Getting Started With ISO 20022 Messaging - Dtcc

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Copyright 2019 by The Depository Trust & Clearing Corporation (“DTCC”).All rights reserved. This work (including, without limitation, all text, images, logos, compilation and design) is proprietary andprotected by copyright, and is for the exclusive use of users authorized by DTCC. If this work is received from DTCC in anyelectronic medium, authorized users of this work are granted a limited, non-exclusive, non-transferable, non-sublicensableand freely revocable license to make reproductions and transmissions necessary for downloading and storage of this workon the users' computers and to print one or more paper copies from the electronic version for their own use. Other than tothis limited extent, no part of this work (including any paper copies thereof or print versions thereof) may be printed, copied,altered, modified, posted, reproduced, displayed, published, sold, licensed, used or distributed (including by transmission)in any form or by any means, or stored in any information storage and retrieval system, without DTCC's prior writtenpermission.The services described above are provided under the “DTCC” brand name by certain affiliates of The Depository Trust &Clearing Corporation (“DTCC”). DTCC itself does not provide such services. Each of these affiliates is a separate legalentity, subject to the laws and regulations of the particular country or countries in which such entity operates. Please for more information on DTCC, its affiliates and the services they offer.All product or service names are the property of their respective owners.This document is being made available by DTCC for information purposes only. Please refer to the Corporate ActionsTransformation technical documentation section of for further information.Doc Info: May 1, 2019Publication Code: CA106Service: Corporate ActionsTitle: Getting Started with ISO 20022 Messaging

TABLE OF CONTENTSDisclaimer . 5Document History . 6Introduction . 7Corporate Actions and ISO 20022 Messaging .7ISO 20022 Benefits .7Key Concepts . 8ISO 20022 .8Overview of the Corporate Actions Data Model .9Multiple Events .9Identification .10Event Types .10Sub Event Types .10Mandatory/Voluntary Indicator .11Narratives .11DTC Workflow Status .12ISO 20022 Message Data .13Message Structure .16Client Resources and Documentation .19DTCC Website .19DTCC Asset Services Learning Center .19Documentation .19ISO 20022 Message Delivery and Network Protocols.20Subscription Options .21Customer Testing .21Documentation Guide . 22Corporate Action Data Dictionaries .22Corporate Action Event Scenarios .24Event Type .25

Nature of the Event and Option Type .25Default Option .26Payout Details and DTC Legacy Values .26Message Usage Guideline (MUG) .27Onboarding: How to get started . 32Contact Information.32ISO 20022 Mapping .32Client Support .32Appendix A: DTCC Implementation of ISO 20022 . 33DTC Naming Conventions .33Supplementary Data (Extensions) .33Notation .35

Getting Started with ISO 20022 MessagingDISCLAIMERThis document is being made available by DTCC for information purposes only. Please refer to the CorporateActions Transformation technical documentation section of for furtherinformation.Disclaimer5

Getting Started with ISO 20022 MessagingDOCUMENT HISTORYJuly 2015 Note: This document was previously titled “DTCC Corporate Actions Product Migration Guide forAdoption of ISO 20022 Messaging.”May 2019 Note: This document was previously titled “Getting Started with ISO 20022 AnnouncementsMessaging”Document History6

