Association of National Numbering Agencies scrl

Transcription

1 Association of National Numbering Agencies scrl Annual Report 2012

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 15 Allocation of ISIN for new financial instruments 17 Working Groups and Task Forces 21 List of members by COUNTRY as per May 2013 Appendices 25 A ISO 6166 an outline of the standard 26 B ANNA Guidelines for ISO 6166, Version 11, November 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 2012 Dear ANNA Members and Partners, 2012 saw the continuation of the Great Recession that started with the collapse of Lehman Brothers back in Few would have believed that the events that unfolded starting in September 2008 would continue to have tremendous rippling impacts on the global marketplace four years later. If one could have guessed what was going to happen during the course of 2012 U.S. economic growth virtually stagnant, an intensifying European debt crisis, a slowdown in China, fiscal deadlock in Washington DC, decelerating corporate earning growth and the continuation of record low interest rates across the globe, few would have predicted that 2012 could still be considered a good year.but in terms of stock market performances, that is what happened. From the perspective of ANNA, its membership and its overall profile in the financial marketplace 2012 should also be considered a successful year for our members and our overall activities. Below I will endeavour to summarise some of the key events and tasks that ANNA, the Board and its membership were involved with during the course of the past year. The year 2012 marked a key milestone in the history of ANNA it presented the membership with an opportunity to commemorate the 20th Anniversary of the formation of the Association. We marked the occasion with our June General Meeting being held in London the location of the very first General Meeting of ANNA in We were very fortunate to have some of the past Board members join us to mark the achievements of ANNA over the years. I would like to thank all those present for making the meeting a marked success. During the course of the past year, the Board continued to put focus on a number of items that we deemed were essential to the continuing evolution of the Association. We officially launched the new ANNA Service Bureau (ASB) following conclusion of contractual negotiations and the re-appointment of CUSIP Global Services and SI Telekurs as the operators. Several meetings and discussions took place with the members of the ASB Technical Committee to begin planning out the scope of services for the future, with tangible progress being made in the initial planning phases; the ANNA Board continued to focus on the evolution of the ISO (LEI) standard and continued to promote ANNA s federated model. With the delegation of implementation phases being passed to the FSB and local regulators, we saw the scope of the project change considerably as it evolved which has now resulted in the individual ANNA members determining their future roles and level of involvement on a bilateral basis; our continual development and enforcement of the Membership Guidelines and with that, a strong focus on ensuring membership compliance with its key principles; the revision of the ISO 6166 standard, which began a few years ago, concluded and the proposed Final Draft International Standard (FDIS) was unanimously endorsed by the SC4 members. The new standard should come into effect from mid-2013; renewed efforts were put into the revision of the ISO (CFI) standard. With the help of the dedicated work of WG14, tangible progress was also made on the ISO and standards; efforts began to consider hiring a staff member to assist the Association with external promotion activities by attending industry events and speaking engagements on behalf of ANNA when one of the Board members is not able to be present. The Board also began exploring the use of a professional PR company to assist with Press and Public Relation matters; as a result of the open Belgian tax file, the Board continued to work with our external provider to define and assess alternative locations for incorporation - with more favourable operating conditions - given the Associations expanding remit over the last +10 years; The ANNA Board of Directors Chairman: Vice Chairman: Executive Secretary: Treasurer: Marketing Director: Mr Dan Kuhnel Mr Markus Heer 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 also worth noting was the effort put into supporting the ISO Standard review efforts of the SC4 through the Chairman s Advisory Group and TC68 through the Advisory Group for Registration Authorities; The Board election that took place in June 2012 resulted in a change to the Board composition. Mr György Dudás was elected back to the ANNA Board and agreed to take over the vacant role of Treasurer of the Association. Mr Samir Jaradat stepped down as a Board member due to pending retirement on behalf of the Board; we would like to thank Samir for all his efforts over the past 3 years. The year ahead will be busy for the Board members, ANNA Service Bureau and the ANNA Working Groups and Task Forces as we maintain and increase our focus on data quality and accuracy related matters and continue with our efforts to ensure the Association evolves and continues to meet the requirements of financial standards users. I look forward to working with you through the course of Yours sincerely Dan Kuhnel ANNA Chairman 4

