Association of National Numbering Agencies scrl. Annual Report

Transcription

1 Association of National Numbering Agencies scrl Annual Report

2 Contents 3 Chairman s Report Objectives and mission statements of ANNA 6 General meetings ANNA administrative review ANNA Service Bureau report for Securities business and state of ISIN implementation worldwide 16 Allocation of ISIN for new financial instruments 19 Working Groups, Task Forces and Reginal Groups 25 List of members by COUNTRY as per May 2015 Appendices 29 A ISO 6166 an outline of the standard 30 B ANNA Guidelines for ISO 6166, Version 12, August C Geographical division of countries among substitute agencies as per May D ISO outline of the CFI-(Classification of financial Instruments-) Code 2

3 Chairman s Report 2014 Dear ANNA Members and Partners, The year 2014 has been referred to as the transitionary year from the Age of Recovery to the Age of Divergence. Looking at the events of 2014, Central Bank actions and divergence have been the underlying themes. The view remains that these two factors are having and will continue to have, significant influence on the global financial markets and the direction they will take in the near future. One key observation from 2014 was the resurgence of the US dollar as one of the preferred currencies in the world. The increased important of the Chinese Renminbi must also be noted, as it moved to #7 of the most actively used currencies in trade finance. It is very likely that the IMF will make it one of the basket currencies for SDRs in the very near future. Oil prices on the other hand crashed from a high of $116 per barrel to end the year around the $60 per barrel mark. Not good news for oil exporting countries around the world. Yet the stock markets continued to climb, achieve new highs and the financial markets continue to see growth so there remains a degree of optimism for what 2015 has in store. For ANNA, its members and their integral roles in the global financial marketplace 2014 saw the launch of the next stages in our evolution and future global positioning strategy. Below I summarise some of the main topics that the ANNA membership and the Board of Directors put focus on during the course of 2014: - Most notable was the launch of the new ASB 2014 and the associated upgraded ASB database. This included launching a new ASB data record + associated elements (existing and new) which went live in November We have already achieved critical mass in terms of member adoption; - Directly linked to the above, the ANNA Board undertook a review of the current Association strategy, re-evaluating the approved short, medium and long term direction. Some modifications were made and the Association strategy was presented for validation by the members at the last EGM; - A growing number of ANNA members continued to contribute to the evolution of the ISO Legal Entity Identifier (LEI) standard, to promote ANNA s federated model and the value added benefits of our model and the National Numbering Agencies (NNAs). We have seen a considerable proportion of the appointed LEI Local Operating Units being taken up by the NNAs in their jurisdiction of responsibility. This illustrates clearly the benefit of the synergies of identifier numbering; - ANNA s continued development and applicat- ion of the Membership and Partner Guidelines has continued to bring a strong results by ensuring membership and partner compliance in key areas with clear positive impacts being realised according to feedback from the ASB operators; - Work linked to the revision of the ISO (CFI) standard through Working Group 6 was successfully completed. We expect the FDIS to be published in late Although the Working Group decided not to keep an RA role for the standard, the role of the NNAs in the assignment of the CFI remains key for the future; - Within WG14, revisions of the ISO and standards where completed and we saw the merging the two standards into a single, more comprehensive standard encompassing both abbreviations and short name characteristics. ANNA remains the key candidate to be appointed as the Registration Authority when the standard is published and the ANNA Board continues to work with ISO to meet their requirements in this regard; - At the end of 2014, we reached agreement on the long standing open item regarding ANNA s tax status/treatment in Belgium. This brings to a close a file that has been in progress for a number of years with a successful overall outcome for the Association; - The ANNA Board again put more focus on aspects of visibility (both internally and The ANNA Board of Directors Chairman: Vice Chairman: Executive Secretary: Treasurer: Marketing Director: Mr Dan Kuhnel Mr Uwe Meyer Ms Emma Kalliomäki Mr György Dudás Mr Martín Paladino Euroclear Bank Hong Kong Branch WM Datenservice Germany London Stock Exchange United Kingdom Keler Hungary Caja de Valores Argentina 3

4 externally). A key development being to introduce new concepts into the General Meetings to create more input from the members. In addition, the ANNA Board identified a number of external conferences that offered visibility opportunities in the financial services space; - Lastly, in respect of the ANNA Board composition, Markus Heer left the ANNA Board at the end of the year. On behalf of the Association, I wish to thank him for his contributions to the Association s objectives over the years. I also take this opportunity to share the new members and partners that joined ANNA in the course of We look forward to further enhancing our working cooperation with them. Entidad de Deposito de Valores de Bolivia SA (Bolivia) Full member Central Depository of Armenia OJSC (Armenia) Full member CEVALDOM (Dominican Republic) Full member Central Depository & Settlement Co. Ltd (Mauritius) Full member Qatar Financial Markets Authority (Qatar) Full member Maldives Securities Depository Company (Maldives) - Partner These additions brought the composition of the Association at 2014 year-end to 89 full members and 27 partners representing 123 countries. I am certain that 2015 will continue to present challenges to the ANNA Board, the ANNA Service Bureau, our dedicated Working Groups and Task Forces - as we continue our focus on data quality and accuracy related matters and continue our dedicated efforts to ensure the Association evolves and continues to meet the requirements of all financial standards users. I look forward to continuing to work with the members as the Association continues to evolve. Yours sincerely Dan Kuhnel Chairman 4