Getting Started with ISO 20022 MessagingINTRODUCTIONCorporate Actions and ISO 20022 MessagingDTC’s Corporate Actions Service is supported by ISO 20022 standardized messaging and its user interfaceknown as the Corporate Actions Web, or “CA Web”. The backbone of the service is a data model based onevent data with options and payouts.ISO 20022 is an international messaging standard that is designed to simplify global business communicationby creating a common language for communicating financial information that is unrestricted by national bordersor regional conventions. DTC uses ISO 20022 messaging for automated electronic communication betweenitself and clients. The Corporate Actions Web (CA Web) is a web based platform.ISO 20022 BenefitsISO 20022 offers a host of benefits, including: Flexibility – both in terms of its content and tailoring of output. As new corporate actions are developed,the messaging standard can change to meet the demands of the business, not the other way around XML Syntax – due to its widespread support, XML allows for easier processing and more efficient yearlymaintenance Schema Validation – used to confirm that each data element is populated with a valid value Greater Straight-Through Processing (STP) – corporate action events are announced using a datamodel that conforms to market practice, and accommodates more fielded and tagged data rather thannarrative or “free text” Unique Corporate Action ID for Each Event – can be tracked through the life cycle of the event – fromannouncement, to election, entitlement, and payment Enhanced Data Elements – a comprehensive and granular number of data elements, which allows forgreater accuracy and, ultimately, less processing risk on the part of the customers Maintenance – the yearly standards process requires DTC to constantly review, scrutinize and maintainits standard to ensure compliance with market practice. This systematic approach to the business rulesdriving the file formats results in a reduction in ad hoc maintenance A Global Standard – In defining a model for U.S. and global corporate actions, DTC worked closely withSWIFT, ISO 20022's registration authority. DTC then worked with the Securities Markets ProcessingGroup (SMPG) and the International Securities Association for Institutional Trade Communication (ISITC)to develop proposals for changes to the ISO 20022 standard as it related to corporate actions, which werereviewed and approved by the Securities Standards Evaluation Group (CA SEG), a group of internationalindustry experts who accept or reject changes to the ISO 20022 standard’s repository. DTC thenpresented the proposals to the Corporate Actions Maintenance Working Group, a group that isresponsible for all annual ISO standard release changes, for evaluation and admission for the final countryvote.Introduction7

Getting Started with ISO 20022 MessagingKEY CONCEPTSThis section outlines some of the key concepts underpinning DTC’s Corporate Actions service.These are: The use of ISO 20022 messages and data model, The message structure (taking a corporate action announcement as an example), and The methods of communication with DTC systems.ISO 20022ISO 20022 is founded on modern data modeling techniques and business process analysis. Central to thestandard is a global, cross-functional data dictionary and business process model. Aligning with thesecomponents enables DTC to provide clients with increased operability within their own systems and with otherexternal processes.There are, however, data elements and codes within the DTC data model that do not exist within the ISO20022 corporate action announcement messages. To accommodate critical data that is not available as part ofthe core standard, DTC utilizes “supplementary data” structures also known as “extensions.”These extensions enable DTC to provide an agreed-upon and machine-readable structure within themessages for those data elements that have not been globally agreed to form part of the main message. Notethat the structure of the extension must be validated by the ISO community and registered within ISO 20022,and this process includes the addition of the elements to the ISO 20022 data dictionary. This allows forimproved interoperability while avoiding an impact on the messages themselves which may have beenimplemented in other communities.In time, it is hoped that many of the elements initially placed in the extension structures will be accepted intothe standard message globally. To that end, DTC is working with the National 1 and Global2 Market PracticeGroups to enhance the ISO 20022 standard. Other elements may be required only for coexistence with theexisting DTC systems, or may not be accepted globally, and will thus remain in the extension structure for theforeseeable future.Changes to the ISO 20022 standard occur annually, in November, and require DTC and its clients toaccommodate specific changes within their systems. DTC revises technical documentation accordingly.More information on the ISO 20022 standard can be found at U.S. Securities National Market Practice Group is ISITC. See Securities Market Practice Group, SMPG. See Concepts8

