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AMEDA STANDARIZATION COMMITTEEREPORT BACK

9TH MARCH 2014 MUSCATHICHAM GRINE - MAROCLEAR

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The risks associated with processing of "securitiestransactions" remain very high.

It is not there a new problem, but more and moreparticipants agreed on the need to urgently addressthese risks…

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What do youthink?

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SOMMAIRE

STANDARISATION

ACTION PLAN

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THE FUTURE PERSPECTIVE

2 COMMITTEE FOCUS

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Perfect Storm

- Increased interest in reducing risks related tosecurities transactions. Hence the need toredefine these processes

- Bridging market practices and improvedtreatments through the standardization and useof ISO 15022 messaging, and eventuallyconverge to the ISO 20022 solution

- Unify processing techniques.- Promote the reliability of information andcommunication timely.- Standardize the different means ofcommunication.

Automating the process is a prerequisite for theexpansion of services internationally.

Control risks standarisation

Impr

ove

serv

ice

Ope

n to

in

tern

atio

nal

1. STANDARISATIONWHY STANDARISATION ?

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Challenges

Variety of transaction type

Diversity of practices transaction processing

Challenges related to issues of interoperability.

Constraints "straight-through processing -STP

Guidelines

Unify the processing and change practices

Converge the market practices to comply with international requirements

Minimize the risk / reduce losses

Improve operational efficiency

Reduce costs

Improve service

1. STANDARISATIONCHALLENGES

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It is necessary to benchmark its environment morethan its competitors...

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Promote standardisation and STP in AMEDA region.

Identify ways to improve processing in the CSD environment and

across the industry.

Identify standardisation issues of interest, common practices.

Share information on standard implementation and international

developments.

Ultimately having an AMEDA word in the standard developement or

promotion

2. COMMITTEE FOCUS

99Asset Servicing Solutions – AMEDA - Marrakech 21-23 October 2009

THE FUTURE PERSPECTIVE FOR ISO 15022 AND 20022

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Organization of two Mobile seminar :

– June 2014 - Usage of ISO 15022 in OTC and Repo’s Market

– December 2014 – Navigate in corporate action on the ISO 15022 environment

Completion of questionnaire on the OTC messaging usage market practice .

Completion of questionnaire on the Repo’s messaging usage market practice.

Drafting of an AMEDA Market practice (Repo’s and OTC) messaging standard :

– Template which can be used by AMEDA members as a guide in implementing ISO15022

messaging services

– Covers both technical and Operational sections

– Message Test samples

Preparation for a 20022 implementation.

1. ACTION PLAN

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The Industry is Transforming

CSD

Issuer

Agent

Investment or Fund Manager

GlobalCustodian

ISO 20022(tomorrow)

ISO 15022(today)

Sub-Custodian or local

custodian

ISO 20022(tomorrow)

7. THE FUTURE PERSPECTIVEMARKET STANDARDS

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