5 Objectives and mission statements of ANNA Objectives: 1. Global promotion of ISO standards under ANNA's Control Give assistance to members Promote National Numbering Agencies (NNAs) involvement Give assistance and support to market participants with regards to standards Full ISIN coverage where no NNA exists Support ANNA membership Monitor ANNA members rights and obligations Define role of Partners and Substitute NNAs Develop marketing strategies and increase visibility of ANNA 2. Make available International Securities Identification Number (ISIN) allocation according to ISO Standard 6166 Classification of financial instruments (CFI) allocation according to ISO Standard Dissemination of ISIN and CFI through NNAs and ANNA Service Bureau (ASB) Products of the ASB: ISIN_Access (Look-up service) and ISIN_db (Daily datafeed) Mission of ANNA: ANNA (the Association of National Numbering Agencies ) is a global industry association, with a presence in excess of 120 countries, comprising a membership of Central Banks, Central Securities Depositories, Data Vendors, Regulators and Stock Exchanges. Mission Statement We are committed to providing actionable global ID and reference data products and services to global market participants, including Regulators and the financial services industry to uniquely identify, classify and describe entities and financial instruments. We proactively promote, implement and maintain standards for entities and related financial instruments and make related information available in a uniform and accurate structure for the benefit of global markets and the securities industry as a whole. Our federated model uniquely positions us as the leading association able to offer local market expertise to the global community. 3. Quality Develop and proactive maintenance of ISIN- and CFI-guidelines Monthly reporting by ASB and other statistical information Ensure timeliness / accuracy / availability 4. Committed to work for the benefit of the financial industry ISIN- CFI- guidelines Interaction of ANNA with the external world 5

6 General meeting ANNA administrative review 2014 ANNA Annual General Meeting, Reykjavik / Iceland 22 & 23 May 2014 The Chairman, Mr. Dan Kuhnel, opened the meeting, welcomed the delegates and thanked the Icelandic Securities Depository for hosting this General Meeting. Attendance consisted of 43 ANNA members present and an additional 28 members represented through a Power of Attorney. This resulted in an attendance of 84.5%; sufficient to establish the necessary quorum. Ms. Guðrún Blöndal, CEO, Icelandic Securities Depository Ltd. gave a warm welcome to all ANNA delegates and partners, as well as stating it was an honour to host the ANNA General Meeting. An informative speech on The Development and status of the Icelandic financial market was given by the Rt Hon. Bjarni Benediktsson, Minister of Finance and Economic Affairs of Iceland. This was particularly insightful on the current status of the economic situation of the Icelandic financial market - particularly in light of the financial crisis that significantly affected the Icelandic banks. The outlook for Iceland after the crisis is very positive as Iceland is categorized by OECD as one of the fastest growing countries. Chairman s Report Mr. Dan Kuhnel presented an overview of the status of action items resulting from the last General Meeting in Cancun, Mexico, as well as on the activities of the ANNA Board. Among other items, key areas of focus for the Board were outlined as follows Member/Partner compliance e.g. enforcement of Membership/Partner obligations Legal compliance matters (Belgian tax and relocation focused) Data quality and timeliness matters e.g. ASB Questionnaire (Dec 2013) Strategic matters such as ANNA positioning in the LEI space (e.g. LOUs and COU) Continued work on assessment of re-location of the legal domicile of ANNA Financial Report 2013 The ANNA Treasurer, Mr. György Dudas, provided an overview of the financial documents sent to members in advance of the meeting and also highlighted in his presentation some key developments. Resolutions were unanimously passed accepting the audited financial figures of ANNA for the financial year 2013, the auditor s report and to give quietus to the ANNA Board. The presentation was concluded with an outlook of the planned financial activities over the coming months. Possible relocation of ANNA and related matters Ms. Emma Kalliomaki, ANNA Executive Secretary, provided a summary on the history of the issues leading to considerations about a possible relocation of ANNA to another jurisdiction. Following receipt of recommendations from KPMG with 2 alternatives to move forward (dissolution & liquidation vs. migration & transfer of seat) further details were requested to understand the potential impact on the members. Migration and transfer was deemed the most appropriate way forward with minimal impact to members. Based on a 5 year forecast for both Belgium and Switzerland, including the respective costs and taxes for each location, Zurich was identified as the preferred jurisdiction. The membership unanimously agreed the resolution to proceed with the next steps. Membership matters Membership Guidelines Update Mr. Martin Paladino, ANNA Marketing Director, provided an explanation for the need for these Guidelines which were adopted in Two proposed amendments, relating to election nomination procedures and Partnership status, were unanimously agreed. Non-compliant NNAs - Overview and Actions Taken An update on the status and actions taken regarding Membership and Partner non-compliance was presented by Ms. Emma Kalliomaki. This included items such as ISIN & CFI allocation, daily delivery and annual refresh master files to ASB, data quality, attendance to General Meetings, responsiveness to Board enquiries/questionnaires and Partners transition to Membership. Applications for full membership An application for full membership was received from Entidad de Depósito de Valores de Bolivia S.A. who was an ANNA Partner since Their application was unanimously endorsed by the membership. As a result of the transition of Bolivia from Partner to full Member, the ANNA membership reached 85 full members and 30 partners; representing 122 countries (UEMOA representing several countries). 6

