iWay ISO 15022 Adapter

A White Paper
By Jake Freivald

Table of Contents
1 1 1 3 4 6 6 6 8 Background Relevance of the ISO 15022 Standard Impact of Changing Standards The iWay ISO 15022 Adapter Solution Flexible Deployment Support for Shifting Standards, Requirements, and Platforms XML Support XML Web Services Support Predefined Maps

Background
Relevance of the ISO 15022 Standard
ISO 15022 is an international standard from International Standards Organization (www.iso.org) related to communication among banking, securities, and financial services organizations. ISO 15022 (www.iso15022.org) represents the convergence of other standards, including ISO 7775, ISO 11521, and other formats used by the SWIFT and FIX organizations. SWIFT (www.swift.com) has mandated conformance with the ISO 15022 for organizations that leverage the SWIFT network. On November 16, 2002, SWIFT will cease conducting business with existing ISO 7775 and MT5xx messages. Instead, it will use 38 new ISO 15022 message types (MT), including Corporate Events, Trading, Depository Receipts, Settlement Confirmations, Settlement Instructions, and Settlement Status. Other organizations, including FIX, GSTPA, ISITC, Thomson/DTCC, Omgeo, and DTCC/MBSCC, have announced that they intend to migrate to ISO 15022. The ISO 15022 standard will be further developed through and ultimately superceded by the emerging ISO 15022 XML standard and associated SWIFT Standard XML (swiftML) and FIXML standards that derive from it.

Impact of Changing Standards

The ISO 15022 migration has the potential to impact virtually every business in the securities industry. Typical financial institutions indulge in one or more of the following affected areas: Collateral Management Corporate Events Depositary Receipts Depot Management General Inter-Depository Messages Position and Movement Statements Settlement Confirmations Settlement Instructions Settlement Status and Allegements Stock Lending and Borrowing Trading Organizations will derive long-term benefits from ISO 15022s standardization of data formats. In ISO 15022 messages, the entity called amount" is represented as 19A," with a consistent format, irrespective of the message type. In contrast, different ISO 7775 message types represent data differently; for example, different names and formats may be used to represent an amount" in different message types.

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Despite the advantages, ISO 15022 migration poses a significant challenge for organizations with critical back-office applications, systems, and processes that were designed using ISO 7775. Since it is usually impractical to rewrite all of their systems, these organizations must continue to support ISO 7775 as they adopt ISO 15022. Applications that do not currently use ISO 15022 must manipulate their existing messages and data formats to conform to the new standard. Most organizations are doing this the hard way. Many of them have adopted tactical compliance solutions, using a practice that has been referred to as wrap, map, and hack" by industry analysts. In March 2002, reports indicated that 69 percent of financial institutions were hard-coding the mappings between existing ISO 7775 applications and new ISO 15022 message types. Only 23 percent of institutions were planning a dictionary-driven approach despite that methods long-term benefits, which include: Direct applicability for straight-through processing Shorter settlement cycles Improved customer service Reduced manual repair costs Reduced application development and maintenance costs Reduced risk The tactical, hard-coded approach solves the immediate need for ISO 15022 compliance, thereby avoiding the manual repair of these message types; however, it does not support the eventual migration to ISO 15022 XML standards or zero latency integration for straight-through processing. The Gartner Group has noted that the long-term impact on the organization can be significant.
By 2005, firms adopting a tactical approach to SWIFT standards migration will experience a three times higher total cost of ownership for these and downstream applications, compared to firms adopting a flexible approach incorporating an internal data dictionary.
Gartner, SWIFT Standards Migration Trends Show Corporate Myopia, SPA-15-6637 March 28, 2002

Put simply, even firms that have hard-coded 15022 standards into existing applications will eventually be forced to adopt a strategic direction that includes data dictionary-based mapping.

ISO 15022 Adapter

The iWay ISO 15022 Adapter Solution

iWay Software has created a set of predefined message maps the iWay ISO 15022 adapter solution to allow financial organizations to support a mix of ISO 7775, ISO 15022, and ISO 15022 XML message types. The iWay adapter solution lets organizations immediately support the 15022 message type (MT) standards, while avoiding a long, expensive, and risky reengineering project for their existing systems. The iWay ISO 15022 Adapter solution overcomes many of the inflexibilities and recurring costs of typical "wrap, map, and hack" approaches. While it is possible to hard-code individual point-to-point mappings of the field content of each message, this code must be duplicated for every application touch point and then modified scrupulously when protocols change. The iWay ISO 15022 Adapter solution is a reusable component that can be implemented for a variety of business processes, regardless of the number or types of applications involved. It allows business processes to change in support of future requirements, such as STP/T+1 initiatives where data definitions, process flows, and business objects are shared among pre-trade and post-trade applications.

