data.
In September 2010, the SEG approved a set of 2 messages developed by the CBI Consortium to enable creditors to request debtors to initiate a credit transfer in their favour.
In November 2010, the SEG approved a set of 4 Cash Account Reporting Request and Notification to Receive messages developed by SWIFT.
The following business justifications have been approved by the RMG and will complement the approved messages:
a Bank Services Billing message by TWIST and SWIFT (currently being reviewed by the Payments SEG).
a whole suite of candidate cash management messages developed by SWIFT. They will include ‘query/answer’ messages to retrieve information about cash accounts and transaction, as well as interbank statement and advice messages
Cash Lodgement and Withdrawal by the National Bank of Belgium
Real Time Payments by the Payments Council Ltd – UK
The last 2 projects are not represented on the slide.
Three new business justifications have been introduced:
Remittance Advice by IFX, TWIST, SWIFT and OAGi
Authorities Financial Investigations by the Federation of Finnish Financial Services (FFI)
Account Switching by the Payments Council Ltd – UK.
43 of the 58 existing Payments messages are currently being maintained. The new versions will be published in April/May 2012.
Cash Management
Bank Services Billing
Bank Services Billing
Debtor
Creditor
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9. The ISO 20022 recipe is used! (2/11) Payments message portfolio is growing!
58 ISO messages approved and published:
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
Candidate ISO messages under evaluation:
Bank services billing
Candidate ISO messages approved for development:
Cash management
Cash lodgement and withdrawal
Real time payments
New development proposals:
Remittance advice messages
Authorities financial investigations
Account switching
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10. The ISO 20022 recipe is used! (3/11) Card message portfolio is growing
Authorisation (ATICA)
Acquirer
Issuer
POI transaction authorisation (CAPE)
POI Terminal Management (CAPE)
ATMI transaction authorisation (IFX)
ATM terminal Management (IFX)
ISO 20022
Candidate ISO (in development)
In October 2010, the Cards and Related Retail Financial Services SEG approved a first set of 15 Card Payments Exchange (CAPE) messages developed by EPASOrg to support Acceptor to Acquirer POI activities, including authorisation, completion, batch transfer, cancellation, reconciliation, diagnostic and rejection. In April 2011, the SEG approved an additional three messages developed by EPASOrg to cover POI Terminal Management, including status report, management plan and acceptor parameters
Under the same CAPE business justification, EPASOrg is developing additional candidate messages to cover the Sale Management at the retailer (Sale to POI).
Two other business justifications were approved by the RMG:
Acquirer to issuer card messages (ATICA) proposed by ISO TC68/SC7/WG9 as a reverse engineering of ISO 8583 card messages in ISO
ATM interface for transaction processing and ATM management messages proposed by the IFX Forum.
Acceptor
Sale Management (CAPE)
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11. The ISO 20022 recipe is used! (4/11) Cards and related retail financial services
18 ISO messages approved and published:
Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal Management
Candidate ISO messages under evaluation:
None
Candidate ISO messages approved for development:
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:
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12. The ISO 20022 recipe is used! (5/11) Securities - equities and fixed income
Buyer
Seller
Pre-trade / Trade (FIX/SWIFT)
Post-Trade (Omgeo/SWIFT)
CCP Clearing (FPL/SWIFT)
Regulators
Transaction Regulatory Reporting (SWIFT)
Corporate
Actions
(SWIFT)
Settlement
(SWIFT)
Settlement
(SWIFT)
Corporate
Actions
(SWIFT)
ISO 20022
Reconciliation
TPV Statement
(ISITC/SWIFT)
Candidate ISO (in development)
Reconciliation
(SWIFT)
ISO 15022
I/CSD
On the traditional fixed income and equities markets, the situation is a bit different since the securities industry is using ISO 15022, the precursor of ISO ISO (illustrated in red/orange on the slide) covers a large part of the securities business from trade to settlement and reconciliation, and corporate actions.
ISO development initially focused on areas not (well) covered by ISO such as:
the pre-trade and trade space (29 candidate messages submitted by FIX and SWIFT)
the transaction regulatory reporting required to address MiFID (four messages developed by SWIFT)
the proxy voting process (eight messages developed by SWIFT)
the issuer’s agent communication for corporate actions (22 messages developed by Euroclear)
the investment funds distribution (see next slide).
However, under the pressure of
the firms who have not invested in ISO and would prefer to invest directly in ISO 20022
the industry initiatives (Giovannini, MiFID, T2S) recommending ISO 20022
the other financial industry sectors which are moving to ISO (eg, payments/SEPA),
the RMG approved the development of ISO equivalent messages in the ‘core’ areas of settlement and reconciliation (29 messages approved in December 2009) and corporate actions (13 messages approved in December 20009), which are covered by ISO
An initial set of 5 Post-trade matching messages developed by SWIFT and Omgeo was approved by the SEG on 3 August On 7 October 2011, the SEG approved a Total Portfolio Valuation Statement report submitted by SWIFT on behalf of ISITC and 4 additional Settlement and Reconciliation messages developed by SWIFT, including an Audit Trail to be used by T2S.
SWIFT, Omgeo, FPL, FpML, ISITC and the 4CB have also started development of candidate ISO messages in a series of specific areas.
NB: the slide doesn’t show all the approved business justifications.
