The need for market practice has not changed simply because we have introduced a new syntax… in fact, for a good number of years market practice organisations such as ISITC have shifted the focus of their market practice documentation towards a more syntax-neutral and data-centric view.  Samples of actual messages are provided in both 15022 and 20022 syntax.  

There is a certain built-in future-proof safety mechanism to this approach.  XML may not always be the only syntax used by ISO 20022, already we are hearing about APIs and JSON and other weird and wonderful new techie things… but, whatever the future holds in store for us… the business of settling a trade isn’t likely to change too much. Give me a ticker, an account number, some settlement instructions, etc.etc. 

We should not need to re-write market practice every time a new technology comes along. 

The market practice documentation of the day though remains largely paper based.  It remains possible to claim market practice compliance on the one hand, and send messages that are perfectly valid at the SWIFT network level but are not market practice compliant on the other.  This puts an enormous validation and operational burden on the receiving party.

Two things are different with 20022.

1. We can [read: MUST] align the market practice data centric view with the ISO 20022 data model.

2. We can [read: MUST] leverage tools available to represent the market practice in electronic format.  This last point if absolutely crucial if we are to truly realise the benefits of market practice.  

One thing that remains the same as always. 

ENGAGE. ENGAGE. ENGAGE.  Market practice does not magically materialize out of thin air.  It only exists because of the dedication of a relatively small number of individuals, and because of the management support of their organisations.  

Get involved!!