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STANDARDISATIONSTANDARDISATIONCONVERGENCE:CONVERGENCE:
A CHINESE PUZZLE A CHINESE PUZZLE
HOW TO COMBINE IN THE SHORT,MEDIUM and LONG TERM?
Concrete and pragmatic solutions
Convergence within the financial domain
Harmonisation between finance and other domains
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What is the rightway?
How to combine all pieces?
Who will get a
rabbit out of hishat?
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SINCE THENSINCE THEN
A DOPTION of a COMMON METHODOLOGY
Defined by UN/CE FA CT & O A SIS,
Standardised as ISO 15000 in ISO TC154
But standardised also in parallelin ISO TC68 F inance,firstly for securities,called ISO 15022 version 2, changed recently to ISO 20022slightly different from ISO 15000
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Reminder on standardisationReminder on standardisation
TARGET for FINANCETARGET for FINANCETo enable communication interoperabilitybetween:
financial institutions, their market infrastructures and their end-user communities
But, most of end-user companies are not membersof the financial sphere =>
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FINANCE IS NOT ANFINANCE IS NOT AN
ISOLATED ISLANDISOLATED ISLAND
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Facing the risk of multipleFacing the risk of multiple
standardsstandards
Within F inance, with so many (>40)standardisation organisationsOutside F inance, in the cross-domain environmentA n increasing need of cross-domaininteroperability because of: the desire for end to end STP more and more actors involved in one operation
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Examples of crossExamples of cross- -domaindomain
projects between finance andprojects between finance andother UN/CEFACTother UN/CEFACT
E-InvoiceRemittance A dviceElectronic TenderingA ccounting Token
Projects not directly financial, but often with links
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W HICH GIVES THEW HICH GIVES THE
FOLLOW
ING SITUATIONFOLLOW
ING SITUATIONSolutions developed by SWI F T: available for clients
A unique methodology for finance, presentlyslightly different from UN/CE FA CTA new ongoing organisation for financialstandardisationA risk of competitive standardsA clear willing for cross-domain harmonisation,especially with UN/CE FA CT, which requires time
and agreements
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AVAILABLE AVAILABLESOLUTIONS INSOLUTIONS IN
S W IFTS W IFT
Lien hypertexte
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ONGOING ACTIONSONGOING ACTIONS
F inance has engaged two complementaryactions:
CONVERGENCE within the financial sphere
HA RMONIS A TION essentially with UN/CE FA CT
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CONVERGENCECONVERGENCE
ISO 20022, also called UNI F I, approved for allfinance
Registration Management Group (RMG) created inJanuary Standards Evaluation Groups (SEGs) to be created
Payments, Securities: immediately
Treasury, Trade F inanceISO TC68 becoming the hub for finance 40 organisations to convince
New organisation to be finalised and efficient
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HARMONISATION withHARMONISATION with
UN/CEFACTUN/CEFACTA lready started or agreed: A greement signed in June 2004: TC68, TBG5 & SWI F T
Ongoing convergence work plan for Core ComponentsGap analysis, investigates changes, submit recommendations,
June's co-operation agreement confirmed by RMG Immediate submission of a pilot project approved by RMGStill to be done: Research of compatibility between workflows Organisation of registries between ISO 20022 and UN/CE FA CT
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W HICH INTERESTW HICH INTEREST
for UN/CEFACT?for UN/CEFACT?Co-operate as much as possible with domainsstandardising more outside than insideUN/CE FA CT (F inance, Transportation, Customs,Insurance, ) to facilitate cross-domainexchanges. Not specifically for F inance.Pull other organisations with same methodology
Lead standardisation process ... Uniqueness of the methodology Uniqueness of a logical repository
without appearing as dictatorial
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TBG 5 ROLE: InterfaceTBG 5 ROLE: Interface
Data Dictionary
BusinessProcess
Catalogue
ebXML Registry / Repository
CoreComponents
CommonBusiness
ProcessesISO
TC68Finance
UN/CEFACTAll industries
UNIFIISO 20022
UN
TBG5
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BiBi--directional Roles for TBG5directional Roles for TBG5F rom financial sphere to inter-sectorial:Guarantee financial standards are recognised and unique Be the supporting/forwarding arm for all sub-domains Support forum harmonisation and validation Market financial solutions within TBG Market messages to clientsF rom UN/CE FA CT to financial sphere: Bring expertise in "ebXML" and methods Be a pool for resources in customer to bank &
payments Support evolution of forum workflow to facilitate the
workflow with external organisations (ISO 20022, but
also GS1 (EA N), WCO, )
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Finally? W hichFinally? W hichorganisation is doing what?organisation is doing what?
There are various types of standardisationorganisations
None of them will disappear quicklyIt is then required to adapt roles to the newsituation
Based on the acceptance of: unique methodology unique registry
(partial lost of independence)
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Roles of OrganisationsRoles of Organisations
World-wide & cross-domain Organisations : ISO,UN/CE FA CT D efinition of methods Responsible for transversal coherence (registry)World-wide domain Organisations : SWI F T A standardisation body for banks O perator : RA + Modelling
Business Requirements: IST , TWIST, RosettaNet,F pML, ...Regional Coherence: Cross-sectorial: CEN, eBES, A NSI, Sectorial : EPC, ECBS
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FINALLY, W HY THISFINALLY, W HY THIS
PRESENTATION?PRESENTATION?To show that there are solutions availableTo explain the approach followed in the F inancialSphere to minimise divergences in standards because F inance is surely not alone to face similar
issues
and because it could require some flexibility inUN/CE FA CT rules
Because some issues require UN/CE FA CT
participation
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UN/CEFACT PARTICIPATIONUN/CEFACT PARTICIPATION
Reception of the first submitted project, PaymentInitiation: F ollow up the normal approval workflow, but with an open mind to detect potential
improvement(s) for this workflow
Participate to the convergence work plan : TBG 5 &17 + ICG (federated registry) + to be defined.F ind consensus solutions for cross domain projectsA gree on a common message with clients: no
purist quarrels!
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W HICH PRESENTATIONW HICH PRESENTATION
FOR CLIENTS?FOR CLIENTS?Proprietary solutions are already availableStandardisation under ISO 20022 is ongoingStandardisation in UN/CE FA CT is ongoing
Some user organisations are supporting PaymentInitiation as developed by SWI F TBut ISO 20022 is not aligned on ISO TC154A convergence work plan is on-going
Users can -depending on the market they are in- incooperation with their customers assess the situation andstart using solutions available with the potential risk of having to migrate once the standardisation &convergence activities are finalised
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Pending QuestionsPending Questions
Interoperable or unique standards?A unique federated repository? ISO 20022
being one decentralised part?Which solution for client - bank securedexchanges in parallel with M A CUGs? A S2?
????
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