ISO 20022 is an international standard for electronic messaging between financial industry organizations.

Standard Content

The standard defines approaches to building business models, the rules for describing business processes, the procedure for designing schemes and message formats and their descriptions, as well as the processes for publishing documentation on the standard and the basic rules for its maintenance. The first edition of the standard was released in 2008 and consisted of 6 parts.

The current edition of ISO 20022 Standard “Financial Services - A Universal Message Scheme for the Financial Industry” was published in May 2013 ^[1] and consists of 8 parts.

• ISO 20022-1: Metamodel
• ISO 20022-2: UML Profile
• ISO 20022-3: Modeling Process
• ISO 20022-4: XML Schema Formation
• ISO 20022-5: Reverse Engineering
• ISO 20022-6: Characteristics of message transport
• ISO 20022-7: Registration Rules
• ISO 20022-8: Formation of ASN.1

According to the methodology of ISO 20022, modeling is carried out by structuring the objects of standardization and data on them according to the principle of “top to bottom” or “from general to particular”. When modeling, four main stages are distinguished (overview, conceptual, logical and physical), corresponding to four different levels of detail at which the objects under study are considered.

Business models are built using the specialized UML language, which allows you to create visual graphic diagrams and messaging schemes.

The syntax is modern and flexible XML. Message schemas are XML files (XSD) that can be viewed using software tools from various developers.

The standard includes messages on the main business areas of the financial industry:

• Payments and settlements (initiation of payments, payment clearing and settlements, cash management, correspondence on investigations and contingencies);
• Securities (conclusion of transactions with securities, settlements and reconciliation of settlements, collateral operations, securities clearing, corporate actions and proxy voting);
• Trading operations;
• Plastic credit and debit cards (card payments and terminal management);
• Conversion operations.

The standard also describes the basic requirements that are presented by business processes to the transport messaging system to ensure the successful functioning of these processes, and the requirements for ensuring the security of the message delivery system.

The standard is open, the documentation is published in the public domain on a special website ( https://www.iso20022.org/ ). The documentation may include descriptions of business processes and various workflow scenarios for certain types of operations in the financial field, the purpose and rules for using individual messages, XML message schemes, a textual description of message schemes and, if necessary, specific message examples. The site has a repository that contains registered messages and their components and elements.

The standard regulates the procedure for making proposals for the development of new messages, their registration, as well as for making changes to registered messages by formally submitting Change Requests, which go through the official stages of approval and approval both in TK68 and the Authorized Registration Authority, and with local financial communities individual countries.

Standardization Bodies

The ISO 20022 standard was developed by the Technical Committee (TC) No. 68 of the International Organization for Standardization (ISO) .

The authorized body for registration and maintenance of the ISO 20022 standard is SWIFT (Society for Worldwide Interbank Financial Telecommunications - from the English Society for Worldwide Interbank Financial Telecommunications - SWIFT ). The Registration Authority (RMG) includes 64 experts from more than 20 countries and 10 largest organizations, such as the Bank for International Settlements , Clearstream , Euroclear , the European Central Bank , FpML , SWIFT, VISA , etc.

Currently, ISO 20022 is being phased in by members of the global financial community, international settlement and clearing organizations, national central banks and central depositories in a number of countries.

The following organizations are involved in the development of ISO 20022: FIX Protocol Limited ( Financial Information eXchange ), ISDA - International Swaps and Derivatives Association ( FpML ), ISITC , Omgeo (an American financial company owned by DTCC (Depositary Trust Clearing company in the USA) and providing processing and exchange of information between management companies and brokers / dealers), SWIFT and VISA.

In the Russian Federation, the following organizations are involved in the implementation of the ISO 20022 standard:

• Bank of Russia
• National Settlement Depository
• National Payment Council
• Russian National SWIFT Association (ROSSWIFT)

The centers of competence according to the ISO 20022 standard in Russia are the Bank of Russia and ROSSWIFT.

In 2012, at ROSSWIFT, on the basis of more than 30 leading Russian banks, corporations and IT companies, the Working Group on Banks and Corporations Interaction (RU-СMPG) was created. Representatives of the Bank of Russia and representatives of the Moscow office of SWIFT took part in it. RU-CMPG experts developed Recommendations on the use of ISO 20022 standards for transferring financial messages between a bank and a corporation taking into account the requirements of the national payment system (ISO20022.RU), which are regularly updated taking into account changes in the standard, legislation and Russian and international practices.

In addition to payment messages at the initiative of ROSSWIFT and RU-CMPG, new types of messages designed to provide currency control functions were developed and registered with ISO. For the first time in the international ISO standard appeared messages developed by Russia, which were not previously standardized in any international standard.

RU-CMPG also published the ISO20022.RU rules and keeps it up to date in the section of the Common Global Implementation Market Practice Group (CGI-MP) international forum - https://www.swift.com/standards/market-practice/common- global-implementation . The purpose of this forum is to develop and maintain uniform recommendations on the use of messages of the ISO 20022 standard, taking into account national practices.

In 2016-2017, these messages were put into practice in a number of Russian banks, corporations, and software developers.

ROSSWIFT experts participate in the work of Subcommittee 3 and Technical Committee 122 of the Bank of Russia, as well as the Working Group of Subcommittee 3 on the development of standards of the National Payment System using messages ISO 20022. The representative of TC 122 of the Bank of Russia is part of TC 68 ISO.

A more complete description of the ISO 20022 standard is available in English.

See also

• Bank of Russia
• National Settlement Depository
• European Central Bank
• ISO
• Swift
• ISDA
• UML
• XML
• Xsd

Notes