Slide 1
David DobbingSWIFTStandards
UN/CEFACT PlenaryGeneva, 16 - 17 September 2008
SWIFT, ISO 20022 and UN/CEFACTSWIFT, ISO 20022 and UN/CEFACT
Slide 2
What is SWIFT?
A co-operative organisation serving the financial industry
A provider of highly secure financial messaging services
A standardisation body for the financial industry
Slide 3
SWIFT business dimensions• Established in 1973 by 239 banks in 15 countries• Developed shared messaging platform for financial transactions• Emphasis on security, reliability and availability
Heritage
• Serving 8,300 financial institutions across 208 countries• Payments, Securities, Foreign Exchange, Treasury and Trade• Reducing costs, improving automation, managing risk
Understanding
• Industry-owned community• Overseen by regulatory authorities• Impartial to the data transacted across the messaging platform
Neutrality
• Store and forward, file transfer, interactive query & response• Open standards• IP over fibre-optic backbone
Technology
Slide 4
3.5 billion messages per year
8,332 customers
208 countries
Average daily traffic 13.9 million messages
Peak day of 16 million messages 28 September 07
SWIFT figures (December 2007)
Slide 5
Debtor’sFinancial
Institution
Payments and Cash Management Market
Debtor Creditor
Cash management
Direct debits
MT 1xx, 2xx
MT 9xx
Exceptions & Investigations
Credit transfers
MT
9xx
MT
101
Exc
epti
on
s &
In
vest
igat
ion
s
Cas
h m
an
agem
en
t
Pay
men
t in
itia
tio
n (
CT
+ D
D)
MT
9xx
Exc
epti
on
s &
In
vest
igat
ion
s
Cas
h m
an
agem
en
t
Creditor’sFinancial Institution
MT-based MX-based
Slide 6
Seller’s bank
Buyer’s bank
Guarantees / Standby LCs MT 76x
Collections MT 4xx
Letters of credit MT7xx
TSU messages TSU messages
MT-based MX-based
Trade & Supply Chain Market
TSUTSU
Trade Services Utility
Slide 7
Trade Services Utility
(1) Purchase Order Data
Data Matching
Financing with or without recourse
(2) Invoice, Transport, Insurance, Certificate
Data
Buyer SellerTSU
Financing with or without recourse
Centralised Workflow & Matching Engine
Seller’s BankBuyer’s Bank
Slide 8
ObjectiveTo enable communication interoperability between financial institutions, their market infrastructures and their end-user communities
ChallengeNumerous overlapping standardisation initiatives looking at XML financial messages:
MDDL, FIX, FinXML, VRXML, RIXML, XBRL, FpML, IFX, TWIST,
SWIFT, RosettaNet, OAGi, ACORD, CIDX, etc.
UNIFI (UNIversal Financial Industry message scheme)
ISO 20022
Slide 9
ISO 20022 – Components Modelling-based standards development
Syntax-specific design rules for XML
Reverse engineering approach
- Syntax-independent business standard- Validated by the industry
- Predictable and ‘automatable’- Protect standard from technology evolution
- Protect industry investment and ease interoperability- Prepare for future migration
Development / registration process
Repository on the ISO 20022 website
- Clearly identified activities and roles- Business experts and future users involved upfront
- Business Process Catalogue & Data Dictionary- Outside of official standard (maintained by registration bodies)
Slide 10
SellerBuyer
Buyer’s Bank Seller’s Bank
Goal is one of convergence of the standards developed by the two de jure standards bodies, on the commercial side UN/CEFACT, and on the financial side ISO 20022
ISO 20022 (UNIFI)
Financial
UN/CEFACTAdministration, Commerce & Transport
• e-Invoice• Remittance Advice• Request for Finance• etc
ISO 20022 and UN/CEFACT
Slide 11
ISO 20022 and UN/CEFACT Cooperation 2004:
– TC68, TBG5 and SWIFT sign a cooperation agreement to investigate alignment in line with the objectives of the ‘MoU on e-Business’
– A workplan is agreed between the signatories 2005:
– Recommendation for alignment of methodologies– Trial submission from UNIFI to UN/CEFACT
2006:– WG4 takes over technological alignment
2007:
– First official submission from UNIFI to UN/CEFACT
– Project submission from UN/CEFACT to UNIFI 2008:
– Customer-to-bank payment components harmonised and accepted in UN/CEFACT Core Component Library
Slide 12
ISO 20022 and UN/CEFACT Convergence
CommonBusiness
Processes
BusinessProcess
Catalogue
UN/CEFACT Registry/Repository
www.iso20022.org
UNIFI FinancialRepository
UNIFIRegistration
Management Group
UN / CEFACT(All Sectors)
UNIFIRegistration
Authority
BusinessRequests
MessageModels
UNIFIStandards
Evaluation Groups
Securities
Payments
Trade Services
Forex
TBG17Harmonisation
TBG5Finance
CoreComponents
DataDictionary
www.unece.org/cefact/
ISTH
Omgeo
CLS
SWIFT
Euroclear
ISITC
ACBI
UNIFIUsers