SMPG - History SMPG was founded in 1998 With implementation of ISO 15022 for securities, need to use the new standard in a harmonised way SMPG aims at documenting and harmonising global and local market practices around the use of international standards to achieve higher STP From 16 to 40 countries

Standards and market practice 1980 1990 2000 2010 2020 ISO 7775 (securities) ISO 15022 (securities) ? ISO 20022 (financial industry)  SMPG (securities)  Investment Funds Working Group  PMPG (payments)

SMPG role Facilitate global harmonisation of market practices implementation of ISO messaging in the securities space Bring together representatives of national market practice groups approx. 40 countries, plus ICSDs (Clearstream and Euroclear) two physical meetings plus conference calls delegates represent their market, not their own institution Identify commonalities and differences among national practices Harmonise and document global and local market practices Identify opportunities for further harmonisation

SMPG organisation GLOBAL STEERING COMMITTEE Trade/ Post Trade Settlement & Reconciliation Corporate Actions Investment Funds (dormant) S&R CA IF S&R CA IF S&R CA IF NATIONAL MARKET PRACTICE GROUPS Settlement & Reconciliation/Corporate Actions ISO 15022/ISO 20022 Multi-asset class Process-specific Investment funds ISO 20022 only Funds only Cross-functional

NMPG role Open to all securities market participants IMIs, broker / dealers, custodian banks, central securities depositories, regulators… Discuss and agree on local harmonised market practices (in line with global practices) Comment on or propose SMPG global market practice working documents Send representation to the 2 global SMPG meetings

IFWG scope and participation Terms of reference ISO 20022 only "Traditional" funds and operating models not hedge funds (specific complexities) not exchange-traded funds (trade/settle alongside equities) Cross-functional trading, settlement, corporation actions etc. starting/ending with Transfer Agent Discussion and liaison with other groups engaged in fund processing standardization Efama FPSG, US ICI IOAC, Lux. Findel groups Active participants Countries: BR, CH, DE, DK, ES, FR, GB, IE, IT, LU, NL, NO, SE ICSDs: Clearstream, Euroclear

IFWG activity Global Market Practice Orders & Settlement (Sept 2011 final) Transfers message mappings drafted, awaiting further input consolidated process document to be re-drafted and split: (a) portfolio level (b) stock level – TA markets (c) stock level – CSD markets Account management process document/message mappings under review Statements work with joint S&RWG Corporate actions exploratory discussion with CAWG

CAWG in figures 27 member countries (NMPGs) from 3 regions (EMEA, Americas, Japan/Asia) 2 industry groups (ICSDs, MDPUG: Market Data Provider User Group) Monthly conference calls 2 physical meetings / year 19 active countries contributing to creation of MPs 17 local MP documents published on web sites WG active since 2000 About 270 open items discussed/solved since 2006

CAWG achievements Global MPs documents cover: 60+ corporate action events & 5 ISO 15022 MT messages All CA business processes / Events flows Detailed MPs on: Messages contents (MT 56x) and fields usage Particular Events (e.g. Rights issues) Special processes (Preliminary Advice, Market Claims, Proxy Voting basics) "Event Interpretation Grid +" Table Recommended main options and data fields provided for 132 types of events (as SMPG Global MPs) and also for 23 countries (as local MPs) Additional Events Interpretation tables for: Complex events, Redemption events and Return of Capital events CA Templates document: 67 events message samples fully illustrated COAF (Official CA Events reference) Usage Guidelines and Registration Yearly CRs submission to ISO15022 maintenance Involved in ISO20022 CA Reverse Engineering effort

CAWG ongoing and future developments 3 new CA market practices subgroups on: Tax: clarify tax rates usages and related issues) ISO 20022 CA: make the CA MPs ISO15022 syntax-independent and covers specificities of ISO20022 messages Proxy Voting: covers ISO 20022 proxy voting messages Posting CA MPs on MyStandards Web-based collaborative platform Capture Investment Funds requirements for CA (in collaboration with the SMPG IF WG)

SRWG achievements Global Market Practices: 26 global market practices published including: Common Element listing of values for Settlement, Statement of Holdings and Transactions, Block Trades See www.smpg.info for more information Local Market Practices for 35 Countries: Specify specifics for the plain vanilla settlement instruction per country Settlement Instruction Summary sheet Regional Groups: ESES (Euroclear Settlement of Euronext-zone Securities), Nordics (Denmark, Finland, Iceland, Norway and Sweden), South America

SRWG ongoing and future developments Reviewing MPs Financial Instrument Identification Securities Settlement Transaction Pending Report Basic Securities Lending/Borrowing Book Transfer/Portfolio Transfer Customer to Customer Communication Repo Stamp duty 2013 CR reviews

SRWG ongoing and future developments New Subjects Securities Financing: Process Redesign related to ISO20022 Post Trade Flows (CCP / Bilateral Clearing) MyStandards Any other MP that needs to be described/revised Consultation with PMPG Creation of MP of Securities related Cash / FX Processes Work Closely with NMPGs to harmonise Local SR MPs Potential changes to MPs under T2S umbrella

APAC RMPG Establishment Purpose Organisation June 2012 increase the engagement of the APAC community in global and regional market practice and standards discussion support the creation of National Market Practice Groups (NMPG) in as many APAC countries as possible and provide assistance to the existing ones Organisation Light structure facilitated by SWIFT Standards Singapore (no chair) One physical meeting / year, conference calls Exchange of information and network building in all APAC countries

Existing NMPGs in APAC Existing None yet Under Constructon Australia North Korea Japan South Korea China Nepal Bhutan Taiwan Bangladesh Philippines India Myanmar Laos Hong Kong Thailand Vietnam Cambodia Maldives Brunei Sri Lanka Malaysia Singapore Existing Indonesia East Timor Under Constructon None yet Australia Australia New Zealand

Collaboration with ABMF Two SMPG Steering Committee regional directors as international experts on ABMF SF2 SWIFT Standards as international experts on ABMF SF2 ABMF updates at global SMPG meetings ABMF support to SMPG for creation of NMPGs in ASEAN + 3 ABMF participation to APAC RMPG and maybe global SMPG in the future Etc.

SMPG Publications @GlobalSMPG

SMPG 2013 meetings Spring Frankfurt Fall Johannesburg