Design and use of XML Schemas are essential tasks in the software engineering process for many systems, but duplication and different naming and design rules in these schemas are major roadblocks for systems integration. An ontology-driven design approach is described that uses semantic models during the creation and management of XML schema vocabularies. UML models are used for model-driven design of schemas and semantic annotations are used to associate UML elements with OWL concepts. Specific examples from financial services industry schemas illustrate the issues and benefits of semantic integration. A design tool named hyperModel implements some of these modeling activities and enables editing and browsing both UML models and OWL ontologies with a common interface of dynamically created class diagrams.