5 Objectives and mission statements of ANNA Objectives: 1. Global promotion of ISO standards under ANNA's Control as Registration Authority 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 "Association of National Numbering Agencies ) Agencies, is a fully global committed industry to association, proactively with promoting, a presence implementing, in excess maintaining of 120 countries, and comprising a membership of Central Banks, making available, standards for securities and Central Securities Depositories, Data Vendors, Regulators related financial and Stock instruments, Exchanges. in a uniform and accurate structure for the benefit of their home Mission markets and Statement of the securities industry as a whole. We are committed to providing actionable global Registration ID and and reference maintenance data products of international and services standards to under global ANNA s market responsibility, participants, including enacted Regulators according and to the rules financial and regulations services set is industry out by ISO, to uniquely the "International identify, classify Organization and for describe Standardization. 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 Assure timeliness / accuracy / availability 4. Committed to work with the financial industry ISIN- CFI- guidelines Interaction of ANNA with the external world 5

6 General meeting ANNA administrative review 2012 ANNA Annual General Meeting, London UK, 14 & 15 June 2012 The Chairman, Mr Dan Kuhnel, opened the meeting, welcomed the delegates and thanked the London Stock Exchange for hosting the 20th anniversary meeting. Attendance consisted of 52 ANNA members and 16 additional members represented through Powers of Attorney. This represented an attendance rate of 82.9%; sufficient to establish the necessary quorum. Mr David Lester, Director of Strategic Development & Information Services at the London Stock Exchange, gave a warm welcome to all delegates and guests. He congratulated ANNA on its 20th anniversary highlighting the importance of standardisation and the advantages of using standards for the whole industry, as well as the unique role of each of the members as NNAs. Mr Niels Hougaard, having served the Association as Chairman from 1995 until 2005, also provided a personal overview of ANNA s growth and development emphasising that whilst the ISIN only has a small scope, it has become a big success and is one of the most important standards for the financial industry. Additionally, a personal and insightful overview of the UK market, the topic being How does the European storm affect the UK was presented by Mr John Trundle, CEO of Euroclear UK and Ireland. Chairman s report Mr Dan Kuhnel provided an overview of the status of action items resulting from the General Meeting in Jordan as well as the comments received via feedback forms. The Chairman continued with a summary of the activities of the ANNA Board during Q and Q1/Q2 2012, such as Board, ISO and industry related meetings. Among other items, key areas of focus for the Board were outlined as follows Finalized drafting/review and execution of the new ASB Agreement which was executed in May Follow-up on other ISO Registration Authority Agreements (e.g. for ISO CFI) Review of Mission Statement and Objectives and short, medium and long term strategy Belgian tax related matters, including ANNA s legal status ANNA s Mission and Strategy Mr Markus Heer, Vice Chairman of ANNA, presented the proposed new Mission Statement and Objectives which had been drafted by the Board with consideration to the expectations of the members, the future role of ANNA and the possibility of ANNA developing its own standards. The hiring of an ANNA representative as a free lancer on a part-time basis for the primary purpose of external lobbying was proposed. The members were also reminded that they should also do lobbying in their own local markets where they have the responsibility for making ANNA more visible. The Mission statement was unanimously approved as follows: 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. The ANNA membership endorsed the proposed strategy presented at the June 2012 AGM held in London and empowered the ANNA Board to take the proposed actions towards implementing the new strategy. Financial report 2011 and status of the Belgian tax issue Mr Samir Jaradat, as ANNA Treasurer, presented a comprehensive financial overview comprising the Financial Statements, Auditor s Report for the Financial Year 2011 & the Treasurer Report. This presentation included an overview on the outstanding Belgian tax issue. Resolutions were unanimously passed accepting the audited financial figures of ANNA for the financial year 2011, the auditors 6

