1. ISSA Update International Securities Services Association
10th ACSDA General Assembly
Panama City
Josef Landolt / Peter Gnepf

2. Criteria for ISSA work items
Impact beyond a single market
Relevance beyond one provider segment
Attacking inefficiency
Mitigating operational risk

3. Today's Agenda 1. Current ISSA activity
- Removing Giovannini Barrier 1
- OTC Derivatives
- Mutual Funds Processing in Europe
2. ISSA Symposium 2008

4. 2011 Removing Giovannini Barrier 1
"National differences in the information technology
and interfaces used by clearing and settlement providers should be eliminated via an EU-wide protocol.
SWIFT should ensure the definition of this protocol….."
2011

5. Removing Giovannini Barrier 1
"National differences in the information technology
and interfaces used by clearing and settlement providers should be eliminated via an EU-wide protocol.
SWIFT should ensure the definition of this protocol….."
29 CSDs
9 CCPs
Top 50
infrastructure users

6. OTC Derivatives Working Group
Improve management of risk, complexity & efficiency

7. OTC Derivatives Working Group
1. Valuation principles
 Best practice recommendations
2. Trade capture
 Process management and improvement
3. Trade confirmation
 Process management and improvement

8. OTC Derivatives Working Group
- Sharing the work load
- Involving our members
- Pooling expert knowledge

9. Fund Working Group
Align mutual funds processing to equity settlements

10. Fund Working Group The Transfer Agent Model:
TA 1
Fund A
Investor
TA 2
Fund B
Distributor y
TA 3
Fund C
Distributor x
The Transfer Agent Model:
Like a stock market without CSDs
Complex, expensive, fraught with risk

11. Fund Working Group The Hub Model:
TA 1
Fund A
Distributor x
Investor
Distributor y
Distributor z
TA 2
Fund B
TA 3
Fund C
Central Hub
The Hub Model:
Transfer Agents (TA) and Distributors need only one link, in their preferred format

12. Fund Working Group Fund Manager Custodian, Transfer Agent, Distributor
Depository
Messaging

13. Five work areas, in order of priority:
Fund Working Group
Five work areas, in order of priority:
Reference data and messaging
Settlement
Order routing and execution
Registration and custody
Distribution

14. Fund Working Group Order Processing Data Performance Data European
= EFAMA's Fund
Processing Passport
European
Fund Data Base
Portfolio &
Corporate Action Data
Prospectus Data

15. Fund Working Group Settlement Area: No need to change the market.
Fund A
Distributor x
Investor
Distributor y
Distributor z
TA 2
Fund B
TA 3
Fund C
Central Hub
Settlement Area:
No need to change the market.
But many opportunities to realize efficiency gains!

16. Funds Processing in Europe…
So much for Europe.
Now let's turn
to mutual funds!

17. Wolfsberg, Switzerland
ISSA Symposium 2008
ISSA 14
June 3–6, 2008
Wolfsberg, Switzerland

18. ISSA Symposium 2008 1. Wealth Management Trends and Needs
"Looking out"
Capital market drivers in the next five to ten years
New products, new investment styles
…. and what does this all mean for operations
and the market infrastructures?

19. ISSA Symposium 2008 2. ISSA Focus Sessions "Looking close"
Fund processing
OTC Derivatives
Tax processing / G30 ISSA Tax Model
…. and possible next ISSA topics?

20. "Looking into the mirror"
ISSA Symposium 2008
3. ISSA Forum
"Looking into the mirror"
Member feedback on ISSA:
Perceptions, expectations, needs.
Suggestions for increasing the value of a membership and making ISSA more visible, effective and efficient

21. ISSA Symposium 2008 4. Key Note "The independent view"
Power shifts in the global economy
Wider implications of the subprime credit crisis

22. ISSA Symposium 2008
Wolfsberg, June 3-6

23. ISSA Symposium 2008
Wolfsberg, June 3-6
June 7-29

24. Thank you for your interest!
International Securities Services Association ISSA
c/o UBS AG
FNND OZTH
P.O. Box
CH-8098 Zurich, Switzerland
Phone :
Fax: