it 1 interoperability in the context of using multiple industry standards credit suisse w_bausch...
Post on 14-Jun-2015
148 Views
Preview:
DESCRIPTION
TRANSCRIPT
Break-out Session 3
Interoperability in the context of using multiple industry standards
10/17/2013
Tarmo Ploom and Win Bausch
Agenda
Introduction
Implications of targeting interoperability
Semantic Interoperability @ CS
Architectural Approach
Example of Tooling: The Interface Management System
Conclusion
10/17/2013 Tarmo Ploom and Win Bausch
Introduction
Implications of targeting interoperability
10/23/2013
Tarmo Ploom and Win Bausch
Common cost/benefit argument conc.
standards implementation
10/23/2013 Tarmo Ploom and Win Bausch 4
• Usage of industry standards both for internal and external interfaces
facilitates in/outsourcing and
redesign of banking value chain
• Today, major industry standards already offer > 50 % coverage for
unique internal attributes in banking
Usage of industry standards
promises large benefits both in external and internal
application, by either allow new
business to be automated or by making existing business
more efficient
• Prerequisites to support transition into target state are very hard to
achieve, as there is a large body of
legacy that needs to be transitioned
at no additional benefit. • The right organizational structures,
technologies and resources (skills,
financials, majorities) are not around
yet and cannot be sustained over the required period of time for a
successful transition.
Introduction of industry standards has too large costs
and uncertainties
Benefit View Cost View
Taking a step back
Why is it so complicated?
10/23/2013 Tarmo Ploom and Win Bausch 5
Construction of the Tower of Babel (1563), Pieter Brueghel the Elder (1526/1530–1569) Kunsthistorisches Museum, Wien
What are the main options to deal with this complexity?
Conclusion of last year’s break-out session
10/23/2013 Tarmo Ploom and Win Bausch
As per today, the «global financial standards» ecosystem is still fragile and
might not be sustainable in the business/IT environments of the years to
come. There are two main forces that can be used to mitigate this risk:
smarter systems and/or better governance.
1
2
4
«zone of comfort»
«zone of instability»
Effectiveness of governance low high
low
high
tech
nolo
gic
al in
nova
tion
3
6
• Today: Standards migration is tedious, many details to define ad-hoc, a lot of unstructured and undocumented contextual information.
• Only new technology will bring relief: semantically inspired systems understand context.
• Only better governance will bring relief: all parties will define and agree on common context.
• A mix of scenario 2 and 3 is most likely. It will be important to invest into building and broadly adopting technologies and methods that capture semantics/context.
1
2
3
4
Current situation & potential development towards target
10/23/2013 Tarmo Ploom and Win Bausch
Stds with a large body of
implicit semantics
Stds with explicit
semantics for human use
Stds with
explicit
semantics for machine use
Context is largely
undocumented and
hardcoded Knowhow is locally managed
(if at all) Large Number of
Stds Silos Collaborative approach to develop stds (e.g. as
targeted MyStdandards) Transformation engines
to bridge gaps,
transformations coded on purpose by developers
«Interpretation» of stds
by machines
Automated translation
between sender &
receiver context
Automated semantic interoperability
10-20 yrs Another 20+ yrs?
