The intimate Relationship

between Market Practices

and Standards

Sibos 2012

Prof. Poppe

31 October 2012

Refining Standards to your needs

Financial standards are created globally

but used locally

2

Market Practices

National Market

Practice Groups Securities Market

Practice Groups

Payments Market

Practice Groups Institutions Practice

Market Infrastructure CSD

ICSD

It happens in all of the Standards, in all areas

3

MT103 Plus:

STP Payments

CGI: Common Global

Implementation guidelines for

corporate to Bank payments HVPI: Interoperability for

High Value Payments

GETC: Global Electronic Trade information

specification for trade Confirmation ISO15022

Messages

ISITC: Market

Practices for Securities

What does it mean “Refining a Standard” ?

4

Message

Definitions

Processing

Instructions Standard = +

Message

Usage

Guidelines

Refined

Processing

Instructions

Market

Practice = +

Refining

Defining a usage guideline for a message,

while respecting the standard

5

Removing optional elements

Limiting the repetitions

Limit options

Restricting data types

Reducing code lists

Make optional elements mandatory

Extensions

Formal message standards,

The recipe for formal message guidelines

7

Xml schemas

Comparing

guidelines

Validating guidelines

Generated

documentation

Publishing

If everybody refines the Standard, what is the

purpose of a Standard ?

8

“A camel is a horse designed by committee.”

Sir Alec Issigonis

Why must message usage guidelines

respect the global standard ?

9

Network Validation

Compliance to the Standard

Harmonisation

Convergence of Market Practices

Conver-

gence

Compliance

Validation

HARMONISATION

No global standard, loosely connected

market practices

10

Market

Practice

Market

Practice

Market

Practice

Market

Practice

Market

Practice

Global standards, the base for defining

market practices

11

Market

Practice

Market

Practice

Market

Practice

Market

Practice

Market

Practice

Global Standard

The challenge in a world full of market

practices: how to manage ?

12

How do I

get access to a

market practice ?

How do I publish My

market practices ?

How to compare

market practices ?

How do you document your market practices ?

13

Thank you