BUILDING THE FUTURE

SWIFT Business Forum

Canada 2017

Charles Boniver

and Kris Ketels

DLT, API and

Business Standards

“Whatever the technology, in multi-party networked business,

participants need to agree on the meaning and content

of shared data, business processes, roles and responsibilities.

This is the domain of business standards”.

Existing financial industry business standards

Reference Data

e.g. ISO 4217

Currency code –

GBP, USD, etc.

ISO 17442 – Legal

Entity Identifier

Messaging

e.g. ISO 20022

Universal financial

industry

messaging

scheme

What can we re-use from existing standards?

Reference Data

Codes

Currency, Country,

BIC, MIC, LEI, ISIN,

etc.

ISO 20022

Business

semantics and

business

processes

ISO 20022 architecture and re-use

Extract from ISO 20022

Business Model for Securities

Smart Contract implementation

class diagram: bond lifecycle

Example: re-use of

ISO 20022 semantics

and reference data

ISO 4217 currency code

ISO 20022 architecture and re-use

API

API

JSON

A different paradigm: messaging versus DLT

Messaging – data is shared using

point-to-point messages

DLT – data is shared using a shared ledger

that all participants can consult

REST API – useful for ‘lightweight’ implementations

REST API – to manage the state of a Bond

Get BondStatus

Reference Data

Get

Bo

nd

Da

ta (

ISIN

)

Get SSI

POST

Settlement

A different paradigm: messaging versus DLT versus API

REST API – used for payment applications ‘on the

edge’ such as Web Payments

Payment API

ISO 20022

messages

A different paradigm: how do REST API fit in this?

REST API – used for payment applications ‘on the

edge’ such as Web Payments

REST API – used for PSD2

AISP

PISP Customer

Merchant

Bank

PaymentOrder

GetAccountInfo

A different paradigm: how do REST API fit in this?

GetAccountInfo

Payment

Order

Reduced role of the

‘traditional’ banking services

Payment API

ISO 20022

messages

Standards and adoption of ISO 20022 in the DLT space

• Work through ISO (TC 68 and new Technical Committee TC 307) on agenda set out in

Information Paper

• Re-use of ISO 20022 definitions in DLT context

• New or adapted standards for DLT (research mode)

• Engage with selected partners

• Understand technology and its interaction with business standards

• Leverage Standards’ content and expertise in SWIFT PoCs

• Contribute and learn

• Continue Standards and DLT thought-leadership campaign

SWIFT DLT Sandbox

RMA

SWIFT value add features

PKI

CUG RBAC

Supporting multiple use cases

DLT

Sandbox

Hosted in a third party

cloud

Fast

deployment

The DLT sandbox will be a key tool to enables customers to experiment use

cases with SWIFT and to demonstrate our value proposition.

Bond Lifecycle PoC

What is still missing in DLT?

Smart Contract

behaviour

(DLT business

process)

Roles and

Responsibilities

adapted to DLT

Mature and

stable target

implementation

technology

ISO 20022 APIs: where are we now?

TSG has drafted

two proposals for

endorsement by

the Registration

Mgmt Group

Request

pending for the

development of

ISO 20022

PSD2 APIs

Draft ready

for a fast

track, flexible

maintenance

cycle

ISO 20022 APIs: What is still missing?

Enhanced ISO

20022

metamodel

(with API specific

features such as

state diagrams)

Standard JSON

Schema

specification

(currently still in

draft)

New target

implementation

specs (such as

Swagger)?

What can we learn from previous standardization efforts?

Openness is

required to

ensure trust and

participation

To scale, we need

meta-standards –

‘recipes’ for

making consistent

standards

Governance is

key – open

participation

and flexibility

balanced with

rigour

Both DLT and

API

implementations

can already

benefit from

existing business

standards like

ISO 20022

New standards

should build on

the content and

experience the

industry has

gained in

messaging

In future, open,

DLT or API -

specific

business

standards will

be required.

Summary

Will coexist with

other

automation

mechanisms –

re-use is

important for

interoperability

“You have to

structure the

chaos”

Thom Luyckx , Chair

PayYou

Call for action!

Questions?

…and for more detail, see

Information Paper

BUILDING THE FUTURE

SWIFT Business Forum

Canada 2017