7
Semantic interoperability @ CS
Architectural approach taken
10/23/2013
Tarmo Ploom and Win Bausch
Steps towards explicit semantics for human use
Step 1
Agree on a limited number of standards for business areas
Step 2
Choose how you want to use standards
Step 3
Provide tooling (repository) to simplify usage of standards internally
10/17/2013 Tarmo Ploom and Win Bausch
Step 1: agree on a limited number of standards for
business areas
10/17/2013 Tarmo Ploom and Win Bausch
Cust
om
er
& P
art
ner
1: P
art
ne
rs &
Pe
rso
ns
Wealth Management &
Advisory
2: F
ina
nce
, In
ve
stm
en
t &
Sa
les
3: Tra
din
g a
nd
Ma
rke
ts
4: C
ash
an
d A
sse
t O
pe
rati
on
s
Payments
Settlement and Clearing
Single Accounts
(SAC)
Acc
ountin
g C
ontr
ol
7: Enterprise Common Services
Business Partner Applications Financial Market Information Enterprise Content Management
Credits and Syndication
Fin
anci
al A
ccountin
g
Regula
tory
, R
isk
and L
iquid
ity
6: A
cco
un
tin
g, C
on
tro
llin
g a
nd
Re
po
rtin
g
Communication and Access
Logistics
Basic Facilities
V 0.96 2008/12/10
5: Communications & Collaboration Street Side Interfaces
Trading
Product Control
Custody
Corporate Actions
Cust
om
er
Rela
tionsh
ip M
anagem
ent
Order and Trade
Management
FIX, FPML
FIX, FPML, ISO 20022
ISO 20022
FIX, FPML
ISO 20022
FIX ISO 20022
ISO 20022
ISO 20022
IFX
FP
ML
XB
RL
XB
RL
HR-XML
RI-XML
Step 1: agree on a limited number of standards for
business areas what do you get
Predefined messages
− ISO ca 500
− FpML ca 90
− FIX ca 110
Data types
− ISO 3500
− FpML 1500
− FIX 1100
Business Object Model (BOM)
− ISO 20022 Business Concepts
Business process definitions
− ISO activity diagrams
− FIX trade flow definitions
10/17/2013 Tarmo Ploom and Win Bausch
Step 2: choose how you want to use standards
For external communication only
For internal communication
− Usage of predefined messages
− Usage of Business Object Model (BOM)
− Usage of data dictionaries
− Semantic interoperability
60% solution for global semantic interoperability
Different combinations can be used
It is easiest to start with internal usage of predefined messages
− Common by City, Standard Charter, JP Morgan, …
10/17/2013 Tarmo Ploom and Win Bausch
Usage of predefined messages
Order and trade management domain, listed products (non funds)
− Main systems are migrated over to FIX predefined messages
Charles River integration
− Using FIX predefined messages
Order and trade management domain, non-listed products (OTC)
− FpML predefined messages used for vanilla OTC
First systems use ISO 20022 Pain 001/002 messages internally
10/17/2013 Tarmo Ploom and Win Bausch
Usage of Business Object Model (BOM)
BOM is abstraction of information in application. BOM can be used for:
− Service design
− GUI design
− Database design, …
Which BOM should I use if I want to use industry standards in my
application, should I design new BOM?
− No
ISO 20022 offers business concepts with BOM granularity. By using
these concepts usage of industry messaging data dictionaries in
application is simplified
By FpML we have done reverse engineering of FpML XSD model to
UML. We want to use it as basis of our Risk domain and applications
10/17/2013 Tarmo Ploom and Win Bausch
Usage of data dictionaries
Old way
− To achieve globally agreed definition of trade ID months of manpower are needed.
− What if we need agreements for 3000 attributes? Should we invest 500 man years to get common agreement for 3000 attributes globally?
New way
− Instead of arguing whos trade ID is better use externally defined one
− 500 man years discussions are saved
Examples
− FIX data dictionary can be used to define custom messages for listed products
− FpML data dictionary can be used to define delta messages for swap changes (if many lags)
− ISO 20022 data dictionary can be used to define custom operation messages
10/17/2013 Tarmo Ploom and Win Bausch
Semantic interoperability
How to solve semantic interoperability?
− Map all models to all models (N * (N-1)/2 mappings)
− Map all models to model in the middle (N mappings)
Unique attributes needed in banking is ca 11 000
FIX, FpML, XBRL, ISO 20022 provide ca 6 500 unique attributes, it is ca
60% of banking unique attributes needs
FIX, FpML, XBRL, ISO 20022 can be used as model in the middle for
60% of banking unique attribute needs
For the rest of 40%
− Custom model in the middle can be designed (preferred)
− Mappings between models can be defined
10/17/2013 Tarmo Ploom and Win Bausch
Semantic interoperability @ CS
Example of a tool: The Interface Management System
10/23/2013
Tarmo Ploom and Win Bausch
Where we came from - Interface Management System
(IFMS)
Management of services on
platform independent level (PIM)
− Services are described technology independently
− Ca 4000 services are included in IFMS
Governance of services
Integration with development and
governance environment
Model Driven Architecture (MDA)
generators (ca 60 000 artefacts
are generated monthly)
− > 600 000 code statements a month are generated from service descriptions
10/17/2013 Tarmo Ploom and Win Bausch
Framework for analyzing SOA repositories
10/17/2013 Tarmo Ploom and Win Bausch
Management of SOA metadata
(classical SOA repository)
SOA Governance
(engineering, decomissioning, etc.)
SOA IDE
(Integrated
Development Environment)
Model
Driven SOA
First generation
SOA repository
Second generation
SOA repository
Third generation
SOA repository
Fourth generation
SOA repository
How can IFMS extended to support standards?
