MT to ISO 20022 migration

High value payments market infrastructure

solution overview

November 2014
 Agenda

ISO 20022 adoption

Platform readiness

HVPMI migration approach

Migration enablers

NL NUG – 17 November 2014 2

 Who’s adopting ISO 20022 on SWIFT?

2014 2015 2016 2017 2018

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
E1/

End of migration

Live date/
Start of migration + CLS, DTCC, EFI, ESES, Funds,
NL NUG – 17 November 2014
JASDEC 3
 T2 participants timeline
and SWIFT possible (edge) conversion offer
SWIFT to SWIFT to SWIFT to General
announce provide details provide user Availability of
intentions about offer guide about conversion
offer tool
Consultation
on conversion
needs 2015 2016 2017
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

SWIFT internal: specs, design, development(s), tests, deployment, etc

VAP & GTM

Selling Services, products, upgrades, etc

T2 customers Development and

internal tests
Tests with
Customers SWIFT
2016 budget without T2
Tests with
SWIFT
and T2
T2/E1/S1
Live with MX

NL NUG – 17 November 2014 4

 Agenda

ISO 20022 adoption

Platform readiness

HVPMI migration approach

Migration enablers

NL NUG – 17 November 2014 5

Messaging/copy services
FIN InterAct Store
and Forward
Security / integrity / reliability Service feature

High quality of service (99.99%) Service feature

Support by R7 qualified interface Service feature

Non-repudiation with trusted third party Service feature Optional

Validation Service feature Optional

Undelivered message report Service feature Optional

Broadcast facility Optional Not supported

Delivery notification Optional

Message priority Optional

Queue status report Optional

Non-delivery warning Optional

Session history report Optional

Load balancing Optional

NL NUG – 17 November 2014 6
Messaging/copy services
Messaging/copy services
FIN InterAct Store and
Forward
T and Y modes + fallback modes Service feature
Information for use by sender or receiver Service feature
Double authentication Service feature
Reverse billing Service feature
Individual online retrieval for 124 days Service feature
Urgent bulk retrieval for contingency 24 hours 24 hours
Cold start support (reconciliation) Service feature
Partial copy Service feature To be implemented
FINInform / Inform copy Supported To be implemented
Copy destination selected by sender Not supported Service feature
Copy destination BIC8 Level2 or level3 DN
Copy queue reporting Optional To be implemented
Subscription/addressing BIC8/BIC11 Level2 or level3 DN
RMA Mandatory Optional
SWIFTNet R&L
Liability framework FIN R&L
(to be harmonised) 7
NL NUG – 17 November 2014
Adapt shared services

• Sanctions screening
• Business intelligence

NL NUG – 17 November 2014 8

 Agenda

ISO 20022 adoption

Platform readiness

Migration approach
Migration enablers

NL NUG – 17 November 2014 9

Migration from MT to ISO 20022
Context
TARGET2 has announced its intention to migrate its payments
systems from MT messages to ISO 20022 in November 2017.

The EURO1/STEP1 systems will be migrating in the same time

frame.

The migration only concerns the flows discussed in this deck.

Other MT-based flows (such as correspondent banking) are not
affected.

The following slides provide an overview of the like-for-like

migration approach adopted by both TARGET2 and
EURO1/STEP1 with specific emphasis on the TARGET2 system.
NL NUG – 17 November 2014 10
Key concepts

• Like-for-like
– Same messaging functionality
• Different protocol
– Same copy service functionality
• Different implementation
– Same payload content
• Different standard
• Mapping from MT-MX / MX-MT done at the edge
• Big bang migration

NL NUG – 17 November 2014 11

 FINCopy environment
T2 flows
Payment Autorised/settled
Instruction Payment Instruction
MT 103(+) MT 103(+)
202(COV) • Closed user group based 202(COV)
204 • Message validation 204 (**)

SWIFT • PKI based security SWIFT

Interface • Archival and retrieval Interface
• Copy services
Participant A • Support MT Participant B
Sender Notification
MT 012 (***)

Abort Notification
MT 019 (***) Authorisation MI Authorisation
request response

MT 096 MT 097 (*)

Full copy

MI
Application

(*) with information for sender/receiver

(**) with information for receiver
NL NUG – 17 November 2014 (***) with information for sender 12
 SWIFTNet Copy environment
Equivalent flow
Payment Autorised/settled
Instruction Payment Instruction
pacs.008 pacs.008
pacs.009 • Closed user group based pacs.009
pacs.010 • Message validation pacs.010
SWIFT • PKI based security (**)
SWIFT
Interface • Archival and retrieval Interface
• Copy services
Participant A • Support ISO 20022 Participant B
Sender Notification
xsys.002 (***)

