A Slow Shift to ISO 20022
Strapline: Golden Copy
At last year's Sibos conference in Amsterdam, the Standards Forum, designed to promote the adoption of ISO 20022 and educate users to better understand this securities messaging standard, attracted a lot of traffic and attention. This month, when Sibos comes to Toronto, the Standards Forum promises to again attract a lot of interest at the conference.
Swift has fought an uphill battle to promote adoption of ISO 20022, which was first introduced in 2004. In July, the Depository Trust & Clearing Corporation announced a re-engineering initiative that could be one spur to encourage adoption of 20022. There is no sunset date set for the older standard, ISO 15022, and even some Swift members don't want to end it because of its familiarity and other factors of convenience.
As reported in one of the features in this issue, Setting Standards in Stone, Swift is addressing its challenge of showing the industry a convincing business case for moving to 20022. Firms want a shorter return-on-investment time for making this change, and as an executive for service provider XSP says, "it is going to have to be the business user that pushes for this." Still, Euroclear's Edwin De Pauw, who adds his perspective to this story, as well as this month's "Interview With" column, says the focus of the Standards Forum should be the practical issues involved in moving to ISO messaging. De Pauw and colleagues from the industry will address this idea in numerous sessions during the Forum.
De Pauw also highlights the fact that ISO messaging has increased, which could support the move to 20022, and stresses that firms moving to ISO messaging should make that move to 20022 specifically, combining any business cases that may be separate. Swift itself has a MyStandards platform initiative, covered on page 5 of this issue, intended to provide a single point of access to all message types and the 20022 standard, connecting these to market practices and analytical frameworks.
The most valuable portion of the Standards Forum could be one entitled "Leveraging ISO 20022 as a business standard," scheduled for 10 am, September 20. If the business case is so important to promoting adoption of 20022, hearing views from IBM and Swift itself on how this can be achieved might be the best way for industry users to decide for themselves, or be truly convinced of the need to migrate. Another session in the Forum, "Let's get practical: Transforming Swift standards," extends the promise that Swift will streamline its development and maintenance of standards.
After more than six years, the question now regarding ISO 20022 is where the tipping point is for its adoption to become universal, or if it will even have such a milestone. This year's Standards Forum points to some key possibilities which can be leveraged to that end and some efforts, like those made by DTCC, that could be decisive. Will the same concerns still be on the agenda next year?
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
‘Very careful thought’: T+1 will introduce costs, complexities for ETF traders
When the US moves to T+1 at the end of May 2024, firms trading ETFs will need to automate their workflows as much as possible to avoid "settlement misalignment" and additional costs.
Court case probes open-source licenses as movement stands at crossroads
The Software Freedom Conservancy’s lawsuit against TV-maker Vizio begins trial in California, raising questions about open-source licenses and the risks posed by adhering to them.
Waters Wavelength Podcast: Countdown to T+1
DTCC’s Val Wotton joins the podcast this week to discuss the impending move to T+1 in the US.
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Waters Wrap: The rise of AI washing… and regulation washing?
The SEC recently levied fines against two investment advisors over “AI washing”. Anthony takes issue with the announcement.
Prepare now for the inevitable: T+1 isn’t just a US challenge
The DTCC’s Val Wotton believes that firms around the globe should view North America’s move to T+1 as an opportunity—because it’s inevitable.
Most read
- Deutsche Börse democratizes data with Marketplace offering
- Sell-Side Technology Awards 2024: All the winners
- Sell-Side Technology Awards 2024: Best sell-side front-office platform—Bloomberg