7 report, to give quitus to the ANNA Board, as well as empowering the Board to review, negotiate and execute an agreement for auditing & advisor services. Assessment of ANNAs legal structure Ms Emma Kalliomäki, Executive Secretary of ANNA, addressed the topic of the possible relocation of ANNA to another jurisdiction based on the uncertainty about ANNAs tax status as well as the language and practical issues. Following a tender process, KPMG was selected to carry the analysis of ANNAs existing status within Belgium. Membership matters Mr Martin Paladino, Marketing Director of ANNA, gave a presentation outlining the obligations of ANNA members and an overview of the Membership Guidelines document. The Membership Guidelines are a living document and act to cover situations that are not explicitly mentioned in the legal documents of ANNA. Some examples of areas covered in these Guidelines are participation in General Meetings, eligibility for joining ANNA, data quality of ASB (Annual refresh master files) and an escalation process for non-compliant NNAs. Ms Emma Kalliomaki also provided a verbal overview of the status and actions taken regarding non-compliance to the Membership obligations. An application for full membership was received from the Palestine Securities Exchange who had been an ANNA Partner since The application by Palestine was unanimously endorsed by the membership delegates. An application was received for partnership was received by the Jamaica Stock Exchange. The application by Jamaica was unanimously endorsed by the membership delegates. As a result of the applications, the ANNA membership now stands at 83 full members and 29 partners representing 118 countries (one NNA is representing several countries). Election of three Board members and one ASB Advisory Board Member Four ANNA members received sufficient nominations for the three seats on the ANNA Board. However, although Mr Samir Jaradat received the required nominations, he advised that SDC Jordan would not stand for re-election. The three other candidates Caja de Valores (Argentina), WM Datenservice (Germany) and Keler (Hungary) each gave a short verbal overview as to why their organisation should be considered for (re-)election to the Board. All three candidates were elected for a period of three years i.e. until end of first General Meeting in Additionally, Ms Necla Kucukcolak from Takasbank (Turkey) was also re-elected for the ASB Advisory Board for another 3 year term i.e. until end of the 1st General Meeting ANNA Service Bureau Operator s Report Mr Scott Preiss, of CUSIP Global Services representing the Operators, gave a presentation on volume statistics as well as on one of the core on going issues; data quality. It was also suggested that a task force be formed to address incorrect issuer names for funds. The future ASB Technical Committee will also make a full review of the ASB record as this has not been updated since the creation of ASB in Report from the ASB Advisory Board Chairman Mr Jose Alonso, the ASB Chairman, gave a summary of the activities since the GM in Jordan with the main focus being the new ASB Agreement with the current Operators. A summary of the core areas covered in the new ASB agreement was also provided. Status and implementation of ISO Standards ISO 6166 (ISIN) including status on ISO 6166 revision and on ISO Registration Authority Agreements other than ISO 6166 Mr Dan Kuhnel outlined the current status of the revision process of the new version of ISO 6166 standard. Members were encouraged to liaise with their local standards bodies to ensure a positive vote was recommended. With regards to the Registration Authority (RA) Agreements for other standards, Dan Kuhnel summarised the core changes of the new ISO template, compared to ISO 6166 RA Agreement. The goal is to use the previously signed RA Agreement for the ISO 6166 standard and prepare a consolidated version which would hopefully be agreed by ISO. A resolution was unanimously voted for the ANNA Board to proceed with the negotiation and execution of the outstanding RA Agreements whilst ensuring the agreed principles, adopted in the signed RAA for ISO 6166, are 7

