Cover Pages: ISO 15022 XML

Overview

"ISO 15022 XML can be viewed as a superset covering the domains of existing protocols, such as the current ISO 15022, FIX, and FpML, developed via the use of business modelling with an XML-based representation. ISO 15022 XML will leverage the expertise of FPL in the pre-trade and trade domain (orders and executions) and SWIFT in the post-trade domain. In addition, there are numerous other firms and standards bodies committed to and involved in the ISO Working Group 10 process. SWIFT Standards serves as the Registration Authority for the current ISO 15022 standard and will expand this role to cover the new XML version of ISO 15022." [from the SWIFT website]

"International Standard ISO 15022 was prepared by Technical Committee ISO/TC68, Banking, Securities and Related Financial Services, Sub-Committee SC4, Securities and Related Financial Instruments. It replaces the previous standards for electronic messages exchanged between securities industry players, ISO 7775 - Scheme for message types and ISO 11521 - Scheme for interdepository message types. ISO 15022 sets the principles necessary to provide the different communities of users with the tools to design message types to support their specific information flows. These tools consist of a set of syntax and message design rules, a dictionary of data fields and a catalogue for present and future messages built by the industry with the above mentioned fields and rules. To address the evolving needs of the industry as they arise, the Data Field Dictionary and Catalogue of Messages have been kept outside the standard. They are made available by the Registration Authority which maintains them as necessary upon the request of industry participants. To protect investments already made by the industry, the syntax proposed in this standard, referred to as 'Enhanced ISO 7775 syntax', is based on the syntax used for the previous ISO 7775 and ISO 11521. However, ISO 15022 supports also EDIFACT, a standard developed by the United Nations, adopted by ISO in 1988 as ISO 9735. ISO 15022 has been designed to incorporate and be upwards compatible with the previous securities message standards ISO 7775 and ISO 11521, as updated in ISO TR 7775. As a result, the initial Data Field Dictionary and Catalogue of Messages accommodate ISO TR 7775 data fields and messages. However, some of the previous fields and messages are not fully compliant with the Enhanced ISO 7775 syntax, and none are compliant with EDIFACT. In addition the initial Data Field Dictionary incorporates the Industry Standardization for Institutional Trade Communications (ISITC) DSTU 1/1995 and the Securities Standards Advisory Board (SSAB) data dictionaries. The ISO 15022 standard is described in the document 'ISO 15022 Securities - Scheme for Messages (Data Field Dictionary), Part 1 - Data Field and Message Design Rules and Guidelines and Part 2 - Maintenance of the Data Field Dictionary and Catalogue of Messages'..." [from the ISO 15022 website]

Overview of ISO 15022 Second Edition

[Excerpts from the ISO 15022 FAQ document]

"The official mission statement (given by ISO TC68 SC4) is: [to] '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'."

"The initial driver was the emerging of XML and the fact that this resulted in the creation of multiple unrelated (and therefore incompatible) XML-based standards initiatives. The second edition has started as an attempt to stop this proliferation by offering an acceptable path towards industry-wide standards convergence."

Main components. ISO 15022, second edition is based on four major components:

A standards development process that is based on a modelling methodology. This makes it possible to capture, analyse and describe the standardised business processes and message definitions of the financial industry in a syntax-independent way. This approach offers a way to cover the functionality of all relevant industry message sets, without necessarily impacting their current definitions. This approach is also in line with the approach of other standardisation organisations, like UN/CEFACT and ebXML.

A set of syntax specific design rules, making it possible to convert the syntax independent message definitions into a standardised XML representation. These design rules guarantee a consistent set of XML-messages and make it possible to automate the generation of XML-messages. Any future evolution of syntax will only impact this set of design rules and will have no impact on the syntax-independent description of the message set.

A reverse engineering approach, describing the way to capture information from existing industry message sets and to create equivalent ISO 15022 XML compliant message sets. This approach also provides documentation that supports interoperability between the original industry message set and the new ISO 15022 XML message set. This documentation will also ease the ultimate convergence towards the ISO 15022 XML standard.

