International Securities Services Association
ACSDA General Assembly, Santiago – Chile, April 3, 2014
ISSA Update
Governance
Communication
Working Groups
Symposium May 2014
Urs Stähli, ISSA Secretary
International Securities Services Association
Governance - Sponsoring Institutions and Board Members
Alain Pochet
John Van Verre
Hani Kablawi
Nick Rudenstine
Lee R. Waite
Mervyn Chiu
Phil Brown
Thomas Zeeb
Stephen Lomas
Alan Naughton
Andrew Gray
Chris Church
Pierre Yves Goemans
Paresh Sodha
Additional Board Members:
Josef Landolt (Chairman)
Neil Henderson, DTCC (Chair Operating Committee)
Urs Stähli (Secretary)
International Securities Services Association
Governance – Development of Membership
April 2013:
80 ISSA Members from 42 Countries
+ 8 New Members
- 5 Terminations (Mergers, no interest, arrears)
April 2014:
83 ISSA Members from 42 Countries
International Securities Services Association
Governance – ACSDA and ISSA – some Numbers
28 ACSDA Members
7
21
16
3
4
4
12
International Securities Services Association
Communication - Update
ISSA Homepage
ISSA Newsletters
Spotlight Videos
new version since April 2013
on a quarterly basis (4)
on Working Group Reports
www.issanet.org
on an ad-hoc basis (3)
International Securities Services Association
Working Groups
Corporate Actions
Hidden Risks
(Ed Neeck)
Regulatory
Impact
(Florence Fontan)
Comm. Standards
& Reference Data
Symposium Reports
(Ranjit Chatterji)
Corporate Actions
(John Kirkpatrick)
Regulatory
Impact
(Florence Fontan)
Collateral
Management
(Angus Fletcher)
Out of Network
Assets
(Irene Mermigidis)
(Ed Neeck)
2011/2012
June 2012
Discuss with vendors
receptiveness to implement
unified global ETC/matching
market practice guide
(Activities on hold)
Collect data from
major markets to
evaluate progress
Issue Report on Shadow
Banking
Full Report with selected
CM topics
Reports
Comm. Standards
& Reference Data
(Irene Mermigidis)
Full Report in cooperation
with ACG
June – September 2012
2013 / 2014
International Securities Services Association
Working Group «Global Principles for Corporate Actions and
Proxy Voting»
Main Contents
 Survey in 33 markets
 Realities
 Recommendations
Recommendations for Next Steps
 Promote Principles actively with industry participants,
particularly CSDs and Exchanges
 Promote regulatory change to require the digitization of CA
information at source
 Take a firm stand on and actively promote the use of ISO
formats for cross-border CA info exchange
 The working group should repeat this survey annually
 The working group should publish a case study highlighting
benefits in successful markets
International Securities Services Association
Working Group «Regulatory Impacts on the Securities Value Chain –
Shadow Banking»
Main Contents
 General Description of Shadow Banking Initiatives
 Impacts on Securities Lending and Repos Transactions
 Impacts on Money Market Funds
Conclusions
 Further Shadow Banking developments to be expected
in 2014
 Different speed and focus on a regional level
 Custodians (and Fund Depositaries) to closely study the
reforms to be able to make adjustments to accounting and
disclosure policies and procedures
 The jury is out as to whether proposed Money Market Fund
reforms will impact client product appetite and whether
alternatives will benefit.
International Securities Services Association
Working Group «Collateral Management Best Practices»
Main Contents
 Background and Key Definitions Collateral Management
 37 Best Practice Recommendations
 Regulatory Overview in EU; Future Trends
Best Practice Recommendations
 Collateral Protection (Collateral Segregation; Cash / NonCash Collateral; Cleared / Uncleared TRX)
 Operational Processes Associated with Default
Management (Pre-Default; Post-Default)
 Customer Communication and Reporting (Message
Automation; Pledge and Release Automation; Report
Automation, Reconciliation)
International Securities Services Association
Working Group ISSA and AGC «Out of Network Assets – Challenges in
Safekeeping and Supervisory Services»
Main Contents
 Legal and practice framework
 Advancements of Market Infrastructures
 Possible approaches / recommendations to close gaps
Out of Network Assets dealt with
 Third-party Time Deposits
 Interests in Funds / Collective Investment Schemes and
Private Equity Funds
 Bank Loans
 Derivatives
 Precious Metals
on legal nature / ownership, ownership interest and asset
information, perfected security interests and title transfer
arrangements.
ISSA Symposium 2014: Responding to the
Regulatory Challenges – Implications for the Industry
May 20 (Tue)
May 21 (Wed)
May 22 (Thu)
May 23 (Fri)
Breakfast
Breakfast
Breakfast
Presentations / Conclusions
of Breakout Sessions
Departure
Introduction / Setting the Stage
Key note Speech
'Today's Regulatory Challenges and Trends'
Speech
'Practical Application of Technology
to Solve Regulatory Challenges'
Presentation 'Know your Customer'
(Practical View)
Arrival of
the Participants
Panel/Introduction to Breakout Sessions
- Out of Network Assets
- Collateral Management
Presentation 'Know your Customer'
(Compliance View)
Breakout Sessions Part 1
(6 Groups)
Lunch Break
Lunch Break
Panel / Q & A
'Reflection of Morning Presentations'
Breakout Sessions Part 2
(6 Groups)
Introduction Breakout Sessions
Feedback Reports Breakout Sessions
Combined Board
and OC Meeting
Cocktails and brief
Welcome Remarks
Dinner and Drinks
Breakout Sessions
(6 Groups)
General Assembly
Closing Remarks
Cocktails / Gala-Dinner
with Entertainment (Wolfsberg)
Dinner and Drinks
11
International Securities Services Association
ISSA Symposium 2014: Responding to the Regulatory Challenges –
Implications for the Industry
May 20 – 23, 2014