Notes
Slide Show
Outline
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Standards for STP
  • Kris Ketels
    Business Manager Standards
    SWIFT
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Agenda
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Market Identifier Code
ISO 10383
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History
  • MIC was created in 1992
  • codes for exchanges and regulated markets
  • to specify e.g. the source of the price
  • Structure :
    • 4 characters
    • first character is an X
    • next three are assigned by “RA” (SWIFT)
    • link with BIC (ISO 9362:1987)
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Evolution
  • The world of securities is getting more complex
  • End of the trilogy
    • 1 instrument = 1 exchange = 1 Custody
  • Need for renewal of the MIC and to popularize it
  • September 2000, ISO/TC68/SC4
    • what is the status
    • recommendations
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Status
  • Trades don’t only take place on a regulated market
  • Settlement can occur at several places
  • Code list is inconsistent and not up to date
  • Using a BIC limits its flexibility
  • MIC is not well known nor frequently used
  • RA is re-active, without clear code of conduct
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Recommendations
  • Identify the system where the trade occurs
  • cover multi-product, multi-currency
  • solve the problem with the “X”
  • have a unique and user-friendly identifier
  • MIC is an identifier, NOT a “qualifier”
  • SWIFT remains the RA
  • code of conduct defined by ANNA
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Collaboration ANNA-SWIFT
the new “MIC”
  • To extend MIC to cover “OPOL”
  • To extend BIC to cover the issuer
  • Approved by ISO/SC4 in Paris - Oct. 2001
  • Revision of MIC in progress by SC4
    • keep changes to the bare minimum
    • 4 characters
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International Business Entity Identifier (IBEI)
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History & status
  • 1998: TC68/SC2 WG : draft ISO13735: IBEI
  • SWIFT created BEI (<BIC) short term
  • 2000: draft ISO13735 rejected
  • 2001: SWIFT ad hoc BEI WG recommends creation of the Funds Identifier Code (FIC)
  • on 25 Aug 2002: proposal by SWIFT to ISO TC68/SC4 to re-open IBEI for this purpose
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Who will be involved?
  • CLS
  • FISD
  • GSTPA
  • Omgeo
  • SWIFT
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Scope
  • To provide an identification mechanism for following uncovered area’s:
      • an identifier that links issues to investment programs
      • a Funds Identifier Code
      • an identifier for securities issuers
  • To ensure backward compatibility with BEI
  • To assign an RA, to provide implementation tools, etc...
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ISIN
ISO 6166
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Collaboration ANNA-SWIFT
relation with the ISIN
  • ISIN - ISO 6166 Registration Authority is ANNA
  • ISIN identifies an issue, NOT a security
  • Unicity is guaranteed.
    ISIN must be complemented by :
    • The “Issuer”
    • “Official Place of Listing” (1st and secondary)
    • attributes of a security
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SWIFT - ISO 15022 first edition
recommended ‘STP’ approach
  • Security identification - field 35B - ISIN
  • OPOL - to be created in FIA - identifier = MIC
  • Issuer - to be created in FIA - identifier = BIC
  • Place of Settlement = 95P::PSET// + BIC
  • Place of Trade = 94B::TRAD/EXCH/+MIC
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IS0 15022
second edition
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Standards for Securities
The current standards landscape
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ISO 15022 XML Working Group 10*
The mission statement
  • “Evolve ISO 15022 to permit migration of the securities industry to a standardized use of XML, guaranteeing interoperability across the industry and with other industry sectors, particularly but not restricted to the financial industry”
  • *WG 10 is a working group created in 2000 by the ISO Technical Committee TC68 (Banking, securities and other related services) under their sub-committee SC4 (Securities and related financial instruments)
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ISO 15022 XML Working Group 10
WG10’s approach
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ISO 15022 second edition (XML)
The building blocks
  • ISO 15022 Standards Repository
    • Business Process Warehouse
    • Data Dictionary (foster reuse)
    • Maintained by Registration Authority
  • Industry Co-ordination:
    • “Reverse Engineering”
    • Standards Management Groups
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ISO 15022 second edition (XML)
Proposed ISO 15022 Standards Environment
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