Abort Notification
Authorisation MI Authorisation
xsys.003 (***) request response
pacs
xsys.001 (*)
008/009/010
(copy)

MI
Application

(*) with information for sender/receiver

(**) with information for receiver
NL NUG – 17 November 2014 (***) with information for sender 13
 SWIFTNet Copy environment
T2 flows
Payment Autorised/settled
Instruction Payment Instruction
pacs.008 pacs.008
pacs.009 • Closed user group based pacs.009
pacs.010 • Message validation pacs.010
SWIFT • PKI based security (**)
SWIFT
Interface • Archival and retrieval Interface
• Copy services
Participant A • Support ISO 20022 Participant B
Sender Notification
xsys.002 (***)

Abort Notification
Authorisation MI Authorisation
xsys.003 (***) request response
pacs
xsys.001 (*)
008/009/010
(copy)

Out of scope MI Out of scope

of T2 migration Application
of T2 migration
(*) with information for sender/receiver
(**) with information for receiver
NL NUG – 17 November 2014 (***) with information for sender 14
MT 012 Sender notification to
xys.002 Y-copy authorisation notification

NL NUG – 17 November 2014 18

MT 019 Abort notification to
xsys.003 Y-copy refusal notification

NL NUG – 17 November 2014 19

Output queues

• SWIFTNet offers similar functionality to shared FIN delivery

subsets by sharing output queues:
– when delivering traffic from a queue and more than one
session is open traffic is distributed more or less equally over
the different sessions
– if a session is interrupted traffic distribution is automatically
adjusted across the remaining sessions
– when the interrupted session logs in again, it automatically
participates in the traffic distribution again
• When opening a delivery session customers can select which
traffic should be delivered (eg, urgent messages only) or in
which order traffic should be delivered (eg, messages then files)

NL NUG – 17 November 2014 20

Principal SWIFTNet system messages

• xsys.004.001.01 – Undelivered traffic report request

• xsys.005.001.01 – Undelivered traffic report
• xsys.004.001.02 – Unsolicited undelivered traffic report
• xsys.006.001.01 – Input channel list report request
• xsys.007.001.01 – Input channel list report
• xsys.008.001.01/02 – Queue status report request
• xsys.009.001.01/01 – Queue status report
• xsys.010.001.01 – Non-delivery warning
• xsys.011.001.01 – Delivery notification
• xsys.015.001.01 – Retrieval request
• xsys.016.001.01 – Retrieval report
• xsys.018.001.01 – Session history report request
• xsys.019.001.01 – Session history report
• xsys.026.001.01 – Output channel report request
• xsys.027.001.01 – Output channel report
• xsys.028.001.01 – Update queue sharing mode requires

NL NUG – 17 November 2014 21

Where to find information?

• SWIFTNet Service Description

• SWIFTNet Messaging Operations Guide
• SWIFTNet 7.0 System Messages
• SWIFTNet 7.0 System Message Schemas
• ISO 20022 for High Value Payments Usage Guidelines
• General Functional Specification of the MIX/ISO20022
migration – V1.2

NL NUG – 17 November 2014 22

 Agenda

ISO 20022 adoption

Migration approach

Platform readiness
Migration enablers

NL NUG – 17 November 2014 23

 Migration enablers

Users back offices can be shielded from the impact of the migration,
through
– Transformation of business payload enabled by the like-for-like
approach

NL NUG – 17 November 2014 24

Standards: Migrating from MT to ISO 20022

• Basis for mapping exercise: High Value payments implementation

guidelines

• Approach: Pure like-for-like mapping from FIN MTs to ISO 20022

• Version: V4 (except FI Direct Debit)

• Advantages:

• Limited impact on internal applications (only MT data available)

• Makes it possible to do reverse mapping (from ISO 20022 to MT)

• Interoperability with other Market Infrastructures

NL NUG – 17 November 2014 25

Standards: Messages

• Payment Messages:

• MT 103: FIToFICustomerCreditTransfer - pacs.008.001.04.gen

• MT 103+: FIToFICustomerCreditTransfer - pacs.008.001.04.stp

• MT 202: FinancialInstitutionCreditTransfer - pacs.009.001.04.gen

• MT 202COV: FinancialInstitutionCreditTransfer - pacs.009.001.04.cov

• MT 204: FinancialInstitutionDirectDebit - pacs.010.001.01.gen

• Exception Handling:
• FIN equivalent MT 103 (RJT/RTN Guideline): pacs.008 and pacs.009