Getting Started with ISO 20022 MessagingThe following are the different corporate action ISO message groups that are available:ISO 20022 Message cementsIn ProductionIn ProductionIn Production(November 2011)(November 2011)(November 2011)In ProductionIn ProductionIn Production(February 2013)(August 2015)(July 2017)In ProductionN/A2019-2020Entitlements & AllocationsInstructions*(March 2015)* Inbound MessagingClients can replace the manual process of submitting instructions to DTC via CA Web with automatedinstruction messaging via ISO 20022 for: DRIPS Optional Distributions Foreign Currency Foreign Tax WithholdingThese inbound instructions messages (CAIN/CAIC) can be submitted to DTC via MQ only.Overview of the Corporate Actions Data Model The identification of the event is a key component in the ISO model. A corporate action identificationnumber (CA ID or COAF as it is known in ISO 20022) is issued by DTC for each DTC-eligible event andremains consistent throughout the life of the event. DTC provides this official reference number ONLYthrough an ISO 20022 message for DTC-eligible securities. ISO 20022 uses its own set of event type codes to define the event and how it must be processed; A critical data item for each event is the mandatory/voluntary indicator, which shows whether an eventis mandatory without options, mandatory with options or voluntary. ISO 20022 seeks, wherever possible, to avoid the use of narratives and free text; there are, however,occasions where data must be supplied in text form.Multiple EventsThe data model is able to define a single event with multiple options and payouts to account for the complexityof the event. Where the event complexity is such that processing is facilitated by multiple events, the eventsare linked by reference.Where the market itself defines multiple events, they are linked by reference in the data model (seeidentification, below). DTC provides the possibility, through the browser known as Corporate Actions Web (CAWeb), to view related events for the same CUSIP or CUSIP family.Key Concepts9

Getting Started with ISO 20022 MessagingThe data model’s approach to multiple events is summarized below:FeatureISO 20022 ModelSingle event as defined by the marketSingle event provides all details using multiple options and payouts toaccount for event complexity.Multiple events as defined by the marketEvent linking provided dynamically via reference to the event identifier(Related Event ID) and link type describing association/relationship.Multiple events as defined by DTCRelated events (same CUSIP or CUSIP family) are displayed in thebrowser (not included in messages).To facilitate processes at DTC some events may be announced as multipleevents. Those events will be linked via reference to the event identifier(Related Event ID) and link type describing association/relationship.IdentificationThe ISO 20022 data model includes a number of identifiers for an event. The Corporate Action EventIdentification must be populated by any institution (data providers or account servicers) that sends eventannouncements. This identifier is then referenced in any further communication (replacement announcements,or subsequent processing) for that event by that institution.In addition, the Official Corporate Action Event Identification (CA ID or COAF as it is known in ISO 20022) is aunique event reference for the event, and is assigned by a designated body within each market. DTC publishesthe Official Corporate Action Event Identification on DTC eligible securities on its ISO 20022 messages.Where applicable, “related” events are linked using the Corporate Action Event Identification. For example, therelevant Event Identifications are listed on each event where two or more events should be taken together tounderstand a complete event, or where the events have a material impact on each other.Event TypesDTC uses ISO aligned corporate action event types. In general, the event type defines the event withoutreference to the security type, processing flags or the mandatory/voluntary indicator, although some exceptionsapply. DTC defined event types in some cases are more granular than ISO e.g., Maturity, WarrantsRedemption, Termination are all represented as Final Maturity (REDM) in ISO Event Type value. These moregranular DTC event types are identifiable by either using additional elements in the message, like:EventProcessingType or use of extensions like ExtendedEventGroup.Sub Event TypesMost of the DTC defined event types in combination with sub event types have one corresponding ISO eventtype. However, there are instances where more than one DTC defined event type ( sub event type) isrepresented by one ISO event type, and also where some DTC defined event types do not have acorresponding ISO event type. A complete list of DTC defined event types and sub event types and theircorresponding ISO codes are available in the DTC Corporate Action Announcements Data Dictionary.Key Concepts10