7 Bloomberg s Financial Instrument Global Identifier (FIGI) A presentation was given on the FIGI highlighting the replication of the ISIN structure with a possible objective that it could substitute the ISIN and also threaten the CFI and MIC standards. As the 1st and 2nd digits of the 12-digit-code can be selected to represent prefixes as used for ISIN (country codes) it could cause significant market confusion as there is a real risk of duplicate numbers being generated. Bloomberg is aiming to gain endorsement of the FIGI as an OMG standard where, in case of a positive vote, FIGI could become an OMG standard by December The membership agreed OMG should be contacted to make them aware of the existing scope and coverage of ISIN. The matter will also be raised to the SC4 Chair to follow up on the item raised by ANNA Chairman, Mr. Dan Kuhnel at the 2014 SC4 Plenary Meeting. ANNA Service Bureau Operators Report (Quality and ASB 2014) Scott Preiss, representing CUSIP Global Services as one of the ASB Operators, gave a presentation on data quality, including volume statistics and confirmation that that CFI gaps are reducing. Nourredine Yous, representing SI Financial Information Ltd also as an ASB Operator, introduced the current status of the preparations for the ANNA Service Bureau upgrade due for release November Changes include the introduction of ISO standards LEI (ISO 17442), MIC (ISO 10383) and FISN (ISO 18774). ASB Technical Committee Chairperson Report Elena Ulianova provided a summary of the ASB main tasks and activities of the ASB Technical Committee in These included details of the meetings held, review of the results of surveys undertaken and gathering the requirements for the upgrade to ASB. Election of one Board Member and election of two ASB Technical Committee Members Euroclear Bank SA was the only nominated candidate with the necessary number of nominations for the seat on the ANNA Board. Mr. Dan Kuhnel, representing Euroclear Bank SA, gave a short verbal overview as to why he should be considered for (re-)election to the Board. Following an open ballot, Euroclear Bank SA was reappointed for another 3-years-period (until end of 1st General Meeting in 2017). For the ASB TC election, three candidates received the necessary nominations for the two seats for election: Central Securities Clearing System Plc Nigeria, NSD Russia and KDD Slovenia. The three representatives gave short verbal overviews on their reasoning for standing for election. Following a closed ballot, NSD Russia represented by Ms. Elena Ulianova and KDD Slovenia represented by Mr. Iztok Klemenc were elected for a 3-years-period (until end of 1st General Meeting in 2017). As with each year, the roles of ASB TC Chair and Vice Chair alternate between the Operators and the elected ANNA representatives. Mr. Iztok Klemenc, of KDD Slovenia, has been agreed as ASB TC Vice Chair for the period until the spring meeting Status and implementation of ISO Standards ISO 6166 ISIN (International Securities Identification Number) including status on ISO 6166 revision and on ISO Registration Authority Agreements An overview and background on the revision process of the ISO 6166 standard was provided by Mr. Dan Kuhnel. The membership was advised that the new version of ISO 6166 standard was formally published by ISO in July Adoption by ANNA and thus the NNAs is still pending but the proposal on how to move forward will be addressed by ANNA WG2. ANNA has an obligation to file an annual report with ISO Central Secretariat which must include several key elements such as the provision of ISO 6166 services are on a cost recovery basis (incl. providing an overview of fees charged by all NNAs). With regards to the outstanding Registration Authority Agreements for ISO (CFI) and ISO (FISN) some background details were provided on the drivers behind the new template introduced by ISO in January The ANNA Board awaits the outcome of the work of the Advisory Group on RAs before proceeding with the execution of the new Registration Authority Agreement template. ISO CFI (Classification of Financial Instruments) Ms. Emma Kalliomaki gave an overview on the current status of discussions within ISO TC68/SC4/WG6 regarding the revision of the ISO standard. Key changes include a broadened scope to include OTC derivatives and structured products being merged into existing categories. There are also some category changes such as a new category 7

