A group of securities industry professionals have proposed a plan to encourage harmonised business practices and regularly scheduled maintenance updates to enhance standardisation in ISO20022 securities messaging.
Various market infrastructure initiatives, which cause different user pockets, and different messaging versions set at various release times by these infrastructures were blamed for holding back messaging standardisation.
At the recent Securities Market Practice Group’s (SMPG) meeting, attended by 60 securities experts, fragmentation was seen to take away benefits of standardisation and increase costs across users because of a need to support coexistence of various messaging practices.
Alexander Westphal, European Central Securities Depositories Association (ECSDA), also commented on the new EU CSD Regulation with respect to settlement discipline and challenges in the areas of abolishing paper certificates by book entry, the move towards a more harmonised holding regime through rules on client individual and
omnibus account segregation, as well as the strict limits on commercial bank money settlement. He noted also the successful introduction of the EU T+2 settlement cycle.
Market Infrastructures Blamed for Lack of Messaging Standardisation
A group of securities industry professionals have proposed a plan to encourage harmonised business practices and regularly scheduled maintenance updates to enhance standardisation in ISO20022 securities messaging.
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