panel - irving - ifx forum 11 7 08.ppt
TRANSCRIPT
10th Anniversary MeetingOrlando FloridaNovember 17, 2008
“The Role of Standards in the Consolidating Financial Services Industry”
Contents
• Bill Irving Bio
• BIAN Introduction
• Outlook for FS Standards
• Seed Questions
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Bill Irving Bio
Bill Irving is a U. S. based industry and consulting professional with over 30 years of Financial Services experience. He has served the industry in both bank management and professional services roles. He has experience with individual participant issues related to operational efficiency, regulatory compliance and control, and financial management and business intelligence. He has also been engaged in broader industry initiatives including consolidation, cross-border integration and standards development. Bill’s individual focus is on organizational and operations effectiveness, including the implementation of related technology solutions.
Bill was formerly President of the Capital Markets Company, an international consultancy focused on the transformation of financial services including the development and management of alternative operating models to increase efficiency and improve business performance. Prior to that he was a Principal and practice leader for capital markets at PricewaterhouseCoopers where he coordinated the development and delivery of consulting services and solutions for global clients. He is a regular speaker at industry conferences and has been active in groups such as the International Financial Services Association (IFSA), Securities Operations Forum (SOF) and the Securities Industry Association (SIA) addressing topics of business transformation, operational risk, global sourcing and technology investment.
Before joining PricewaterhouseCoopers, Bill held management positions in banking with the Irving Trust Company and Marine Midland Bank, and in consulting with Decision Resources Corporation and Peat, Marwick, Mitchell & Co. Bill holds Bachelor of Arts (BA) and Master of Business Administration (MBA) degrees.
Bill IrvingExecutive Director & North American
Leader
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Contents
• Bill Irving Bio
• BIAN Introduction
• Outlook for FS Standards
• Seed Questions
4
Industry Changes• Market structure and capital
flows• Voluntary and forced
consolidation and convergence
• Regulatory reform and supervisory refocus
• Customer needs and care
• Market structure and capital flows
• Voluntary and forced consolidation and convergence
• Regulatory reform and supervisory refocus
• Customer needs and care
Bank Priorities• Realigning business and
operating models• Identifying growth
opportunities• Increasing revenue and
margins• Improving investment returns
• Realigning business and operating models
• Identifying growth opportunities
• Increasing revenue and margins
• Improving investment returns
IT Architecture• Reducing tightly-coupled and
silo-based systems • Improving overall agility and
flexibility• Reducing complexity• Decreasing cost of ownership• Extending applications and
systems life cycles
• Reducing tightly-coupled and silo-based systems
• Improving overall agility and flexibility
• Reducing complexity• Decreasing cost of ownership• Extending applications and
systems life cycles
IT Investment• Focusing on strategic priorities • Improving time to market of
new IT functions• Increasing re-use• Shifting from build to buy• Moving from software license
to SaaS
• Focusing on strategic priorities • Improving time to market of
new IT functions• Increasing re-use• Shifting from build to buy• Moving from software license
to SaaS
Opportunities to Improve (SOA)
in Banking
Opportunities to Improve (SOA)
in Banking
• Creating a standard banking services landscape
• Ensuring consistent service definitions, levels of detail and boundaries
• Moving from a proprietary to an standardized services model to accelerate the commercial availability of products
• Creating a standard banking services landscape
• Ensuring consistent service definitions, levels of detail and boundaries
• Moving from a proprietary to an standardized services model to accelerate the commercial availability of products
SOA can help in Banking, but …
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Tomorrow
Today
Ind
ust
ry S
OA
-Focu
s
Banks can develop their semantic service definitions on a consistent basis through BIAN to enable internal and commercial SOA-based solutions according to a standardized industry model.
BIAN’s envisions a SOA-enabled banking industry with both internal and industry-wide agility and flexibility. BIAN supports banks to define their internal services based on industry collaboration and best practices.
standard
Internal SOA-Focusproprietary best practices
BIAN today
MajorityOf Banks
inte
rnal
exte
rnal In
dust
ry S
OA
-Focu
s
standard
Internal SOA-Focusproprietary best practices
BIAN tomorrow
inte
rnal
exte
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BIAN’s vision
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Value:• To enable banks to fully leverage their SOA investments and focus scarce IT
resources on strategic initiatives. • To enable independent software and services providers to build productized services
to industry standards ensuring efficiency, quality and adoption.• To enable faster strategic and operational change in banking through the broad
implementation of agile and flexible service-oriented architectures.
Mission:As an industry-owned and independent not-for-profit association, BIAN will provide standard, i.e. systematically defined and banking specific, semantic services to enable its members to accelerate their SOA deployment.
BIAN, defining services for banking
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• BIAN was founded as an independent, member owned, not-for-profit association.
• BIAN has 23 members including 6 banks, 11 service providers, and 6 software vendors.