8 introduced for collective investment schemes replacing the use of the EU group. The DIS submission is due 30 June ISO 18773/18774 FISN (Financial Instrument Short Name) Mr. Oscar Garcia gave a presentation on the FISN structure (incl. examples), the current status of FISN and the progress made by ISO TC68/SC4/WG14 through bi-weekly conference calls. It has been agreed by the ISO members that ISO (Abbreviations) would be cancelled (abbreviations would be maintained by the RA in an external list) and only ISO would be kept. DIS voting will start on June 25 for a 3 months period. The membership was advised that Target 2 Securities (T2S) will start in October 2014 and FISN is one of the reporting fields. ISO MIC (Market Identifier Code) Following the implementation of the revised ISO MIC standard in March 2013, a short status update was provided on the operational MIC and segment MIC. Concerns have been raised by users regarding the inconsistent level of granularity that the MIC is being applied to as well as requests for new kinds of venues. TC68 SAG (Standards Advisory Group) Mr. Uwe Meyer informed the members that the SAG is currently working on a proposal for a new work item to define classifications of entity legal forms that exist within jurisdictions. These are required for the LEI record. ISO LEI (Legal Entity Identification) Mr. Markus Heer started his presentation by giving some background on the LEI (what is the LEI, guiding principles, overview of the system, how to become an LOU and the structure of the LEI). Developments include financing aspects for the GLEIF and the COU which will be run by the GLEIF. The success of increased adoption is heavily reliant on future regulation prescribing the LEI. Upcoming regulations will include insurance companies and banks. Marketing activities Mr. Martin Paladino gave a presentation on ANNA s marketing activities; outlining in the first part some historical aspects and providing an overview of ANNA s values. More focus has been put on developing a public relations program with the goal to increase ANNA s visibility. Two external parties (Intermediaction and Clearview Associates) were hired. Recent activities included the representation ANNA at FIMA in Boston and the execution of an agreement with Marketwired (a press release distribution service). Suggestions were made for ANNA to consider speaking at the conferences of the World Federation of CSDs, WFIC and IOSCO to make ANNA known and to avoid developments of additional parallel standards. A further suggestion was for an assessment of ANNA s website to check the performance of hits, rank on search engines, and search engine optimisation including consideration of a website redesign. The Board will look into both proposals. Reports from Working Groups, Task Forces and Regional Groups WG1 Assisting Emerging Markets Mr. Uwe Meyer advised that another Workshop (focusing mainly on operational and practical matters) will be organized for November 2014, in advance of the Extraordinary General Meeting. WG2 ISIN Quality and Guidelines Mr. Oscar Garcia, as convenor of WG2, provided an overview of the Guideline amendments as well as on the potential changes resulting from the new version of ISO The new version of the ISIN Guidelines were unanimously approved by the membership as well as agreement for adoption of the new version of the standard as of August 1, WG5 LEI Mr. Niels Hougaard, convenor of WG5, presented the current status of discussions amongst the WG5 members. Discussions have taken place around LEI establishment and the role of ANNA members as potential LOUs. ANNA and WG5 will support NNAs who are striving to be recognised as LOUs in their jurisdictions. The group will also discuss how to create the LEI and ISIN linkage within the ASB database as this is deemed an important exercise. TF20 Implementation of new standards Mr. Nourredine Yous as TF20 convenor reported the steps related to FISN implementation including the requirement to evaluate the presently implemented FISN volumes and the process for the exchange of FISNs between Substitute NAs and NNAs. Regional Groups ALARG (ANNA Latin America Regional Group) Mr. Martin Paladino gave a presentation on the activities of ALARG, including both historic aspects and the latest events of the Regional Forum. ALARG has accomplished 8

9 one of its main objectives of having one NNA in each country of the region. The next goal is to transition Partners to full Membership. APARG (Asia-Pacific Regional Group) Mr. Dan Kuhnel, acting as initial Regional Manager for both groups, provided an overview of the progress. Focus has been placed on individual NNA needs & assistance. Focus needs to be put on finding two convenors to coordinate regional activities. AMERG (African and Middle East Regional Group) Mr. Uwe Meyer was pleased to announce that AMERG members and partners agreed to elect Egypt as convenor. Dr Tarek Abdel Bary kindly accepted on behalf of MCDR. Miscellaneous The members were informed of the activities behind the domain The owners of this domain create misleading requests portraying themselves as being a representative of the issuer of the financial instrument. These ISINs are then sold at very high fees to the requestors. Cases have been identified in the UK, Netherlands and the US. Next meeting Mr. Syafrudin, on behalf of KSEI (Indonesia), invited the ANNA Membership to attend the next Extraordinary General Meeting and Workshop in Indonesia on 19th-21st November ANNA Extraordinary General Meeting, Bali / Indonesia 20 & 21 November 2014 The Chairman, Mr. Dan Kuhnel, opened the meeting, welcomed the delegates and thanked the KSEI for hosting this Extraordinary General Meeting. Attendance consisted of 26 ANNA members present and an additional 40 members represented through a Power of Attorney. This resulted in an attendance of 77.6%; sufficient to establish the necessary quorum. On behalf of Mr. Heri Sunaryadi, President of KSEI, Mrs. Margeret M. Tang gave a warm welcome to all ANNA delegates and partners, expressing the honour for KSEI to host the ANNA Extraordinary General Meeting. Mrs. Tang gave an overview on status and activities of KSEI in its function as National Numbering Agency for Indonesia. Since becoming an ANNA member in 1994, KSEI has allocated 1600 ISINs primarily for equities, debt instruments and mutual funds. KSEI was very pleased to welcome 39 delegates at the previous day s ANNA workshop stressing the growing importance of this information session on operational matters for existing and potential members and partners. Mrs. Tang closed her speech by wishing the delegates a successful meeting. An industry presentation was provided by Mr. Sarjito, Capital Market Supervisory Commissioner Deputy of Capital Market Supervision (Indonesian FSA), on the topic of Broadening issuer and investor base of Indonesian capital market. The overview provided the current status and the measures being taken by the Indonesian supervisory authority to attract issuers and investors with a focus to provide a secure frame for investors in the Indonesian capital market. Chairman s Report Mr. Dan Kuhnel presented an overview of the status of action items resulting from the General Meeting in Iceland as well as on the activities of the ANNA Board during Q3/ Among other items key areas of focus by the Board were: Member/Partner compliance e.g. enforcement of Membership/Partner obligations Legal compliance matters (Belgian tax and relocation focused Data quality and timeliness, e.g. continued work and support of the ASB 2014 launch Strategic matters such as new entrants into security numbering More interactive organisation of GMs as well as Public Relation matters (PR strategy, conference sponsorship, representation at conferences etc.) ANNA s short, medium and long-term strategy The presentation was opened by Mr. Dan Kuhnel outlining the need to re-assess the basic assumption that most NNAs generate some added-value from their role as Registration Authority Agencies in their respective markets. The need to re-assess ANNA s strategy is driven by several factors such as the Registration Authority (RA) role for ISIN not being guaranteed by ISO, the RA role for CFI being removed, and particularly that ISIN and ANNA are being faced with competitive identification schemes. Therefore, ANNA needs to revisit its vision and members need to express their expectations and empower the Board to take action and move towards final decisions. With regards to competing identification schemes a broad discussion took place on the aggressive marketing campaigns taking 9

