Guide to ISO 20022 migration: Part 4
In September 2020, we released the third in our series of guides to the upcoming ISO 20022 migration. That edition covered a number of changes that had taken place that year, including the revised ISO 20022 delivery dates for SWIFT and several of the world’s major market infrastructures. This meant that 2021, the original year of the ISO 20022 migration, had become the year of delivery. As we edge closer to the finish line, Deutsche Bank team now presents Part 4 of this journey in advance of Sibos 2021
Since the release of our previous edition of the Guide just before Sibos 2020, market infrastructures remain committed to their respective, revised timelines, with direct participants in Europe on track to begin industry testing in December 2021, and those in the UK deep in preparations for the upcoming like-for-like phase in June 2022.
In the correspondent banking space, SWIFT – in collaboration with the industry – has continued to develop the Transaction Manager (TM) – the central orchestration platform, which will coordinate transactions end-to-end. SWIFT has now revealed plans for a ‘build-up period’, a phased approach in which ISO 20022 traffic will be gradually migrated onto the new platform.
To accommodate the coexistence phase, SWIFT has also developed an in-flow translation service. From August 2022, ISO 20022 messages will be translated to multi-format messages (ISO 20022 + embedded MT) by default. The project took a step in the right direction in June 2021, when the in-flow translation was successfully tested by seven banks – proving its functionality and SWIFT’s readiness for the go-live.
The final stretch
Though progress has been strong, our message remains the same: banks should not take their foot off the pedal. Participants should be mindful that any disruptions caused by a minority, will likely have negative implications for the majority. The key to success – as laid out in all three of our previous guides – is ‘preparation, preparation, preparation’. In particular, the earlier we are ready for testing, the more prepared we will be as a community when the time comes to switch over.
At Deutsche Bank, we remain focused on this destination – and we hope that our Guide to ISO 20022 migration: Part 4 will provide you with all the information you need to continue moving forward on your own migration journey.