Transcript ANNA Objectives

ANNA numbers the world
Association of National Numbering Agencies scrl
7th International Conference of the AECSD
Minsk/Belarus – September 9, 2010
Report from ANNA
Dan Kuhnel
Chairman
Agenda
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ANNA Objectives – Overview
Current ANNA Structure
ANNA Membership Overview
ANNA‘s Key Areas of Focus – Existing and New Data Standards
Questions/Comments
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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).
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ANNA Structure
ANNA Membership
ASB Board
Regional
Groups
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ANNA Board
Working
Groups
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ANNA
Partners
ANNA
Secretariat
Task
Forces
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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
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82
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ANNA numbers the world
Association of National Numbering Agencies scrl
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
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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.
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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
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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.
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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.
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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)
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Questions & Comments
Thank you
Dan Kuhnel
ANNA Chairman