Issuer Services Survey Comparison between ECSDA, ACSDA, AMEDA and AECSD PRESENTED BY: Monica Singer DATE: 4 th June, 2010 PLACE: 5th CSD contact group, Zurich, Switzerland

Background Initiative to compare the four regional surveys in terms of Issuer Services. Construction of comparison performed by Mr. Ahmed from Egypt. Strate worked closely with MCDR to refine the comparison and develop a methodology for interpretation of the results. Findings of the four surveys were consolidated into one presentation to compare Issuer Services from different regions. Notable preliminary findings of the survey are sampled as part of the presentation, 4 samples per category were selected. 2

Methodology used in comparing ECSDA, ACSDA, AMEDA and AECSD The information used in this comparison was gathered from the Issuer Services questionnaire completed in the three relevant regions: ECSDA, ACSDA, AMEDA and AECSD This functional approach was based on a description of members services to Issuers on four categories of actions in the securities life-cycle: Category 1 : Corporate Actions Services. Category 2 : Information Services. Category 3 : Annual General Meeting (AGM) Services. Category 4 : Other Issuer Services The regions had to be compared in terms of the same mathematical approach, i.e. nominal respondents were converted to percentage based data to ensure comparability The top 4 preliminary findings were arranged per category. 3

Category 1: Corporate Actions Services Preliminary Findings: Tax Services and Obligatory use of CSDs Tax services: ACSDA members are more involved in tax related services than other regions, who are either fully or partly involved. Obligatory Use of CSD Services: ACSDA members are more likely to have Issuers or intermediaries be obliged to use CSDs for Mandatory Corporate Actions services. 4

Category 1: Corporate Actions Services Preliminary Findings: Obligatory use of the CSD and the percentage of CSDs providing payment services to the Issuer Obligatory Use of Services: ECSDA members are more likely to be obliged to use CSDs for Voluntary corporate actions services than other regions. Payments Services: The more mature markets of ACSDA, ECSDA and AECSD have a significantly higher percentage of CSDs which offer payment services directly to the issuer than AMEDA. 5

Category 2: Information Services Preliminary Findings: Issue Administration Services Section for Registrar Services Registrar Services: A majority of the CSDs in each region offer Registrar services and of those that do, More than half of ECSDA and ACSDA members have a direct link with the investors with no intermediaries. Approximately half of AMEDA and AECSD members offer Registrar services with much less direct contact with the Issuers as compared to ECSDA and ACSDA 6

Category 2: Information Services Preliminary Findings: Issue Administration Services section for Tax redemption of mutual funds Only ACSDA members make up the total of the service providers for Mutual Funds Tax redemption (13%) for all regions. In offering this service they do not offer a direct link with the Investor in order to do so, thus there is a high likelihood of intermediaries in offering this service. 7

Category 3: Annual General Meeting (AGM) Services. Preliminary Findings: Ordinary or Extraordinary Meeting Services Section (General) Electronic Proxy Voting : There is an equally low involvement in each region. Proxy Voting: Half of ACSDA members offer this service directly from the CSD while in the other regions there is significantly less provided from the CSD. The service is in all likelihood offered by an outsourced/ 3 rd party vendor. 8

Category 3: Annual General Meeting (AGM) Services. Preliminary Findings: Ordinary or Extraordinary Services offered by CSDs directly to Issuers (by the web, proprietary, other) Electronic and Administration Services: In general a low percentage of CSDs offer both of these services in each region, it can be inferred that these services are either offered by the issuer agent or are outsourced. This is consistent with the findings for Electronic Proxy Voting and Proxy Voting earlier. 9

Category 4: Other Issuer Services to the Issuers Preliminary Findings: Other Services Section for other services offered by a CSD to an Issuer Information to Authorities: The majority of CSD members provide voluntary or mandatory information to authorities while ECSDA does not. This could be as a result of differing regulatory requirements per region. National Numbering Agent: The majority of CSDs in each region are the appointed national numbering agent, in other instances this could be the Exchange for example. 10

Category 4: Other Issuer Services - Downstream Intermediaries Preliminary Findings: Other services offered by CSD to an Investor Information to Authorities: The majority of AMEDA and ACSDA members provide voluntary or mandatory information to authorities about downstream intermediaries (such as investors for example) as a regulatory requirement or otherwise. National Numbering Agent: The majority of CSDs in each region provide national numbering information to downstream intermediaries (such as investors). 11

Questions? Thank you 12