10 place where a lot of misinformation is being circulated; such as: No global ID standard exists this is clearly wrong as the ISO 6166 standard is a global standard A 12 character structure has been used to allow easier implementation which indicates their underlying intention to replace the ISIN Coverage is higher than that provided by the ISIN statement is untrue as ISIN is assigned at global level where the alternate identifier is assigned a market level. Combining ISIN with the ISO MIC standard provide the same level of granularity. All NNAs will need to keep an eye on activities in their local markets and be ready to react. Mr. Nourredine Yous informed the membership on his recent participation on behalf of ANNA in an OMG (Object Management Group) meeting. The Financial Instrument Global Identifier is currently in the voting process to be adopted as an OMG standard. Mr. Dan Kuhnel advised that the management of ISO TC68 are open to the initiative by viewing it as a possible alternative to the ISIN due to ISIN licensing discussions. For more interaction with the members at a General Meeting, break-out sessions were introduced where delegates were split into 5 groups. Each group focussed on a different topic area, these being: ANNA s visibility Role of the ASB External threats to ISIN and ANNA How does the external world view ANNA Day to day challenges faced by ANNA operational/practical The sessions proved to be extremely popular resulting in many ideas and proposals. Financial forecast 2015 The ANNA Treasurer, Mr. György Dudas, provided an overview of the financial documents sent to members in advance of the meeting and also highlighted in his presentation some of the significant aspects. Resolutions as well as financial documentation were sent to the membership before the General Meeting. The ANNA Treasurer, Mr. György Dudas (GD), highlighted in his presentation some of the significant aspects including no membership fee for 2015 and changes to the expenses in comparison to budget Mr. György Dudas also outlined the current status of the Belgian tax case where a proposal for a basis tax is being negotiated with the Belgian Tax Authorities. Resolutions regarding the membership fee and 2015 budget were unanimously approved by the members. Possible relocation of ANNA and related matters - status In light of the recent positive developments in discussions with the Belgian Tax Authorities, if formal agreement is reached, ANNA can remain in Belgium as the initial considerations for relocation will have been resolved. On this basis, the relocation topic can be closed at the next General Meeting. Membership matters Local market developments in Australia Mr. John Williams gave an overview on developments at Australian Securities Exchange. This included confirmation that the AS code (ticker symbol) will be removed as part of the basic number of the ISIN. This issue has led to restrictions on ISIN assignment and reuse of existing ISINs. The change is a positive move to align with global practices. Membership compliance update Ms. Emma Kalliomaki started her presentation by giving an overview on the matters the Board has been focusing on such as ISIN and CFI allocation, data quality, attendance at General Meetings as well as membership status. The Board has decided to split geographical responsibilities where members/ partners need to be contacted with regards to compliance matters. Applications for full membership Applications for full membership were received by the following Partners; Central Depository of Armenia OJSC; CEVALDOM (Dominican Republic); Central Depository & Settlement Co. Ltd (Mauritius) and Qatar Financial Markets Authority All applications for membership were unanimously endorsed by the members. Application for Partnership Maldives Securities Depository Company applied for partnership. The application was unanimously endorsed by the members. As a result of the applications, the ANNA membership now stands at 89 full members and 27 partners; representing 123 countries (UEMOA representing several countries). ANNA Service Bureau Operators Report (Quality and ASB 2014) Mr. Scott Preiss gave a presentation on some volume statistics as well as on the core quality 10

