International Securities Services Association

1. International Securities Services Association ACSDA General Assembly, Santiago – Chile, April 3, 2014 ISSA Update Governance Communication Working Groups Symposium May 2014 Urs Stähli, ISSA Secretary

2. International Securities Services Association Governance - Sponsoring Institutions and Board Members Alain Pochet John Van Verre Hani Kablawi Nick Rudenstine Mervyn Chiu Lee R. Waite Thomas Zeeb Phil Brown Stephen Lomas Alan Naughton Andrew Gray Chris Church Pierre Yves Goemans Paresh Sodha Additional Board Members: Josef Landolt (Chairman) Neil Henderson, DTCC (Chair Operating Committee) Urs Stähli (Secretary)

3. International Securities Services Association Governance – Development of Membership April 2013: 80 ISSA Members from 42 Countries + 8 New Members - 5 Terminations (Mergers, no interest, arrears) April 2014: 83 ISSA Members from 42 Countries

4. International Securities Services Association Governance – ACSDA and ISSA – some Numbers 28 ACSDA Members 21 7 16 3 4 4 12

5. International Securities Services Association Communication - Update ISSA Homepagenew version since April 2013www.issanet.org ISSA Newsletterson a quarterly basis (4)on an ad-hoc basis (3) Spotlight Videoson Working Group Reports

6. International Securities Services Association 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) Issue Report on Shadow Banking Regulatory Impact(Florence Fontan) CollateralManagement(Angus Fletcher) Full Report with selected CM topics Comm. Standards& Reference Data(Irene Mermigidis) Out of NetworkAssets(Ed Neeck) Full Report in cooperation with ACG 2011/2012 June 2012 June – September 2012 2013 / 2014

7. International Securities Services Association Working Group «Global Principles for Corporate Actions andProxy Voting» • Main Contents • Survey in 33 markets • Realities • Recommendations • Recommendationsfor Next Steps • Promote Principlesactivelywithindustryparticipants, particularly CSDs andExchanges • Promote regulatorychangetorequirethedigitizationof CA informationatsource • Take a firm stand on andactively promote theuseof ISO formatsforcross-border CA infoexchange • The workinggroupshouldrepeatthissurveyannually • The workinggroupshouldpublish a casestudyhighlightingbenefits in successfulmarkets

8. International Securities Services Association Working Group «Regulatory Impacts on the Securities Value Chain – Shadow Banking» • Main Contents • General Description of Shadow Banking Initiatives • Impacts on Securities LendingandRepos Transactions • Impacts on Money Market Funds • Conclusions • Further Shadow Banking developmentstobeexpectedin 2014 • Different speedandfocus on a regional level • Custodians (and Fund Depositaries) tocloselystudythereformstobeabletomakeadjustmentstoaccountinganddisclosurepoliciesandprocedures • The juryis out astowhetherproposed Money Market Fundreforms will impactclientproductappetiteandwhetheralternatives will benefit.

9. International Securities Services Association Working Group «Collateral Management Best Practices» • Main Contents • Background and Key DefinitionsCollateral Management • 37 Best Practice Recommendations • RegulatoryOverview in EU; Future Trends • Best Practice Recommendations • CollateralProtection (Collateral Segregation; Cash / Non-Cash Collateral; Cleared / Uncleared TRX) • Operational Processes Associated with Default Management (Pre-Default; Post-Default) • Customer Communication and Reporting (Message Automation; Pledgeand Release Automation; Report Automation, Reconciliation)

10. International Securities Services Association Working Group ISSA and AGC «Out of Network Assets – Challenges in Safekeeping and Supervisory Services» • Main Contents • Legal andpracticeframework • Advancementsof Market Infrastructures • Possibleapproaches / recommendationstoclosegaps • Out of Network Assets dealt with • Third-party Time Deposits • Interests in Funds / Collective Investment SchemesandPrivate Equity Funds • Bank Loans • Derivatives • PreciousMetals • on legal nature / ownership, ownershipinterestandassetinformation, perfectedsecurityinterestsand title transferarrangements.

11. ISSA Symposium 2014: Responding to theRegulatory Challenges – Implications for the Industry May 20 (Tue) May 21 (Wed) May 22 (Thu) May 23 (Fri) Breakfast Breakfast Breakfast Presentations / Conclusions of Breakout Sessions Departure Introduction / Setting the Stage Key note Speech'Today's Regulatory Challenges and Trends' Speech 'Practical Application of Technology to Solve Regulatory Challenges' Panel/Introduction to Breakout Sessions - Out of Network Assets - Collateral Management Presentation 'Know your Customer' (Practical View) Arrival of the Participants Breakout Sessions Part 1 (6 Groups) Presentation 'Know your Customer'(Compliance View) Lunch Break Lunch Break Breakout Sessions Part 2 (6 Groups) Panel / Q & A 'Reflection of Morning Presentations' Combined Board and OC Meeting Introduction Breakout Sessions Feedback Reports Breakout Sessions Breakout Sessions (6 Groups) General Assembly Cocktails and brief Welcome Remarks Closing Remarks Cocktails / Gala-Dinnerwith Entertainment (Wolfsberg) Dinner and Drinks Dinner and Drinks

12. International Securities Services Association ISSA Symposium 2014: Responding to the Regulatory Challenges – Implications for the Industry May 20 – 23, 2014