ISO 15022
Encyclopedia
ISO 15022 is an ISO
standard for messaging used in securities trading. Participants in the financial industry need a common representation of the financial transaction
s they perform and this standard defines general message schema, which in turn are used by organizations to define messages in a complete and unambiguous way. This results in efficiency, lower costs, and the avoidance of errors. Prior to standardization in this area, there were overlapping standards, or ad hoc
approaches where there was a functional gap and no standard.
. ISO 20022
is the successor to ISO 15022.
SWIFT
is the Registration Authority for ISO 15022. In SWIFT Financial messages, the standard is applied to variety of message types
.
ISO 15022 was developed in 1995 to provide the securities industry with a better tool to create message standards. The previous standard ISO 7775 contained the actual message standards themselves (like the SWIFT message types MT 520 or MT 534), which did not make it easy to make changes to these standards (because each time one needs to pass a number of time consuming standard cycles). To avoid this, ISO 15022 does not contain the actual messages, but contains a set of rules and guidelines to build messages. If these rules and guidelines are adhered to (checked by the registration authority) the resulting message (format) is automatically an ISO 15022 compliant standard. Examples are the MT 540, MT542 and MT 548.
International Organization for Standardization
The International Organization for Standardization , widely known as ISO, is an international standard-setting body composed of representatives from various national standards organizations. Founded on February 23, 1947, the organization promulgates worldwide proprietary, industrial and commercial...
standard for messaging used in securities trading. Participants in the financial industry need a common representation of the financial transaction
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
s they perform and this standard defines general message schema, which in turn are used by organizations to define messages in a complete and unambiguous way. This results in efficiency, lower costs, and the avoidance of errors. Prior to standardization in this area, there were overlapping standards, or ad hoc
Ad hoc
Ad hoc is a Latin phrase meaning "for this". It generally signifies a solution designed for a specific problem or task, non-generalizable, and not intended to be able to be adapted to other purposes. Compare A priori....
approaches where there was a functional gap and no standard.
Transition from ISO 7775 to ISO 15022
ISO 15022 replaces the previous securities messaging standard ISO 7775. It provides two syntaxes: one compatible with the preceding standards, and one fairly compatible with EDIFACTEDIFACT
United Nations/Electronic Data Interchange For Administration, Commerce and Transport is the international EDI standard developed under the United Nations...
. ISO 20022
ISO 20022
ISO 20022 or UNIFI is the ISO Standard for Financial Services Messaging. It describes a Metadata Repository containing descriptions of messages and business processes, and a maintenance process for the Repository Content....
is the successor to ISO 15022.
SWIFT
Swift
The swifts are a family, Apodidae, of highly aerial birds. They are superficially similar to swallows, but are actually not closely related to passerine species at all; swifts are in the separate order Apodiformes, which they share with hummingbirds...
is the Registration Authority for ISO 15022. In SWIFT Financial messages, the standard is applied to variety of message types
SWIFT:Message Types
SWIFT or Society for Worldwide Interbank Financial Telecommunication provides a network to allow financial and non-financial institutions to transfer financial transactions through a 'financial message'....
.
ISO 15022 was developed in 1995 to provide the securities industry with a better tool to create message standards. The previous standard ISO 7775 contained the actual message standards themselves (like the SWIFT message types MT 520 or MT 534), which did not make it easy to make changes to these standards (because each time one needs to pass a number of time consuming standard cycles). To avoid this, ISO 15022 does not contain the actual messages, but contains a set of rules and guidelines to build messages. If these rules and guidelines are adhered to (checked by the registration authority) the resulting message (format) is automatically an ISO 15022 compliant standard. Examples are the MT 540, MT542 and MT 548.