ISO 20022

1. The success of ISO 20022 – Universal financial Industry message scheme ISO 20022 ISO_20022_SV_v131

2. 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 ISO_20022_SV_v131

3. ISO 15022 IFX TWIST Message model MDDL FpML FIX Why ISO 20022?Supports convergence and co-existence ISO 15022 IFX TWIST Message model MDDL FpML FIX Long term we want one standard, but in the interim several standards need to co-exist… ISO_20022_SV_v131

4. Bank A Bank B Why ISO 20022?Convergence in the cooperative space Cooperative Space Competitive Space Competitive Space High Value Payments: RTGS, EURO1 and CHIPS Financial Institutions Financial Institutions FX and Money Markets: Rule Books, CLS Public Admini- strators Commercial Payments: Rule Books, Clearing Houses, Processors Public Admini- strators Cards: Rule Books, Card Schemes, Cards Processors Corporates Corporates Tradefacilitation: ICC Rule Books, e-invoicing SME’s SME’s Cash: NCB rules, Industry Standards Merchants Merchants Securities: Rule Books, Exchanges, CCP’s CSD’s, Standardisation Consumers Consumers Certification & Networks: SWIFT Cooperative space for business rules Cooperative space for standards ISO_20022_SV_v131

5. The ISO 20022 recipe - For whom?Potential users and developers • communities of users looking for interoperability and more cost-effective communications • Message development organisations: ACORD, ANBIMA, ASF, Berlin Group,BIAN, CBI Consortium, Early Warning Services, FPL, FpML, IFX Forum, nexo, OAGi, SWIFT, Tieto, TWIST, XBRL, etc. • Market Infrastructures (MIs): Bank of England, China Foreign Exchange Trade System,China UnionPay, Clearstream, CLS, DTCC, EBA, European Central Bank-Banque de France-Banco de España-Deutsche Bundesbank, Euroclear, FED, Omgeo, Target, T2S, ESMA, etc. • International or national standards setters: EPC,Federation of Finnish Financial Services (FFI), ISITC, ISO WGs, NPSO, Russian Corporate Market Practice Group (RU-CMPG), UN/CEFACT, South African Bureau of Standards (SABS), SPRING, etc. There are also catalysts for interoperability and convergence, such as SEPA, T2S, Giovannini,MiFID, MiFIR, EMIR ISO_20022_SV_v131

6. ISO 20022 The registration bodies • Registration Management Group - RMG (Overall governance) • 76 senior managers from 21 countries and 17 international organisations • Standards Evaluation Groups – SEGs (User representatives) • Securities (73 experts, 17 countries, 9 organisations) and Derivatives SubSEG (52 experts, 7 countries, 10 organisations) • Payments (65 experts, 19 countries, 7 organisations) • Cards and related retail financial services (31 experts, 15 countries, 5 organisations) • Trade Services (21 experts, 10 countries, 1 organisation) • Forex (19 experts, 8 countries, 3 organisations) • Technical Support Group – TSG (ISO 20022 technical advisors) • 32 experts from 8 countries and 10 international organisations • Registration Authority – RA (Maintaining ISO 20022 repository) ISO_20022_SV_v131

7. Financial organisation or standards body Submitting organisation Business justification Business justification Project approval & allocation to a SEG RMG Submitting organisation & RA Development & provisional registration SEG RA Repository Dictionary Catalogue ISO 20022 The registration processDevelopment Process R M G m o n i t o r s Candidate ISO 20022 messages Business validation ISO 20022 messages Official registration and publication www.iso20022.org Optional pilot testing or first implementers Submitter & users ISO_20022_SV_v131

8. SEG SEG SEG RA Repository Dictionary Catalogue ISO 20022 registration process Yearly maintenance process Timing Users introduce Change Requests to the RA By June 1 Users CRs SEG screens Change Requests (CRs) By July 7 Submitting organisation prepares ‘Maintenance Change Request’ with each CR implementation Submitting organisation By August 21 By October 1 SEG approval/rejection Development of new candidate versions. Provisional publication Submitting organisation & RA By December 1 Validation of new versions By February 1 Registration and publication By February-May First implementers Submitting organisation & users ISO_20022_SV_v131

9. The ISO 20022 recipe is used! (1/11)Payments Credit Transfers / Direct Debits / Mandates Financial Investigations Exceptions & Investigations Change/Verify Account Identification Creditor Payment Activation Request Debtor’s bank Authorities Creditor’s bank Cash Management Account Switching Account Switching ISO 20022 Exceptions & Investigations Bank Account Management Creditor Payment Activation Request Change/Verify Account Identification Advice & Statement Notification to Receive Account Reporting Request Mandates Creditor Payment Activation Request Exceptions & Investigations Advice & Statement Credit Transfer Initiation Stand-Alone Remittance Advice Stand-Alone Remittance Advice Direct Debit Initiation Candidate ISO 20022 (in development) Bank Services Billing Bank Services Billing Debtor Creditor ISO_20022_SV_v131

10. 89 ISO 20022 messages approved: Customer payment initiation Interbank payment clearing and settlement Payments exceptions & investigations Bank-to-customer cash management Payments mandates Change/verify account identification Bank account management Creditor payment activation request Cash account reporting request & notification messages Bank services billing Authorities financial investigations Stand-alone remittance advice messages Cross-border transactions currency control reporting (CTCCR) Account Switching 31 candidate ISO 20022 messages under evaluation: Cash management Candidate ISO 20022 messages approved for development: Payment pre-authorization (PaPA) Proxy for banking account numbers New development proposal: none The ISO 20022 recipe is used! (2/11)Payments message portfolio is growing! ISO_20022_SV_v131

