mt to iso 20022 migration

High value payments market infrastructure

solution overview

MT to ISO 20022 migration

November 2014

Migration enablers

Agenda

ISO 20022 adoption

HVPMI migration approach

Platform readiness

NL NUG – 17 November 2014

Who’s adopting ISO 20022 on SWIFT?

NL NUG – 17 November 2014 3

2014 2015 Q3 Q4 Q1 Q2 Q3 Q4

2016 Q1 Q2 Q3 Q4

2017 Q1 Q2 Q3 Q4

+ CLS, DTCC, EFI, ESES, Funds,

JASDEC

End of migration

Live date/

Start of migration

T2 participants timeline

and SWIFT possible (edge) conversion offer

2016 2017 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Customers

2016 budget

T2 customers Development and

internal tests Tests with

without T2 Tests with

and T2

Consultation

on conversion

T2/E1/S1

Live with MX

SWIFT to

announce

intentions

SWIFT to

provide details

about offer

General

Availability of

conversion

SWIFT to

provide user

guide about

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

VAP & GTM

Selling Services, products, upgrades, etc

Migration enablers

Agenda

ISO 20022 adoption

HVPMI migration approach

Platform readiness

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

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

Liability framework FIN R&L SWIFTNet R&L

(to be harmonised)

Adapt shared services

• Sanctions screening

• Business intelligence

Migration enablers

Agenda

ISO 20022 adoption

Migration approach

Platform readiness

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.

10 NL NUG – 17 November 2014

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

Participant B

MT 103(+)

202(COV)

Participant A

Interface

• Closed user group based

• Message validation

• PKI based security

• Archival and retrieval

• Copy services

• Support MT

Application

Authorisation

request MI Authorisation

response

MT 096

Full copy

Payment

Instruction

Autorised/settled

Payment Instruction

Sender Notification

MT 103(+)

202(COV)

204 (**)

(**) with information for receiver

MT 012 (***)

(***) with information for sender

MT 097 (*)

(*) with information for sender/receiver

Abort Notification

MT 019 (***)

FINCopy environment

T2 flows

Participant B Participant A

Interface

• Copy services

• Support ISO 20022

Application

Authorisation

response

xsys.001 (*)

Payment

Instruction

pacs.008

pacs.009

pacs.010

Autorised/settled

Payment Instruction

008/009/010

(copy)

xsys.002 (***)

Sender Notification

Abort Notification

xsys.003 (***)

SWIFTNet Copy environment

Equivalent flow

pacs.008

pacs.009

pacs.010

Participant B Participant A

Interface

• Copy services

• Support ISO 20022

Application

Authorisation

response

xsys.001 (*)

Payment

Instruction

pacs.008

pacs.009

pacs.010

Autorised/settled

Payment Instruction

008/009/010

(copy)

xsys.002 (***)

Sender Notification

Abort Notification

xsys.003 (***)

SWIFTNet Copy environment

T2 flows

pacs.008

pacs.009

pacs.010

Out of scope

of T2 migration Out of scope

of T2 migration

MT 012 Sender notification to

xys.002 Y-copy authorisation notification

MT 019 Abort notification to

xsys.003 Y-copy refusal notification

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)

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

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

Migration enablers

Agenda

ISO 20022 adoption

Platform readiness

Migration approach

Users back offices can be shielded from the impact of the migration,

through

– Transformation of business payload enabled by the like-for-like

approach

Migration enablers

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

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

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

Migration enablers

Mapping MT to MX: input message Sender BIC to Requestor DN

SettlementPriority:HIGH

{1:F01BANKBEBBAABC3461486137}

{2:I103BANKUS33XEFGU3003}

{3:{103:TGT}{113:UY00}{108:Reference}}

{4:MT message payload} RequestorDN:ou=abc,o=bankbebb,o=swift

ResponderDN:ou=efg,o=bankus33,o=swift

Service:swift.tgt.copy

RequestType:pacs.008.001.04.gen

Priority:Urgent

RequestRef:Reference

Request Header

Request Payload

Input message in MT format

Input Message in MX format

DeliveryMode:SnF

NotifQueue:bankbebb_tgt

DeliveryNotif:TRUE

InputChannel:bankbebb_tgt

SnFInputSeq:187

OverdueWarningDelay:15

DeliveryNotificationViaSystemMessage:TRUE

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

Mapping MT to MX: input message Receiver BIC to Responder DN

{3:{103:TGT}{113:UY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

Mapping MT to MX: input message Message type

{3:{103:TGT}{113:UY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

InputChannel bankbebb_tgt

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

Mapping MT to MX: input message Priority/delivery notification

{3:{103:TGT}{113:UY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

Mapping MT to MX: input message Obsolescence period/Overdue warning delay

{3:{103:TGT}{113:UY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

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

{3:{103:TGT}{113:UY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode: “SnF”

