Slide 1 UN/CEFACT TBG5 & CRG, 23 January 2008

UNIFI (ISO 20022)

The success of ISO 20022 – UNIversal Financial Industrymessage scheme

Jean-Marie Eloy

Senior Manager, SWIFT

ISO 20022 Registration Authority

Slide 2

General Assembly

TC

Council

Technical Management Board (TMB)

TC TCTC 68

Financial Services

Central Secretariat

SC 7Banking

SC 4Securities

SC 2Security

National Standards Bodies (BSI, ANSI, AFNOR, DIN, UNI, etc)

WGWG WG WGWG WG WGWG WG

193 Technical Committees

2,244 Working Groups

540 SubCommittees

157 Countries

16,500 International Standards

50,000 ‘voluntary’experts

580 international or regional Liaison Organisations

What is ISO? International Organization for Standardization

Slide 3

Why UNIFI (ISO 20022)?The UNIFI value proposition

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)The ISO recipe for all financial messages

ISO 20022 - UNIversal Financial Industry message scheme, the recipe:

syntax neutral business modelling methodology (UML)

syntax specific design rules (UML to XML)

industry led development/registration process

financial repository on www.iso20022.org

reverse engineering approach to ease coexistence

Slide 5

ISO 15022

MDDL

TWIST

FIX

FpML

IFX

UNIFI (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 6

UNIFI (ISO 20022) recipe - For whom?Potential users and developers communities of users looking for interoperability and

more cost-effective communications

Message development organisations: MDDL, FIX, FinXML, VRXML, RIXML, FpML, IFX, TWIST, SWIFT, RosettaNet, OAGi, ACORD, ISTH, CIDX, XBRL, etc.

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

International or national standards setters: ACBI, ISO TC68 WGs, UN/CEFACT TBG5, OMG, ISITC, EPC, etc.

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

Slide 7

Registration Management Group, RMG– Overall governance / court of appeal– Represent the whole financial industry– Approve business justifications for new message standards

Standards Evaluation Groups, SEGs– Represent future users of specific financial areas – Validate message standards

Registration Authority, RA– Ensure compliance– Maintain iso20022.org and publish UNIFI Repository

UNIFI (ISO 20022)The registration bodies

Slide 8

UNIFI (ISO 20022) The registration process

Submitter 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

SEGBusiness validation

RA Official registration and publicationUNIFI

Repository

Dictionary

Catalogue

RMG

monitors

www.iso20022.org

Candidate UNIFI messages

UNIFI messages

Slide 9

Registration Management Group (RMG) Standards Evaluation Groups (SEGs)

RMG (50 senior managers, 18 countries, 9 liaison organisations)– AT, AU, CA, CH, DE, DK, FI, FR, GB, IT, JP, KR, LU, NL, NO, SE, US, ZA,

Clearstream, Euroclear, FPL, FpML, ISITC, SWIFT, TWIST, UN/CEFACT/TBG5, VISA– Convener: Gerard Hartsink, ABN Amro; Vice-convener: Bob Blair, JP Morgan Chase

Payments SEG (34 experts,13 countries, 5 organisations) – AT,AU,CH,DE,DK,FI,FR,GB,NL,NO,SE,US,ZA,IFX,Euroclear,SWIFT,TBG5,TWIST – Convener: Len Schwartz, ABN Amro; Vice-convener: Bob Blair, JP Morgan Chase

Securities SEG (55 experts, 16 countries, 7 liaison organisations)– AU, CA, CH, DE, DK, FI, FR, GB, JP, LU, NL, NO, SE, TR, US, ZA,

Clearstream,Euroclear, FISD/MDDL, FPL, ISDA/FpML, ISITC, SWIFT – Convener: Karla McKenna, Citigroup; Vice-convener: Didier Hermans, Euroclear

Forex SEG (26 experts, 11 countries, 3 liaison organisations)– AU, CA, CH, DE, FR, GB, NL, NO, SE, TR, US, SWIFT, FIX, ISITC, SWIFT– Convener: Ludy Limburg, ABN Amro; Vice-convener: Tony Smith, JP Morgan Chase

