Session10 = Some of ISO20022 and Payment industry Terminology

 Session10 = Some of ISO20022 and Payment industry Terminology 

ACH: Automated Clearing House that is used to clear retail payments between banks in a country or region. 

ASN.1: Abstract Syntax Notation One. Data specification and encoding technology jointly standardised by ISO, IEC (International Electrotechnical Commission) and ITU (International Telecommunication Union), and widely used across several industries, such as cellular telephony, signaling, network management, Directory, Public Key Infrastructure, videoconferencing, aeronautics and Intelligent Transportation. One of the two official ISO 20022 syntaxes with XML. 

Business justification: Document prepared by an organisation wishing to develop and register ISO 20022 content. The document describes the content to be developed, the purpose and benefits for the industry. It is submitted for the approval of the ISO 20022 Registration Management Group (RMG).

Coexistence: The situation of multiple standards existing at the same time in the same business space. Within SWIFT, this refers to the coexistence between the MT and MX standards. This also refers to the set of measures being taken to make the situation easier to handle by the community (publication of mapping rules, translation services and so on).

Components: See Business components and message components.

Corporate action: An event initiated by a public company that affects the securities issued by the company. Also refers to the sub-domain of the financial services industry related to the management of such events.

 CSD: Central Securities Depository. An organisation holding securities to enable book-entry transfer of securities. The physical securities may be immobilised by the depository, or securities may be dematerialised (so that they exist only as electronic records).

Dictionary: Part of the ISO 20022 Repository that contains all items that can be reused during business modelling and message definition activities. 

EAI: Enterprise Application Integration. Middleware to connect applications and communication interfaces. Typical EAI software includes features for mapping data between various formats, enriching messages with data from other systems and orchestrating message flows.

FIN: The messaging service offered by SWIFT for the secure and reliable exchange of MT messages in store-and-forward mode. By extension, the syntax used to format these MTs. FIX: Financial Information 

eXchange. A communication protocol designed by the FIX Protocol Limited (FPL) for transmission of messages in specific areas of the securities processing life cycle, for example the pre-trade and trade spaces. 

FpML: Financial products Mark-up Language. A primarily XML-based communication protocol dedicated to OTC derivative contracts processing life cycle. FpML is owned by the International Swaps and Derivatives Association (ISDA).

Giovannini Protocol: In its 2003 report, the Giovannini Group, as advisor to the European Commission, published a report identifying 15 barriers to efficient EU cross-border clearing and settlement. The Giovannini Group, under the chairmanship of Dr Alberto Giovannini, CEO of UNIFORTUNE SGR SpA, stated that SWIFT, through the Securities Market Practice Group (SMPG), should define a solution to eliminate Barrier 1, which cites national differences in information technology and interfaces used by clearing and settlement providers. 

InterAct: A private SWIFT network established between members of a financial community for the purpose of exchanging transaction and other financial data.

 Interoperability: Capability to easily exchange business information while using different message standards. ISO 20022 promotes global use of syntax-neutral business and message components as a common denominator to achieve interoperability between standards using different syntaxes. 

ISO: The International Organization for Standardization. An international standard-setting body, composed of representatives from more than 160 national standards organisations, that promulgates worldwide standards in a variety of domains aiming at facilitating cross-border exchanges of goods, services and techniques. 

ISO 15022: An ISO standard that describes the syntax to be used for developing securities messages used mainly to support back-office related transaction flows. It replaced the previous securities messaging standard ISO 7775. 

ISO 20022 RA: Registration Authority that offers the services described in an ISO standard on behalf of and under a contractual agreement with the International Organization for Standardization.

ISO 20022 Repository: Repository maintained by the ISO 20022 RA, which contains the financial business models, message definitions and components defined in compliance with the ISO 20022 standard. 

ISO 20022 RMG: Registration Management Group in charge of the supervision of the ISO 20022 registration process. 

ISO 20022 SEG: Standards Evaluation Groups in charge of validating candidate ISO 20022 messages within the scope of the business justification and ensuring that they address the needs of their (future) international community of users. Message: A set of structured information exchanged between two parties involved in a financial transaction. 

Message component and element: A reusable data structure used for assembling message definitions. The data defined in a message component is ‘traced’ back to the business components and business elements. In simple terms, business components define the business meaning; message components create data structures for messaging. 

MI: Market Infrastructure. A system that provides services to the financial industry for trading, clearing and settlement, matching of financial transactions and depository functions. 

Middleware: Software that enables data to be exchanged among different systems with standard communication components and tools for formatting, mapping and processing.

MT: The traditional ‘: tag: value’ Message Types for use on the FIN service offered by SWIFT. 

MX: An XML message exchanged over SWIFTNet, whether or not ISO 20022 compliant. 

MyStandards: A web-based platform provided by SWIFT to manage and implement standards and related market practices.

 RTGS: Real Time Gross Settlement System

Semantics: The study of meaning, usually in language. The word is often used in ordinary language to denote a problem of understanding that comes down to word selection or connotation. 

SEPA: Single Euro Payment Area. Standards Editors: Standards work station developed by SWIFT to support the development of ISO 20022 compliant models and messages and the ISO 20022 RA services.

Standards Editor: ‘Lite’ version of the Standards Editors, developed by SWIFT and offered to submitting organisations. 

SWIFT: Society for Worldwide Interbank Financial Telecommunication. See www.swift.com. Syntax: Physical format of a message used to identify and represent the conveyed pieces of information. 

T2S: TARGET2 Securities. An initiative of the Eurosystem. It is an IT platform that aims to make settlements across national borders simpler and more cost-efficient. TARGET2: The Eurosystem-owned European Real Time Gross Settlement (RTGS) system.

TARGET2 is one of the largest high-value payment systems in the world. Taxonomy: The classification in a hierarchical system, typically organised by supertype-subtype relationships, also called generalisationspecialisation relationships, or less formally, parent-child relationships. 

TC 68: ISO Technical Committee 68 in charge of all ISO standards to support financial services. Translation rules: Set of rules to be used to map the pieces of information included in a message expressed in one syntax to the equivalent message expressed in another syntax. 

UML: Unified Modeling Language. The visual modelling language used in ISO 20022 to represent the industry business model. 

XBRL: eXtensible Business Reporting Language. An open data standard for financial reporting. 

XML: eXtensible Mark-up Language. Popular syntax to encode documents (or messages) electronically on the Internet. XML allows communities to define their own identifiers (or tags) and format (or data type) for each component of a message. One of the two official ISO 20022 syntaxes with ASN.1.

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