NL NUG – 17 November 2014 26

 Migration enablers

Users back offices can be shielded from the impact of the migration,
through
– Transformation of business payload enabled by the like-for-like
approach
– Transformation of business information, currently part of technical
header

NL NUG – 17 November 2014 27

Mapping MT to MX: input message
Sender BIC to Requestor DN
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 29

Mapping MT to MX: input message
Receiver BIC to Responder DN
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 30

Mapping MT to MX: input message
Message type
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 31

Mapping MT to MX: input message
Priority/delivery notification
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 32

Mapping MT to MX: input message
Obsolescence period/Overdue warning delay
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 33

Mapping MT to MX: input message
Copy indicator/service name*
Input message in MT format

{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Request Header
Service:swift.tgt.copy
RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

DeliveryMode: “SnF”
NotifQueue: bankbebb_tgt
DeliveryNotif: TRUE
Request Control InputChannel: bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage: TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 34

 Mapping MT to MX: input message
Settlement priority/Authorisation Notification (MT 012) request
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:HY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference
For codes used in positions
3 and 4 of tag 113 to
identify domestic products DeliveryMode:SnF
for urgent payments the
NotifQueue:bankbebb_tgt
proposal is to map this to a
code word in the DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
LocalInstrument field, e.g.
NLUP or ITBI. SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 35

Mapping MT to MX: input message
MUR / Reference
Input message in MT format
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference

*limited to 16 characters and x character set

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 36

Live BIC vs Test BIC

Customer registers first

BNPAFRPK
BIC with SWIFT

SWIFT assigns test BIC BNPAFRP0

NL NUG – 17 November 2014 37

Live BIC vs Test BIC

Customer requests
BNPAFRPK
additional BIC
BNPAFRPP

BNPAFRP0
Second test BIC? ?

NL NUG – 17 November 2014 38

Live BIC vs Test BIC

Customer requests
BNPAFRPK
additional BIC
BNPAFRPP

BNPAFRP0
SWIFT assigns additional ZYAEFRP0
test BIC

NL NUG – 17 November 2014 39

Live BIC vs Test BIC

BNPAFRPK BNPAFRPP

Customer requests BNPAFRP0 ZYAEFRP0

additional test BICs ZYFOFRP0
ZYBUFRP0
ZYFXFRP0
….

NL NUG – 17 November 2014 40

 Mapping BICs to DNs and vice versa
The issue: there is no link between DN and BIC0
Convention for mapping live
BICs found in T2 directory
AAAAFRPPABC ou=abc,o=aaaafrpp,o=swift

Convention for mapping test

BICs found in T2 directory

AAAAFRP0ABC ou=abc,o=aaaafrpp,o=swift

NL NUG – 17 November 2014 41

Proposed solution: include test BIC in SN
header
BNPAFRPKABC
ou=abc,o=bnpafrpk,o=swift

BNPAFRP0ABC
ou=abc,ou=bnpafrp0,o=bnapfrpk,o=swift

BNPAFRPPBET
ou=bet,o=bnpafrpp,o=swift

ZYAEFRP0032
ou=032,ou=zyaefrp0,o=bnpafrpp,o=swift
NL NUG – 17 November 2014 42
 End-to-End T&T BIC mapping logic
Sender T2 & E1/S1 Receiver
Sender BIC : ZYAEFRP0032
Receiver BIC : ZYCPFRP0ADT

MT -> MX
mapping
Requestor DN :
ou=032,ou=zyaefrp0,o=bnpafrpp,o=swift
Responder DN :
ou=adt,ou=zycpfrp0,o=sogefrpp,o=swift

Needs to know that:

• ZYAEFRP0 maps to BNPAFRPP Original test BIC included in the
and DN will be used to generate
• ZYCPFRP0 maps to SOGEFRPP Sender & Receiver BIC.

Requestor DN :
ou=032,ou=zyaefrp0,o=bnpafrpp,o=swift
Responder DN :
ou=adt,ou=zycpfrp0,o=sogefrpp,o=swift

MX -> MT
mapping
Sender BIC : ZYAEFRP0032
Receiver BIC : ZYCPFRP0ADT
Mapping MT to MX: input message
Receiver BIC to Responder DN
Input message in MT format
{1:F01BANKBEB0AABC3461486137}
{2:I103BANKUS30XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}} Input Message in MX format
{4:MT message payload}
RequestorDN:ou=abc,ou=bankbeb0,o=bankbebb,o=swift
ResponderDN:ou=efg,ou=bankus30,o=bankus33,o=swift
Service:swift.tgt.copy
Request Header RequestType:pacs.008.001.04
Priority:Urgent
RequestRef:Reference

