Swift, which operates the global financial messaging service by the same name, on Thursday (Oct. 27) announced its decision to delay the migration to a new messaging standard known as ISO 20022.
The update to the Swift system for cross-border payments and reporting (CBPR+) is already used by many organizations which have been able to exchange ISO 20022 messages on an opt-in basis since August.
The delay to a full migration comes days after the European Central Bank (ECB) announced its own delay of four months for the eurosystem to transition to ISO 20022.
In light of the ECB announcement and requests from the global community of banks and securities exchanges that rely on the Swift system, the Belgian organization decided to align its own update with changes to the eurosystem for the sake of continuity. The new date is set for March 20, 2023.
In the U.S., The Clearing House (TCH) is on schedule to implement the new standard next year. Fedwire has set a target of March 2025 for its own transition to ISO 20022 messages.
See more: The Clearing House Stays on Schedule for ISO 20022 Implementation in Nov. 2023
While upgrading existing systems may be proving troublesome, new payments are built to deal with the standard from the start.
For example, ISO 20022 messages will be the default communication format for the transatlantic instant payment system known as Immediate Cross-Border Payments (IXB).
IXB will leverage the existing real-time payment systems RTP® in the United States, run by TCH, and RT1 in Europe, run by EBA CLEARING to enable instant transfers in the euro-dollar payment corridor. As PYMNTS reported this month, the scheme is ready to begin piloting the new real-time rails in the next few months.
Read on: Euro, Dollar Clearing Agencies Prep for Real-Time Transatlantic Payments
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