8 mirrored in the new RA Agreements for ISO 10962, and ISO (CFI Classification of Financial Instruments) Ms Emma Kalliomaki gave an overview of the current status of discussions in ISO TC68/ SC4/WG6 with regards to the revision of ISO which had been voted negatively in May ISO (MIC Market Identifier Code) Ms Emma Kalliomaki gave an overview on the changes in the new version of the MIC with the main feature being the introduction of segment levels MICs which was a requirement from European regulation. The former version of the MIC only identified the market/exchange level. ISO 18773/18774 (FISN Financial Instrument Short Name) Mr Nourredine Yous gave a presentation on the current status of FISN and its possible implementation as well as an update on the feedback by the members on the AIFI (ANNA Issuer and Fund Identifier). LEI (Legal Entity Identifier) Mr Markus Heer presented the background on the issue of entity identification including the IGI (Issuer and Guarantor Identifier) according to ISO the LEI (Legal Entity Identifier) according to ISO as well as the status of discussions under the umbrella of the Financial Stability Board (FSB) FSB drafted recommendations for the G20 summit in Mexico who endorsed these recommendations June 2011 Concept of Local Operating Units which could be several per market LEI Central Operating Unit should be up and running by March 2013 Members were encouraged to talk with their local regulators and make them aware of ANNA, its strengths and the role NNAs could play. It was advised that the role of a LOU could further strengthen the central position and value of the NNA within each local market, but ultimately the liability lies with the registered entity who is also responsible for the annual review. Following the presentation some members provided details of their involvement in LEI discussion in their local jurisdictions, such as CUSIP Global Services, as the US NNA and Hong Kong Exchanges and Clearing Ltd as the NNA of Hong Kong. Marketing activities The 20th Anniversary edition of the ANNA Newsletter was presented highlighting the main topics and decisions taken. Members and Partners were encouraged to provide articles on their companies for a new section titled Knowing the ANNA members. Reports from Working Groups, Task Forces and Regional Groups WG1 Assisting Emerging Markets The membership was informed of the progress in assisting new members and partners. An update was provided on BVMAC, whose membership was terminated at the December BVMAC have undergone organisational changes and wish to reapply for membership and will be required to start the application process again. With regards to future members/partners, discussions with New Zealand remain open and as well as contact established with Seychelles. Also, following the launch of the Cambodian Securities Exchange and the allocation of a Cambodian ISIN, contact will be established to recommend ANNA partnership. Additionally, the Central Bank of Uruguay has started the process to be designated as a new ANNA Partner. They are in the process of developing the technical infrastructure that is needed to implement the ISIN numbering system. WG2 ISIN Quality and Guidelines Mr Oscar Garcia, Convenor of WG2, advised that WG2 awaits the final draft version of ISO 6166 in order to reflect the changes to the standard in the ISIN Guidelines. ALARG (ANNA Latin America Regional Group) Ms Eliana Sanchez, of Caja de Valores, informed an increase in the level of participation of the Regional NNAs. Regional communication with the NNAs has been constant with an emphasis placed on the importance of participation and commitment of the NNAs within the Association. Key topics have been the new ASB agreement, Membership Guidelines and LEI. AMEDA (African and Middle East Depositories Association) Mr Samir Jaradat advised that the last meeting was held in April, in Morocco. A number of overviews were provided including a review of the CPSS-IOSCO principles and recommendations. 8

9 Next meeting Mrs Phuong Hoang Lan Huong, CEO of the Vietnam Securities Depository, extended an invitation to the Membership to attend the next Extraordinary General Meeting 6 & 7 December 2012 and Workshop 5 December 2012, to be hosted in Danang City, known as an historic and cultural city in Vietnam. ANNA Extraordinary General Meeting, Vietnam, 6 & 7 December 2012 The Chairman, Mr Dan Kuhnel, opened the meeting, welcomed the delegates and thanked Vietnam Securities Depository for hosting this meeting. Attendance consisted of 25 ANNA members and 46 additional members represented through Powers of Attorney (POAs). This represented an attendance rate of 85.5%; sufficient to establish the necessary quorum. The membership was reminded that physical presence is preferred to relying on PoAs as there is an increased risk that the necessary quorum required to pass resolutions may not be met. Physical representation also allows members to get additional information on the topics presented and also provides the opportunity to openly discuss matters and raise questions. Mrs Phuong Hoang Lan Huong, CEO of Vietnam Securities Depository (VSD), gave a warm welcome to all ANNA delegates and partners. Mr Nguyen Doan Hung, representing the State Securities Commission of Vietnam, gave an overview along with his personal viewpoints of current developments in the Asian and Vietnamese markets. He addressed several initiatives introduced in the Asian markets which are having an effect on the local Vietnamese market. He highlighted the positive support of ANNA and the activities by the Securities Commission which he deemed to be an important initiative also for the Vietnamese market. Chairman s report Mr Dan Kuhnel, provided an overview of the status of action items resulting from the General Meeting in London as well as a summary of the feedback forms. An overview was also provided of current membership composition as well as the key areas of focus of Board activities during Q3/ Q Among other items, key areas of focus for the Board were outlined as follows Strategic planning related to the ANNA Service Bureau which was discussed in detail during a very constructive ASB TC meeting in Frankfurt Follow-up on the execution of the other ISO Registration Authority Agreements (e.g. for ISO CFI) Further promotion of ANNA, its mission, objectives and areas of responsibility vis-à-vis external parties Continued work on assessment of relocation of the legal domicile of ANNA Membership matters Mr Paladino, Marketing Director, introduced this agenda item by giving the background on the Membership Guidelines, endorsed at the General Meeting in Jordan in Dec Based on further review of the guidelines, a revised version was presented to the Membership. Discussion focussed on Power of Attorney in case of non-attendance and the appointment of NNAs depending on their entity type e.g. Regulator, CSD etc. In response to the resolution to adopt the revised Guidelines, the members unanimously accepted If no physical attendance is possible, the non-attending member shall be represented via PoA Application for partnership An application for partnership was received by the Banco Central de Uruguay and was unanimously accepted by the membership. As a result of the partnership application, the ANNA membership remains at 83 full members and 30 partners representing a total of 119 countries (as one NNA is representing several countries). Non-compliant NNAs Ms Kalliomaki, Executive Secretary, provided an overview on the status and actions taken regarding non-compliant NNAs. Areas of focus are the annual refresh master file and daily upload of ISINs to the ASB, CFI allocation and the attendance at General Meetings. In addition, data quality aspects of ISIN records provided by the members/partners to the ASB have become a major focus by the Operators, who are contacting NNAs directly. ANNA Service Bureau (ASB) Technical Committee and ASB Operator s Report Nourredine Yous, of SI Financial Information Ltd representing the Operators, gave a 9

