Twist has created a draft generalised design for a standardised interface that can be used for any communication between corporates and banks regarding payment processing as well as the processing of wholesale financial transactions.
A standardised interface design would enable the general application of the existing XML-based message standards as developed by Twist for e-invoicing, payment processing, wholesale financial markets (currently FX and MM) and billing of bank services irrespective of the network or communication solution used.
"There is a need for uniform, secure and low cost connectivity between corporates and between corporates and banks. Twist aims to enable corporates to automate their financial processes by end-to-end straight through processing and open access to financial services through standardised messages. European regulators are driving for harmonised financial markets through initiatives like Sepa and Mifid. Where Sepa and Mifid are triggering significant changes for the financial services industry and their customers it will be important for these changes to be adding functionality to the market and be implemented at lowest cost possible. With this in mind, the launch of a standardised interface design is aimed to be a positive and timely contribution to the financial services industry and its customers," says Tom Buschman of Twist.
The interface will be based on global open standards for security and transport, using digital identifiers delivered by providers that embrace interoperability of their offerings and can be obtained independently from other service providers like banks, trading platforms, exchanges, clearing institutions and networks. To ensure widespread adoption of the interface, its design will also allow for the portability of identifiers such as bank accounts, Isin codes, etc., and the ability to use one single structure globally, for example the combination of Iban and Upic.
"The interface is a major milestone in Twist’s evolution and given the changes needed to meet Sepa and Mifid requirements, the launch is very timely we believe," says Shaun Maine, chairman of the Twist technical committee and project coordinator