Getting Started with ISO 20022 MessagingFinally, a few of the DTC events are mapped onto the generic “other” ISO event type code. These events canbe distinguished using existing message elements whenever it is possible or by using extensions. Thefollowing table lists some examples of the event types mapped to “other” (OTHR).Event NameUsageISO Event Type CodeMappingAdditional Qualifier(Message Element)DistributionA distribution by the issuerthat is not classified asanother specific event.OTHR (Other)(ISO)EventProcessingType:DISNGeneral InformationGeneral informationprovided by the issuer thatshould not result in materialchanges to the security.OTHR A reorganization eventannounced by the issuerthat cannot be classified asanother event.OTHR ntary IndicatorThe corporate action event types also include a notation as to the “nature” of the event, which will be one of thefollowing: Mandatory (MAND): Events that occur without representation from the holder. These can be drivenunilaterally by the issuer or as an attribute of the security. Examples are: Cash Dividend and Maturity. Voluntary (VOLU): Events that require an election, or not, from the holder. For example, Tender Offerand Rights Subscription. Mandatory with Options (CHOS): Events that are mandated by the issuer/offeror but where a choice ofentitlement is offered. The holder can make an election or not respond and receive the default option. Forexample: Dividend with Options and Merger with Elections.NarrativesA key goal of the ISO 20022 standard is to reduce the amount of data sent as free text, thus increasingstraight-through processing (STP).In the DTC implementation of ISO 20022, a number of different narrative fields are used to further clarify detailsof the event: Terms (mapped to ISO InformationConditions): Provides a summary of the event in a manner that willenable message recipients to send the information directly to their clients. Restrictions: Event restrictions are key details that need to be easily identified and understood by allparties. “Restrictions Text” occurs at two levels:oRestrictions (mapped to ISO InformationToComplyWith): Details restrictions that apply to the event.Key Concepts11

Getting Started with ISO 20022 MessagingoRestrictions on Disbursed Security (Payout Level, mapped to SecurityRestriction): Detailsrestrictions that may be applied to the new security, including where the new security is not DTCeligible and needs to be “exited.” Comments (mapped to AdditionalText): Critical information regarding specific processing about the event. Vendor (mapped to NarrativeVersion): Information supplied by the data vendor. Option (mapped to OptionsDetails/ NarrativeVersion): Provides a summary of the option provided in amanner that will enable message recipients to send the information directly to their clients.DTC Workflow StatusDTC’s data model contains different internal workflow statuses that ultimately map to the ISO 20022 standardworkflow statuses. The chart below will help you understand some of those statuses and how they ultimatelyrelate to what you receive via the ISO 20022 Key onAll of therequired datahas beenpopulated. Anyconflicting datahas beenresolved. Eitherall informationwas inagreement(STP) or ifmanualvalidation wasnecessary,authorizedreview andchanges/updateswere performed.Indicates whetherthe details providedabout an event arecomplete TypeIndicates the statusof the occurrenceof an event.CONFCancellationReasonCodeONLY forCancellationadvicemessage.CANOn/a12

Getting Started with ISO 20022 itionallyApprovedAnnouncementhas beenconfirmed butnot all of therequired data isavailable. Eventwas validated ora specific STPcriteria was met,however, data isstill pendingconfirmation ofthe event.INCOCONFCANOn/aCNCancelledEvent has beencancelled by ementrecord has beendeleted/removedas an invalidrecord.COMPUCONCACNPROCISO 20022 Message DataISO market practice views information based on the sender of the message (usually an Asset Servicer). DTCissues data in its role as a Central Securities Depository (CSD) and generally, reflects the key data provided byDTC in the core message.Messages are constructed with a “core” standard message mapping required (for processing), and asupplementary extension.Key Concepts13

Getting Started with ISO 20022 MessagingThe following illustrates the data mapping methodology:For a Cash Dividend event, its payout data fields contain DTC Cash Rate, DTC Gross Rate and DeclaredGross Rate, all of which are mapped to the “core” standard part of the message. Fields such as DTC PayMethod and DTC Pay Order are extended as supplementary data.In most cases, the same options are offered (announced and processed) by both the Issuer/Offeror and byDTC. However, on occasion, there are options offered by the issuer that are not processed by DTC, while atother times it may be that DTC offers an option that is not offered by the issuer. The message will contain allknown options for the scenarios outlined above. Each option will be “flagged” if it is not processed by DTC or ifit is not offered by the issuer. It is also possible that the default option differs depending on source of theoption: DTC or Issuer. These will also be flagged where appropriate.The following table summarizes the DTC and Issuer Options scenarios:Option ScenarioIssuer SupportedOption FlagDTC SupportedOption FlagRemarksIssuer offers the option. DTCsupports (processes) the option.YYNo special tag in the message. Optionsupport by the Issuer and DTC isassumed unless specified otherwise.Issuer offers the option. DTC doesnot support (process) the option.YNOption Features element in the coremessage will have code NOSE toidentify this scenario. Securities mustbe delivered out of DTC for participantswishing to take part in the specificevent option.Issuer does not offer the option.DTC supports (processes) theoption.NYOption Features element in the coremessage will have code AVSO toidentify this scenario. The option is notsupported by the Issuer - only DTCparticipants can take part.Key Concepts14