A central electronic repository (the ISO 15022 Repository), serviced by a Registration Authority, offering the industry participants access to: (a) A Business Process Warehouse containing the description of the business model, the business processes and the message definitions, including the XML Schemas, (b) A Data Dictionary containing all reusable elements used in business processes and message definitions.

ISO 15022 Repository: "The ISO 15022 Repository is an 'electronic store' that contains all relevant information regarding all developed ISO 15022 compliant standard messages... The set of ISO 15022 compliant messages is subject to the evolution of the business. Keeping the information out of the official standard eases the update process. The Registration Authority will make all updates requested by the industry under the control of the relevant Standard Management Groups and in compliance with the ISO 15022 standard and the related technical specifications.

WG10 has chosen a standards development methodology that is based on business modelling. The main principle behind this approach is the fact that the business standard has to remain independent of the physical representation that will be used to transport these standards. This approach is in line with the approach that is being followed by major standards organisations, like UN/CEFACT, ebXML, eBOM, SWIFT, etc. UML (Unified Modelling Language) is promoted as the way to represent the business standards and XML (eXtensible Mark-up Language) is currently promoted as physical representation. The standards development methodology is a three-layered approach. The first layer is the 'business layer', which focuses on getting a good understanding of the business domain and the business requirements. The second layer is the 'logical layer', which focuses on the definition of a logical (i.e. syntax-independent) standardised solution for the identified business requirements. The third layer is the 'technical layer', which focuses on the physical representation of the standardised solution (i.e., XML-messages, software).

