Slide 1 ISO_20022_SV_v58

ISO 20022

The success of ISO 20022 – Universal financial Industrymessage scheme

Slide 2 ISO_20022_SV_v58

ISO 20022The 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

Slide 3 ISO_20022_SV_v58

ISO 15022

MDDL

TWIST

FIX

FpML

IFX

Why ISO 20022?Supports convergence and co-existence

IFX

ISO 15022

MDDL

TWIST

FIX

FpML

Message model

Long term we want one standard, but in the interim several standards need to co-exist…

Message model

Slide 4 ISO_20022_SV_v58

Bank A Bank B

CompetitiveSpace

CompetitiveSpace

Cooperative Space

SME’s

Tradefacilitation:ICC Rule Books, e-invoicing

Cash:NCB rules, Industry Standards

Securities:Rule Books, Exchanges, CCP’s

CSD’s, Standardisation

High Value Payments:RTGS, EURO1 and CHIPS

Cards:Rule Books, Card Schemes,

Cards Processors

Certification & Networks:SWIFT

Commercial Payments:Rule Books, Clearing Houses,

Processors

Financial Institutions

Corporates

Merchants

Consumers

PublicAdmini-strators

Financial Institutions

PublicAdmini-strators

Corporates

SME’s

Merchants

Consumers

Cooperative space for business rules

Cooperative space for standards

FX and Money Markets:Rule Books, CLS

Why ISO 20022?Convergence in the cooperative space

Slide 5 ISO_20022_SV_v58

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, FPL, RIXML, FpML, IFX Forum, TWIST, SWIFT, RosettaNet, OAGi, ACORD, XBRL, EPASOrg, Berlin Group, ANBIMA, ASF, etc.

Market Infrastructures (MIs): DTCC, FED, EBA, Target, CLS, Euroclear, Clearstream, Omgeo, ECB, NBB, etc.

International or national standards setters: ISITC, ISO TC68 WGs, UN/CEFACT, OMG, EPC, UK Payments Council, FFI, etc.

There are also catalysts for interoperability and convergence, such as SEPA, T2S, Giovannini, MiFID, e-Invoicing

Slide 6 ISO_20022_SV_v58

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 (74 experts, 19 countries, 8 organisations)– Payments (56 experts,17 countries, 5 organisations)– Cards and related retail financial services (33 experts, 15 countries, 4

organisations) – Trade Services (33 experts, 14 countries, 1 organisation)– Forex (27 experts, 11 countries, 3 organisations)

Technical Support Group – TSG(ISO 20022 technical advisors)– 27 experts from 10 countries and 5 international organisations

Registration Authority – RA(Maintaining ISO 20022 repository)

Slide 7 ISO_20022_SV_v58

ISO 20022 The registration process

Submitting organisation

Financial organisation or standards body

Business justification

Business justification

RMGProject approval & allocation to a SEG

Submitting organisation

& RA

Development & provisional registration

SEG Business validation

RAOfficial registrationand publication

Repository

Dictionary

CatalogueOptional pilot testingor first implementers

RMG

monitors

Submitter& users

www.iso20022.org

Candidate ISO 20022 messages

ISO 20022 messages

Slide 8 ISO_20022_SV_v58

The ISO 20022 recipe is used! (1/11)Payments

Debtor

Debtor’sfinancial

institution

Creditor’s financial institution

ISO 20022

Creditor

Cash Management

Credit Transfers / Direct Debits / Mandates

Exc

eptio

ns &

Inv

estig

atio

ns

Cre

dit

Tra

nsf

er I

nitia

tion

Exc

eptio

ns &

Inv

estig

atio

ns

Dire

ct D

ebit

Ini

tiatio

n

Candidate ISO 20022 (in development)

Adv

ice

& S

tate

men

t

Adv

ice

& S

tate

men

t

Exceptions & Investigations

Acc

ount

Rep

ortin

g R

eque

st

Not

ifica

tion

to R

ecei

ve

Cha

nge/

Ve

rify

Acc

ount

Ide

ntifi

catio

n

Man

date

s

Cre

dito

r P

aym

ent

Act

ivat

ion

Re

ques

t

Cre

dito

r P

aym

ent

Act

ivat

ion

Re

ques

t

Ban

k A

ccou

nt M

anag

emen

t

Cas

h M

ana

gem

ent

Cas

h M

ana

gem

ent

Change/Verify Account Identification

Creditor Payment Activation Request

Ban

k S

ervi

ces

Bill

ing

Ban

k S

ervi

ces

Bill

ing

Slide 9

58 ISO 20022 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 20022 messages under evaluation:– Bank services billing

Candidate ISO 20022 messages approved for development:– Cash management– Cash lodgement and withdrawal – Real time payments– Authorities financial investigations– Account switching

New development proposals:– Extended Remittance Advice messages

The ISO 20022 recipe is used! (2/11)Payments message portfolio is growing!

