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XML Interoperability & Convergence ISO 15022 XML Working Group (WG 10). XML on Wall Street November 20th, 2001 John Goeller. Leveraging New Technology Business Modeling – Unified Modeling Language (UML) XML Evolving Existing Standards Creating New Standards Standards Repository - PowerPoint PPT Presentation
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XML Interoperability & ConvergenceISO 15022 XML Working Group (WG 10)
XML on Wall StreetNovember 20th, 2001
John Goeller
2November 8th, 2001 Is Interoperability Achievable?
Standards Development
Leveraging New Technology Business Modeling – Unified Modeling Language
(UML)
XML- Evolving Existing Standards- Creating New Standards
Standards Repository
Expanding Asset Class Coverage
Focusing on Market Practice
Interoperability or Convergence?
4November 8th, 2001 Is Interoperability Achievable?
Standards Landscape
PRE-TRADE TRADE POST-TRADE SETTLEMENT POST SETTLEMENT /PRE-SETTLEMENT
Equities
Fixed Income
ExchangeTradedDerivatives
OTCDerivatives
F/X
MutualFunds/Unit Trusts
15022 15022 15022 15022
5November 8th, 2001 Is Interoperability Achievable?
Standards Complexity: Post-Trade – Pre-Settlement
FIX SWIFT GSTPA Omgeo
Field Side Indicator Buy/Sell Indicator
Buy/Sell Indicator
Values
1=Buy
2=Sell
3=Buy Minus
…
BUYI=Buy
SELL=Sell
BUYI=Buy
SELL=Sell
BUYI=Buy
SELL=Sell
Syntax
54=1
or
<Side Value=‘1’>
:22a::/BUSE//BUYI
<BuySellInd>BUYI</BuySellInd>
<BuySellIndicator>BUYI</BuySellIndicator>
Codes
Proprietary plus ISO Codes
ISO Codes ISO Codes Proprietary plus ISO Codes
Does XML Solve Securities Standards Interoperability Issues?
7November 8th, 2001 Is Interoperability Achievable?
XML Doesn’t Solve Interoperability
Quoi? Do you like
XML?
<SWIFTML> <NoticeOfExecution>
... </NoticeOfExecution></SWIFTML>
<FIXML> <ExecutionReport> ... </ExecutionReport></FIXML>
Industry Solutions: ISO 15022 XML Working Group WG 10
9November 8th, 2001 Is Interoperability Achievable?
WG 10 Mission Statement
Evolve ISO 15022 to permit migration of the securities industry to a standardized use of XML, guaranteeing interoperability across the industry and with other industry sectors, particularly but not restricted to the financial industry.
10November 8th, 2001 Is Interoperability Achievable?
Current ISO 15022
What included in the ISO 15022 standard? Part 1: Data field and message design rules and
guidelines
Part 2: Maintenance of the Data Field Dictionary and Catalogue of Messages
What’s not included in the ISO 15022 Standard?
Data Field Dictionary (DFD) Reference Table of Multiple Syntaxes
Catalog of Messages
11November 8th, 2001 Is Interoperability Achievable?
WG 10 Overview
WG 10S.W.I.F.T.
Standards
Methodology
Other
Methodologies:
ebXML
HL7
ISO 15022
Recommend-
ations
StandardsRepository
Existing Message Sets
ISO 15022 DFD
+ 15022
12November 8th, 2001 Is Interoperability Achievable?
WG 10’s Focus
WG 10 is creating a framework to establish agreement on how we develop, implement and store securities industry standards
Four Building Blocks
Applying Business Modeling to Standards Development
Harmonizing the Use of XML
Implementing a Centralized Standards Repository
Leveraging Industry Coordination
13November 8th, 2001 Is Interoperability Achievable?
WG 10’s Three Streams of Work
Design Rules
Registry/Repository
UML Business Modeling GuidelinesUML to XML Design Rules
Organization of Repository Procedures to register business models and XML Schemas
Reverse engineer existing message sets to business model
Reverse Engineering
<xsd:schema xmlns:xsd="http://www.w3.org/1999/XMLSchema">
<xsd:element name=“NoticeOfExecution" type=“NOE"/>
<xsd:complexType name=“NOE">
</xsd:complexType>
Inv estor
BrokerDealer
Role [0..1] : TradeCapacity Indicator
Party
Ident if ication [1] : Party Id
(f rom MessageElements)
StepInBroker
ProcessingReference [0 . .N] : StringFinancialInstrument
Identif ier [1] : ISINCurrencyOf Denomination [1] : CurrencyClassif icationScheme [1] : String
(from MessageElements)
Trade
DealPrice [1] : PriceFilledQuant ity [1] : FinancialInstrumentQuantity
Ty peOfSeller/Buy er<<abstract>>
NoticeOfExecution
Consistency OnBuyer/Seller()
0. .1+StepInBroker
0. .1
1+FinancialInstrumentAt tributes
1
1..*+TradeDetai l
1..*
1
+Seller
11
+Buyer
1
UML XML Schema
Inv est or
BrokerDealer
Role [0..1] : TradeCapacity Indicator
Party
Identif ication [1] : Party I d
(f rom MessageElements)
StepInBroker
ProcessingRef erence [0 ..N] : StringFinancialInstrument
Identif ier [1] : ISINCurrency Of Denomination [1] : CurrencyClassif icationScheme [1] : String
(from MessageElements)
Trade
DealPric e [1] : Pric eFil ledQuantity [1] : Financ ialI ns trument Quantity
Ty peOf Seller/Buy er<<ab st ract>>
NoticeOfExecution
Consistency OnBuy er/Seller()
0..1+StepInBroker
0..1
1+Financ ialI ns trument Att ributes
1
1..*
+TradeDetail
1..*
1+Seller
11
+Buyer
1
UML
Standards
Repository
SecuritiesSettlementParameters
AutomaticBorrowingIndicatorSettlementInstructionTypeSettlementTypeSettlementInstructionGenerationIndicatorSettlementInstructionProcessingInfoSettlementDateT imeSettlementAmountValueDate/T imeSettlementQuanti tyBlockTradeSettlementAmountUnexposedSpecialDeliveryPartialSettlementSplitCurrencySettlementPlaceOfSettlementPaymentIndicatorNetGain/Loss
Al location
Al locatedQuanti tyBlockTradeAllocatedQuantityAl locationAmount
Account
RecipientStatusAccountIdServicer
Note: A 4th Project Project Team handles industry liaison
Unified Modeling Language (UML) is a visual modeling language for capturing knowledge (semantics) about a subject and it is applied to modeling and systems.
