Getting Started



This section of the ISO 15022 Settlement Messaging Web Interactive Guide provides the information you need to get started using ISO 15022 Settlement messaging with DTCC.

First, please complete the Getting Started request form.

pdf Getting Started Request Form (84 KB)

What Is ISO 15022 Messaging?

To conduct their business, financial institutions exchange massive amounts of information with their customers and among themselves. Such exchanges only work if the sender and receiver of a message have a common understanding of how to interpret this information.*

To be able to eliminate the need for human intervention to interpret the data, the financial industry has created message definitions — that is, agreements on how to organize the data they want to exchange in structured formats (syntax) and meaning (semantics).*

The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies. The standards body governing messaging for financial institutions is the Society for Worldwide Interbank Financial Telecommunication (SWIFT). SWIFT has established common standards for financial transactions and a shared data-processing system and worldwide communications network. SWIFT has become the industry standard for syntax in financial messages. Messages formatted to SWIFT standards can be read by, and processed by, many well-known financial processing systems, whether or not the message actually traveled over the SWIFT network.

SWIFT develops and maintains International Standard ISO 15022. ISO 15022 is currently the predominant securities standard in cross-border cll, reconciliation, and corporate action processing. The adoption of ISO 15022, mandated in 2003, has led to a dramatic increase in straight-through processing (STP) rates. One of the standard's advantages is its data dictionary-based approach, which enables reuse and standardization of data across all messages. About half of the 15 million messages exchanged on the SWIFT network every day are ISO 15022.*

 

*Portions of this article have been adapted from the booklet titled "ISO 20022 for Dummies," written by The SWIFT Standards Team, copyright © 2010 by John Wiley & Sons, Chichester, West Sussex, England.

  • ISO 15022 settlement messaging offers an international standard format in which business items, such as the Settlement notifications and activity, are always represented in the same way.
  • The existing settlement process will accept ISO-formatted messages through a single MQ queue, eliminating the need to direct transaction input to different input queues.
  • An internal reference number (Customer Transaction Identifier [CTID]), submitted by the participant, will be carried throughout the life of the transaction and will be provided on ISO output back to the participant. This feature, available only via ISO 15022 input, will allow participants to better synchronize their systems with those of DTC.
  • ISO 15022 settlement messaging allows the linking of messages to track processing of the transaction life cycle. Partial transactions are better managed because positions are classified based on currently settled, pending settlement, and to-be-settled positions.
  • Participants will receive reject messages if they accept ISO output (currently DTC does not produce output for rejects with proprietary message formats).
  • ISO 15022 settlement messaging replaces free-form text with structured fields promoting straight-through processing. It communicates settlement status and reasons using agreed-upon standards within the industry.

Input message layouts that are currently available are shown in the table below.

Settlement transaction type

ISO message type

Deliver Order

Free, Free ADR, Free IPO, Free Security Holder Tracked (MT542)

Valued, Valued ADR, Valued IPO, Valued Security Holder Tracked (MT543)

Payment Order

Premium, Security (MT543)

Collateral Pledge

Free Release Return, Free Pledge, Free FED Release Return, Free FED Pledge (MT542)

Free Release Request, Free FED Release Request (MT540)

Valued Release Return, Valued Pledge (MT543)

Valued Release Request (MT541)

Accounting

SEG, SEG Release, Memo SEG, Investment ID, Investment ID Release, MA/NA Position Transfer (MT524)

Command
(For example: receiver authorized delivery [RAD], authorizations, cancels, pend holds, promotions, exemptions)

Transaction Command (MT530)

 

Output message layouts that are currently available are shown in the table below.

settlement transaction type

ISO message type

Acknowledgement

ACK and NAK (MT598)

Confirmation

Receive Free (MT544)
Receive Against Payment (MT545)
Deliver Free (MT546)
Deliver Against Payment (MT547)

Status

Short Version, Long Version for Deliver/Payment Order, Long Version for Accounting, IPRC Version (MT548)

Collateral Pledges Confirmation

Receive Free, Receive Free FED (MT544)
Receive Against Payment Order (MT545)
Deliver Free (MT546)
Deliver Free FED (MT546)
Deliver Against Payment Order (MT547)

Collateral Pledges Status

Long Version, Long Version for FED (MT548)

In addition to ISO 15022, there are a number of widely used messaging standards. These include:

FIX

The Financial Information eXchange (FIX) protocol is a series of messaging specifications for the electronic communication of trade-related messages. FIX is a self-describing protocol that’s similar in many ways to other self-describing protocols, such as HTML. The FIX session is layered on TCP (Transmission Control Protocol).

FIX is the predominant standard of the securities front office. FIX is utilized as the messaging standard to submit and receive trade-capture information to and from DTCC's Universal Trade Capture (UTC) system.

FpML

This stands for Financial Products Markup Language. It uses extensible markup language (XML) syntax and was specifically developed to describe the often complicated contracts that form the base of financial derivatives products. XML is a set of rules for encoding documents in machine-readable form and is widely used for interchanging data via the internet.

SWIFT Messages

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has established common standards for financial transactions and a shared data-processing system and worldwide communications network.

SWIFT has become the industry standard for syntax in financial messages. Messages formatted to SWIFT standards can be read by and processed by many well-known financial processing systems, whether or not the message actually traveled over the SWIFT network.

SWIFT messages are also referred to as ISO messages (for example: 15022 or 20022).

Proprietary Domestic Messages

Various proprietary domestic messaging standards are also widely used. DTCC is an example of a market infrastructure using proprietary-formatted standards. DTCC processes some 40 million messages each day to clear and settle U.S. domestic securities trades.

XBRL

XBRL is a flexible extensible markup language (XML)-based standard for exchanging business information, which specializes in providing easy automation for information found in unstructured documents. XML is a set of rules for encoding documents in machine-readable form and is widely used for interchanging data via the internet.

ISO 20022

ISO 20022 is the newest messaging standard. settlement messages at DTCC are in ISO 15022 only. DTCC is moving to provide all corporate action announcements and other processing messages in the ISO 20022 format instead of its current proprietary format in order to converge toward best practices in the capturing and processing of corporate action events.

*Portions of this article have been adapted from the booklet titled "ISO 20022 for Dummies," written by The SWIFT Standards Team, copyright © 2010 by John Wiley & Sons, Chichester, West Sussex, England.

Settling participants who want to leverage their global infrastructure using internationally accepted standards in order to submit and receive real-time messages should use ISO 15022 Settlement messaging.

Before you get started

Check whether you have a valid bank identifier code (BIC). If you do not have a BIC, you can obtain one through the Society for Worldwide Interbank Financial Telecommunication (SWIFT)’s BIC online portal.

Once you have a valid BIC

  1. Determine whether your firm has an existing DTCC connection (for example, SMART/MQ).

  2. Determine what type of setup your firm requires: message submission/input only, message receipt/output only, or both.

  3. Ask a member of your technology staff to contact the DTCC Relationship Services Group at (800) 422-0582 or at This email address is being protected from spambots. You need JavaScript enabled to view it. to request ISO 15022 cll messaging setup.

  4. Provide the DTCC Business and Technology Support group (BATS)  with the following information:
    • a. A valid BIC
    • b. The queue to which messages should be directed (output only)
    • You can contact BATS at (888) 382-2721 or at This email address is being protected from spambots. You need JavaScript enabled to view it..
    • Contact the Relationship Management group at (888) 382-2721 or via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it. to request documentation on subscription services for particular message formats and methods of transmission.

For general information regarding ISO 15022 settlement messaging, please contact the DTCC Relationship Services Group (RSG) at (800) 422-0582 or via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it..