International Securities Services Association

1. International Securities Services Association ACSDA General Assembly, Guatemala–Antigua, April 19, 2013 ISSA Update Mission Governance Communication Activities Next Symposium Josef Landolt, ISSA ChairmanUrs Stähli, ISSA Secretary

2. International Securities Services Association Mission Develop Solutions To actively contribute to developing solutions that improve the efficiency and promote best practices to mitigate risk within the securities services industry. Strengthen To strengthen international coordination andCooperation cooperation across the securities services industry. Facilitate To facilitate and stimulate active communication Communication among securities services providers, regulators and other industry stakeholders.

3. International Securities Services Association Governance – Members by Domicile 3 9 80 ISSA Members from 42 Countries 24 6 14 ISSA Sponsoring Institutions and Board Members Operating Committee Chairman's Office

4. International Securities Services Association Governance – Members by Domicile 32 32 80 ISSA Membersthereof 32 CSDsthereof 7 ACSDA Members 48 48 CSDs Others 14 ISSA Sponsoring Institutions and Board Members Operating Committee Chairman's Office

5. International Securities Services Association Governance - Sponsoring Institutions and Board Members Alain Pochet John Van Verre Hani Kablawi Conrad Kozak Garth Barker-Goldie Lee R. Waite Thomas Zeeb Jeffrey Tessler Stephen Lomas Alan Naughton Andrew Gray Chris Church Frederic Hannequart Simon Haggerty Additional Board Members: Josef Landolt (Chairman) Neil Henderson, DTCC (Chair Operating Committee) Urs Stähli (Secretary)

6. International Securities Services Association Communication ISSA Homepagenew version coming soonwww.issanet.org Articles in Magazineson an ad hoc basis ISSA Newsletterson a quarterly basis

7. International Securities Services Association Activities – Working Groups Discuss with vendorsreceptiveness to implement unified global ETC/matchingmarket practice guide Comm. Standards& Reference Data(Irene Mermigidis) Corporate Actions(Ranjit Chatterji) (Activities on hold) Corporate Actions(John Kirkpatrick) Collect data frommajor markets to evaluate progress Hidden Risks (Ed Neeck) Reports Symposium Reports Regulatory Impact(Florence Fontan) Update Executive Summary,additional: Shadow Banking Regulatory Impact(Florence Fontan) CollateralManagement(Angus Fletcher) see separate page Comm. Standards& Reference Data(Irene Mermigidis) Out of NetworkAssets(Ed Neeck) see separate page 2011/2012 June 2012 June – September 2012 June 13

8. International Securities Services Association Activities – Working Group «Collateral Management» All Key players understand that the success of the new world will be decided in large part by the success of a key collateral strategy Source: Working Group Statement • Focus on post trade landscape • Key models (bilateral / central counterparty) • Key players (role in handling of buy side, sell side, market infrastructures, custodians) • Key regulatory drivers (systemic safety, investor protection etc.) • Best practices for key operational processes • Structure of report • Definition of collateral management including types of collateral • Asset protection (diff. asset classes, jurisdictions, regulatory requirements, segregation) • Customer communication (message automation) • Default management best practices (principles, procedures) • Customer reporting (mark to market evaluation, collateral held, substitutions etc.)

9. International Securities Services Association Activities – Working Group «Out of Network Assets» Focus on assets held outside of a CSD environment due to the fact that regulators see custodians being responsible to a higher standard of care • Asset classes considered • Loans (syndicated and bi-lateral) • OTC derivatives and funds (various types, such as private equity funds, hedge funds) • precious metals • others, such as real estate • Cooperation with Association of Global Custodians

10. International Securities Services Association A Financial Reformation (Initiative Dominic Hobson) The Problem !Six years since financial crisis began !A return to pre-crisis conditions unlikely !Public and political hostility to the banking and securities industries remains high !Ideas for new business models are needed urgently The Challenge How to achieve this ?

11. International Securities Services Association A Financial Reformation (Initiative Dominic Hobson) 7 ThemesCompetition Policy Corporate Law Monetary Policy* Investor Protection* Market Infrastracture* Accounting Standards Financial Regulations LeadershipAcademics plus Practitioners plus Central Bankers plus Regulators ISSA Board's Current PositionIssues addressed correct Scope far beyond theremit of ISSA Global view critical(today too European centric) Leadership involvement of practitioners essential Financing not yet clear Final delivery June 2016 Board asked for clarificationin order to decide cooperationin June Board Meeting * ISSA core interests

12. International Securities Services Association Activities – Next ISSA Symposium May 20 – 23, 2014