• BIAN‘s initial focus is to accelerate SOA for its members by developing and publishing its work products:
– Architecture• Services Landscape• Business Object Model• Meta Model, Methodology and Guidelines
– Service Definition• Account Balance & Maintenance• Analytics (market & credit risk)• Lending (sales vs. operations)• Manage Business Partner• Payments (internal view)• Pricing (simple, complex)
– Building Blocks• Architecture Management• Service Lifecycle Management • Service Repository …
BIAN, the organization
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Contents
• Bill Irving Bio
• BIAN Introduction
• Outlook for FS Standards
• Seed Questions
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FS XML based standards initiatives
Need for Standards
Consistent views and understanding of financial data
Connectivity among banks, counterparties, exchanges, clients and regulators
Transparency via real-time, straight-through, low-latency processing of transactions based on industry standards
Financial Market Disruptions
Credit Crunch
Liquidity Crisis
Revenue Replacement and Margin Contraction
New Regulatory Supervisory Frameworks
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RDUG
ISO
ISTIC-IOA
FIX Protocol Limited
OmgeoFIX
FpML(Derivatives)
MDDL
BIC
MIC
SEDOL
15022
DUNS #
ISIN
ANSI X9D (US)
SIIA
S&P
REDAC
FISD
CUSIP
ANNA
ALERT
WG11
Telekurs
ASB
Ownership Stake
CFI LSED&B
SWIFT(Reg.
Authority)
ISO Standards
Registration Authority
Registration Authority
WG10 WG6WG10
US Representative
to ISO
Owns
Agreement to make ISO 15022 “XML Aware”
Convergence(Integration)
ISO 15022 XML
Adopting
Adopting Owns
Domestic Identifiers
(~65 in total)
Part of ISIN
Maintains
MaintainsAmerican
Bankers Assoc. (ABA)
Contracts
Ownership Stake
SWIFT(Network)
Standard (Reference Data or Message)
Developed
Developed
OASIS(XML
Conformance Standards)
XML Conformance Standards
XML Conformance Standards
Membership
Facilitation
Membership
Developed
Organization
BSI (UK)
TBMAAMF
Recommenda-tions
Business Entity
Identification
Fund Identification
ISDA
Instrument Identification
WG8
Membership Involvement
McGrawHill
Owns
SC4
TC68
VocabularyData Model
Key Issue XBRLFinancial Reporting
WG11
RDUG
ISO
ISTIC-IOA
FIX Protocol Limited
OmgeoFIX
FpML(Derivatives)
MDDL
BIC
MIC
SEDOL
15022
DUNS #
ISIN
ANSI X9D (US)
SIIA
S&P
REDAC
FISD
CUSIP
ANNA
ALERT
WG11
Telekurs
ASB
Ownership Stake
CFI LSED&B
SWIFT(Reg.
Authority)
ISO Standards
Registration Authority
Registration Authority
WG10 WG6WG10
US Representative
to ISO
Owns
Agreement to make ISO 15022 “XML Aware”
Convergence(Integration)
ISO 15022 XML
Adopting
Adopting Owns
Domestic Identifiers
(~65 in total)
Part of ISIN
Maintains
MaintainsAmerican
Bankers Assoc. (ABA)
Contracts
Ownership Stake
SWIFT(Network)
Standard (Reference Data or Message)
Developed
Developed
OASIS(XML
Conformance Standards)
XML Conformance Standards
XML Conformance Standards
Membership
Facilitation
Membership
Developed
Organization
BSI (UK)
TBMAAMF
Recommenda-tions
Business Entity
Identification
Fund Identification
ISDA
Instrument Identification
WG8
Membership Involvement
McGrawHill
Owns
SC4
TC68
VocabularyData Model
Key Issue XBRLFinancial Reporting
WG11
Financial Services Standards Organizations and their Relationships (illustrative, circa 2005)
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Standards Roadmap for the Securities Industry
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SEC Announces Successor to EDGAR Database“IDEA” Will Make Company and Fund Information InteractiveFOR IMMEDIATE RELEASE2008-179Washington, D.C., Aug. 19, 2008 — Securities and Exchange Commission Chairman Christopher Cox today unveiled the successor to the agency’s 1980s-era EDGAR database, which will give investors far faster and easier access to key financial information about public companies and mutual funds.
XBRL and the SEC Mandate for Financial Reporting
SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 229, 230, 232, 239, 240 and 249 [Release Nos. 33-8924; 34-57896; 39-2455; IC-28293; File No. S7-11-08] RIN 3235-AJ71 Interactive Data to Improve Financial Reporting AGENCY: Securities and Exchange Commission. ACTION: Proposed rule. SUMMARY: We are proposing rules requiring companies to provide financial statement information in a form that would improve its usefulness to investors.
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