mt to mx- work session
DESCRIPTION
Presentation from SWIFT's Premium Services Forum 2014 on 24/25 November in ParisTRANSCRIPT
Paris – France
Premium Services Forum
24 – 25 November 2014
Adoption by European RTGS
MT to MX
Susan Rogers
24 November 2014
Objective
• Provide an overview of the migration approach adopted by the TARGET2
and Euro1/Step1 services
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 3
Who’s adopting ISO 20022 on SWIFT?
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 4
2014 2015
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
2016
Q
1
Q
2
Q
3
Q
4
2017
Q
1
Q
2
Q
3
Q
4
2018
Q
1
+ DTCC, EFI, ESES, Funds, JASDEC
End of migration
Live date/
Start of migration
Like-for-like
Key concepts
• Same messaging functionality
– Different protocol
• Same copy service functionality
– Different implementation
• Same payload content
– Different standard
• Mapping from MT-MX / MX-MT done at the edge
• Big bang migration
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 5
Messaging/copy services
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 6
FIN InterAct Store
and Forward
Security / integrity / reliability Service feature
High quality of service (99.99%) Service feature
Support by R7 qualified interface Service feature
Non-repudiation with trusted third party Service feature Optional
Validation Service feature Optional
Undelivered message report Service feature Optional
Broadcast facility Optional Not supported
Delivery notification Optional
Message priority Optional
Queue status report Optional
Non-delivery warning Optional
Session history report Optional
Load balancing Optional
Messaging/copy services
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 7
FIN InterAct Store and
Forward
T and Y modes + fallback modes Service feature
Information for use by sender or receiver Service feature
Double authentication Service feature
Reverse billing Service feature
Individual online retrieval for 124 days Service feature
Urgent bulk retrieval for contingency 24 hours 24 hours
Cold start support (reconciliation) Service feature
Partial copy Service feature To be implemented
FINInform / Inform copy Supported To be implemented
Copy destination selected by sender Not supported Service feature
Copy destination BIC8 Level2 or level3 DN
Copy queue reporting Optional To be implemented
Subscription/addressing BIC8/BIC11 Level2 or level3 DN
RMA Mandatory Optional
Liability framework FIN R&L SWIFTNet R&L
(to be harmonised)
FINCopy environment
T2 flows
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 8
Participant B
MT 103(+)
202(COV)
204
Participant A
SWIFT
Interface
SWIFT
Interface
• Closed user group based
• Message validation
• PKI based security
• Archival and retrieval
• Copy services
• Support MT
MI
Application
Authorisation
request MI Authorisation
response
MT 096
Full copy
Payment
Instruction
Autorised/settled
Payment Instruction
Sender Notification
MT 103(+)
202(COV)
204 (**)
(**) with information for receiver
MT 012
(***)
(***) with information for sender
MT 097 (*)
(*) with information for sender/receiver
Abort Notification
MT 019 (***)
SWIFTNet Copy environment
T2 flows
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 9
Participant B Participant A
SWIFT
Interface
SWIFT
Interface
• Closed user group based
• Message validation
• PKI based security
• Archival and retrieval
• Copy services
• Support ISO 20022
MI
Application
Authorisation
request MI Authorisation
response
xsys.001 (*)
Payment
Instruction pacs.008
pacs.009
pacs.010
Autorised/settled
Payment Instruction
pacs
008/009/010
(copy)
xsys.002 (***)
Sender Notification
Abort Notification
xsys.003 (***)
pacs.008
pacs.009
pacs.010
(**)
Out of scope Out of scope
(**) with information for receiver
(***) with information for sender
(*) with information for sender/receiver
FINCopy environment
E1/S1 flows
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 10
(**) with information for receiver
(***) with information for sender
(*) with information for sender/receiver
Participant B
MT 103(+)
202(COV)
204
400
Participant A
SWIFT
Interface
SWIFT
Interface
• Closed user group based
• Message validation
• PKI based security
• Archival and retrieval
• Copy services
• Support MT
MI
Application
Authorisation
request MI Authorisation
response
MT 096
Partial
copy
Payment
Instruction
Autorised/settled
Payment Instruction
Sender Notification
MT 103(+)
202(COV)
204 (**)
400
MT 012
(***)
MT 097 (*)
Abort Notification
MT 019
(***)
SWIFTNet Copy environment
Euro1/Step1flows
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 11
Participant B Participant A
SWIFT
Interface
SWIFT
Interface
• Closed user group based
