Relevance of ISO 15022 to FIX

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Imported from previous forum

2

[ original email was from Mark Kuuse - mark.kuuse@midas-kapiti.co.jp ]
Hi

I am curious as to the relevance of the ISO 15022 standard (Scheme for messages and data fields for securties) and the FIX protocol. Are they alternatives? complement? or completely serve different purposes?

Any ideas?

Regards
Mark Kuuse

mark.kuuse@midas-kapiti.co.jp

3

[ original email was from John Goeller - john.goeller@ssmb.com ]
SWIFT as the registrar of the ISO standard 15022 has two goals. The establishment of market templates, which establish proper market, practices for the securities industry. And secondly, a global data dictionary that maps existing financial standards like FIX SWIFT and ISITC into one global standard. The ISO 15022 catalogue of messages includes messages for trading like Order to Buy/Sell, Advice of Execution, Allocation and Confirmation. These FIX-like messages are supported along with others for Corporate Events, Depository Receipts, Positions, and of course Settlement.

There is message type overlap but usage is another story. Although, the 15022 trading messages are being utilized, they are certainly not being used to the same level as FIX for order delivery and execution reporting. The primary usage of 15022 would still probably be for settlement type messages. And, ISO 15022 currently does not contain pre-trade info like indications of interest and probably would need work for exchange order delivery.

So, if FIX exists in the pre-trade and trade world and ISO 15022 exists in the settlement world. Why should we care? Both these standards have existed for a few years with no real coordination efforts. The answer is the Global Straight Through Processing Association (GSTPA) which hopes to connect buy-side, sell-side and banks through one utility to improve STP and ultimately reach T+1. Their message flows start with the NOE or Notice of Execution ( primarily done in FIX today), Allocations/Confirmations ( pick you choice), and Settlement (SWIFT/ISITC(ISO15022)). The GSTPA has decided to utlize standards wherever possible. That means ISIN, BIC codes and for its broad product support, the data dictionary 15022.
Without some level of convergence how will the FIX user communicate the NOE or allocations to the GSTPA utility? You could use middleware or build your own software that takes a FIX message and turns it into ISO 15022 one. Many of the major middleware providers have stepped in to provide translations between the two standards.
But these mappings have not been approved by either standards body and as such are susceptible to variabilty.

Members of the FIX Committee have recently been meeting with SWIFT employees responsible for ISO 15022.

To date, we have mapped at a data element level the order, execution report, allocation and settlement messages from FIX to ISO 15022.

We’re currently analyzing field dependencies and lengths to complete the mapping exercise. At a minimum, we would like to publish this work to allow middleware vendors to provide consistent mappings.

This exercise is also important because it puts FIX in a better position for interoperability with the GSTPA’s utility. The GSTPA is suggesting novel ways for the two standards to interoperate but before those ideas can be successful we must agree with SWIFT, as the register of ISO, on the proper mappings between FIX and ISO 15022.

> Hi
>
> I am curious as to the relevance of the ISO 15022 standard (Scheme for messages and data fields for securties) and the FIX protocol. Are they alternatives? complement? or completely serve different purposes?
>
> Any ideas?
>
> Regards
> Mark Kuuse
>
> mark.kuuse@midas-kapiti.co.jp
>
>
>

4

[ original email was from Raj Patel - raj.t.patel@hsbcgroup.com ]
Hi, Can anyone tell if this work has been taken forward by any vendor in the FIX communittee?

This may enable FIX in the Post-trade space if this is available?

Thanks in advance

Kind Regards,

SWIFT as the registrar of the ISO standard 15022 has two goals. The
establishment of market templates, which establish proper market,
practices for the securities industry. And secondly, a global data
dictionary that maps existing financial standards like FIX SWIFT and
ISITC into one global standard. The ISO 15022 catalogue of messages
includes messages for trading like Order to Buy/Sell, Advice of
Execution, Allocation and Confirmation. These FIX-like messages are
supported along with others for Corporate Events, Depository Receipts,
Positions, and of course Settlement.

There is message type overlap but usage is another story. Although, the
15022 trading messages are being utilized, they are certainly not being
used to the same level as FIX for order delivery and execution
reporting. The primary usage of 15022 would still probably be for
settlement type messages. And, ISO 15022 currently does not contain pre-
trade info like indications of interest and probably would need work for
exchange order delivery.

So, if FIX exists in the pre-trade and trade world and ISO 15022 exists
in the settlement world. Why should we care? Both these standards have
existed for a few years with no real coordination efforts. The answer is
the Global Straight Through Processing Association (GSTPA) which hopes
to connect buy-side, sell-side and banks through one utility to improve
STP and ultimately reach T+1. Their message flows start with the NOE or
Notice of Execution ( primarily done in FIX today),
Allocations/Confirmations ( pick you choice), and Settlement
(SWIFT/ISITC(ISO15022)). The GSTPA has decided to utlize standards
wherever possible. That means ISIN, BIC codes and for its broad product
support, the data dictionary 15022. Without some level of convergence
how will the FIX user communicate the NOE or allocations to the GSTPA
utility? You could use middleware or build your own software that takes
a FIX message and turns it into ISO 15022 one. Many of the major
middleware providers have stepped in to provide translations between the
two standards. But these mappings have not been approved by either
standards body and as such are susceptible to variabilty.

Members of the FIX Committee have recently been meeting with SWIFT
employees responsible for ISO 15022.

To date, we have mapped at a data element level the order, execution
report, allocation and settlement messages from FIX to ISO 15022.

We’re currently analyzing field dependencies and lengths to complete the
mapping exercise. At a minimum, we would like to publish this work to
allow middleware vendors to provide consistent mappings.

This exercise is also important because it puts FIX in a better position
for interoperability with the GSTPA’s utility. The GSTPA is suggesting
novel ways for the two standards to interoperate but before those ideas
can be successful we must agree with SWIFT, as the register of ISO, on
the proper mappings between FIX and ISO 15022.

Hi

I am curious as to the relevance of the ISO 15022 standard (Scheme for
messages and data fields for securties) and the FIX protocol. Are they
alternatives? complement? or completely serve different purposes?

Any ideas?

Regards Mark Kuuse

mark.kuuse@midas-kapiti.co.jp