The iWay XML Transformation Workbench using the iWay ISO 15022 adapter solution to map between SWIFT-MT571 and MT571-XML. This transformation is reusable across many situations and environments.

Unlike tactical solutions, the iWay ISO 15022 Adapter solution is flexible enough to support a variety of implementation environments, including real-time messaging systems, application servers, XML document exchanges, and Web services. iWay Software will support future technologies as they become available, which will help future-proof" solutions built with the iWay adapter solution.

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The adapter solution also supports future industry convergence around ISO 15022 XML-based integration. The table below shows the general migration in the industry towards ISO 15022 XML.
2001 Pre-trade and Funds Post-trade and Pre-settlement Settlement and Reconciliation Corporate Actions Lending and Borrowing FIX 7775 MT 7775 MT 7775 MT 2002 FIX FIXML 7775 MT 15022 MT 7775 MT 15022 MT 7775 MT 15022 MT 2003 FIX 15022 FIXML FIX/Omgeo 15022 MT 15022 MT 15022 MT ISO 150222 XML 2004+ ISO 150222 XML ISO 150222 XML ISO 150222 XML ISO 150222 XML ISO 150222 XML

iWay Software has extensive in-house SWIFT and FIX expertise. iWay delivers the predefined transformation solutions based on many years of practical experience, and in accordance with SWIFT Standards Release Guide 2001, SWIFT Standard Release Guide 2002, and the International Organization for Standardization (ISO) Data Field Dictionary (DFD) 15022 guidelines.

Flexible Deployment
The iWay ISO 15022 Adapter solution supports very flexible deployment options, including the following: IBM CrossWorlds InterChange Server, MQSeries Interface for SWIFT Alliance (MQSA), WebSphere MQ (formerly MQSeries), WebSphere Application Server, WebSphere MQ Integrator (formerly MQSeries Integrator) Microsoft BizTalk Server 2000/2002, Messaging and Queueing (MSMQ), .NET Web Services, Visual Studio.NET Oracle Advanced Queuing, 9i Application Server, 9i AS Interconnect SonicMQ JMS messaging system Sun iPlanet J2EE application server Sybase Adaptive Server TIBCO Enterprise JMS, Rendezvous (native) BEA Tuxedo, WebLogic Enterprise, WebLogic Integrator Other J2EE applications, including those built using EJB, JMS, JDBC, and JCA standards Any ebXML, SOAP, JDBC, and ODBC applications E-mail systems and FTP batch file transfer

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ISO 15022 Adapter

Deployment options for the iWay ISO 15022 adapter solution include a wide range of transports, integration technologies, and environments.

The iWay ISO 15022 Adapter can be leveraged across multiple applications, allowing any existing application to support bi-directional messaging with ISO 15022 messages. Multiple organizations can reuse the adapter as well e.g., corporate actions, treasury, and settlement operations. Deployment options are shown below:

iWays ISO 15022 adapter solution can be used in conjunction with EAI tools such as IBM WebSphere MQ Integrator. The iWay nodes shown in this image convert SWIFT MT751 to and from XML.

Other iWay adapters support the integration of SWIFT messages with database systems (e.g., Sybase, Oracle, IMS, and DB2) and applications (e.g., CICS, COBOL programs, EDI, and SAP).

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Support for Shifting Standards, Requirements, and Platforms

XML Support
SWIFT Standard XML (swiftML) is expected to replace the SWIFT FIN 15022 message formats by 2005. The iWay ISO 15022 Adapter already supports XML mapping, which will save organizations on future system rewrites from 7775 MT, 15022 MT, and XML standards. The iWay ISO 15022 Adapter is integrated with the iWay XML Transformation Engine, which supports deployment across Windows NT/2000 servers, UNIX platforms, Linux, IBM iSeries (formerly AS/400), and mainframe servers. The 7775-15022 maps are built using the XML Transformation Workbench, which uses XML as intermediary message format. The example below shows the mapping of an MT571 to MT535 statement of holding transaction.

The iWay XML Transformation Engine, showing the built-in map between an ISO 7775 MT571 message and an ISO 15022 MT535 message.

The XML Transformation Workbench dramatically simplifies the effort involved in mapping SWIFT, FIX, or ISO 15022 messages to XML or other internal formats.

