Information Mosaic’s Vikas Sahni, head of product management and presales, checks in with FTF News.
Q: What SWIFT-related product trends have you seen among your clients for this year?
A: The ISO 15022 adoption wave has passed. The flaws, particularly the non-extendibility and inability to capture all the relevant information in a structured format, are well-recognized by the industry.
A new trend in Asia-Pacific saw a major exchange implement a solution providing corporate actions information directly from the issuers in a standardized format, including ISO 20022.
Another large exchange and a national depository are working on similar initiatives, while earlier this year a central depository became the first major securities market infrastructure to use ISO 20022 for end-to-end settlement.
Because of the benefits offered by the newer ISO 20022 format, it is gaining in popularity in all the new industry initiatives as it solves some of the issues in ISO 15022.
However, the tangible benefits of moving entirely to ISO 20022 have always been questionable.
In the U.S., the DTCC is two years into adopting the ISO 20022 format for communication as part of its corporate action re-engineering initiative, with the corporate action instruction messages now available in ISO 20022 format.
In Europe, TARGET2-Securities has adopted ISO 20022 as the communication protocol for all securities processing messaging. We currently don’t see a demand for support of this format by our custodian client base, but this could change once the industry sees the benefits.
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