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ISIN
User Group Issues
Contract/ASB Enhancements
ANNA
General Meeting
May
2002 00Athens, Greece
Michael
Atkin, FISD
ISIN
User Group Issues
Overall
emphasis is on the increasing importance of securities numbering schemes
in automated environments
Two
Core Issues
ASB
Contract (access and usage under reasonable terms and conditions)
ASB
Product Enhancement (unique and complete identification of all tradable
instruments)
Three
Cheers for ANNA
Listened
to the needs of the industry
Quick
understanding and response to inevitability of STP
Fast
track creation of ASB
Partnership
with industry through User Group
Phase
one improvements are evident!
Review
of Specification
Performance
Issues 00Phase One
(assignment, maintenance, NNA compliance, timely dissemination)
Access
and Licensing Issues 00Phase Two
(centralized administration, promote redistribution, improve customer
support)
Product
Specification 00Phase Three
(available prior to date of security issuance, contain all information
required to precisely and uniquely identify the security)
Performance
Issues
The
ASB is doing an effective job
Assignment
and maintenance issues are being managed
Congratulations
and thank you
ASB
Contract Requirements
Centralized
administration to avoid complex/non-available bilateral agreements
Modular
uniform license with terms and conditions that promote commerce
No
re-licensing provisions on end-users
Credits
if direct service from NNA
Centralized
customer support to resolve data accuracy, technical and contract issues
ASB
Proposal
Attempted
to create one uniform license to obtain, use and redistribute ISIN information
Mandates
terms and conditions that are more restrictive than those already in
place
Vendors
will not accept a global licensing solution to conflicts with existing
agreements
ISIN
User Group Proposal
Modular
license (core license with separate addenda for NNA00 that currently
require additional licensing terms)
Centralizes
contract administration
Terms
and conditions as uniform as possible
Creates
foundation for ongoing discussion about business models and usage requirements
Based
on ISIN Data License Agreement plus core ANNA Agreement and LSE Securities
Masterfile Agreement
Our
Suggestion
The
modular contract concept is acceptable to the vendors
The
modular contract concept has the support of S&P, Telekurs and the
ASB Chair
Continue
the dialogue on business models that simplifies the acquisition, redistribution
and usage of primary identification numbers
Adoption
by ANNA members is required to move to the next step
ANNA
Service Bureau
in the Post-GIAM Era
Meeting
the Symbology Requirements of Automation
ASB
Mission (industry view)
Work
with ANNA members to improve ISIN assignment, maintenance and usability
Manage
the dissemination process and ensure timely access to primary identifiers
Ensure
that all financial instruments (that are issued and tradable) have an
ISIN
Ensure
that ASB Feed contains ALL relevant information required to uniquely
and precisely identify the instrument
Symbology
Issues are Core
Automation
(in a complex world) requires precision
Reference
data maintenance is still mostly a manual process
Bad
reference data is a significant cause of trade failures
Reference
data standards are a key to STP automation
Reference
Data Quality
A
precise instrument identification scheme is needed to eliminate inefficiencies
and help mitigate the risks of trade failure
The
world is getting more complex 00time is becoming compressed 00the
risks are getting greater
Primary
identification numbers (ISIN) are key to many aspects of reference data
quality
Reference
Data Components
Asset identification (ISIN+)
Account
identification
Counterparty identification (links to ISIN)
Settlement
instructions (OPOL/Register)
Descriptive data
(security master file links to ISIN)
Generic
data
Fee/tax/commission
rates
The
Role of the ASB?
Unique
security identification requirements are complex and evolving
Official
place of listing
Register
level identifiers
Other
data elements (CFI +)
Linkage
requirements between ISIN and other components of reference data are
still evolving
Links
between legal entities, issues and ISIN
Role
of the ASB?
Unclear,
but potentially significant
Interactive
dialogue between industry and ASB is required as issues evolve
Timely
decision-making from ASB has an impact on requirements
Are
requests feasible?
Is
ASB capable?
Are
commercial terms acceptable?
Two
Sides of the Equation
Input
Side
Primary
relationship is between the ASB and NNA00 (through ANNA)
ISO
6166 and ANNA Guidelines
Output
Side
Primary
relationship is between the ASB and the industry
ISIN
plus additional data elements required for unique and precise identification
ASB
Decision-Making
OPOL
Illustration
Requirement
validated by FISD research
Understandable
that NNA00 might not have access to secondary/tertiary listings
ASB
might be in a position to collect, link and disseminate listing data
(there will be others)
What
is the ASB Mission?
GIAM
(better) or industry utility to meet automation objectives?
The
industry sees an enhanced role for the ASB
Is
this a reasonable path to pursue?
Can
the ASB be empowered to assess and make output side decisions without
ANNA approval?
Thank
You
Michael
Atkin
Financial
Information Services Division
Software
& Information Industry Association
202.789.4450
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