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Can I us ISO 20022 for my securities transactions over Swift?
Yes. ISO 20022 messages for all the main securities flows are available over the Swift network, through the many-to-many FINplus service and the market infrastructures who offer it to their participants. This means our community can choose to use ISO 20022 messages on an opt-in basis as and when they decide to adopt.
Are there any Swift plans to migrate from ISO 15022 to ISO 20022?
Not currently. At present, ISO 15022 is widely used over Swift and since there is no industry appetite for global migration to ISO 20022, we have no plans to set a date for our community to migrate.
Both ISO 15022 and ISO 20022 message types can be used over Swift, which leaves customers free to choose when to adopt ISO 20022 capabilities, according to their own business needs and customer demand.
However, for the fund messages, the fund industry strategy is to use the ISO 20022 messages for order processing instead of the MT502, 509, 515 fund templates. The Swift board decided in 2018 to remove the end date for the migration, but they decided to maintain the disinsentives program for the usage of the FIN fund messages (MT502, 509, 515 fund templates). You can find out more here.
Looking ahead, we will periodically review market appetite for setting a migration date with our key customers and with the broader community.
What was the rationale for the decision not to migrate?
In 2018, we surveyed our global community to assess market appetite, across all business areas, for a migration to ISO 20022. The response from securities players was not clear-cut, so no migration date was set.
More recently, in 2020, ISSA surveyed its members and, in 2021, we carried out our own consultation to understand the appetite for adopting ISO 20022 in the securities space.
The feedback we have had is that, for now, there is no industry appetite for global migration, but that ISO 20022 is still seen as the likely future standard.
With this in mind, we will continue to offer users the choice between using ISO 15022 and ISO 20022 – in the securities markets – and we will continue to support our customers in dealing with coexistence and interoperability by leveraging our existing product portfolio.
How will Swift support coexistence in securities markets?
Within the financial services industry, multiple messaging standards are used.
In addition to the proprietary standards still used by some market infrastructures, there are also a number of other different standards used in the securities industry, including ISO 20022, ISO 15022, ISO 7775, FpML and FIX.
From a practical perspective, most ISO 15022 messages now also exist in the ISO 20022 format. Where more than one securities message exists to support the same business process, Swift Standards will continue to make changes to both message standards so that they are kept in sync and so that it’s possible for vendors and customers to be able to translate between the two syntaxes.
How will Swift support interoperability in securities markets?
To help securities market participants manage a prolonged period of coexistence, Swift provides a variety of specifications, tools and testing services, such as the MyStandards application and its Readiness Portal, and Swift Translator (as a translation solution). These facilitate adoption of ISO 20022 – in areas where it’s commercially viable already – and make it easy to use the common ISO 20022 data dictionary where it is not.
Looking ahead, we will continue to enhance the common ISO 20022 data dictionary and promote its adoption to facilitate interoperability between different messaging standards and to minimise friction. As demand for APIs grows, we’ll work with our community to define APIs that are aligned with ISO 20022, so that we can enable the exchange of comparable data over multiple channels and avoid industry fragmentation.