A group of financial market infrastructures have endorsed a Swift-driven Charter to jointly implement a global framework for ISO 20022 harmonisation across the industry.
Earlier this year Swift mobilised a group of 23 FMIs to discuss a co-ordinated action plan for the implementation of ISO 20022 across the globe amid industry concern around fragmentation and the risk of multiple versions being adopted across various markets.
The Australian Securities Exchange (ASX), Bank of Canada, Clearstream, Canadian Payments Association (CPA), CLS, Euroclear, Hong Kong Interbank Clearing (HKICL), Russia’s National Settlement Depository (NSD), Southern African Development Community (SADC), VP Securities Denmark and ACH Colombia are amongst the first to commit to the plan. Other FMIs are supportive of the Charter pending development of their implementation plans, says Swift.
Gerry Gaetz, president and CEO of the Canadian Payments Association says: “With over 200 initiatives around the world aimed at implementing ISO 20022, the need for harmonisation of the rollout is clear. If each region makes a concerted effort towards harmonisation, the global community will benefit. Without this, we run the risk of fragmentation, ultimately making the implementation process more complicated and reducing potential benefits."
The Charter calls for the creation of a common framework focused on a number of pillars: sharing of information using Swift's MyStandards platform as the central harmonisation platform, establishing global market practice and introducing stricter message version control and release management.
Patrik Neutjens, ISO 20022 programme director, Swift says, “The success of the programme depends crucially on engagement from the FMI community, which has been significant. We are very pleased with the level of support the Charter has received and look forward to bringing more FMIs into the mix. This is not about mandating ISO 20022, but ensuring a harmonised approach when the time is right for FMIs to implement the standard.”