SWIFT ISO 20022 Project

SWIFT ISO 20022 ProjectIIBLP - 2012 Guarantee & StandbyForumDavid Dobbing – SWIFT Standards

Guarantee & Standby LC RedevelopmentGroup objectives• Demand Guarantees & Standby LCs• Identify all end-to-end business flows– Corporate to bank– Bank to bank– Bank to corporate• Agree on business content– Create new ISO 20022 XML messages– Define fields• Validate message design andfunctionality4

Who is participating?….and Others5

Guarantee & Standby LC Messages …• 22 New ISO 20022 Messages• Undertaking Types:– Demand Guarantee– Standby Letter of Credit• Business Processes:– Application / Issuance / Advising– Counter-Undertaking– Confirmation– Amendment– Termination / Non-extension– Demand Processing– Settlement of Charges– Status Reporting– Surety (application / amendment request)6

… Guarantee & Standby LC Messages• Functionality:– International and Local Rules• URDG 758• ISP98• UCP 600– Model forms• Linked to rules• Proprietary– Local language / character sets– Counter-Undertaking– Enclosed documents/files– End-to-End flows• Corporate-to-Bank, Bank-to-Bank, Bank-to-Corporate– Automatic amount variation scheduling• By date and/or event– Digital signature– Flexible field/message size– Structured messages with discrete fielddefinitions7

The MessagesTypesNameApplicationUndertaking ApplicationIssuanceUndertaking IssuanceUndertaking Issuance AdviceUndertaking Issuance NotificationAmendmentMessagetsin.005.001.01tsrv.001.001.01tsrv.002.001.01tsrv.003.001.01Undertaking Amendment Requesttsrv.005.001.01Undertaking Amendmenttsrv.007.001.01Undertaking Amendment Advicetsrv.008.001.01Undertaking Amendment Notificationtsrv.009.001.01Undertaking Amendment Responsetsrv.011.001.01Undertaking Amendment Response Notification tsrv.012.001.01Non-ExtensionUndertaking Non-Extension Requesttsrv.014.001.01Undertaking Non-Extension Notification tsrv.015.001.01TerminationUndertaking Termination Notificationtsrv.016.001.01DemandUndertaking Demandtsrv.017.001.01Extend Or Pay Querytsrv.018.001.01Extend Or Pay Responsetsrv.019.001.01Demand Refusal Notificationtsrv.020.001.01Demand Withdrawal Notificationtsrv.021.001.01SettlementSettlement Reporttsrv.022.001.01Charges Settlement RequestGeneralTrade Status ReportUndertaking Status Reporttsrv.023.001.01tsrv.024.001.01tsrv.025.001.018

Undertaking Issuance Message …9

Project timelineQ3 2010• Initial community consultation (BE, US & HK)• Define potential scopeQ3 2012• Submit for ISO approval2013• ISO Publication2014• Software vendor readiness2015• Projected bank readiness13

RecommendationsUse industry-wide accepted standardsGet started with MT 798 for Standby LC’s &GuaranteesIf building application internally, use ISO datastructures for database designIf buying application, choose SWIFT software vendorpartner committed to ISO upgrades:http://www.swift.com/partners14

Thank you15