• Message validation
• PKI based security
• Archival and retrieval
• Copy services
• Support ISO 20022
MI
Application
Authorisation
request
MI
Authorisation
response
xsys.001 (*)
Payment
Instruction pacs.008
pacs.009
pacs.010
Autorised/settled
Payment Instruction
pacs
008/009/010
Partial copy
xsys.002 (***)
Sender
Notification
Abort Notification xsys.003 (***)
pacs.008
pacs.009
pacs.010
(**)
MT 400: discontinued
MT 970: out of scope of migration
(**) with information for receiver
(***) with information for sender
(*) with information for sender/receiver
Standards: Migrating from MT to ISO 20022
• Basis for mapping exercise: High Value payments implementation guidelines
• Approach: Pure like-for-like mapping from FIN MTs to ISO 20022
• Version: V4 (except FI Direct Debit)
• Advantages:
– Limited impact on internal applications (only MT data available)
– Makes it possible to do reverse mapping (from ISO 20022 to MT)
– Interoperability with other Market Infrastructures
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 12
The messages
• MT 103: FIToFICustomerCreditTransfer - pacs.008.001.04.gen
• MT 103+: FIToFICustomerCreditTransfer - pacs.008.001.04.stp
• MT 202: FinancialInstitutionCreditTransfer - pacs.009.001.04.gen
• MT 202COV: FinancialInstitutionCreditTransfer - pacs.009.001.04.cov
• MT 204: FinancialInstitutionDirectDebit - pacs.010.001.01.gen
• MT 900: BankToCustomerDebitCreditNotification – camt.054.001.04.dbt
• MT 910: BankToCustomerDebitCreditNotification - camt.054.001.04.cdt
• Exception Handling:
– FIN equivalent MT 103 (RJT/RTN Guideline): pacs.008 and pacs.009
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 13
Mapping MT to MX: input message Sender BIC to Requestor DN
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 14
{1:F01BANKBEBBAABC3461486137}
{2:I103BANKUS33XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}}
{4:MT message payload}
Input message in MT format
For codes used in positions 3 and 4
of tag 113 to identify domestic
products for urgent payments the
proposal is to map this to a code
word in the LocalInstrument field,
e.g. NLUP or ITBI.
RequestRef: limited to 16 characters
and x character set
xsys.002 and xsys.003 are delivered
to the notification queue specified
in the original message
SettlementPriority:HIGH
RequestorDN:ou=abc,o=bankbebb,o=swift
ResponderDN:ou=efg,o=bankus33,o=swift
Service:swift.tgt.copy
RequestType:pacs.008.001.04.gen
Priority:Urgent
RequestRef:Reference
Request Header
Input Message in MX format
DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE
Request Control
Request Payload
Mapping MT to MX: input message Receiver BIC to Responder DN
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 15
{1:F01BANKBEB0AABC3461486137}
{2:I103BANKUS30XEFGU3003}
{3:{103:TGT}{113:UY00}{108:Reference}}
{4:MT message payload}
Input message in MT format
Request Header
Request Control
SettlementPriority:HIGH
RequestorDN:ou=abc,ou=bankbeb0,o=bankbebb,o=swift
ResponderDN:ou=efg,ou=bankus30,o=bankus33,o=swift
Service:swift.tgt.copy!p
RequestType:pacs.008.001.04
Priority:Urgent
RequestRef:Reference
Input Message in MX format
DeliveryMode:SnF
NotifQueue:bankbebb_tgt
DeliveryNotif:TRUE
InputChannel:bankbebb_tgt
SnFInputSeq:187
OverdueWarningDelay:15
DeliveryNotificationViaSystemMessage:TRUE
CopyIndicator:TRUE
AuthNotifInd:TRUE
Request Payload
Some operational aspects …
• Message retrieval:
– xsys.015 or SWIFTNet Online Operations Manager (O2M request)
– Retrieved messages delivered to a store-and-forward queue
• Gap analysis
– Can use input and output channel sequence numbers
• Shared output queues
– Similar functionality to shared delivery subsets
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 16
Where to find information?
• SWIFTNet Service Description
• SWIFTNet Messaging Operations Guide
• SWIFTNet 7.0 System Messages
• SWIFTNet 7.0 System Message Schemas
• ISO 20022 for High Value Payments Usage Guidelines
• General Functional Specification of the MX/ISO20022 migration – V1.2
Don’t miss: MT and MX – future proofing your Messaging
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public 20
Questions?
21 MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public
THANK
YOU
Thank you
Guide to your next Speed Briefing session
23
SPEED BRIEFING ROOM and NUMBER
The Return of Madame Fortuna – the SWIFT Timeline CHAGALL - 1
Why AMH shines in your infrastructure landscape VAN DONGEN - 2
The Know your Customer Registry PICASSO - 3
Sanctions Compliance HEMINGWAY - 4
Compliance Analytics CENDRARS - 5
MT to ISO – Adoption of European RTGS MILLER - 6
MT to MX – Adoption by European RTGS – 24 November 2014 – Confidentiality: Public