11 issues on issuer and instrument data. A few examples on specific on-going operational challenges were presented. His presentation continued with an overview of current customers as well as an overview on the usage of the ASB website. Mr. Nourredine Yous outlined the changes that led to the successful and timely release of the ASB new record structure; effective since November The ASB Technical Committee will need to decide when all NNAs should have finalized the migration to the new format. It was proposed to have fixed release cycles so that NNAs could include these in their own internal planning. Status and implementation of ISO Standards ISO 6166 ISIN (International Securities Identification Number) Mr. Dan Kuhnel gave a brief update on the adoption of the revised ISO 6166 standard. The standard was now live with official adoption by the ANNA members taking place from 1 August, ISO CFI (Classification of Financial Instruments) An overview was provided by Ms. Emma Kalliomaki on the current status of ISO TC68/ SC4/WG6 and revision of the standard. The current DIS version is in the ISO voting process until 1 January Although ANNA has been removed as the ISO Registration Authority, the ISIN and CFI are still linked within the text of the standard. ANNA and the NNAs will remain fundamental to the CFI assignment process. It was recommended that the new version of the standard needs an implementation plan where a timeframe needs to be considered by ANNA. ISO FISN (Financial Instrument Short Name) Items were highlighted from the written report that had been provided by convenor Mr. Oscar Garcia. A new DIS version of the ISO standard was submitted at the end of June and ended in late September 2014 with a positive vote. Currently WG14 is working on the comments received during the voting process and it is expected that the standard will be published during the 1st quarter of In addition, to working on the comments the WG is preparing the document outlining the Registration Procedures for the future Registration Authority. ISO MIC (Market Identifier Code) A short presentation was given on the current status on MIC (operational MIC and segment MIC). The MIC is also included as a new (optional) data field with the new ASB record. TC68 SAG (Standards Advisory Group) The SAG is currently working on a proposal for a new work item to identify entity legal forms that exist within different jurisdictions. This dataset is required for the LEI record. In addition, the convenor of the SAG has recently sent a letter to the ROC (Regulatory Oversight Committee) and the GLEIF (Global LEI Foundation) offering assistance in all potential standards related requirements of the LEI. Legal Entity Identification Mr. Uwe Meyer provided some background on the LEI as well as current developments; including the appointment of the GLEIF CEO Mr. Stephan Wolf, as of October Marketing activities Mr. Martin Paladino gave a presentation on ANNA s marketing activities advising that more focus has been put on developing a public relations program with the goal to increase ANNA s visibility. The Board is also more focused on gaining greater visibility for ANNA by participating, presenting, as well as sponsoring industry conferences, e.g. WFIC A proposal was made to invite financial market participants of countries hosting the General Meeting to attend the workshop or morning sessions of General Meetings. Reports from Working Groups, Task Forces and Regional Groups WG1 Assisting Emerging Markets Laos has expressed possible interest in partnership within ANNA as a result of Mr. Dan Kuhnel s participation in the Asian Bond Market Forum. Ms. Elena Ulianova provided an update on contact with Uzbekistan. Another Workshop to focus on operational and practical matters will be organized for November 2015, prior to the Extraordinary General Meeting. WG2 ISIN Quality and Guidelines On behalf of Mr. Oscar Garcia an overview was provided on the adoption of the latest version of the ISO 6166 standard and new ISIN guidelines as of 1 August WG5 (LEI) As there are currently no tasks for WG5 to deal with, the convenor and the ANNA Board have agreed to place the working group into a dormant status. 11

12 TF20 (Implementation of new standards) Upon publication of the FISN an implementation plan will be developed. Regional Groups ALARG (ANNA Latin America Regional Group) ALARG has accomplished one of its main objectives of having one NNA in each country of the region and continues to work on the objective to gain full Membership of each Partner. APARG (Asia-Pacific ANNA Regional Group) During Q2 and Q focus continued to be placed on individual NNA needs & assistance. Efforts continue to find two convenors to take over the coordination roles. AMERG (African and Middle East Regional Group A presentation was given by Dr. Tarek Abdel Barry convenor of the new Regional Group. Several partners have been contacted and reminded of their obligations as well as communication re-established. A prospective for new partnership is the Sudan Stock Exchange. Appointment of nomination committee for ANNA Board and ASB TC election 2015 The Nomination Committee was appointed for the spring meeting 2015 where three seats are open for election: Argentina and Hungary for the ANNA Board as well as Turkey for the ASB Technical Committee. Caja de Valores (Argentina) advised the members that they have decided not to stand for re-election. Next meeting On behalf of the Irish Stock Exchange the Membership was invited to attend the next Ordinary General Meeting 4-5th June 2015 to be hosted in Dublin, Ireland. Emma Kalliomaki ANNA Executive Secretary 12

13 ANNA Service Bureau report for 2014 Status of ASB activities The ASB TC members have held a couple of conference calls during the last calls. This report describes the status of the relevant topics. Pricing: The Technical Committee Members agree that a potential price increase in the course of 2016 will be applied to all customers, including the present ones. Migration: The parallel processing to manage the old record structures and the NRS (New Record Structure) result in a big workload, high costs, and it makes the support groups at the operators sites more complex. Moreover, neither a price increase can be applied nor can many potential customers be contracted before the NRS coverage is very close to 100%. For this reason, the operators have been asked to set a deadline for supporting the old record structures. It was agreed among the operators that the deadline for the implementation of the NRS would be November 27, The old ISIN record will no longer be supported after this date. While Euroclear planned to switch to the NRS in June 2015, and thus will cover 99% of the S ISINs, we will need a solution to manage the Luxembourgish instruments. A letter was sent by Clearstream to both the ANNA and the ASB chairmen, informing them of Clearstream's inability to implement the NRS before the first half of May There is solely an uncertainty relating to the ECB. Bloomberg Contract: An overview of the conditions of termination to be outlined by the operators is in progress (CGS). FIGI: The ASB TC members discussed the potential damage that could result from the FIGI marketing campaign. It is recommended that the ANNA members be requested to publish related press releases in their respective countries. As an additional activity in this context, the operators will write a letter outlining the benefits of the ASB that can be used by all members. ASB Contract Templates: It was agreed that a new template for end users will be drafted based on the template for vendors that is available as an annex to the basic ASB contract between ANNA and the operators. A new Italian customer has been acquired and is already using the ASB. ASB Marketing Planning: It was agreed that the operators will make suggestions concerning the future marketing of ASB. Nourredine Yous Chairman, ASB Technical Committee There is no problem with the migration on the client's side. According to Scott Preiss, all customers will have implemented the NRS by The ASB Network Customers NNAs NNAs Customers ISIN DB New York Synchronization ISIN DB Zurich Web Server New York Standard & Poor s Web Server Zurich SI Financial Information Ltd 13

