International Securities Services Association

ACSDA General Assembly, Guatemala–Antigua, April 19, 2013

ISSA Update

Mission

Governance

Communication

Activities

Next Symposium

Josef Landolt, ISSA ChairmanUrs Stähli, ISSA Secretary

International Securities Services Association

Develop Solutions To actively contribute to developing solutions that improve the efficiency and promote best practices to mitigate risk within the securities services industry.

Strengthen To strengthen international coordination and Cooperation cooperation across the securities services industry.

Facilitate To facilitate and stimulate active communication Communication among securities services providers, regulators and other industry stakeholders.

Mission

International Securities Services Association

Governance – Members by Domicile

80 ISSA Members from 42 Countries

Chairman's Office Operating Committee

EuropeAmericasAsia-PacificAfrica

246

93

14 ISSA Sponsoring Institutions and Board Members

International Securities Services Association

Governance – Members by Domicile

Chairman's Office Operating Committee

3248

14 ISSA Sponsoring Institutions and Board Members

80 ISSA Membersthereof 32 CSDs

thereof 7 ACSDA Members

CSDsOthers

4832

International Securities Services Association

Governance - Sponsoring Institutions and Board Members

Alain Pochet

Hani Kablawi

Lee R. Waite

Jeffrey Tessler

Stephen Lomas

John Van Verre

Andrew Gray

Conrad Kozak

Garth Barker-Goldie

Thomas Zeeb

Alan Naughton

Chris Church

Simon HaggertyFrederic Hannequart

Additional Board Members: Josef Landolt (Chairman)Neil Henderson, DTCC (Chair Operating Committee)Urs Stähli (Secretary)

International Securities Services Association

Communication

ISSA Homepagenew version coming soon

www.issanet.org

ISSA Newsletterson a quarterly basis

Articles in Magazineson an ad hoc basis

International Securities Services Association

Activities – Working Groups

RegulatoryImpact

(Florence Fontan)

Corporate Actions(Ranjit Chatterji)

Comm. Standards& Reference Data

(Irene Mermigidis)

Hidden Risks(Ed Neeck)

2011/2012 June 2012 June – September 2012 June 13

Sym

posiu

m R

ep

ort

sCorporate Actions

(John Kirkpatrick)

Collect data frommajor markets to evaluate progress

Comm. Standards& Reference Data

(Irene Mermigidis)

Discuss with vendorsreceptiveness to implement unified global ETC/matchingmarket practice guide

Out of NetworkAssets

(Ed Neeck)

CollateralManagement(Angus Fletcher)

(Activities on hold)

RegulatoryImpact

(Florence Fontan)

see separate page

see separate page

Update Executive Summary,additional: Shadow Banking

Rep

ort

s

International Securities Services Association

Activities – Working Group «Collateral Management»

All Key players understand that the success of the new world will be decided in large part by the success of a key collateral strategy Source: Working Group Statement

Focus on post trade landscape

Key models (bilateral / central counterparty)

Key players (role in handling of buy side, sell side, market infrastructures, custodians)

Key regulatory drivers (systemic safety, investor protection etc.)

Best practices for key operational processes

Structure of report

Definition of collateral management including types of collateral

Asset protection (diff. asset classes, jurisdictions, regulatory requirements, segregation)

Customer communication (message automation)

Default management best practices (principles, procedures)

Customer reporting (mark to market evaluation, collateral held, substitutions etc.)

International Securities Services Association

Activities – Working Group «Out of Network Assets»

Focus on assets held outside of a CSD environment due to the fact that regulators see custodians being responsible to a higher standard of care

Asset classes considered

Loans (syndicated and bi-lateral)

OTC derivatives and funds (various types, such as private equity funds, hedge funds)

precious metals

others, such as real estate

Cooperation with Association of Global Custodians

International Securities Services Association

A Financial Reformation (Initiative Dominic Hobson)

The Problem

! Six years since financial crisis began

! A return to pre-crisis conditions unlikely

! Public and political hostility to the banking and securities industries remains high

! Ideas for new business models are needed urgently

The Challenge

How to achieve this ?

International Securities Services Association

A Financial Reformation (Initiative Dominic Hobson)

7 Themes

Competition Policy

Corporate Law

Monetary Policy*

Investor Protection*

Market Infrastracture*

Accounting Standards

Financial Regulations

Leadership

Academics

plus Practitioners

plus Central Bankers

plus Regulators

* ISSA core interests

Final delivery June 2016

ISSA Board's Current Position

Issues addressed correct

Scope far beyond theremit of ISSA

Global view critical(today too European centric)

Leadership involvement of practitioners essential

Financing not yet clear

Board asked for clarificationin order to decide cooperationin June Board Meeting

International Securities Services Association

Activities – Next ISSA Symposium

May 20 – 23, 2014