Trade Services SEG (23 experts, 12 countries, 2 liaison organisations)– AU, CH, DE, DK, FI, FR, GB, IS, IT, NL, US, ZA, SWIFT, TBG5– Convener: Katja Lehr, IFSA; Vice-convener: Dominique-Pierre Barthares, BNP Paribas

Slide 10

General Assembly

TC

Council

Technical Management Board (TMB)

TC TCTC 68Financial Services

Central Secretariat

SC 7Banking

SC 4Securities

SC 2Security

UNIFI (ISO 20022)Where does it fit in the ISO structure?

157 National Standards Bodies (BSI, ANSI, AFNOR, DIN, UNI, etc)

WGWG WG WGWG WG WGWG WG

UNIFIRMG

SEG SEG SEG SEG

RA

Slide 11

Publication of the international standard: Dec 2004 Kick-off Registration Management Group: Jan 2005

Kick-off Payments and Securities SEGs: Jun 2005

Approval of first ‘UNIFI messages’: Sep 2005

Kick-off Forex and Trade Services SEGs: Sep 2006

Today already:– 96 UNIFI messages approved and published (8 projects)– 125 candidate UNIFI messages under evaluation (4 projects)– 10 projects (business justifications) approved for

development – 1 business justification under approval

UNIFI (ISO 20022)The deployment

Slide 12

96 UNIFI messages approved and published:• Customer payment initiation (5 messages - ISTH)• Investment funds distribution (45 - SWIFT) • Interbank payment clearing and settlement (7 - SWIFT) • Payments exceptions & investigations (14 - SWIFT)• Bank-to-customer cash management (3 - ISTH/ISITC) • Forex notifications (15 - CLS) • Securities regulatory reporting (4 - SWIFT) • Invoice financing request (3 - ACBI)

125 candidate UNIFI messages under evaluation:• Securities pre-trade/trade (44 - FIX/SWIFT) • Investment funds distribution (23 - SWIFT)• Proxy voting (8 - SWIFT)• Trade services management - TSU (50 - SWIFT)

The UNIFI recipe is used!The message portfolio is growing

Slide 13

Candidate UNIFI messages in development:• Issuers’ agents communication (Euroclear) • Total portfolio valuation statement (ISITC) • Cash management (SWIFT)• Securities post-trade (Omgeo)• E-invoice (UN/CEFACT/TBG5) • Securities registration and holder ID (Euroclear) • Securities market claims and transformations (Euroclear)• Securities settlement and reconciliation (SWIFT)• Securities corporate actions (SWIFT) • Securities issuance (Euroclear)

New development proposals:• Change/verify account identification (GUF)

The UNIFI recipe is used!The message portfolio is growing

Slide 14

Debtor/ Buyer

Debtor’sBank

Creditor’s Bank

UNIFI

Global overviewPayments

Creditor/Seller

Cash Management

Direct Debits / Credit Transfers

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Candidate UNIFI

Adv

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Adv

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Exceptions & InvestigationsC

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Slide 15

Seller’s bank

Buyer’s bank

TSU

TSU messages TSU messages

Candidate UNIFI

UNIFI

Buyer Seller

e-Invoice

Invoice financing requestEBPP

e-Invoice

Global overviewTrade Services

Slide 16

ISTH

Omgeo

CLS

SWIFT

Euroclear

ISITC

ACBI

CoreComponents

CommonBusiness

Processes

DataDictionary

BusinessProcess

Catalogue

UN/CEFACT Registry/Repository

www.iso20022.org

UNIFI FinancialRepository

UNIFIRegistration

Management Group

UN / CEFACT(All Industries)

UNIFIRegistration

Authority

UNIFIUsers

BusinessRequests

MessageModels

TBG17Harmo-nisation

Long term convergence goal A single ISO-UN/CEFACT approach

UNIFIStandards

Evaluation Groups

Securities

Payments

Trade Services

Forex

Slide 17

&&uestionsAnswers

iso20022ra@iso20022.org

www.iso20022.org