XML Interoperability

1
XML Interoperability ConvergenceISO 15022 XML
Working Group (WG 10)

• XML on Wall Street
• November 20th, 2001
• John Goeller

2
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

3
Interoperability or Convergence?
4
Standards Landscape
OTC Derivatives
MutualFunds/ Unit Trusts
F/X
Exchange Traded Derivatives
Fixed Income
Equities
PRE-TRADE
TRADE POST-TRADE
SETTLEMENT POST SETTLEMENT
/PRE-SETTLEMENT
5
Standards Complexity Post-Trade Pre-Settlement
6
Does XML Solve Securities Standards
Interoperability Issues?
7
XML Doesnt Solve Interoperability
ltSWIFTMLgt ltNoticeOfExecutiongt ...
lt/NoticeOfExecutiongt lt/SWIFTMLgt
ltFIXMLgt ltExecutionReportgt ...
lt/ExecutionReportgt lt/FIXMLgt
Quoi?
Do you like XML?
8
Industry Solutions ISO 15022 XML Working Group
WG 10
9
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.

10
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
• Whats not included in the ISO 15022 Standard?
• Data Field Dictionary (DFD)
• Reference Table of Multiple Syntaxes
• Catalog of Messages

11
WG 10 Overview
WG 10
ISO 15022 Recommend-ations
15022
12
WG 10s 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

13
WG 10s Three Streams of Work
UML
XML Schema
UML Business Modeling Guidelines UML to XML
Design Rules
ltxsdschema xmlnsxsd"http//www.w3.org/1999/XMLS
chema"gt ltxsdelement nameNoticeOfExecution"
typeNOE"/gt ltxsdcomplexType nameNOE"gt lt/xsdco
mplexTypegt
Unified Modeling Language (UML) is a visual
modeling language for capturing knowledge
(semantics) about a subject and it is applied to
modeling and systems.
GSTPA
UML
SWIFT
Reverse engineer existing message sets to
business model
FIX
FpML
OMGEO
UML
Organization of Repository Procedures to
register business models and XML Schemas
XML
Note A 4th Project Project Team handles industry
liaison
14
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

15
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

16
ISO 15022 Standards Repository

• Repository will be divided by meaningful segments
• Standards Management Groups (SMG) will be
  responsible for segments of the repository

17
Proposed ISO 15022 Standards Environment
User Community
Registration Management Group
Registration Authority
Standards Management Group
Standards Management Group
Standards Management Group
Web - Site
User Community
User Community
18
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?

19
WG 10 Challenges

• General Issues
• Agreement is difficult
• Existing standards groups must consider their
  installed base
• Vendors that support the standards 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

20
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

21
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

22
Conclusion

• Standards
• Lots of Initiatives
• T1 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