ISO_20022_SV_v58

Slide 10

The ISO 20022 recipe is used! (3/11)Card message portfolio is growing

Acceptor

Acquirer Issuer

ISO 20022

Authorisation (ATICA)P

OI

tran

sact

ion

aut

horis

atio

n (C

AP

E)

Candidate ISO 20022 (in development)

PO

I T

erm

inal

Man

age

men

t (C

AP

E)

Sale Management (CAPE)

ISO_20022_SV_v58

AT

MI

tran

sact

ion

aut

hor

isat

ion

(IF

X)

AT

M

term

inal

Man

agem

ent

(IF

X)

Slide 11

18 ISO 20022 messages approved and published:– Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal

Management

Candidate ISO 20022 messages under evaluation:– None

Candidate ISO 20022 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:– None

The ISO 20022 recipe is used! (4/11)Cards and related retail financial services

ISO_20022_SV_v58

Slide 12 ISO_20022_SV_v58

The ISO 20022 recipe is used! (5/11)Securities - equities and fixed income

Custodian

Pre-trade / Trade (FIX/SWIFT)

I/CSD

Settlement & Reconciliation

(SWIFT)

Seller

Clearingagent

Buyer

ISO 15022

ISO 20022 Candidate ISO 20022 (in development)

Issuers’ Agent

Issuers’ Agent Communication

(Euroclear)

Post-Trade (Omgeo/SWIFT) CCP Clearing (FPL/SWIFT)

CorporateActions(SWIFT)

ReconciliationTPV Statement(ISITC/SWIFT)

Settlement(SWIFT)

Reconciliation(SWIFT)

Corporate

Actions(SWIFT)

Settlement(SWIFT)

CorporateActions(SWIFT)

Settlement & Reconciliation

(SWIFT)

Regulators

Transaction Regulatory Reporting (SWIFT)

Slide 13 ISO_20022_SV_v58

Fundaccountant

Institutional investor

Investmentmanager

Transferagent

Fund Cash Forecast Report

Price Report

Account Management

ISO 20022

Candidate ISO 20022 (in development)

New plan manager

Old plan manager

PEP/ISA/Portfolio Transfers

The ISO 20022 recipe is used! (6/11)Securities - investment funds (CIV)

Order & Confirmation & Status

Transfer & Confirmation & Status

Statements

Prospectus or FPP report provider, e.g. Fund manager

Prospectus or FPP report user, e.g. Fund distributor

Request for Fund Report

FPP Report

Alternative Funds Order, Confirm & Status

Fund Prospectus

Slide 14

155 ISO 20022 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 20022 messages under evaluation:– Securities pre-trade/trade

Candidate ISO 20022 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

The ISO 20022 recipe is used! (7/11)Securities message portfolio is growing!

ISO_20022_SV_v58

Slide 15 ISO_20022_SV_v58

The ISO 20022 recipe is used! (8/11) Forex

FX order

Orderingparty

Settlementparty

custodian

Trading party

Trading party

FX & Loan/Deposit Advice & Allocations

Loans and deposits

Foreign exchange and currency options

Interest rate swaps

Central Settlement System

NDF and Foreign Exchange Option Notifications

NDF and Foreign Exchange Option Notifications

NDF Opening and Valuation Notifications andForeign Exchange Option Premium Notifications

MTs

FpML CUG (Trade Notifications)

ISO 20022

Slide 16 ISO_20022_SV_v58

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

The ISO 20022 recipe is used! (9/11)FX message portfolio is growing!

Slide 17 ISO_20022_SV_v58

Seller’s bank

Buyer’s bank

TSU

Trade Services Management Trade Services Management

Candidate ISO 20022 (in development)

ISO 20022

Buyer Seller

Financial Invoice

Invoice Financing Request

The ISO 20022 recipe is used! (10/11)Trade Services

Financial Invoice

Financial Invoice

Financial Invoice

Slide 18 ISO_20022_SV_v58

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:– Demand guarantees and standby letters of credit– Factoring services

New development proposals:– None

The ISO 20022 recipe is used! (11/11)Trade message portfolio is growing!

Slide 19

Who is interested by ISO 20022?

From 1 May 2011 to 31 October 2011, www.iso20022.org had 73,000 visits from over 39,000 visitors from 163 countries

ISO_20022_SV_v48

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%

 1 May ‘11 – 31 Oct ‘11

Country Visits %1 USA 8,665 12%2 France 8,509 12%3 UK 7,348 10%4 Germany 5,797 8%5 India 3,482 5%6 Belgium 3,320 5%7 Switzerland 2,900 4%8 Japan 2,299 3%9 Netherlands 2,200 3%10 Sweden 2,164 3%11 Slovenia 1,658 2%12 Finland 1,604 2%13 Australia 1,553 2%14 Italy 1,409 2%15 Singapore 1,198 2%16 Canada 1,195 2%17 Hong Kong 1,026 1%18 China 991 1%19 Spain 972 1%20 Poland 955 1%21 Brazil 838 1%22 Denmark 785 1%23 Russia 676 1%24 Austria 659 1%25 Norway 627 1%    62,830 86%

ISO_20022_SV_v58

Slide 20 ISO_20022_SV_v58

&&uestionsAnswers

iso20022ra@iso20022.org

www.iso20022.org