First stage
− Import predefined messages
− Provide means to manage predefined standard messages
Second stage
− Import of industry standard data dictionaries (Fix, FpML, ISO 20022)
− Provide means to build new messages based on standard data
dictionaries
Third stage
− Semantic interoperability
− Provide unique set of industry standard attributes as model in the
middle
10/17/2013 Tarmo Ploom and Win Bausch
Predefiend messages in IFMS
IFMS will be extended by following functionality
− Import predefined messages
− Browse predefined messages
− Search predefined messages
− Presentation of predefined messages
− Mapping of predefined messages to IT-Landscape component model
− Extension of predefined messages
− Updated governance process for predefined messages based service
design
− Updated governance process for predefibned messages import
approval
− Reporting
10/17/2013 Tarmo Ploom and Win Bausch
Data dictionaries in IFMS
IFMS will be extended by following functionality
− Import of data dictionaries (FIX, FpML, ISO 20022, XBRL)
− Data type browser
− Attribute sets for specialized business domains
− Business domain management
− Governance process for data dictionaries import
Main focus is
− How to manage enormous number of atributes (ca 6500)
− How to find appropriate attribute in 6500 attributes?
10/17/2013 Tarmo Ploom and Win Bausch
Semantic interoperability in IFMS
IFMS will be extended by following functionality
− Marking of global industry standard attributes as model in the middle
− Mapping on non model in the middle attributes from global industry
standards to model in the middle (semantic search algorithms we have
developed have ca 70% accuracy)
− Mapping of non industry standard attributes from IFMS to model in the
middle attributes (if mapping is possible)
− Mapping of non-mapped nonindustry standard attributes from IFMS to
the own custom model in the middle
As precondition for mappings extensive attribute descriptions in data
dictionary is needed to make semantic search algorithms working as
efficiently as possible
10/17/2013 Tarmo Ploom and Win Bausch
Governance
Design governance needed:
− Is appropriate predefined message used?
− Is appropriate attribuite from data dictionaries used?
− Are extensions designed appropriately?
Predefined messages governance
− Are appropriate predefined messages imported?
− How many versions of predefined messages can be managed?
Data dictionary governance
− Which version of data dictionaries has to be imported?
− How many versions of data dictionaries can be managed?
Month Day, Year LEGAL ENTITY, department or author (Click Insert | Header & Footer)
Conclusion and Outlook
10/23/2013
Tarmo Ploom and Win Bausch
Common cost/benefit argument conc.
standards implementation
10/23/2013 Tarmo Ploom and Win Bausch 26
• Usage of industry standards both for internal and external interfaces
facilitates in/outsourcing and
redesign of banking value chain
• Today, major industry standards already offer > 50 % coverage for
unique internal attributes in banking
Usage of industry standards
promises large benefits both in external and internal
application, by either allow new
business to be automated or by making existing business
more efficient
• Prerequisites to support transition into target state are very hard to
achieve, as there is a large body of
legacy that needs to be transitioned
at no additional benefit. • The right organizational structures,
technologies and resources (skills,
financials, majorities) are not around
yet and cannot be sustained over the required period of time for a
successful transition.
Introduction of industry standards has too large costs
and uncertainties
Benefit View Cost View
Redesign of banking value chain
Usage of global industry standards opens
options to insource/outsource business
capabilities
− Payments services
− Custody services
− Risk calculation, reporting, …
From value chain towards value network
− Customer business case is routed through many
legally distinct companies, which themselves
invoke applications and services from other legally
distinct companies in value creation
− Value chain transforms towards value network
Banks operate in the middle of value
network orchestrating activities in the
network
10/17/2013 Tarmo Ploom and Win Bausch
Questions?
