7 th international conference of the aecsd minsk/belarus – september 9, 2010 report from anna

ANNA numbers the world

Association of National Numbering Agencies scrl

7th International Conference of the AECSDMinsk/Belarus – September 9, 2010

Report from ANNA

Dan KuhnelChairman

ANNA numbers the world Dan Kuhnel 2

Agenda

ANNA Objectives – Overview Current ANNA Structure

ANNA Membership Overview ANNA‘s Key Areas of Focus – Existing and New Data Standards

Questions/Comments


ANNA Objectives - Overview

Global promotion of ISO standards under ANNA's responsibility - the recognised Registration Authority;

Quality: development and pro-active maintenance of ISIN and CFI guidelines;

Committed to working with the global financial industry: ISIN & CFI guidelines

Make available: International Securities Identification Number (ISIN) allocation

according to ISO Standard 6166 + ISIN Guidelines; Classification of financial instruments (CFI) allocation according to

ISO Standard 10962; Dissemination of ISIN and CFI through NNAs and the ANNA Service

Bureau (ASB); Products of the ASB: ISIN_Access (Look-up service) and ISIN_db

(Daily data feed).


ANNA Structure

ANNA MembershipANNA

Partners

ANNA Board ANNA Secretariat

Task Forces

Working Groups

ASB Board

RegionalGroups


ANNA Membership Overview

Total ‘full’ ANNA members (as of 31 August 2010): 82 National Numbering Agencies;

ANNA Partners (as of 31 August 2010): 27 organisations; ISIN coverage of 120 countries; CSDs/ICSDs represent 58% of ANNA membership composition

Overview of Membership by Business Segment

Stock Exchanges 24

Data Vendors 3

CSDs/ICSDs 47

Regulatory Bodies 4

Central Banks 4

Total 82



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


ISO Standards Overview

ANNA has been designated as the Registration Authority for the following ISO standards:

ISO 6166 – ISIN ISO 10962 – CFI

ANNA has been identified as the logical entity to act as the Registration Authority for the following future planned ISO standards:

ISO 18773 – Financial Instrument Abbreviations ISO 18874 – Financial Instrument Short Names

ISO 16372 – Issuer & Guarantor Identifier


ISO 6166 – ISIN Standard

ISO 6166 standard - completed revision at ISO/TC68/SC4 level; Draft revised standard circulated for voting to SC4 “P” member countries

– voting closes Sept 2010; EU Commission continues their investigation into ISIN licensing and

claimed Intellectual Property Rights matters: Ruling should add clarity to security data elements that must be linked to the

ISIN and made available to the market “free” and in a timely manner; Ruling should also add clarity to what ISIN related data can be “sold” and

under what conditions;

ISO have created a new Registration Authority Agreement linked to the ISO 6166 standard – outlining conditions that NNAs must operate under; Data quality issues in the ANNA Service Bureau continue to dominate

ASB client dialogue. Data quality and accuracy is key.


ISO 10962 – CFI Standard

ISO 10962 standard has undergone a revision at SC4 level; New data elements proposed to be added to add more granularity to

instrument identification; New instrument types added eg. Structured products.

Standard should be circulated for voting in coming weeks – to SC4 “P” member countries;

Issues remain with NNAs adoption of the standard and allocation of CFI codes;

ASB database has: 11.045 million ISINs, of which 4.22 million are active

but only 8.642 million CFIs, of which 3.537 million are active

Continued focus with NNAs on importance of CFI assignment


ISO 18773/18774 – Issuer Abbreviations/Financial Instrument Short Names Standards

Business rationale: standardised issuer abbreviation linked with a short description of the security (using defined rules);

The FISN is composed of: an issuer name with a maximum length of 15 alphanumeric characters.

To ensure uniformity, the same issuer short name should be used for different financial instruments of the same issuing entity;

a “/” as the delimiter between issuer name and description; an instrument description with a maximum length of 19 alphanumeric

characters, assuming that the available length of the issuer name has been fully used. In the event that all the 15 characters have not been used in the issuer abbreviation, the remaining space may be used to

describe more characteristics of the financial instrument.


ISO 16372 – IGI (Issuer & Guarantor Identifier) Standard

Business rationale: A global scheme for uniquely identifying business entities* acting as issuer or guarantor of a financial instrument.

Main goals: Unambiguous identification of issuing entities (or guarantors). Facilitation of portfolio management (risk on issuers or guarantors)

The IGI is a unique identification scheme for every issuer of financial instruments (including eg. municipalities or ski lift companies that issue securities) and guarantors.

* a business entity in the context of IGI is an entity, structure or arrangement that has a legal constitution.


ISO 16372 – IGI (Issuer & Guarantor Identifier) Standard cont‘d

Reasons for an international standardized ID for issuing entities (and guarantors):

Risk management i.e. perform easier risk management assessment across portfolios

Efficiency - reduce costs of securities processing Maintenance of static data for business entities Reduce processing risk Reduce administration

Success factors for IGI :

Encourage the following institutions to carry IGI in their databases:

Regulators and Central Banks Market data providers (e.g. Telekurs, Reuters, Bloomberg, Rating agencies) Financial institutions (e.g. investment firms, banks, brokers, insurance

companies)



Questions & Comments

Thank you

Dan KuhnelANNA Chairman

7 th international conference of the aecsd minsk/belarus – september 9, 2010 report from anna

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