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 Request Payload SettlementPriority:HIGH 44

MT to ISO 20022 migration enablers

• In line with today’s offering for MTs over FIN:

– SWIFT will perform central validation of constraints and cross-
element rules of the global ISO 20022 message standards*
– SWIFT will not validate community-specific implementations

• SWIFT will also validate compliance with the globally agreed like-for-
like implementation guidelines of ISO 20022 message standards for
HVPS
* Network validated (or cross-element) rules are almost fully aligned between MT and ISO 20022. EU-
inspired network validation in MTs will be incorporated as part of the like-for-like implementation of ISO
20022

NL NUG – 17 November 2014 45

Notification messages

• MTs 012 and 019 are delivered to the LT that sent the original
message
• xsys.002 and xsys.003 are delivered to the notification queue
specified in the original message

DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
Request Control InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE

NL NUG – 17 November 2014 46

Individual Message Retrieval

• Supported over FIN via MTs 020 and 022

• Supported over SWIFTNet using xsys.015.001.01 or an
SWIFTNet Online Operations Manager (O2M) request
– In both cases, the retrieved messages are delivered to a
store-and-forward queue

NL NUG – 17 November 2014 47

Gap analysis

• FIN: based on input/output sequence and session numbers

• SWIFTNet: based on input and output channel sequence
numbers

NL NUG – 17 November 2014 48

 MT to ISO 20022 migration enablers

Users can be shielded from the impact of the migration, through

– Transformation of business payload
– Transformation of business information, currently part of technical
header
– Shielding from messaging changes
• Evaluation of the offering here is work in progress

The main purpose of following slides is to consult customers on

their strategy to migrate applications to ISO 20022, and potentially
identify interface based deliverable that SWIFT could provide.

NL NUG – 17 November 2014 49

ISO 20022 for High-Value Payments
Overview

• Usage guidelines are publicly available on MyStandards

• Usage guidelines restricts the ISO 20022 standards to the
business functionality (like-for-like) available in the
corresponding MT standards
– MT 103 (gen and stp)
– MT 202 (gen and cov)
– MT 204
– MT 900 and MT 910
• Purpose is to provide the basis for developing MI specific
guidelines
– E.g. T2, Euro1/Step1

NL NUG – 17 November 2014 50

ISO 20022 for High-Value Payments
MT to MX mapping guidelines

• Guidelines explains how to map from MT to MX

• Example (MT 103 to pacs.008)

NL NUG – 17 November 2014 51

 Technical migration options
Before Migration
Payment application Customer
premises
MT based
MI
MT over
MT

Key characteristics
Technical migration After migration - Big bang migration
- On the edge mapping
Customer
MX based premises (if required)
MI
MX over
ISO 20022
Migrated to MX
- OR -
Customer
MT based premises
MT/MX
MI
mapping
MT tool
MX Over
ISO 20022
required
Remains on MT

NL NUG – 17 November 2014 52

 ISO 20022 for High-Value Payments
Usage guidelines implementation
Before Migration
Payment application Customer
premises
MT based
MI
MT over
MT

Technical migration After migration

Customer
Usage guidelines MX based premises
implemented directly MI
into the application MX over
ISO 20022
Migrated to MX
- OR -
Usage guidelines Customer
MT based premises
implemented outside MT/MX
MI
the application, in a mapping
MT package
MX Over
dedicated mapping ISO 20022
required
package Remains on MT

NL NUG – 17 November 2014 53

 Market Infrastructure over ISO 20022
Overview of back office flows
SWIFT
B/O Interface
MT or Internal
formats MX MI
B/O is adapted to
generation MX MX over
fully adopt MX
ISO 20022

SWIFT
B/O Interface
Middleware
B/O stays MT based. MT format
MT/MX MI
MT/MX mapping is
MT mapping MX MX Over
handled in separate
package ISO 20022
middleware

B/O SWIFT Interface

B/O stays MT based. MT format
MT/MX mapping is MT/MX MI
MT mapping MX Over
handled by the
package ISO 20022
SWIFT interface

NL NUG – 17 November 2014 54

 Market Infrastructure over ISO 20022
Manual message creation support
SWIFT
B/O Interface
MX
MT or Internal
formats MX MI
B/O is adapted to
generation MX MX over
fully adopt MX
ISO 20022

SWIFT
B/O MX Interface
Middleware
B/O stays MT based. MT format
MT/MX MI
MT/MX mapping is
MT mapping MX MX Over
handled in separate
package ISO 20022
middleware