14November 8th, 2001 Is Interoperability Achievable?
WG 10 Objectives & Scope of Activities
1) Update the ISO 15022 Standard Draft New Standard
- ISO 15022 - Part 1- ISO 15022 - Part 2- Supporting Documents
Circulate to ISO Member Countries
Finalize and Publish International Standard
2) Create the Standards Repository
15November 8th, 2001 Is Interoperability Achievable?
FIX Protocol Limited (FPL) and WG 10
FPL jointly announced with SWIFT that they will support the efforts of WG 10
Agreement focused on the convergence of their respective messaging protocols around the adoption of ISO 15022 XML
FPL has formed the ISO XML Working Group Participate in WG 10 on behalf of FPL Ensure that the functionality offered by FIX messages are
fully integrated into the ISO 15022 XML repository Integrate into WG 10 Structure
Recent Activity October 2001 – New York WG 10 Review Session November 2001 - New York Pre-Trade/Trade Working
Session
16November 8th, 2001 Is Interoperability Achievable?
PRE-TRADE TRADE POST-TRADE SETTLEMENT POST SETTLEMENT/PRE-SETTLEMENT
Equities
Fixed Income
Exch. TradedDerivatives
OTCDerivatives
F/X
MutualFunds/Unit Trusts
Standards Repository
SMG
SMG
SMG
SMG
SMG
SMG
SMG
SMGSMG
ISO 15022 Standards Repository
Repository will be divided by meaningful segments
Standards Management Groups (SMG) will be responsible for segments of the repository
17November 8th, 2001 Is Interoperability Achievable?
Registration Management
Group
Standards Management
Group
User Community
Standards Management
Group
User Community
Registration Authority
Standards Management
Group
User Community
PRE-TRADE TRADE POST-TRADE SETTLEMENT POST SETTLEMENT/PRE-SETTLEMENT
Equities
Fixed Income
Exch. TradedDerivatives
OTCDerivatives
F/X
MutualFunds/Unit Trusts
Standards Repository
SMG
SMG
SMG
SMG
SMG
SMG
SMG
SMGSMG
Proposed ISO 15022 Standards Environment
15022
Web - Site
18November 8th, 2001 Is Interoperability Achievable?
Two Levels of Interoperability/Convergence
Standards Development Using Business Analysis and Design Techniques
Agreeing on a Common Set of XML Design Rules
Establishing a Standards Repository which will contain the Components of the Standards
Standards Implementation Supporting the migration to the new standards
Does the Benefit of Migrating to the New Standards Outweigh the Switching Costs?
19November 8th, 2001 Is Interoperability Achievable?
WG 10 Challenges
General Issues Agreement is difficult Existing standards groups must consider their installed base
- Vendors that support the standard’s growth- Potential switching costs
WG 10 Specific Issues Business Modeling – Unified Modeling Language (UML)
- New Technology/Concepts Standards Repository
- Governance Issues- Intellectual Property
XML- Implementation Changes
20November 8th, 2001 Is Interoperability Achievable?
Single XML Vocabulary? It is a matter of…
Timing Organizations need to decide when they can migrate
to this new way of developing standards
Education Organizations need to understand/utilize the
standards methodology
Governance Organizations need to understand their role in future
standards development through the standards repository
21November 8th, 2001 Is Interoperability Achievable?
WG 10 Next Steps
October, 2001 - Circulate Drafts to WG 10 Members
November, 2001 - Complete WG 10 Review
December, 2001 - Circulate Drafts to ISO Member Countries
Late 2001 to Mid 2002 - Create Initial Standards Repository
Current Coverage of ISO 15022 Data Field Dictionary and Catalog of Messages
FIX Protocol Collective Investments Vehicles
22November 8th, 2001 Is Interoperability Achievable?
Conclusion
Standards Lots of Initiatives
T+1 Implications The Securities Industry needs to focus on the Post-Trade
to Pre-Settlement standards overlap
Interoperability/Convergence WG 10 is working on a solution
Challenges Timing Education Governance