10 presentation on the plans for the new ASB 2013 including; new templates based on the CFI categories, a Change Management Process to be introduced, inclusion of a range of standards (for key reference data) turning the new ASB database into the global reference database for standards and the ability to customise data extracts will be also possible. In order to ensure the NNAs can prepare for the changes to be implemented it was agreed that a document describing the requirements and change impacts for the NNAs would be prepared by the Operators in due course. In conclusion Mr Yous also provided some volume statistics as well as an overview on the ASB website usage and ASB customers. Status and implementation of ISO Standards ISO 6166 (ISIN) including status on ISO 6166 revision and on ISO Registration Authority Agreements other than ISO 6166 Mr Dan Kuhnel provided an overview of the revision process of the new version of ISO 6166 standard and the key areas that were discussed by the ISO SC4 Working Group 1. The new DIS version was sent to the SC4 P-member countries for voting which closed on 10 December With regards to the other pending Registration Authority (RA) Agreements and the new template, ISO have advised that a new Appendix called Schedule A is required which describes the services provided by the RA. ISO Central Secretariat advised that the Schedule should be drafted by the ISO WG responsible for the standard. ISO (CFI Classification of Financial Instruments) Ms Emma Kalliomaki as the Convenor of SC4/ WG6 provided an update on the main focus of the WG6 discussions which was confirming the format and delivery mechanism (Hardcopy/ paper based vs. Electronic version), as well as the maintenance of an external code list. ISO 18773/18774 (FISN Financial Instrument Short Name) Although the Convenor could not be present a summary of the written report was provided. The WG has focussed on the English abbreviations, as well as transforming the standard into the required current format, as per the ISO Directives. ISO (MIC Market Identifier Code) The DIS was successful through the ISO voting process and following SWIFT, as Registration Authority, signing the RA Agreement with ISO, the standard went directly to publication on 1 October, TC68 AGRA (Review of RA Agreements) Mr Dan Kuhnel gave an overview of the discussions of the TC68 Advisory Group on Registration Authorities who was tasked to assess ISO RA Agreements and recommend improvements. The focus of the calls was - Rationale, benefits/risks using RAs Review of the RA Agreement template ISO RA procedure documents ISO RA selection process LEI (Legal Entity Identifier) Mr Heer, Vice Chairman, presented the background on the issue of entity identification including the IGI (Issuer and Guarantor Identifier) according to ISO the LEI (Legal Entity Identifier) according to ISO as well as the status of discussions under the umbrella of the Financial Stability Board (FSB) An overview was provided on the progress of the Global LEI initiative including a change of the LEI structure introducing a four digit LOU identification at the beginning of the LEI and core principles for LEI allocation. NNAs interested in being involved in the Lei initiative were advised to get approach their local regulator. Legal matters Relocation of ANNA Emma Kalliomaki summarised the on-going concerns which have led to the considerations of a possible relocation of ANNA to another jurisdiction. As a result, the ANNA Board instructed KPMG, based on best quote and service value, to carry out analysis with regards to legal form and tax matters as well as a further analysis with regards to relocation of ANNA with a focus on the aspects of taxation, company law and operational feasibility. Based on the initial findings by KPMG, the ANNA Board requested a more detailed analysis of Ireland and Switzerland in comparison to Belgium. An overview of this comparison was provided. 10

