Date post: | 23-Jun-2015 |
Category: |
Economy & Finance |
Upload: | swift |
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How is the world of
standards evolving?
Forum for Financial Standards
SKSF-SWIFT
Stephen Lindsay
7th November 2015
Presentation title – dd month yyyy – Confidentiality: xxx 2
Agenda
• Evolution?
• Some common threads…
• Examples
• Questions
Evolution: successful adaptation to a
changing environment
Presentation title – dd month yyyy – Confidentiality: xxx 3
Current and Future
Initiatives
Opportunities and
Challenges
Opportunities and Challenges
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Current and Future Initiatives
Opportunities and
Challenges
Opportunities
• Regulatory compliance
Challenges
• Fragmentation
• Co-existence
Current and Future Initiatives
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Current and Future Initiatives
Opportunities and
Challenges
• Market practice formalization
• ISO 20022
• SWIFT
• Predictable environment
• Working Group 5
• ‘Semantics’
• TSG
• Business Process
• Business Rules
• MT modernization
• LEI – public/private initiative
More information in chatroom
“ISO 20022 –
How can SWIFT help”
Initiatives v Opportunities and Challenges
Presentation title – dd month yyyy – Confidentiality: xxx 6
Initiatives
• Market practice formalization
• ISO 20022
• SWIFT
• Predictable
environments
• Working Group 5
• Semantics
• TSG
• Business Process
• Business Rules
• MT modernization
• LEI – public/private initiative
Opportunities
• Regulatory compliance
Challenges
• Fragmentation
• Co-existence
Presentation title – dd month yyyy – Confidentiality: xxx 7
Agenda
• Evolution?
• Some common threads…
• Examples
• Questions
Some common threads…
• Extending the scope of what we standardize, e.g.:
– Market practice (usage guidelines)
– Semantics (the meaning of the data we exchange)
– Reference data
• Increasing the formality of our deliverables – from documents to models
– Reduce ambiguity
– Enable automation and STP
• Involving different actors in our processes
– Users and other standards bodies (ISO 20022 v 1.5 openness)
– Regulators
– Market practice organizations and MIs
Presentation title – dd month yyyy – Confidentiality: xxx 8
Presentation title – dd month yyyy – Confidentiality: xxx 9
Agenda
• Evolution?
• Some common threads…
• Examples
–MT modernization
–Market Practice: HVPS
– ISO 20022:2013
• Business Process
• Business Rules
–LEI organization
• Questions
Example: MT modernization
• FROM – Document as source
– Reference MT standard is document edited using word
processing tools
– Standards generates technical deliverables from
documentation
• TO – Model as source
– Reference MT standard is a model edited using custom editor
– Documentation is amongst many generated artefacts
• WHY
– Quality – consistency, rigour (e.g. check field is used and
described the same way everywhere)
– Platform to build new capabilities
Presentation title – dd month yyyy – Confidentiality: xxx 10
Formality
Example: Market Practice Formalization
• High Value Payment System (HVPS) guidelines
– Goal: to ensure that ISO 20022-based RTGS is implemented
in the same way everywhere (to the extent possible)
– Formulated in consultation with the industry
• PMPG, Target 2, EURO 1, CPA, …
– Include:
• Formal usage guidelines
• MT <–> MX translation rules
– Published on MyStandards
• Documentation (PDF, XLS)
• XSDs
– For SWIFTNet users, SWIFT will offer validation and MT/MX
translation services
Presentation title – dd month yyyy – Confidentiality: xxx 11
Scope
Formality
Actors
Example: Market Practice Formalization
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e.g. for RTGS we
restrict to one
transaction per
message
Scope
Formality
Actors
Example: TSG – completing the
ISO 20022:2013 specification
13
- Business processes of ISO 20022 standards modelled through BPMN
collaboration diagrams
- Formal codification of business rules
Formality
More information in chatroom
“How to model my own business
process based on
existing ISO 20022 business
processes”
Example: ISO 17442 / LEI
Public/Private initiative
Presentation title – dd month yyyy – Confidentiality: xxx 14
Established by G20 / FSB Role:
• Governance principles
• Oversee global system
• Protect public interest
Actors
Founded by FSB • Swiss Foundation / 16 board members
• Operation principally funded by pre-LOUs
• Role:
• Application of uniform standards
• Manage federation through LOUs
• Maintain central logical database
• Maintain high data quality
21 pre-LOUs • Issue LEIs (valid anywhere)
• Cost-recovery model
Conclusions
• Standards help the industry respond collectively to its collective
challenges
– Effectively
– Efficiently
• These challenges are mounting all the time…
– Compliance
– Competition and customer expectations
• As the challenges evolve, standards need to evolve too:
– Further (scope)
– Smarter (formality)
– More inclusive (different actors)
Presentation title – dd month yyyy – Confidentiality: xxx 15
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Questions?
Presentation title – dd month yyyy – Confidentiality: xxx 17
Thank you