10/17/2013 Tarmo Ploom and Win Bausch
Appendix
10/17/2013 Tarmo Ploom and Win Bausch
Business benefits from usage of global industry
messaging standards internally
Increased M&A integration capability
Improved out-sourcing capability (payments, custody, …)
Improved in-sourcing capability (prime services, reporting)
Improved business partner integration capability
Improved business & IT alignment (use of the same language)
Reduced integration effort in TCO
Reduced effort in global integration
Integration of COTS products (Charles River, …)
10/17/2013 Tarmo Ploom and Win Bausch
Industry Messaging Standards in banking
First tier standards
− ISO 20022: International Organization for Standardization
− ISO 15022: International Organization for Standardization
− FIX: Financial Information eXchange Protocol FIXML
− FAST: FIX Adapted for Streaming
− FIXML: Markup Language for the FIX Application Message Layer
− FpML: Financial Products Markup language
− XBRL: Extensible Business Reporting Language
Second tier standards
− BIAN: Banking Industry Architecture Network
− RIXML: Research Information Exchange Markup Language
− IFX: Interactive Financial eXchange
− XR-XML: Exchange of HR data
Third tier standards
− IRML: Investment Research Markup Language
− MDDL: Market Data Definition Language
− FinXML: The Digital Language of Capital Markets
− TWIST: Treasury Workstation Standards Integration Team
− OAGi: Open Application Group
− ... 10/17/2013 Tarmo Ploom and Win Bausch
Introduction Industry Messaging Standards
Ad-hoc internal messaging standard − Proprietary internal standards for point to point integration
− Usually specific to a location
Local industry messaging standard − Defined externally by single organization for local usage
− For example in
Switzerland: SIC, LSV, DTA
US: NACHA, DTCC
Global industry messaging standard − Externally defined messaging standard which is meant for global usage
− Open governance
− ISO20022, BIAN, FIX, FpML, XBRL, XFRML, RIXML, IFX …
10/17/2013 Tarmo Ploom and Win Bausch
Credit Suisse eXtend Language - CSXL
How to encouple lifecycles on externally defined industry standards from
internal interface management lifecycles?
Lifecycles of ISO 20022, FpML, FIX, XBRL have certain variability.
Some parts have higher variability than others.
FpML, ISO 20022, FIX provide different means for extensions, however
in these cases original message is modified
Instead of modifying external schemas we wrap external schemas in an
envelope and
− Add missing atrributes in envelope header
− Overwrite needed structures in envelope header
10/17/2013 Tarmo Ploom and Win Bausch
Usage of predefined messages
There is no need to define predefined messages again, again, again …
− Streetside and trade management systems for listed products can reuse FIX messages
− Settlement/clearing messages internally can be ISO 20022 based
Shift in mindset
− Not, what attributes I need
− But, what additional attributes I need
Extension mechanism to add new attributes needed
− Credit Suisse eXtend Language, standard mechanism for extensions (described later)
− Extension of predefined messages is usually ca 10 - 20%
Benefit
− Dont need four months to design a stable new message
− Need may be some weaks
10/17/2013 Tarmo Ploom and Win Bausch
Usage of predefined messages
10/17/2013 Tarmo Ploom and Win Bausch
Publisher/
Consumer
Street Side
Interfaces
Payments Corporate
Actions
Settlement
And
Clearing
Credits Custody Trading OTM Product
Control
Street Side
Interfaces
ISO 15022, ISO 20022
ISO 15022, ISO 20022
ISO 15022, ISO 20022
ISO 15022, ISO 20022
ISO 15022
Payments ISO 15022,
ISO 20022
Corporate
Actions
ISO 15022 ISO 15022, ISO 20022
Settlement
and
Clearing
ISO 15022 ISO 15022, ISO 20022
ISO 15022
Credits ISO 15022 ISO 15022, ISO 20022
Custody ISO 15022 ISO 15022, ISO 20022
ISO 15022, ISO 20022
ISO 15022
Trading ISO 15022,
ISO 20022
ISO 15022,
ISO 20022 ISO 15022 FIX,
FpML
FIX,
FpML
OTM ISO 15022, ISO 20022
ISO 15022, ISO 20022
ISO 15022 FIX, FpML, ISO 15022
FIX, FpML, ISO 15022
Usage of BOM, example, BusinessComponent Role
10/17/2013 Tarmo Ploom and Win Bausch
Tooling for transformation
By FIX, FpML, ISO (MT, MX)
predefined messages there is
some overlap
Transformation tooling which
carries out complex
transformations between FIX,
FpML, ISO (MT, MX) predefined
messages is needed
10/17/2013 Tarmo Ploom and Win Bausch
Disclaimer
This presentation was produced by Credit Suisse AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. This document must be interpreted in connection with the verbal comments given by the speaker. The opinions expressed in this presentation are those of CS at the time of writing and are subject to change at any time without notice. This presentation was provided for information purposes only and is for the exclusive use of the recipients. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipients from exercising their own judgment. The recipients are in particular recommended to check that the information provided is in line with their own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended).
Copyright © 2013 Credit Suisse Group AG and/or its affiliates. All rights reserved.
10/17/2013 Tarmo Ploom and Win Bausch
top related