7 th International Conference of the AECSD Minsk/Belarus – September 9, 2010 Report from ANNA

1. 7th International Conference of the AECSD Minsk/Belarus – September 9, 2010 Report from ANNA Dan Kuhnel Chairman

2. Agenda • ANNA Objectives – Overview • Current ANNA Structure • ANNA Membership Overview • ANNA‘s Key Areas of Focus – Existing and New Data Standards • Questions/Comments Dan Kuhnel

3. ANNA Objectives - Overview Global promotion of ISO standards under ANNA's responsibility - the recognised Registration Authority; Quality: development and pro-active maintenance of ISIN and CFI guidelines; Committed to working with the global financial industry: ISIN & CFI guidelines Make available: International Securities Identification Number (ISIN) allocation according to ISO Standard 6166 + ISIN Guidelines; Classification of financial instruments (CFI) allocation according to ISO Standard 10962; Dissemination of ISIN and CFI through NNAs and the ANNA Service Bureau (ASB); Products of the ASB: ISIN_Access (Look-up service) and ISIN_db (Daily data feed). 3 Dan Kuhnel

4. ANNA Structure ANNA Membership ANNA Partners ANNA Board ANNA Secretariat ASB Board Regional Groups Working Groups Task Forces 4 Dan Kuhnel

5. ANNA Membership Overview Total ‘full’ ANNA members (as of 31 August 2010): 82 National Numbering Agencies; ANNA Partners (as of 31 August 2010): 27 organisations; ISIN coverage of 120 countries; CSDs/ICSDs represent 58% of ANNA membership composition Overview of Membership by Business Segment 5 Dan Kuhnel

6. ANNA Key Areas of Focus - Existing and New Data Standards-

7. ISO Standards Overview ANNA has been designated as the Registration Authority for the following ISO standards: ISO 6166 – ISIN ISO 10962 – CFI ANNA has been identified as the logical entity to act as the Registration Authority for the following future planned ISO standards: ISO 18773 – Financial Instrument Abbreviations ISO 18874 – Financial Instrument Short Names ISO 16372 – Issuer & Guarantor Identifier 7 Dan Kuhnel

8. ISO 6166 – ISIN Standard ISO 6166 standard - completed revision at ISO/TC68/SC4 level; Draft revised standard circulated for voting to SC4 “P” member countries – voting closes Sept 2010; EU Commission continues their investigation into ISIN licensing and claimed Intellectual Property Rights matters: Ruling should add clarity to security data elements that must be linked to the ISIN and made available to the market “free” and in a timely manner; Ruling should also add clarity to what ISIN related data can be “sold” and under what conditions; ISO have created a new Registration Authority Agreement linked to the ISO 6166 standard – outlining conditions that NNAs must operate under; Data quality issues in the ANNA Service Bureau continue to dominate ASB client dialogue. Data quality and accuracy is key. 8 Dan Kuhnel

9. ISO 10962 – CFI Standard ISO 10962 standard has undergone a revision at SC4 level; New data elements proposed to be added to add more granularity to instrument identification; New instrument types added eg. Structured products. Standard should be circulated for voting in coming weeks – to SC4 “P” member countries; Issues remain with NNAs adoption of the standard and allocation of CFI codes; ASB database has: 11.045 million ISINs, of which 4.22 million are active but only 8.642 million CFIs, of which 3.537 million are active Continued focus with NNAs on importance of CFI assignment 9 Dan Kuhnel

10. ISO 18773/18774 – Issuer Abbreviations/Financial Instrument Short Names Standards Business rationale: standardised issuer abbreviation linked with a short description of the security (using defined rules); The FISN is composed of: an issuer name with a maximum length of 15 alphanumeric characters. To ensure uniformity, the same issuer short name should be used for different financial instruments of the same issuing entity; a “/” as the delimiter between issuer name and description; an instrument description with a maximum length of 19 alphanumeric characters, assuming that the available length of the issuer name has been fully used. In the event that all the 15 characters have not been used in the issuer abbreviation, the remaining space may be used to describe more characteristics of the financial instrument. 10 Dan Kuhnel

11. ISO 16372 – IGI (Issuer & Guarantor Identifier) Standard Business rationale: A global scheme for uniquelyidentifying business entities* acting as issuer or guarantor of a financial instrument. Main goals: Unambiguous identification of issuing entities (or guarantors). Facilitation of portfolio management (risk on issuers or guarantors) The IGI is a unique identification scheme for every issuer of financial instruments (including eg. municipalities or ski lift companies that issue securities) and guarantors. * a business entity in the context of IGI is an entity, structure or arrangement that has a legal constitution. 11 Dan Kuhnel

12. ISO 16372 – IGI (Issuer & Guarantor Identifier) Standard cont‘d Reasons for an international standardized ID for issuing entities (and guarantors): Risk management i.e. perform easier risk management assessment across portfolios Efficiency - reduce costs of securities processing Maintenance of static data for business entities Reduce processing risk Reduce administration Success factors for IGI : Encourage the following institutions to carry IGI in their databases: Regulators and Central Banks Market data providers (e.g. Telekurs, Reuters, Bloomberg, Rating agencies) Financial institutions (e.g. investment firms, banks, brokers, insurance companies) 12 Dan Kuhnel

13. Questions & Comments Thank you Dan Kuhnel ANNA Chairman