11. The ISO 20022 recipe is used! (3/11)Card message portfolio is growing Authorisation (ATICA) Issuer Acquirer ATMI transaction authorisation POI Terminal Management (CAPE) ATM terminal Management POI transaction authorisation (CAPE) ISO 20022 Candidate ISO 20022 (in development) Acceptor Sale Management (CAPE) ISO_20022_SV_v131

12. 69 ISO 20022 messages approved: Card payments exchanges (CAPE) – Acceptor to Acquirer and Terminal Management ATM interface for transaction processing and ATM management Acquirer to issuer card messages (ATICA – first version) Candidate ISO 20022 messages under evaluation none Candidate ISO 20022 messages approved for development: Card Payments Exchanges (CAPE) - Sale-to-POI management Payment Tokens Management Exchanges (TOKE) Acquirer to issuer card messages (ATICA – second version) The ISO 20022 recipe is used! (4/11)Cards and related retail financial services ISO_20022_SV_v131

13. The ISO 20022 recipe is used! (5/11)Securities - equities and fixed income Seller Buyer Pre-trade / Trade (FIX/SWIFT) Post-Trade (Omgeo/SWIFT) CCP Clearing (FPL/SWIFT) Regulators Financial Instruments and Transactions Regulatory Reporting (ESMA) Corporate Actions (SWIFT) Settlement (SWIFT) Settlement (SWIFT) Corporate Actions (SWIFT) ISO 20022 Reconciliation TPV Statement (ISITC/SWIFT) Candidate ISO 20022 (in development) Reconciliation (SWIFT) ISO 15022 I/CSD Settlement & Reconciliation (SWIFT) Settlement & Reconciliation (SWIFT) Custodian Clearing agent Issuers’ Agent Communication (Euroclear) Corporate Actions (SWIFT) Issuers’ Agent ISO_20022_SV_v131

14. The ISO 20022 recipe is used! (6/11)Securities - investment funds (CIV) Old plan manager Portfolio Transfers Fund accountant New plan manager Price Report Order & Confirmation & Status Transfer & Confirmation & Status Transfer agent Transparency of Holdings Institutional investor Statements Account Management Fund Cash Forecast Report Prospectus or FPP report user, e.g. Fund distributor Request for Fund Report FPP Report Investment manager Prospectus or FPP report provider, e.g. Fund manager ISO 20022 Candidate ISO 20022 (in development) ISO_20022_SV_v131

15. The ISO 20022 recipe is used! (7/11)Securities message portfolio is growing! • 198 ISO 20022 messages approved and published: • Investment funds • Proxy voting • Issuers’ agents communication • Securities settlement and reconciliation, including ISO 15022 variants • Securities corporate actions, including ISO 15022 variants • Securities post-trade • Total portfolio valuation report • CCP Clearing • Collateral management • Money MarketStatisticalReporting (MMSR) • Transparency of holdings • SSI for Securities, Payments & FX • Financial instruments and transactions regulatoryreporting (MiFID II / MiFIR) v1 • 49 candidate ISO 20022 messages underevaluation: • Financial instruments and transactions regulatoryreporting (EMIR & MiFID II / MiFIR v2) • CCP supervisoryreporting • TARGET2-Securities • Candidate ISO 20022 messages approved for development: • Securities Financing Transactions Regulatory Reporting (SFTR) • Securities marketsregulatoryreporting message sets (CSDR, BR, MMFR) • New developmentproposals • None ISO_20022_SV_v131

16. FX order Interest rate swaps Foreign exchange instruments Loans and deposits The ISO 20022 recipe is used! (8/11)Forex Trading system ISO 20022 Candidate ISO 20022 (in development) Ordering party MTs FpML CUG (Trade Notifications) Trade capture Trading party Trading party Deriv-atives FX Spot, Forward & Swap instructions NDF and FX Option instructions (archived) FX & Loan/Deposit Advice & Allocations Settlement party custodian Status notifications and payment and position information Status notifications and payment and position information Central Settlement or Netting System ISO_20022_SV_v131

17. The ISO 20022 recipe is used! (9/11)FX message portfolio is growing! • 27 ISO 20022 messages approved and published: • Post Trade FX messages • FX Post-Trade Confirmation • FX Post-Trade Trade Capture • Candidate ISO 20022 messages underevaluation: • None • New developmentproposals • None ISO_20022_SV_v131

18. TSU The ISO 20022 recipe is used! (10/11)Trade Services Buyer’s bank Seller’s bank Trade Services Management Trade Services Management Invoice Tax Report ISO 20022 Candidate ISO 20022 (in development) Invoice Financing Request Factoring Services Factoring Services Tax Authority Invoice Tax Report Seller Buyer ISO_20022_SV_v131

19. The ISO 20022 recipe is used! (11/11)Trade message portfolio is growing! • 86 ISO 20022 messages approved: • Invoice financing request • Trade services management • Demand guarantees and standby letters of credit • Factoring services • Invoice Tax Report • Candidate ISO 20022 messages under evaluation: • None • Candidate ISO 20022 messages approved for development: • None • New development proposals: • None ISO_20022_SV_v131

20. www.iso20022.org uestions & Answers iso20022ra@iso20022.org ISO_20022_SV_v131