11 It was suggested by the Membership to consider 2 additional jurisdictions taking into account tax rate and communication with tax authorities, the physical presence of ANNA staff, English language, country not being chosen for tax evasion purposes and keeping the registered name. There was unanimous agreement by the membership to empower the members of the ANNA Board to continue their analysis on the relocation of ANNA s legal domicile; including the appointment of professional services that may be required. It was also agreed that as part of the relocation analysis, KPMG will be asked whether ANNA could relocate while the tax case is pending. Extension of board election period An overview of the risk relating to the existing election cycle for Board members, highlighting there are three seats up for election during one period, which should be avoided for continuity reasons. To remove this risk, the Board proposed to extend the election period of one seat, for one term only, for an additional year. Based on this it was unanimously agreed to extend the term of office for the ANNA Board member of Germany, represented by WM Datenservice (Markus Heer) for a period of one year. Financial Forecast 2013 Mr György Dudas, in his function as ANNA Treasurer, provided background on some core items for the A question was also raised whether accounts are on a cash or accrual basis, clarification on this question will be postponed until after the change of ANNA s auditing to KPMG. The budget for 2013 was unanimously accepted. Marketing activities Martin Paladino informed the membership on the content of the latest edition of the Newsletter, which was also published on the ANNA website. Reports from Working Groups, Task Forces and Regional Groups WG1 Assisting Emerging Markets With regards to future members and partners, discussions with New Zealand remain open and new contacts have been established with Cambodia and the Seychelles. A request was also received from Monte Titoli (the Italian CSD) who have expressed an interest to allocate ISINs in their cited capacity as an ICSD. The ANNA Board continue to liaise with Monte Titoli regarding the practical implications of this request. The ANNA Board also recommend that new NNAs applying for membership, first become a Partner and then apply for full membership after a certain period of time whereby adherence to ANNA principles/guidelines have been demonstrated. WG2 ISIN Quality and Guidelines A new version of the Guidelines is expected to be prepared after the final voting on the new version of ISO Appointment of nomination committee for ANNA Board spring 2013 The Nomination Committee was appointed for the spring meeting 2013 where the ANNA Board seat currently held by the United Kingdom is up for election. There is no seat to be elected on the ASB TC. Next meeting Mr Alberto Cogliati, representing Banca d Italia invited the Membership to attend the next Annual General Meeting, which will be hosted in Rome, on 6 &7 June Emma Kalliomäki Executive Secretary 11

12 ANNA Service Bureau report for 2012 The ANNA Service Bureau (ASB) continued its impressive trajectory of growth in 2012, as evidenced by the volume of ISIN codes (18.7 million, more than 7 million active) contained in the ASB Database as of November 30, Moreover, in terms of advancing the widespread use of the associated CFI standard (Classification of Financial Instruments code), the ASB Database contained 15.6 million (more than 6.2 million active) CFI codes, solidifying the ASB Database as the world s most timely and voluminous database of ISIN and CFI data. Following the decision of the ANNA Board in 2011 to continue with the current ASB operators, albeit under a new contract that more accurately reflects the modern needs of the NNAs and market participants alike, a revised agreement was indeed executed in June, The new agreement provides many enhanced benefits to ANNA and the market, including upgrades in the ASB s scalable technology infrastructure, greater investment in project and change management, and the Operator s contribution of subject matter expertise in reference data, data quality, standardization, and marketing. In practice, the widespread use of ASB ISIN data, including ever-increasing distribution by subscribing market data vendors, has placed an unprecedented level of both usage and scrutiny of NNA data by the global marketplace. The ASB Operators, in turn, have accelerated their active support of clients and interface with the NNAs, on issues ranging from asset-class coverage to timeliness and quality of contributed data. As discussed at several recent ASB and ANNA general meetings, it is incumbent upon all NNAs to proactively meet the changing data quality needs of the market, and the ASB has proven to be a primary tool to meet those needs. There is much reason for ASB optimism as we enter 2013, driven by the increasing scope and volume of contributions by member NNAs, including a sustained effort to refresh all NNA ISIN Masterfiles at least once per annum. Future plans, as driven by the ANNA membership, include the addition of Legal Entity Identifier (LEI) linkages to ISINs, more timely dissemination of global ISINs through the ASB, and streamlined delivery of ASB content including segmented or portfolio services to meet or exceed the expectations of ASB users. One market commentator recently noted that we live in the golden age of data, and in terms of helping the global markets achieve a high degree of excellence and efficiency in that same spirit, the ANNA Service Bureau looks forward to providing a golden age of service and support in 2013 and beyond. Scott J. Preiss Chairman, ASB Technical Committee The ASB Net w ork NNAÔs NNAÔs Customers Customers ISIN- DB New York Synchronization ISIN- DB Zurich Web Server New York Web Server Zurich Standard & PoorÔs Telekurs Fin ance 12