14 Securities business and state of ISIN implementation worldwide Country EquitiesDebt instruments* Warrants Investment funds TOFF** Use of ISINs no. ISINs no. ISINs no. ISINs no. ISINs no. ISINs Domestic Cross border Primary Second. Not yet Algeria Angola Argentina Armenia x - - Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belarus Belgium Bolivia Botswana Brazil Bulgaria Canada Cape Verde Chile China Colombia Costa Rica Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador El Salvador Egypt Estonia Finland France Georgia Germany Greece Guatemala Honduras Hong Kong Hungary Iceland India Indonesia Iran Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Korea Kuwait Latvia Lebanon Libya Lithuania Luxembourg Macedonia Malaysia Maldives x Malta Mauritius x Mexico Mongolia x Montenegro Mozambique Morocco Nepal Netherlands *** *** Nicaragua Nigeria Norway Oman Pakistan Palestine Panama Paraguay Peru Poland Portugal Qatar Romania * including Structured Products ** Traded Options and Financial Futures *** included in Equities Italic figures refer to previous years; no updated information received 14

15 Securities business and state of ISIN implementation worldwide Country EquitiesDebt instruments* Warrants Investment funds TOFF** Use of ISINs no. ISINs no. ISINs no. ISINs no. ISINs no. ISINs Domestic Cross border Primary Second. Not yet Russia Saudi Arabia Serbia Seychelles Singapore Slovakia Slovenia South Africa Spain Sri Lanka Swaziland Sweden Switzerland Syria Taiwan Tanzania Thailand Tunisia Turkey UEMOA Uganda Ukraine United Arab Emirates United Kingdom Uruguay USA Venezuela Vietnam Zambia Zimbabwe Clearing systems: Clearstream Euroclear Total * including Structured Products ** Traded Options and Financial Futures *** included in Equities Italic figures refer to previous years; no updated information received 15

16 Allocation of ISIN for new financial instruments Country Type Options/ Futures Commodities Indexes Interest Rates Currencies Cross Rates Comments / Reasons for non allocation of ISINs for specific types of instruments Algeria These instruments are not used yet in Algerian financial market Angola We don t have any derived financial instruments yet. Argentina Since the allocation of the ISINs is currently done manually, it is difficult to allocate ISINs for all specific types. Moreover, there s no requirement from the market. Armenia The main reason is that this specific type of instruments is not circulated in the Armenian securities market. Australia Austria We allocate ISINs upon request (no request/need for Currencies or Crossrates at the moment) Azerbaijan These types of instruments are non-existent on the securities market in Azerbaijan. Bahrain Bangladesh Only currencies are traded in Bangladesh by bank & money changers but no market practice to allocate ISINs. Barbados No requests made. Belarus We do not allocate ISINs for derived financial instruments as we have not received any requests for such allocation. Belgium Bolivia EDV is allocating ISINs and CFI to all the type of instruments listed in the Bolivian Stock Market. Botswana N/A, not available in our market. Brazil Bulgaria There are no derived financial instruments on the Bulgarian capital market yet; allocation will start as soon as this type of instruments appears on the market. Canada These types of instruments do not trade with ISINs in Canada. Cape Verde Not applicable. Chile We have not been requested to allocate such type of instruments as of today. China There is no request for ISINs of these specific types. Colombia These instruments are not cleared or settled through neither of the depositories available in Colombia (DCV or DECEVAL), thus DECEVAL does not assign ISIN codes. Clearing and settling happen in the depositories for the subjacent securities when applicable. Costa Rica Instruments not available for the local market. Croatia These types of instruments are not issued by domestic security industry. Cyprus The Cyprus Stock Exchange (CSE) does not allocate ISINs for structured products because CSE has not reveived any requests for specific types of Financial Instruments re.g structured products. Czech Republic Not required yet. Denmark All Danish TOFF s are issued out of Sweden; Commidities are not traded in DK. Dominican Republic At the moment Derived Financial Instruments do not exist in the Dominican Republic securities market. Ecuador We don t have those markets. El Salvador Instruments are not available in our market yet. Egypt We have no derived financial instruments yet. Estonia Euroclear ISINs are only allocated in accordance with the ISO 6166 standard and ANNA ISIN Guidelines - therefore the instrument types above are out of scope of the area of our responsibility Finland The market has not requested this yet. France Euroclear France is delegating the codification of Monep options to Euronext and Matif futures are not identified under the AFC reference system and aren t officially coded. We didn t codify cross rates. Georgia There are no such securities on the market Germany Greece Technically is feasible to allocate ISIN codes for all instruments but there is not such an interest by the local market. Guatemala The derived financial instruments market does not yet exist in Guatemala. Honduras There is no derivative market in Honduras. Hongkong No requests were received so far for ISIN on commodities Hungary The ISIN order does not oblige the issuers to identify the instruments with an ISIN not marked on the left. Iceland No demand for them plus those types are not common in our market. India Commodity identifiers (C-Ids) were earlier generated for warehouse receipts for commodities. This has now been discontinued and is in the process of being phased out; At present, ISINs are allocated to securities that trade in demat form and where a need has been felt for allocation of ISINs, especially for the purpose of clearing and settlement. No request has been received from market participants viz. stock exchanges for allocation of ISINs for exchange traded futures and options. Further, several of the aforementioned instruments come under the purview of the banking regulator and the commodities market regulator and they have not desired allocation of ISINs for instruments under their purview. Indonesia We only create ISINs for the financial instrumenst listed in KSEI Iran The other types of instruments are not used in our area. Ireland Israel Italy Euro cross-reates are not under our competence. Jamaica Derived financial instruments are currently not available on the JSE. Japan The local codes (4 digits) are mainly used by the Japanese market participants. Italic figures refer to previous years; no updated information available 16

