DTCC Nudge May Finally Complete ISO Transition
![michael-shashoua-waters michael-shashoua-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/317/167317/michael-shashoua-waters.JPG.webp?h=acfe3244&itok=ceJMABf4)
I'm not an industry practitioner or a C-level technology executive, but from what I see and hear so far about ongoing efforts to persuade the securities industry and its firms to adopt the ISO 20022 standard for trade messages, it seems like the recalcitrance of some firms is hindering progress for the industry as a whole.
While International Securities Association for Institutional Trade Communication (ISITC) is working on a business case to show the benefits of migrating to 20022, some members of Swift, the registration authority for ISO standards, said they don't want to drop the older 15022 standard completely. Only now does the industry have an effort under way, thanks to DTCC, to complete the migration by 2015, more than 10 years after 20022 first appeared.
The result of this shaky or divided support for the new standard was that the industry has been stuck for several years with two standards. A standard should be universal for all participants and everyone must adhere to it. A standard is created with the purpose of making sure no communications are lost, mishandled or misunderstood. Allowing two standards to continue with no end in sight seemed to defeat their very reason for being.
ISO 20022 first emerged in 2004. "ISO 20022 is modeled after a business process and as a result offers the industry increased opportunity to increase straight-through processing across the corporate actions lifecycle," says Steven Gale, co-chair of the ISITC corporate actions working group and a vice-president at Northern Trust.
A re-engineering initiative by the Depository Trust & Clearing Corporation (DTCC), set for implementation in late 2015, should get laggards on board with the new standard. It's more than a bit belated, but DTCC is now using its influence to sunset 15022 with the initiative. As Paul Fullam, senior director, XSP, and co-chair of the ISITC US corporate actions working group, told Inside Reference Data: "DTCC's move in the US market will prove to be critical to push the move forward."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Finra clears hurdle with CAT launch, but several others remain
Two major components of the consolidated audit trail are now in place. But wrangling over the CAT’s future continues.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
GenAI: US Fed reveals its five use cases
Internal sandbox used to assess viability and risks; coding and content generation on the agenda.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.
Cboe pushes rule change to make way for proprietary Opra alternatives
As US options data has grown in volume and cost, Cboe says changing the public feed's governing document would make way for more competition from private alternatives, including its Cboe One Options Feed, launched in 2023.
Regulators urged to promote cyber security investment
Public interest in stopping cyber attacks that could trigger bank runs, says Bundesbank researcher