Role of the Proxy Directory Operator (PDO)

In most IPS, a proxy (or "alias") cannot be used directly in a payment instruction (such as ISO 20022 pacs.008). Instead, the proxy must first be sent to the local proxy directory, via a proxy resolution request. The proxy directory service will then lookup and return the corresponding account details.

Proxy Directory Operators (PDOs) provide and maintain the databases which contain a list of proxies and the accounts and FIs that each proxy is associated with.

PDOs typically provide:

• A database of proxies and associated Financial Institution Identifications and Account Identifications

• A method for account holders to register and deregister proxies, or change the account linked to a specific proxy, via their authorized PSPs

• A method for PSPs to make a proxy resolution request to the proxy directory (ie sending a proxy and receiving back a Financial Institution Identification, Account Identification and name of the account holder)

In many countries (but not all), the PDO is the same entity as the Instant Payment System Operator (IPSO), and therefore the instant payment scheme and proxy resolution scheme are managed by the same entity, and the PDO and IPSO are the same entity.