13 Securities business and state of ISIN implementation worldwide Country Equities Debt 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 Australia Austria x - - Azerbaijan x - - Bahrain Bangladesh Barbados Belarus x Belgium Bolivia Botswana Brazil Bulgaria Canada Cape Verde Chile China Colombia Costa Rica Croatia x - - Cyprus Czech Republic Denmark x - - 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 Malta Mauritius x Mexico Mongolia x Montenegro Morocco Nepal x Netherlands Nicaragua Nigeria Norway Oman Pakistan Palestine Panama Paraguay Peru Philippines Poland Portugal Romania Russia Saudi Arabia Serbia Singapore Slovakia Slovenia * Traded Options and Financial Futures Italic figures refer to previous years; no updated information received 13

14 Securities business and state of ISIN implementation worldwide Country Equities Debt 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 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: Euroclear/Clearstream Total * Traded Options and Financial Futures Italic figures refer to previous years; no updated information received 14

15 Allocation of ISIN for new financial instruments Country Type Options/ Futures Commodities Indexes Interest Rates Currencies Cross Rates Comments Algeria These instruments are not used yet in Algerian financial market Angola 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 AS does not quote or trade commodities, currency or cross-rate products. AS has no requests for ISINs for indices and does not monitor cross-rates. Austria We allocate ISINs upon request (no request/need for currencies or cross rates at the moment) Azerbaijan These types of instruments are non-existent on the securities market in Azerbaijan. Bahrain No products in the market yet. Bangladesh Only currencies are traded in Bangladesh but there is no market practice to allocate ISINs. We will start to allocate such ISINs on demand of the market. Barbados Belarus We do not allocate ISINs for derived financial instruments as we have not received requests for allocation. Belgium Bolivia Our institution is allocating ISINs and CFI to all the type of instruments listed in the Bolivian Stock Market. Botswana The BSE does not have derivative market yet. 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 BVC does not have these products. Chile There are no specific reasons. 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 do not clear or settled through the depositories available in Colombia (DCV or DECEVAL). DECEVAL does not assign ISIN codes. Costa Rica Instruments not available to trade locally Croatia These types of instruments are not issued by domestic security industry. Cyprus The reasons that CSE do not allocate ISIN s for Investment / Mutual Funds and Structured products are the following: 1. these type of financial Instruments do not exist in the Cypriot Market; 2. up to now the CSE has not received any requests with regards to these specific types of financial instruments. Czech Republic Not required yet. Denmark All Danish derivatives are issued out from nasdaq OM Stockholm Dominican Republic At the moment in the Dominican Republic securities market does not exist derivatives trades. Ecuador These products do not exist yet in Ecuador. El Salvador Only for existing instruments in our market Egypt Because those types are not listed in the Egyptian stock market. Estonia Finland There has not been any requests from the issuers of these financial instruments. 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 No derived financial instruments market Hongkong No requests were received so far for ISIN on commodities Hungary Iceland India At this stage we are unable to indicate any definite date for allocating ISINs to securities other than the mentioned ones. Indonesia It s not listed in KSEI and not traded in the ID Iran Other types of instruments are not used in our area. Ireland Israel Italy As EMU members we are no longer in charge of assigning Cross Rate ISINs 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. Jordan Such Issues do not exist in the Jordan 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 At the moment such type of financial instruments is not registered at Latvian Central Depository. 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 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 In the Lithuanian market we don t have such products. Luxembourg No demand Macedonia These types of instruments are not introduced yet on Macedonian Capital Market Malaysia ISINs are allocated for instruments that are listed and traded on the Exchange or by request from the issuers. Malta We have not had such requests. Mauritius The Stock Exchange of Mauritius has decided not to introduce the trading of Futures at this stage. Mexico The Derivate Mexican Market doesn t require the ISIN. It is important to mention that in case the Derivative Market request it, the Mexican NNA is prepared to do it. Mongolia Mongolian security market does not have those instruments yet. Montenegro We don t have those type of financial instruments Morocco No derived financial instruments in our market Nepal Derived financial instruments are not under SEBON regulations yet. Hence, we do not allocate ISINs for these instruments. Netherlands Nicaragua No allocation due to market conditions. Allocation will start as soon as the market will demand it. Nigeria They are not listed on our exchange. Norway Oman Not available in the Omani market Pakistan We do not allocate these instruments either due to non-existance of such instrument type or due to no market demand. Palestine N/A Panama We do not have these financial instruments Paraguay We do not deal with derived financial instruments yet. 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). Philippines These other financial instrument types are not traded in the Exchange. Poland Portugal INTERBOLSA doesn t allocate ISIN codes to Commodities nor to Cross Rates because there have been no requests. Romania No request received yet Russia ISINs for TOFFs and commodities are not yet required by the Russian market. Saudi Arabia Not applicable. Not yet traded in our market. Serbia Derived financial instruments have not yet appeared on our market; We will start as soon as these financial instruments would be issued. 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. No voluntary requests by issuers to assign ISINs. Slovenia The reason for not allocating ISINs is because these types of instruments are not issued yet. South Africa System constraints. Spain We do not have those instruments in our market (as Eurozone member we are no longer in charge of assigning Cross Rate ISINs) Sri Lanka No derivative products avavilable in our market Swaziland Sweden No market convention. Switzerland Syria We only have equity securites in Damascus Securities Exchange Taiwan ISINs are allocated only for those options and futures traded at Taiwan Futures Exchange. Tanzania Derived financial instruments not present Thailand Some instruments are not recognized at Thailand Securities Depositoy. Tunisia These instruments are not traded in Tunisia. Turkey UEMOA These instruments do no exist in our area. Uganda Not listed on the Stock Exchange Ukraine United Arab Emirates The DERIVRD FINANCIAL INSTRUMENTS are not yet used and regulated in UAE markets. ISINs allocation for the Commodities is under process but the other menioned instruments are not licened in UAE markets yet. United Kingdom Uruguay No request was received USA ISINs are not requested for commodities and only occasionally for commodity options and futures. ISINs can be allocated to commodities immediately upon request. Venezuela These instruments are not negociated in our market Vietnam VSD only allocates ISINs for financial instruments which are registered at VSD. Zambia We do not deal in derived financial instruments; Allocation will start when the instruments are brought to the market. Zimbabwe Because we do not offer other products Italic figures refer to previous years; no updated information received 16