Principal URLs

Articles, Papers, News

[April 01, 2003] "XML Standards for Financial Services." By Ayesha Malik. From XML.com (March 26, 2003). ['Ayesha Malik describes the current state of play in the electronic communications sector of the financial services world and gives an overview of the XML standards that will change the way the industry works.'] "The financial services industry spends billions of dollars on IT development to maintain its competitive edge. Most recently, banks, risk management firms, and insurance companies have been focusing on automating business processes and building systems that reduce the time from negotiating a trade to settling it to running risk analytics on trade positions. This is referred to as Straight Through Processing (STP); according to the Tower Group, the financial services industry will spend over $12.2 billion on STP technology through 2005. STP is currently the biggest challenge and the most hyped technology issue in the financial securities industry, particularly in the United States. The ultimate goal of straight through processing is to replace the traditional phone and fax confirmations with a completely automated loop, from pre-trade communication and deal capture through to clearing and settlement. This involves automating the processes passing trade-related data between investment managers, brokers, clearing agencies, and custodians. The core of STP, therefore, lies in the exchange of information between disparate systems. The structure of the information exchanged must be in a format that is agreed upon by the communicating parties and that is easily manipulated programmatically. The first requirement necessitates the presence of industry standards, and the second points to the use of XML as the data transport language. XML standards for the financial services industry, therefore, are essential for the successful implementation of STP. XML documents must carry information for pre-trade analysis such as quote requests, trade information such as security details and order information, post-trade analytics such as market data, and settlement and clearing specifics..." Note from James Hartley: "Reference Data play the key role in straight through processing as the banks and settlement houses (and the whole collection of back-office practitioners) are finally acknowledging. It is the common reference data that allows automated processing during settlement. The dialects mentioned -- SWIFT, ISO 15022, FpML, and FIXML -- do not exchange this core reference data but only allude to it. Further, they are not a majority percentage of the Financial Services space, even with respect to STP. There is a bigger picture that must be tied together -- a fact acknowledged by (for example) the creation of WG 11 under ISO TC68/SC4 with respect to integration of new terms and definitions, outside the SWIFT network, into the core ISO 15022 dictionary...The ISO 15022 specification would seem to afford an opportunity for the entire financial services community to consolidate terms and definitions -- not just the portions represented by FIX and FpML..."
[November 05, 2002] "Web Services on Wall Street -- Inside STP." By Gunjan Santami. From Integration Developer News (November 04, 2002). Case Study. "Straight-through Processing (STP), a solution that automates the end-to-end processing of transactions for all financial instruments from initiation to resolution, is set to revolutionize the financial industry. STP will streamline back-office activities, leading to reduced failures, lower risks, and significantly lower costs per transaction. It encompasses a set of applications, business processes, and standards that will redefine the settlement and processing paradigm within the capital markets industry... A SOA-based framework is capable of providing support for multiple XML standards, such as ISO 15022 [see ISO Working Group 10 - ISO WG 10] and FpML, at the same time, and adding additional standards support without significant redevelopment effort... With the use of Web Services as an enabling technology, STP-related problems and issues will shift from connectivity among different applications in-house and with trading partner applications to the content and structure of the information that is exchanged. The analogy here will be that Web Services will define the standard postal mechanism along with the envelope and addressing format for exchanging letters. What is inside the envelope (the content of the letter) will be defined by the XML-based business process standard, such as ISO 15022 XML..."
[June 27, 2002] "ISO 15022 XML: A Model for Standards Convergence." By Sandy Dinetz (Director, Depository Trust & Clearing Corporation). Presented at the Second Interoperability Summit, June 2002. 33 pages.
[May 2002] "ISO 15022 XML: A Model for Standards Convergence." Presented by Frank Vandamme at XML Europe, May 2002. See the extended abstract.
[April 16, 2002] "Multiple Industry Standards: ISO 15022 XML Working Group (WG 10)." By John Goeller. Presentation at the Seventh Annual Trade Execution Congress. April 16th, 2002. 23 pages.
[November 07, 2001] "ISO15022 XML Design Rules. Technical Specification." By Kris Ketels, for ISO/TC68/SC4/WG10. Document Version 2.3a. Document Issue Date October 26, 2001. Extent: 49 pages. From the Introduction: "XML is a technical standard defined by W3C (the World Wide Web Consortium) and leaves a lot of freedom for the exact way it is used in a particular application. Therefore, merely stating that XML is used is not sufficient, one must also explain HOW it will be used. The use of XML is part of the overall approach for the development. This development focuses on the correct definition of a business standard using modelling techniques . The resulting business standard is captured in UML (Unified Modelling Language) and is stored in an electronic repository, the 'ISO Repository'. Business messages are defined in UML class diagrams and XML is then used as a physical representation (i.e., the syntax) of the defined business messages. A set of XML design rules, called ISO XML, define in a very detailed and strict way how this physical XML representation is derived from the business message in the UML class diagram. This document explains these XML design rules. This document does not explain how a message should be created in UML. It explains, once a message is created in UML, how it will be mapped into XML... General mapping rules. Mapping rules from UML to ISO XML are governed by the following design choices: (1) ISO XML representation to be as structured as possible: [1] Business information is expressed as XML elements/values; [2] Metadata information is expressed as XML attributes. XML attributes are not to be conveyed 'on the wire' in the XML instance, unless required to remove ambiguity. (2) The current work is based on W3C's Recommendation of May, 2001. (3) The names used in ISO XML are the XML names or, when absent, the UML names. (4) ISO XML elements are derived from the UML representation of a business message. They can only be derived from UML-classes, UML-roles or UML-attributes. (5) Each ISO XML element must be traceable to the corresponding UML model element. (6) Currently ISO XML only runtime Schemas are generated. Runtime Schemas only contains information required to validate XML instances. No documentation nore implementation information (e.g.,elementID, version, etc.) is mentioned..." The document was posted to the UBL-Comment list ['ubl-comment@lists.oasis-open.org'] by Kris Ketels, 2001-11-07. [Kris wrote: 'One of the missions of SWIFT as a standardisation body is to drive towards a single standardisation solution within the financial industry. We believe a convergence between the major initiatives that are currently going on (ISO, UN/CEFACT/eBTWG and UBL) is an important and even indispensable step to achieve this. We would therefore like to submit our contribution -- under the umbrella of ISO -- to this [UBL] group. The document, ISO15022 XML design rules, is a draft submission to ISO for approval. It describes how XML messages can be instantiated (M0) from a given UML model (M1), and also its corresponding XML Schema (M1).'] See: (1) Minutes of the OASIS UBL TC Meeting, 2001.10.29-11.01; (2) Reports of UBL TC Subcommittees [Accepted by the UBL TC 1 November 2001]; (3) "Universal Business Language (UBL)."
[July 5, 2001] "FIX and SWIFT to Pursue Single Industry Standard."


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