3d Interconnect for STEP Files

On the 3D Interconnect webpage (3D Interconnect Video | Solidworks ) it says:

"3D Interconnect in SOLIDWORKS® 2017 delivers groundbreaking new capabilities for working with both neutral and native CAD data from various sources, unlocking powerful new workflows for you to collaborate with customers and vendors."

What Neutral file formats does it work with?  My understanding was that it would allow using STEP files in assemblies without translation.  Is this incorrect or just not yet?  Is it at all related to the Model Based Definition work being done on the MBD side on the AP242 format?

For reference, this project is currently using SW2017 SP3.

SolidworksParts And Features