XML Web Services Support

A Web service is a collection of functions that are packaged as a single entity and published to the network for use by other programs. Web services are building blocks for creating open distributed systems. Since they use standard Internet technologies, using them does not require knowledge of underlying platform specifics, such as database servers, application servers, programming languages, or operating systems. Although Web services are frequently discussed in terms of business-to-business collaborations, they are also very useful for integrating internal

ISO 15022 Adapter

applications and processes. The iWay Software ISO 15022 Adapter solution helps businesses rapidly create Web services out of existing SWIFT and back-office applications without writing custom code, thus allowing rapid deployment through simple assembly and configuration. iWay Web services capabilities obviate the need to make hard-and-fast global decisions about platforms, operating systems, languages, and APIs. For example, the chart below shows the iWay ISO 15022 adapter deployed as a Web service with Microsofts BizTalk Server. Similar capabilities are available for Java-based and third-party vendor solutions.

On the Microsoft BizTalk Server platform, iWays built-in capabilities give you the flexibility to handle ISO 15022 input and output as Web Services .

The benefits of the iWay Web services approach include: Reduced implementation time. ISO 15022 message mappings can be implemented as Web services by reusing existing applications and databases. The Web services support the ability to send XML, ISO 7775, and ISO 15022 messages between applications. Reduced risk. An organization does not need to learn new languages, develop new code, or modify existing applications to publish Web services. iWay adapters are minimally intrusive and support the use of COBOL, C, C++, CORBA, C#, Java, SQL, and nonrelational databases. Maintainability. Since no new code needs to be maintained, developers can devote their energies to supporting native applications and business systems with existing tools. Support for future standards such as swiftML and ISO 15022 XML will come from the adapter, not programmers. Platform agnosticism. The iWay solution is agnostic to a firms strategic platform direction, whether its Windows 2000, mainframe, Linux, or UNIX; C# or Java; .NET or J2EE; or Microsoft, IBM, Oracle, BEA, or Sun. Web services created with the iWay ISO 15022 Adapter solution work across all environments, and can indeed bridge these environments to achieve interoperability and protection of IT assets.

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Predefined Maps
The table below shows the predefined mappings that are provided with the iWay ISO 15022 Adapter. The mappings honor SWIFT Standards and can be customized for unique business requirements.
Mapping ISO 7775 ISO 15022 Message

Corporate Events
1 2 3 4 5 6 7 8 9 10 11 12 13 14 MT 554 MT 555 MT 556 MT 557 MT 553 MT 561 MT 560 MT 561 MT 550 MT 551 MT 552 MT 560 MT 562 MT 563 MT 566 MT 566 MT 566 MT 566 MT 565 MT 565 MT 568 MT 568 MT 564 MT 564 MT 564 MT 564 MT 567 MT 567 Corporate Action Confirmation Corporate Action Confirmation Corporate Action Confirmation Corporate Action Confirmation Corporate Action Instruction Corporate Action Instruction Corporate Action Narrative Corporate Action Narrative Corporate Action Notification Corporate Action Notification Corporate Action Notification Corporate Action Notification Corporate Action Status and Processing Advice Corporate Action Status and Processing Advice

Depot Management
15 MT 583 MT 538 Depot Management Advice

Position and Movement Statements

16 17 18 19 20 MT 570 MT 571 MT 579 MT 573 MT 572 MT 549 MT 535 MT 577 MT 537 MT 536 Request for Statement/Status Advice Statement of Holdings Statement of Numbers Statement of Pending Transactions Statement of Transactions

Settlement Confirmations
21 22 23 24 25 26 27 28 MT 533 MT 539 MT 532 MT 539 MT 531 MT 539 MT 530 MT 539 MT 547 MT 547 MT 546 MT 546 MT 545 MT 545 MT 544 MT 544 Deliver Against Payment Confirmation Deliver Against Payment Confirmation Deliver Free Confirmation Deliver Free Confirmation Receive Free Confirmation Receive Free Confirmation Receive Against Payment Confirmation Receive Against Payment Confirmation

ISO 15022 Adapter

Settlement Instructions
29 30 31 32 MT 523 MT 522 MT 521 MT 520 MT 543 MT 542 MT 541 MT 540 Deliver Against Payment Deliver Free Receive Against Payment Receive Free

Settlement Status and Allegements

33 MT 534 MT 548 Settlement Status and Processing Advice

Trading
34 35 36 37 38 39 40 41 MT 519 MT 500 MT 501 MT 574 MT 510 MT 512 MT 510 MT 512 MT 513 MT 502 MT 502 MT 576 MT 515 MT 515 MT 518 MT 518 Advice of Trade Execution Order to Buy Order to Sell Statement of Open Orders Trade Confirmation Trade Confirmation Trade Confirmation Trade Confirmation

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