# **New Work Item Proposal (NWIP)**

## Title

**Semantic Governance Framework for Financial Messaging Based on ISO 20022 and ISO 15022**

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## **1. Scope**

This proposed work item aims to define a **Semantic Governance Framework** to enhance the existing Registration Authority (RA) mechanisms of ISO 20022 and ISO 15022.

The framework will:

* Extend current data-centric registration processes to include **semantic-level governance**

* Introduce mechanisms for **semantic traceability, consistency validation, and evolution control**

* Provide guidance for **cross-standard semantic interoperability**

* Support **machine-interpretable financial messaging** for automation and AI-based systems

The deliverable may be developed as:

* An **ISO Technical Report (ISO/TR)**, or

* A precursor to a future **International Standard (IS)**

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## **2. Purpose and Justification**

### 2.1 Problem Statement

Current RA processes for ISO 20022 and ISO 15022 are primarily focused on:

* Data structures

* Message schemas

* Code sets

However, they lack explicit mechanisms to manage:

* Semantic origin and context

* Semantic equivalence across domains

* Evolution of meaning over time

* Alignment with business intent

This limitation leads to:

* Semantic inconsistencies across implementations

* Loss of meaning during standard migration (e.g., ISO 15022 → ISO 20022)

* Reduced interoperability between financial systems

* Increased implementation ambiguity

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### 2.2 Objective

The objective of this work item is to establish a **standardized semantic governance layer** that complements existing RA processes and ensures:

* Consistent interpretation of financial messages

* Traceability of semantic transformations

* Preservation of business intent across systems and standards

* Improved interoperability and automation readiness

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### 2.3 Relevance to ISO/TC 68 Strategy

This proposal supports:

* Digital transformation of financial services

* Cross-border interoperability

* AI-enabled financial infrastructure

* Long-term sustainability of financial messaging standards

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## **3. Proposed Work**

The proposed standard/TR will define:

### 3.1 Semantic Metadata Framework

A structured extension to existing metadata models including:

* Semantic Source

* Context Scope

* Concept Definition

* Transformation Path

* Intent Annotation

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### 3.2 Semantic Consistency Mechanisms

* Semantic equivalence validation

* Semantic loss assessment

* Cross-domain consistency verification

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### 3.3 Semantic Registration Authority (SRA)

Definition of an extended RA structure:

* Data RA (existing)

* Semantic RA (proposed)

Roles of SRA:

* Semantic model management

* Conflict resolution

* Semantic version control

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### 3.4 Semantic Evolution Governance

* Versioning of semantic constructs

* Change impact analysis

* Backward compatibility guidelines

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### 3.5 Cross-Standard Semantic Mapping

Guidelines for:

* Concept-level mapping

* Semantic-layer alignment

* Intent-preserving transformation

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## **4. Deliverables**

The main deliverable will include:

* Conceptual framework for semantic governance

* Reference architecture for RA extension

* Methodologies for semantic validation

* Use cases covering:

  * Payments

  * Securities

  * Trade finance

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## **5. Target Audience**

* Financial institutions

* Market infrastructures

* Standardization bodies

* Software vendors

* Regulatory authorities

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## **6. Stakeholder Benefits**

### 6.1 Financial Industry

* Reduced implementation ambiguity

* Improved interoperability

* Lower integration costs

### 6.2 Regulators

* Better traceability of financial data semantics

* Enhanced compliance transparency

### 6.3 Technology Providers

* Support for AI and automation

* Improved data quality and consistency

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## **7. Relationship with Existing Standards**

This work complements:

* ISO 20022

* ISO 15022

* ISO/IEC 11179

It does not replace existing standards but enhances their semantic governance capabilities.

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## **8. Development Timeline (Indicative)**

| Phase                | Duration |

| -------------------- | -------- |

| Proposal approval    | 3 months |

| Working draft (WD)   | 6 months |

| Committee draft (CD) | 6 months |

| Publication (TR)     | 6 months |

Total: ~18–24 months

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## **9. Risks and Mitigation**

### Risks

* Increased complexity of RA processes

* Resistance from existing stakeholders

* Tooling and implementation challenges

### Mitigation

* Phased adoption approach

* Backward compatibility

* Pilot implementations

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## **10. Participation and Contributions**

Participation is open to:

* ISO member bodies

* Industry experts

* Academic researchers

Collaboration with relevant working groups under ISO/IEC JTC 1/SC 42 is recommended.

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## **11. Conclusion**

The financial industry is transitioning from **data interoperability** to **semantic interoperability**.

To support this evolution, ISO standards must extend beyond structural definitions and incorporate **explicit semantic governance mechanisms**.

This proposal establishes a foundation for:

* Next-generation financial messaging

* AI-compatible financial systems

* Globally consistent semantic infrastructure

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