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