B/O SWIFT Interface

MT
B/O stays MT based. MT format
MT/MX mapping is MT/MX MI
MT mapping MX Over
handled by the
package ISO 20022
SWIFT interface

MX
NL NUG – 17 November 2014 55
Heterogeneous Payment ecosystem
Examples of various mapping needs, both ways

Archiving System AML System

All formats MT based

Payment System

MX/MT
MX enabled mapping
Payment System
MI
MT/MX Over
mapping ISO 20022
MT based
MT/MX
Payment System mapping

SWIFT Interface

MT based

MX

MT
NL NUG – 17 November 2014 56
 Like-for-like migration
Transparency principles
103(+) 008
MT 202 (COV) pacs. 009
204 010

MT 900
910 MT/MX camt.054
Back office

mapping

SWIFT
Operationally, the exchange
MT 950 MT 950
package of MX messages will not be
transparent on the interface
MT ACK MX ACK (reporting, retrievals,
T2 example
message investigations, …)
MT 012 xsys.002
019 003

For the payment

application B/O still MT
based, the ‘like-for-like’
approach can make the
use of MX messages
nearly transparent

NL NUG – 17 November 2014 57

ISO 20022 for High-Value Payments
SWIFT provided mapping package

• Analysis under evaluation

• To investigate how SWIFT could provide a package implementing
the translation between MT and MX
• Following the ‘like-for-like’ mapping rules
• How ‘out-of-the-box’ can it be ?
• Which interfaces to support ? 103(+) 008
MT 202 (COV) pacs. 009
• Requirements specific to 204 010

each MI still to be analysed MT 900

910 camt.054

Back office

SWIFT
MT 950 MT/MX MT 950
mapping
MT ACK package MX ACK

MT 012 T2 example xsys.002

019 003

NL NUG – 17 November 2014 58

SWIFT Alliance Family
Overview Integration Domain
 Interface can be adapted to customer needs
 Specialized integration skills required, available from SWIFT
 Highly flexible and based on standard integration modelling
 Faster to adapt and lower TCO compared to back-office
change process
 Powerful solution to replace costly legacy systems

Features
Integration SWIFT
capabilities Integration
Layer Integration
(planned)
Converter Platform

Alliance
Messaging
Hub
Alliance
Access
Messaging
Alliance
Interface
Lite2

Network Alliance Alliance

Communication ARG
Gateway Gateway

Simple Medium Complex Market

Product Domain
 Out of the box product that can be configured to customer needs
 Quick deployment and time-to-market to start adding value to business lines
NL NUG – 17 November 2014  All functions available at fingertips 59
 New product release required for new functions
 T2 and ISO 20022
SWIFT based solutions – under investigation
SWIFT
B/O Interface
MX
MT or Internal
formats MX MI
B/O is adapted to
generation MX MX over
fully adopt MX
ISO 20022

Alliance
SWIFT Access, AMH
B/O MX Interface
Middleware Other interface vendors ?
B/O stays MT based. MT format
MT/MX MI
MT/MX mapping is
MT SIL
mapping MX MX Over
handled in separate
package ISO 20022
middleware

Alliance Access
B/O SWIFT Interface
MT
B/O stays MT based. MT format
MT/MX mapping is MT/MX MI
IPLA
MT mapping MX Over
handled by the based
package ISO 20022
SWIFT interface

MX
NL NUG – 17 November 2014 60
 Middleware integration models
SWIFT
B/O Interface
Middleware
Standalone MT format 1 2
MT/MX
MT mapping MX SIL supported model
package

Middleware
MT/MX
Embedded into mapping SWIFT
customer package Interface
B/O
middleware MT MX
MT format 1 3
2 MX
MT

Need to support
Middleware
Standalone but other models ?
MT/MX
communicating mapping SWIFT
with customer package Interface
B/O
MX

middleware
MT

MT format 1 3
2 MX
MT

NL NUG – 17 November 2014 61

 ISO 20022 for High-Value Payments

MyStandards
Usage guidelines injection
into SWIFT Alliance Access
(tentative for 7.1)

pacs.008.001.04 example

NL NUG – 17 November 2014 62

MyStandards Support (HVPMI pacs.008.001.04)
Removed fields

NL NUG – 17 November 2014 63

MyStandards Support (HVPMI pacs.008.001.04)
Fixed value

NL NUG – 17 November 2014 64

MyStandards Support (HVPMI pacs.008.001.04)
Further restrictions

NL NUG – 17 November 2014

65
NL NUG – 17 November 2014 66