NotifQueue: bankbebb_tgt

DeliveryNotif: TRUE

InputChannel: bankbebb_tgt

SnFInputSeq:187

DeliveryNotificationViaSystemMessage: TRUE

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

Mapping MT to MX: input message Settlement priority/Authorisation Notification (MT 012) request

{3:{103:TGT}{113:HY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

For codes used in positions

3 and 4 of tag 113 to

identify domestic products

for urgent payments the

proposal is to map this to a

code word in the

LocalInstrument field, e.g.

NLUP or ITBI.

Mapping MT to MX: input message MUR / Reference

{3:{103:TGT}{113:UY00}{108:Reference}}

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

*limited to 16 characters and x character set

Live BIC vs Test BIC

Customer registers first

BIC with SWIFT

SWIFT assigns test BIC

BNPAFRPK

BNPAFRP0

BNPAFRPK

BNPAFRP0

Customer requests

additional BIC

BNPAFRPP

? Second test BIC?

BNPAFRPK

BNPAFRP0

Customer requests

additional BIC

BNPAFRPP

ZYAEFRP0 SWIFT assigns additional

test BIC

BNPAFRPK

BNPAFRP0

BNPAFRPP

ZYAEFRP0 Customer requests

additional test BICs ZYFOFRP0

ZYBUFRP0

ZYFXFRP0 ….

Mapping BICs to DNs and vice versa

The issue: there is no link between DN and BIC0

ou=abc,o=aaaafrpp,o=swift AAAAFRPPABC

Convention for mapping live

BICs found in T2 directory

Convention for mapping test

BICs found in T2 directory

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

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

End-to-End T&T BIC mapping logic

Sender BIC : ZYAEFRP0032

Receiver BIC : ZYCPFRP0ADT

T2 & E1/S1

MT -> MX

mapping

Requestor DN : ou=032,ou=zyaefrp0,o=bnpafrpp,o=swift

Responder DN : ou=adt,ou=zycpfrp0,o=sogefrpp,o=swift

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

Sender Receiver

Needs to know that:

• ZYAEFRP0 maps to BNPAFRPP

• ZYCPFRP0 maps to SOGEFRPP

Original test BIC included in the

DN will be used to generate

Sender & Receiver BIC.

Mapping MT to MX: input message Receiver BIC to Responder DN

{1:F01BANKBEB0AABC3461486137}

{3:{103:TGT}{113:UY00}{108:Reference}}

{4:MT message payload} RequestorDN:ou=abc,ou=bankbeb0,o=bankbebb,o=swift

ResponderDN:ou=efg,ou=bankus30,o=bankus33,o=swift

RequestType:pacs.008.001.04

Priority:Urgent

Request Header

Request Payload

DeliveryMode:SnF

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

• 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

* 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

MT to ISO 20022 migration enablers

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

DeliveryNotif:TRUE

SnFInputSeq:187

CopyIndicator:TRUE

AuthNotifInd:TRUE

Request Control

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

Gap analysis

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

• SWIFTNet: based on input and output channel sequence

numbers

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

MT to ISO 20022 migration enablers

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.

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

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)

Customer

premises

Customer

premises

Customer

premises

Technical migration options

MT based

Payment application Before Migration

Technical migration

ISO 20022

After migration

MX based

MT based

- OR -

mapping

required

Migrated to MX

Remains on MT

ISO 20022

Key characteristics - Big bang migration

- On the edge mapping

(if required)

ISO 20022 for High-Value Payments Usage guidelines implementation

Customer

premises

Customer

premises

Customer

premises MT based

Payment application Before Migration

Technical migration

ISO 20022

After migration

MX based

MT based

- OR -

mapping

package

required

Migrated to MX

Remains on MT

ISO 20022

Usage guidelines

implemented directly

into the application

Usage guidelines

implemented outside

the application, in a

dedicated mapping

package

Market Infrastructure over ISO 20022 Overview of back office flows

ISO 20022 MX

MT or Internal

formats

Interface

generation

B/O is adapted to

fully adopt MX MX

B/O stays MT based.

