Securities standardization refers to the harmonization of standards in the securities industry, and targets standards, codes, and procedures related to the processing of securities transactions, including securities identifying codes, numbering schemes, institution identifiers, and messaging formats.
Constant efforts are being made to standardize financial services by the Agency for Technology and Standards (KATS), the country's representative of ISO; and the Korea Financial Telecommunications and Clearings Institute (KFTC), Korean secretariat on Technical Committee 68 (ISO/TC68).
KSD has been involved in ISO/TC68/SC4 since June 30, 2000 with the approval of KATS, with the objective of enhancing the market competitiveness of Korea by implementing STP. A sub-committee of 16 industry experts and scholars was also formed to conduct systematic analysis and research into standards including ISO 15022, ISO 10962 and ISO 6166.
The International Organization for Standardization (ISO) is a global standards body composed of representatives of national standards organizations. Established in 1947, the mission of ISO is to promote the development of worldwide standards, with a view to facilitating the international exchange of goods and services, and developing cooperation in the spheres of intellectual, scientific, technological and economic activity. ISO's work results in international agreements which are published as International Standards.
ISO/TC68 is an ISO committee designated to develop international standards for the financial services industry, including banking and securities. Originally formed in 1948, ISO/TC68’s role has grown with the development of new technologies, financial products, and services in the financial sector. There are three active subcommittees under TC68: SC2 (Security), SC4 (Securities) and SC7 (Core Banking).
ISO/TC68/SC4 on securities and related financial instruments has several working groups: CAG (Chairman Advisory Group), WG1 (Numbering), WG6 (Classification of financial instruments), WG8 (Identification of business entities), WG12 (Market identification code) and WG14 (Financial instrument short name and abbreviations).
Korean Securities Sub-Committee
Korean Securities Sub Committee was formed under the Korean Industrial Standardization Act in June 2000. Members consist of representatives of academia, securities companies, banks and investment companies. The committee draws up and reviews standards drafts, and those passed by the committee will be reviewed by the Korea Industrial Standards Commission for designation as Korean Industrial Standards (KS). KSD acts as a secretariat to the committee and is also responsible for reviewing ISO/TC68/SC4 documentation.
ISO 15022 Working Group in Korea
ISO 15022 Working Group under the Korean Securities Sub Committee was formed on November 23, 2000 to respond rapid globalization and standardization in the international securities industry and introduce securities message standards. The main activities of the Working Group are researching securities message formats, reporting to the Korean Securities Committee, drafting proposals for KS designation, and participating in National Market Practice Group (NMPG) activities.
ISO 15022 is a messaging standard for exchanging information in securities transactions developed by ISO/TC68/SC4 in 1999 to replace ISO 7775.