Getting Started with ISO 20022 MessagingThe following table summarizes the DTC and Issuer default Option scenarios:Option ScenarioIssuer SupportedOption FlagDTC SupportedOption FlagRemarksIssuer offers the option. DTCsupports (processes) the option.Both DTC and Issuer announce itas the default option.YYNote: Events with a single option arerequired to have a default option, evenif a mandatory event, per ISOstandards.Issuer offers the option. DTCsupports (processes) the option,but announces different options asthe default (DTC DRIP).YNDTC does not support Issuer’sDefault Option.YNDTC has an additional option (thatIssuer does not offer) that option isdesignated as default at DTC.NYThe primary creators of corporate action content are the issuer / agent, depository and the stock exchange.DTC’s data model, and to some extent ISO, accommodates the different ‘owners’ of the information eitherexplicitly or implicitly. While the “ownership” of specific data elements is mostly straightforward, there are someconcepts that DTC will differentiate, as DTC data and Issuer data are not noted as such in the ISO model.The following table provides a summary on data element "ownership":ScenarioDetailsDTC Only InformationInformation that is created by DTC in itscapacity as the Depository for DTC eligiblesecurities or for DTC specific services.Example DTC Last Day for DepositDTC Chill Release Date forDeposit Record dateProration date Ex-date Actual Expiration DateDeclared Cash RateDTC Instruction Expiration DateDTC Cash RateThe data element will be prefaced by “DTC.”Issuer Only InformationInformation only supplied by the issuer.Does not have specific notation.Stock Exchange OnlyInformationInformation only supplied by the stockexchange.Does not have specific notation.DTC and Issuer DataElementsSimilar information that both the issuer and DTCprovide.Custodian data is usually prefaced by “DTC”and the issuer by “Declared” or “Actual.”Key Concepts15

Getting Started with ISO 20022 MessagingMessage StructureThe DTC corporate actions data model is aligned with ISO. There are, however, differences in therepresentation. This section will explain the relationship between the two models using a corporate actionsannouncement as an example.The DTC Corporate Action Model has several “levels”. The levels are associated with ISO Corporate ActionNotifications either directly or based on a condition. The multiplicity (noted using UML notation as 0 1, 0 inthe Message Usage Guideline for the CANO) is displayed for levels and message building blocks, as well asfor associations between the DTC levels and the ISO message building blocks or components.Details on the “payload” (core and extension) of the ISO 20022 message will be explored in depth immediatelybelow. In addition to the core and extension component of the message, there are two header components tobe aware of: Network Header – different formats for the SWIFT and SMART networks Business Application Header (BAH) – Standard for all DTC ISO 20022 messagesThe payload of the message is where you will find important business information related to the corporateaction event. It consists of the core and the extension components. The core consists of a number of data“levels,” a hierarchy of logical groups that contain related information.The main data levels are: Event level: data that applies to the entire corporate action, such as the event type, andmandatory/voluntary indicator; the level is mandatory and non-repetitive; Option level: data that applies to a single option only, such as the option number, option type, andwhether the option is supported by DTC and/or the issuer. Note that in the ISO 20022 data model, even amandatory event with a single payout is defined as having one option; and, Payout level: data for each payout such as the identity of the outturn security or the rate of the security orcash payout; there may be one or more payouts per option; payout levels are distinguished by a payoutnumber (sequential order) and payout type.These data levels are also built into the structure of the extension component. Where there are DTC dataelements not included in the ISO message structure, the element is placed in the structured extension at theappropriate level. For repetitive levels such as option or payout, it is possible to iden

In addition, the Official Corporate Action Event Identification (CA ID or COAF as it is known in ISO 20022) is a unique event reference for the event, and is assigned by a designated body within each market. DTC publishes the Official Corporate Action Event Identification on DTC eligible securities on its ISO 20022 messages.

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