MT/MX mapping is

handled in separate

middleware

mapping

package

ISO 20022 MX MT

MT format

Middleware

Interface B/O

mapping

package

ISO 20022 MT

MT format

SWIFT Interface B/O

B/O stays MT based.

MT/MX mapping is

handled by the

SWIFT interface

Market Infrastructure over ISO 20022 Manual message creation support

ISO 20022 MX

MT or Internal

formats

Interface

generation

B/O is adapted to

fully adopt MX

B/O stays MT based.

MT/MX mapping is

handled in separate

middleware

mapping

package

ISO 20022 MX MT

MT format

Middleware

Interface B/O MX

mapping

package

ISO 20022 MT

MT format

SWIFT Interface B/O MT

B/O stays MT based.

MT/MX mapping is

handled by the

SWIFT interface

Heterogeneous Payment ecosystem Examples of various mapping needs, both ways

mapping

ISO 20022 MT based

SWIFT Interface

Payment System

MX enabled

Payment System

mapping

MT based

AML System

All formats

Archiving System

mapping

MT based

Payment System

Like-for-like migration Transparency principles

mapping

package

T2 example

pacs. 008

camt.054

MT 950

MX ACK

003 xsys.

Back o

103(+)

202 (COV)

MT 950

MT ACK

019 MT

MT 900

Operationally, the exchange

of MX messages will not be

transparent on the interface

(reporting, retrievals,

message investigations, …)

For the payment

application B/O still MT

based, the ‘like-for-like’

approach can make the

use of MX messages

nearly transparent

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 ?

• Requirements specific to

each MI still to be analysed

mapping

package

T2 example

pacs. 008

camt.054

MT 950

MX ACK

003 xsys.

Back o

103(+)

202 (COV)

MT 950

MT ACK

019 MT

MT 900

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

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

All functions available at fingertips

New product release required for new functions

Network

Communication

Messaging

Interface

Integration

capabilities

Market Simple Medium Complex

Integration

Platform

Alliance

Access

Alliance

Messaging

Converter

Alliance

Gateway

Alliance

Gateway ARG

Integration

(planned)

T2 and ISO 20022 SWIFT based solutions – under investigation

ISO 20022 MX

MT or Internal

formats

Interface

generation

B/O is adapted to

fully adopt MX

B/O stays MT based.

MT/MX mapping is

handled in separate

middleware

mapping

package

ISO 20022 MX MT

MT format

Middleware

Interface B/O MX

mapping

package

ISO 20022 MT

MT format

SWIFT Interface B/O MT

B/O stays MT based.

MT/MX mapping is

handled by the

SWIFT interface

Alliance Access

Alliance Access, AMH

Other interface vendors ?

mapping

package

Middleware integration models

MT format

Middleware

Interface B/O

mapping

package

MT format

Middleware

Interface B/O

mapping

package

MT format

Middleware

Interface B/O

Standalone

Embedded into

customer

middleware

Standalone but

communicating

with customer

middleware

SIL supported model

Need to support

other models ?

ISO 20022 for High-Value Payments

MyStandards

Usage guidelines injection

into SWIFT Alliance Access (tentative for 7.1)

pacs.008.001.04 example

MyStandards Support (HVPMI pacs.008.001.04)

Removed fields

Fixed value

Further restrictions

mt to iso 20022 migration

Documents

iso 20022 – overview - asx.com.au · iso 20022 –...

swift iso 20022 migration study - wordpress.com...the...

building your iso 20022 implementation roadmap€¦ · the...

iso 20022 registration procedures

outgoing payments iso 20022 application guideline … ·...

916769 excel-20022

swift iso 20022 project...messages on swift? • mt 760...

guide to iso 20022 migration - deutsche bank · guide to...

guide to iso 20022 migration - corporates.db.com

0819 master iso 20022 pitch deck - identitii ·...

the iso 20022 harmonisation framework - smpg.info€¦ ·...

payments on the fast lane | accenture · iso 8583 iso 20022...

ultimate guide to iso 20022 migration - d b

s 4 mt mx-migration aus anwendersicht-m_kuhn

iso 20022 migration for the australian payments system...

migration of examples and user application code to mt

ultimate guide to iso 20022 migration - finextra...

swift cbpr+ iso 20022

iso 20022 - worksession

iso 20022 payments - six