1. International Securities Services Association ACSDA General Assembly, Guatemala–Antigua, April 19, 2013 ISSA Update Mission Governance Communication Activities Next Symposium Josef Landolt, ISSA Chairman Urs Stähli, ISSA Secretary

2. International Securities Services Association Develop SolutionsTo actively contribute to developing solutions that improve the efficiency and promote best practices to mitigate risk within the securities services industry. Strengthen To strengthen international coordination and Cooperation cooperation across the securities services industry. Facilitate To facilitate and stimulate active communication Communicationamong securities services providers, regulators and other industry stakeholders. Mission

3. International Securities Services Association Governance – Members by Domicile 80 ISSA Members from 42 Countries Chairman's Office Operating Committee 24 6 9 3 14 ISSA Sponsoring Institutions and Board Members

4. International Securities Services Association Governance – Members by Domicile Chairman's Office Operating Committee 32 48 14 ISSA Sponsoring Institutions and Board Members 80 ISSA Members thereof 32 CSDs thereof 7 ACSDA Members CSDs Others 48 32

5. International Securities Services Association Governance - Sponsoring Institutions and Board Members Alain Pochet Hani Kablawi Lee R. Waite Jeffrey Tessler Stephen Lomas John Van Verre Andrew Gray Conrad Kozak Garth Barker-Goldie Thomas Zeeb Alan Naughton Chris Church Simon Haggerty Frederic Hannequart Additional Board Members:Josef Landolt (Chairman) Neil Henderson, DTCC (Chair Operating Committee) Urs Stähli (Secretary)

6. International Securities Services Association Communication ISSA Homepage new version coming soon www.issanet.org www.issanet.org ISSA Newsletters on a quarterly basis Articles in Magazines on an ad hoc basis

7. International Securities Services Association Activities – Working Groups Regulatory Impact (Florence Fontan) Corporate Actions (Ranjit Chatterji) Comm. Standards & Reference Data (Irene Mermigidis) Hidden Risks (Ed Neeck) 2011/2012 June 2012 June – September 2012 June 13 Symposium Reports Corporate Actions (John Kirkpatrick) Collect data from major markets to evaluate progress Comm. Standards & Reference Data (Irene Mermigidis) Discuss with vendors receptiveness to implement unified global ETC/matching market practice guide Out of Network Assets (Ed Neeck) Collateral Management (Angus Fletcher) (Activities on hold) Regulatory Impact (Florence Fontan) see separate page Update Executive Summary, additional: Shadow Banking Reports

8. International Securities Services Association Activities – Working Group «Collateral Management» All Key players understand that the success of the new world will be decided in large part by the success of a key collateral strategy Source: Working Group Statement Focus on post trade landscape Key models (bilateral / central counterparty) Key players (role in handling of buy side, sell side, market infrastructures, custodians) Key regulatory drivers (systemic safety, investor protection etc.) Best practices for key operational processes Structure of report Definition of collateral management including types of collateral Asset protection (diff. asset classes, jurisdictions, regulatory requirements, segregation) Customer communication (message automation) Default management best practices (principles, procedures) Customer reporting (mark to market evaluation, collateral held, substitutions etc.)

9. International Securities Services Association Activities – Working Group «Out of Network Assets» Focus on assets held outside of a CSD environment due to the fact that regulators see custodians being responsible to a higher standard of care Asset classes considered Loans (syndicated and bi-lateral) OTC derivatives and funds (various types, such as private equity funds, hedge funds) precious metals others, such as real estate Cooperation with Association of Global Custodians

10. International Securities Services Association A Financial Reformation (Initiative Dominic Hobson) The Problem ! Six years since financial crisis began ! A return to pre-crisis conditions unlikely ! Public and political hostility to the banking and securities industries remains high ! Ideas for new business models are needed urgently The Challenge How to achieve this ?

11. International Securities Services Association A Financial Reformation (Initiative Dominic Hobson) 7 Themes Competition Policy Corporate Law Monetary Policy* Investor Protection* Market Infrastracture* Accounting Standards Financial Regulations Leadership Academics plus Practitioners plus Central Bankers plus Regulators * ISSA core interests Final delivery June 2016 ISSA Board's Current Position Issues addressed correct Scope far beyond the remit of ISSA Global view critical (today too European centric) Leadership involvement of practitioners essential Financing not yet clear Board asked for clarification in order to decide cooperation in June Board Meeting

12. International Securities Services Association Activities – Next ISSA Symposium May 20 – 23, 2014