17 Allocation of ISIN for new financial instruments Country Type Options/ Futures Commodities Indexes Interest Rates Currencies Cross Rates Comments / Reasons for non allocation of ISINs for specific types of instruments Jordan Apart from currencies, such issues do not exist in the Jordanian Capital Market Kazakhstan According to our Rules of ISIN allocation we do not allocate ISINs for derived financial instruments. Korea Kuwait Not offered in the Kuwaiti Market Latvia Such types of financial instruments are not registered at the Latvian Central Depository at the moment. Lebanon With the exception of Currencies these types of instruments do not exist in the country. Libya The Libyan Stock Market is only dealing with ordinary shares. Lithuania Not existent in the market or not circulated publicaly via CSD. Luxembourg No market demand Macedonia These types of instruments are not introduced yet on the Macedonian Capital Market Malaysia ISINs are allocated for instruments that are listed and traded on the Exchange or by request from the issuers. Maldives No such instruments introduced in the country. Malta No requests were made so far. Mauritius Allocation will begin as soon as the Stock Exchange of Mauritius starts trading derivatives. Mexico The Derivate Mexican Market doesn t require the ISIN. Mongolia Some of the instruments are not available in the market and for others, we are working on to allocate ISINs. Montenegro We don t have those type of financial instruments Morocco These types of instruments do not exist on the securities market in Morocco. Mozambique Instruments not existing yet in the market Nepal Most of the instruments are not available in Nepalese market. Instruments which are available are yet to come under regulatory bodies. Some of the instruments which are available are also not open for trade in the market. Netherlands Nicaragua No allocation due to market conditions. Allocation will start as soon as the market will demand it. Nigeria Not existing yet Norway Oman Not available in the Omani market. Pakistan Due to non-existance of such instrument type and/or due to no market demand. Palestine None of these instruments listed Panama We do not have these financial instruments in our country Paraguay We do not trade any of those instruments. Peru Derived financial instruments are not traded at the BVL. In the case of currencies, we have allocated an ISIN code only for our national currency (Nuevos Soles). Poland Portugal INTERBOLSA doesn t allocate ISIN codes to Commodities nor to Cross Rates because there have been no requests. Qatar Romania No request received yet Russia ISINs for TOFFs and commodities have not yet been requested by the Russian market. Once we receive the request from the market we will start allocation. Saudi Arabia Serbia Derived financial instruments have not yet appeared on our market. Seychelles Singapore ISIN code not used in the market. Slovakia Allocation of ISIN for specific types of finacial instruments is not mandatory according to Slovak legislation. Slovenia The reason for not allocating ISINs is because these types of instruments are not issued yet. South Africa Current system constraints. Spain As part of the Eurozone we are no longer in charge of assigning ISIN codes for currencies and cross rates. Sri Lanka Products are not avavilable in Sri Lanka. Swaziland We need technical assistance on issuing ISIN codes Sweden No market convention. Switzerland Syria We only have equity securites in Damascus Securities Exchange Taiwan ISINs are allocated only for those derived financial instruments traded on the exchange. Tanzania Thailand No cross rates derivatives products available in the exchange and no request for the issuance of ISIN upon cross rates derivatives products. Tunisia These specific types are not traded in Tunisia. Turkey UEMOA These instruments do no exist in our juristiction. Uganda Not listed on the Stock Exchange Ukraine No market demands United Arab Emirates DERIVRD FINANCIAL INSTRUMENTS are not yet used and regulated in UAE markets. Allocating ISINs for Commodities is under process but the other menioned instruments are not licened in UAE markets yet. Italic figures refer to previous years; no updated information available 17