==ISO 20022 SOME WIDELY USED EXISTING STANDARDS ==

     == Session 7 ==              Date 02.01.2022

==ISO 20022 SOME WIDELY USED EXISTING STANDARDS ==

• ISO 15022 is currently the predominant securities standard in

cross-border settlement, reconciliation and corporate action processing. It was introduced around 1998 to replace ISO 7775, which was much less structured and often omitted crucial settlement information. The adoption of ISO 15022, mandated in 2003, has led to a dramatic increase in Straight Through Processing (STP) rates. In settlement messages, for example, it is common to come across STP rates of more than 95 per cent. One of the standard’s

advantages is its data dictionary based approach, which enables reuse and standardization of data across all messages. About half of the 20 million messages that are exchanged on the SWIFT network every day are ISO 15022.

• ISO 8583 is used for almost all credit and debit card transactions, including ATMs. Several hundred million ISO 8583 messages are exchanged daily between issuing and acquiring banks.

• FIX is the predominant standard of the securities front office. Millions of indications of interest, trade instructions, executions and so on are sent each day using the FIX protocol.

• FpML stands for Financial products Markup Language. It uses the XML syntax and was specifically developed to describe the often complicated contracts that form the base of financial derivative products. It is widely used between broker-dealers and other securities industry players to exchange information on Swaps, CDOs, and so on.

• SWIFT proprietary, also known as MT messages, are the standard for messaging in correspondent banking, foreign exchange and documentary credits. Over 10,000 financial institutions around the world use this standard to exchange millions of messages per day

over the SWIFT network.

• Proprietary domestic standards are also widely used. DTCC is an example of a market infrastructure using proprietary standards. Each day some 40 million messages are exchanged with DTCC to clear and settle US domestic securities trades.

• XBRL is a flexible XML based standard for exchanging business information, which specializes in providing easy automation for information found in unstructured documents.

---- Prashant PP----