How do I become an ISO 20022 user in to SIC 3

How do I become an ISO 20022 user in
euroSIC & SIC? – The path from SIC3 to SIC4
“Forum for Software Providers in Interbank Payment Traffic”
Andreas Galle, SIX Interbank Clearing Ltd, Head Business Management
26 September 2013
Agenda
1. Phase 1: How do I become a SIC4 user?
•
•
•
•
•
What does SIC4 mean?
Principles for the SIC4 go-live
Preparation
Documentation & training
Organization & governance
2. Phase 2: How do I migrate to ISO 20022?
•
•
Schedule for euroSIC & SIC
What has to be done?
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1. Phase 1: How do I become a SIC4 user?
What does SIC4 mean?
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SIC4 – Components, interfaces
Key:
LA
WP
SB
Legacy Adapter
Web portal
Service bureau
FA File adapter
FI
Financial institution
MQA MQ adapter
SA
DS
SWIFT adapter
External system
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Principles for the SIC4 go-live
• Orchestrated bank tests will be conducted ahead of production start-up
• Software providers for SIC/euroSIC gateways must successfully complete a defined
test.
 The successful acceptance test will be attested, i.e. financial institutions will only have to
subject this software to one connection test.
• Acceptance of the SIC4 platform will be accompanied by an external auditor.
• The transition from SIC3 to SIC4 will take place per service as a 'big bang'.
 All participants will connect to the new SIC4 system on day x.
• There will be no changes for participants during the SIC4 go-live.
 Exception: The IP address must be adjusted.
 The financial institution should note that the IP addresses are to be activated in all
affected productive frontend systems.
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Preparatory activities
• In order to ensure the fallback, SIC4 must be backwards compatible.
 New functions are still being built into SIC3.
 Functions that are being eliminated will be removed.
 There will still be a SIC3 release in 2013 and 2014.
• Several new features will only be introduced with the SIC4 release in 2016.
 e.g. the functions via Web services
 Release 2016 will be implemented approx. 1 year after production start-up by SIC on the
SIC4 platform, i.e. in autumn 2016.
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Documentation & training
• Documentation
 Same structure as for existing documentation, some of the names were changed:
 Technical Rules and Regulations  Swiss Payments Rulebook
 SIC/euroSIC User Manual  Swiss RTGS Handbook
 Implementation Guidelines for ISO 20022 Messages
 SEPA Credit Transfer Handbook
 Handbook for Payments via SWIFT
 Various user manuals
• Trainings
 Will be offered as needed in the course of 2014
 Possible topics:
 ISO 20022 mapping with SIC format
 New functionality via the Web portal (master data management, limits and queue management)
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Organisation & governance
• Test & integration team
 Plans the test activities & productive introduction of SIC4.
• Deployment team
 Headed by the Head Operations Center, SIX Interbank Clearing.
 Implementation and execution of the planned activities.
• PAP (Project and IT Process Steering Committee)
 Coordinates and accompanies the introduction.
 Assesses test results and recommends ‘go’ or ‘no-go’ for the SIC4 introduction to the SIX
Interbank Clearing Board of Directors.
• Decision-making and escalation committee: SIX Interbank Clearing Board of
Directors
 Decides about the introduction date for SIC4 and acts as an escalation committee in the
event of discrepancies between the stakeholders.
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2. Phase 2: How do I migrate to ISO 20022?
euroSIC planning overview
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Roadmap
ISO 20022 validation platform
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Planning overview
2013
2014
2015
2016
2017
2018
2019
Validation platform: Tests by software publishers / SIC participants
External Test Envir.: Tests by software publishers / SIC participants
ISO 20022
guidelines
available
Rollout of new SW to SIC participants
Migration ISO 20022 euroSIC
End of live
SIC
standard
Migr. ISO 20022 SIC
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Schedule – When can I migrate to ISO 20022?
• euroSIC: Migration to ISO 20022 is possible two months (fallback period) after
euroSIC introduction.
 The date can be chosen in coordination with SIX Interbank Clearing Ltd.
 Migration is possible in stages per communication point (LUD).
 The gateway must continue to support the SIC format in addition to ISO 20022.
• SIC: Migration to ISO 20022 is possible six months (fallback period) after SIC
introduction.
 SIX Interbank Clearing Ltd to define 3-4 migration windows
 The windows will be assigned according to various criteria:
 The financial institution’s preference
 Transaction volume
 Allocation of the financial institution to the window
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What must be done?
1/2
• Preparation for the release of your software that supports the ISO 20022
standard and the SIC format (SIC4 and SIC3).
 The migration to ISO 20022 can take place in stages. For example, outbound messages
can still be in SIC format, while inbound messages are already transmitted in ISO 20022
format.
 The standard for outbound messages (to SIC) can be chosen dynamically.
 The standard for inbound messages (from SIC) must be stored in the master data.
 euroSIC & SIC can, but do not have to, be migrated at different times.
• Implementation of the SIC3 releases in 2013 and 2014.
• To be considered during planning is that release adaptations might also still be
necessary during the roll-out.
• Customers may have to adapt processes, e.g. for the reversal of payments.
• Planning of the roll-out with customers and SIX Interbank Clearing Ltd.
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What must be done?
2/2
• As a SWIFT gateway provider you need not do anything for SIC4, for the time
being.
 SWIFT FIN will continue to be supported by SIC4.
 The end date for SWIFT FIN is not (yet) defined (> 2020).
• The end date for the SIC format is mid-2018.
• As an ERP software provider, the switchover of the customer/financial institution
interface to ISO 20022 must be planned for.
 Switchover of the end-customers (debtors and creditors) by mid-2018 (end date for DTA)
 Introduction of the new uniform payment slip with QR code.
 An event will be hosted about this by the Migration PT CH Communication Working
Group on 31 October 2013 (see www.migration-pt.ch).
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Planning from the today’s perspective: Realization as of 2013,
commissioning as of 2014, discontinuation of existing schemes by 2020
2013
Phases
2014
2015
Old messages (EUR)
2016
Old & new (EUR)
Old messages (CHF)
Credit
transfers
Operator
Financial
Institution
(FI)
FI customer
Phases
Slips
Direct
debits
Old & new (CHF)
2018
2019
2020
New messages
(pacs, pain & camt)
Switchover of PT infrastructures 1)
Conversion to pacs (EUR/CHF)2)
Conversion to pain & camt (EUR/CHF)
Conversion to pain & camt
End of EGA-B service
(EUR/CHF)3)
Old slips
Old & standard slip
Financial
institution
(FI)
FI customer
Phases
2017
new
Conversion to uniform slip
Conversion to uniform slip
Old scheme
Old & new schemes
New scheme
1st processing of credit transfers in EUR (mid-2015) and in CHF (mid- 2016) on the basis of ISO 20022
1st billing with the new uniform payment slip (3rd quarter 2018)
1st processing of direct debits based on ISO 20022 CH (3rd quarter 2016)
The current procedures, standards and formats will no longer be supported / end dates:
Credit transfers in interbank payment traffic (mid-2018)
Credit transfers in customer-bank traffic (1st quarter 2018)
Direct debits (mid-2018)
Current orange (ISR) and red (IS) pay-in slips (1st quarter 2020)
Operating phase
Migration phase
1) “SIC4 – New SIC Architecture” project and the PostFinance infrastructure project
2) Including ECA-F, ISR & EPO for banks (as of 4th quarter 2015).
3) Migration date (mainly between 2015-2018) with regard to pain & camt is to be coordinated with your bank.
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Thank you for your attention.
Andreas Galle
26 September 2013
nsa@six-group.com