Settlement & Reconciliation (SWIFT)
Settlement & Reconciliation (SWIFT)
Custodian
Issuers’ Agent Communication
(Euroclear)
Clearing
agent
Corporate
Actions
(SWIFT)
Issuers’ Agent
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13. The ISO 20022 recipe is used! (6/11) Securities - investment funds (CIV)
PEP/ISA/Portfolio Transfers
Old plan manager
Fund
accountant
New plan manager
Price Report
Order & Confirmation & Status
Alternative Funds Order, Confirm & Status
Transfer
agent
Transfer & Confirmation & Status
Institutional
investor
Statements
Account Management
Fund Cash Forecast Report
Request for Fund Report
A full set of 67 ISO messages were developed by SWIFT in the area of Collective Investment Vehicle (CIV). 45 of them were approved in December A second release, including 22 additional messages, was approved in April 2008.
Two Fund Processing Passport Report messages from SWIFT were approved in November 2009.
SWIFT has developed 8 candidate messages for Alternative Funds (hedge funds) that are piloted before registration.
ANBIMA is developing 4 candidate Investment Fund Prospectus messages.
Prospectus or FPP report user, e.g. Fund distributor
FPP Report
Fund Prospectus
Investment
manager
Prospectus or FPP report provider, e.g. Fund manager
ISO 20022
Candidate ISO (in development)
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14. The ISO 20022 recipe is used! (7/11) Securities message portfolio is growing!
155 ISO messages approved and published:
Investment funds distribution
Securities transaction regulatory reporting
Proxy voting
Issuers’ agents communication
Fund processing passport report
Securities settlement and reconciliation
Securities corporate actions
Securities post-trade
Total portfolio valuation report
Settlement modification/replace and allegement response
Candidate ISO messages under evaluation:
Securities pre-trade/trade
Candidate ISO messages approved for development:
Alternative funds
TARGET2-Securities
CCP Clearing
Collateral management
Investment fund prospectus
SSI for Securities, Payments & FX
New development proposal:
Securities management accounting book-entry
62 of the existing securities messages are currently being maintained. The new versions will be published in Aopril/May 2012
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15. 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
Trading
party
FX & Loan/Deposit Advice & Allocations
NDF Opening and Valuation Notifications and
Foreign Exchange Option Premium Notifications
Settlement
party
custodian
NDF and Foreign Exchange Option Notifications
NDF and Foreign Exchange Option Notifications
In March 2007, the FX SEG approved 15 Forex Notifications messages submitted by CLS. There are no additional candidate ISO messages in development in FX. The SWIFT MT and FpML messages shown on the slide are for information only.
Central Settlement System
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16. The ISO 20022 recipe is used! (9/11) FX message portfolio is growing!
15 ISO messages approved and published:
Forex notifications
Candidate ISO messages under evaluation:
none
Candidate ISO messages approved for development:
New development proposals:
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17. The ISO 20022 recipe is used! (10/11) Trade Services
Financial Invoice
Buyer’s
bank
Seller’s
bank
Trade Services Management
Trade Services Management
TSU
Invoice Financing Request
Financial Invoice
Financial Invoice
ISO 20022
Candidate ISO (in development)
Financial Invoice
Buyer
The Trade Services SEG approved 3 Invoice Financing Request messages submitted by the CBI Consortium in October 2007, 50 Trade Services Management (TSU) messages submitted by SWIFT in April In October 2010, it approved a Financial Invoice message developed by UN/CEFACT TBG5 that can be used to trigger payment initiation (EBPP) and for other financial purposes.
In April 2011, the RMG approved a business justification introduced by SWIFT for the development of messages related to Demand Guarantees and Standby Letters of Credit (this is not represented on the slide).
In October 2011, the RMG approved a business justification for the development of a message set to support Factoring Services introduced by the Association Française des Sociétés Financières (ASF) (this is not represented on the slide).
Seller
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18. The ISO 20022 recipe is used! (11/11) Trade message portfolio is growing!
54 ISO messages approved and published:
Invoice financing request
Trade services management
Financial invoice
Candidate ISO messages under evaluation:
none
Candidate ISO messages approved for development:
Demand guarantees and standby letters of credit
Factoring services
New development proposals:
None
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19. Who is interested by ISO 20022?
1 May ‘11 – 31 Oct ‘11
Country
Visits % 1
USA
8,665
12% 2
France
8,509 3 UK
7,348
10% 4
Germany
5,797 8% 5
India
3,482 5% 6
Belgium
3,320 7
Switzerland
2,900 4% 8
Japan
2,299 3% 9
Netherlands
2,200 10
Sweden
2,164 11
Slovenia
1,658 2% 12
Finland
1,604 13
Australia
1,553 14
Italy
1,409 15
Singapore
1,198 16
Canada
1,195 17
Hong Kong
1,026 1% 18
China
991 19
Spain
972 20
Poland
955 21
Brazil
838 22
Denmark
785 23
Russia
676 24
Austria
659 25
Norway
627
62,830
86%
From 1 May 2011 to 31 October 2011, had 73,000 visits from over 39,000 visitors from 163 countries
1 May ‘11 – 31 Oct ‘11
Continent
Visits %
Europe
46,341
64.5%
Asia
11,421
15.9%
Americas
11,369
15.8%
Oceania
1,674
2.3%
Africa
1,022
1.4%
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20. & Answers uestions www.iso20022.org iso20022ra@iso20022.org
We have reached the end of this presentation.
Remember, a lot of information is available on the ISO website ( which is updated on an ongoing basis, but questions and comments can also be sent to the RA:
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