17 Working Groups and Task Forces Since its foundation in 1992 ANNA s tasks have been growing constantly. In order to structure the work of all existing Task Forces, ANNA decided to categorize the existing Task Forces into two categories: Working Groups (WG) and Task Forces (TF) While WG s are permanent and looking into strategic matters, TF s should present their results to the General Meeting in a limited period. At present three Working Groups plus two Regional Groups are in operation: WG1 (Assisting Markets) An important step for all Members and Partners were the development of the Membership Guidelines by the ANNA Board that became part of the legal documents through voting at the General Meeting in Jordan in December The document outlines several aspects of the members and partners rights and obligations in more detail. Being a living document it is constantly updated and presented to the membership at a General Meeting. At the 20th Anniversary General Meeting in London (June 2012) we were pleased to receive applications for full membership from our ANNA Partner in Palestine as well as an application form for Partnership status from Jamaica. Applications were voted unanimously bringing membership to 83 full members. At the General Meeting held in Vietnam in December ANNA could welcome Uruguay as ANNA Partner. Currently ANNA has 30 ANNA Partners representing 37 countries: Algeria Angola Armenia Barbados Belarus Bolivia Botswana Cape Verde Dominican Republic Ecuador El Salvador Georgia Ghana Guatemala Honduras Jamaica Kenya Mauritius Mongolia Nepal Nicaragua Paraguay Swaziland Syria Tanzania UEMOA (representing Benin, Burkina Faso, Côte d Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo) Uganda Uruguay Zambia Zimbabwe Organizations from these countries being appointed as National Numbering Agencies are mainly Central Securities Depositories (CSDs) or Stock Exchanges. ANNA Members 17