Growing use of ISO standards and their impact in Asia Satoru Yamadera Secretariat, Japan TC68 mirror committee Head of International Standardization Group Center for Information Technology Studies, Bank of Japan SMPG 2012, Osaka Japan

Outline Why we need standards? Why Asia need standards more? Why standards are becoming more important?

Why we need standards？ Standards are “strategic tools that reduce costs by minimizing waste and errors and increasing productivity. The help companies to access new markets, level the playing field for developing countries and facilitate free and fare global trade.” Source: ISO website

Heterogeneous Asia Xin chào 您(你)好 สวัสดีครับ Selamat siang　Selamat sore こんにちは 안녕하십니까 ベトナム語　シン チャオー タイ語　サ　ワッ　ディー　クラップ インドネシア語　こんにちは Selamat siang（備考2） スラマッ　シアン こんにちは Selamat sore（備考3） スラマッ　ソレ 備考2:　午前11時～午後2時まで　備考3:　午後2時～午後6時まで 韓国語　アンニョンハシムニカ

Transaction costs in the region Transaction costs are higher than those of the US and EU. CSD Fees does not seem to be responsible. Fee levels tend to vary strongly between the markets Fee levels may vary within the individual markets. Note: can sort countries alphabetically, thus showing stronger volatility… Legend can be expanded to show full fee names. Domestic custodian fee is assumed to include CSD fee and Global custodian fee is assumed to include DC fee Source: ABMI Group of Expert Report (2010)

Standard Transaction Fees of Global Custodians Source: ABMI Group of Expert Report (2010)

Why Asia needs standards more? Heterogeneity and diversity in Asia requires extra efforts for harmonization and standardization from the early stage of market developments. ASEAN+3 Bond Market Forum (ABMF)

Harmonization in Asia Asian Standards Country A Country C Country B Asian Value Asian Vision Asian Standards Top Down Top Down Bottom Up Country C Country A Harmonization of Standards Mutual recognition Mutual recognition Country B

Standardization in Asia Internal use only Standardization in Asia Asia should engage standard setting more closely International Standards and practices International Standards and practices Regional standards and practices Local standards and practices Local standards and practices International standards (such as ISO20022) should be the focal point and hub of local standards 9

ISO/TC68/SC7 (Core Banking) P-Members 1 AFNOR (France) 13 KATS (Korea, Republic of) 2 ABNT (Brazil) 14 KEBS (Kenya) 3 AENOR (Spain) 15 NEN (Netherlands) 4 ANSI (USA) 16 SA (Australia) 5 ASI (Austria) 17 SABS (South Africa) 6 BDS (Bulgaria) 18 SAC (China) 7 BIS (India) 19 SCC (Canada) 8 BSI (United Kingdom) 20 SFS (Finland) 9 DIN (Germany) 21 SIS (Sweden) 10 DS (Denmark) 22 SN (Norway) 11 GOST R (Russian Federation) 23 SNV (Switzerland) 12 JISC (Japan) 24 UNI (Italy)

Why standards are becoming more important? Shifts in use, scope and influence of standards: from products to services From industry to consumers From private sector to the public authorities From closed IP management to open IP management

Thank you ありがとうございます 謝謝