FMIs including the Australian Securities Exchange, Canadian Payments Association (CPA), Euroclear, Clearstream and Russia’s National Settlement Depository are among the first to commit to the charter, which promises an industry designed framework for ISO 20022 implementation.
There is industry concern about fragmentation and the risk of multiple versions of ISO 20022 being adopted across various markets, leading to higher implementation costs, according to SWIFT.
As a result, SWIFT established the charter with 23 FMIs earlier this year, promising to coordinate the rollout of ISO 20022 and provide the technology to facilitate harmonisation.
Other FMIs will announce their support of the charter pending development of their implementation plans.
Gerry Gaetz, president and CEO of the CPA, commented: “With over 200 initiatives around the world aimed at implementing ISO 20022, the need for harmonisation of the rollout is clear. If each region makes a concerted effort towards harmonisation, the global community will benefit. Without this, we run the risk of fragmentation, ultimately making the implementation process more complicated and reducing potential benefits.”
Edwin de Pauw, head of product management for Europe at Euroclear, added: “The inherent flexibility of ISO 20022 allows for implementation of different message versions and to different timetables. SWIFT’s proposal not only gives us a good framework to follow, but also recognises the varying maturity levels of ISO 20022 adoption across multiple capital markets.”