Settlements & Reconciliations 2011 – 2012 Achievements Global

Meetings Physical Meetings Conference Calls Spring 2011: Rio (full SMPG) Autumn 2011: Prague (S&R) Spring 2012: Athens (full SMPG) Autumn 2012: Osaka (S&R / CA) Conference Calls 5 – 6 per year Once a month

Achievements Global Market Practices: Depository BIC List Add link to See smpg website for more information Depository BIC List Local Market Practices for 35 Countries Regional Groups: ESES, Nordics, South-America Specify specifics for the plain vanilla settlement instruction per country Settlement Instruction Summary sheet Minimum: specifics for plain vanilla trades Some countries e.g US extensive description of all kinds of transactions Summary sheet: summary of country market practices in matrix form

Global Market Practices (highlights) Settlement Common Elements Place of Settlement / Place of Safekeeping Statement of Holding (MT535) Statement of Transactions (MT536) Status Reporting (MT548 / MT537) Linkages Common Elements: minimum list of elements needed in every transaction PSET / PSAF : X-border / CSD transactions. Variations for scenarios between ICSD and NCSD. Heated discussions St. of Hold: mix of custody statement (reconciliation) and accounting. ISO20022 2 statements, End of discussions? Status Reporting: Flow diagram of lifecycle of a transaction between moment of instruction and settlement Linkages: All situations where linkages are used Simple ones (cancellation, settlement confirmation, status advice) Complicated: pair off, turnaround, block trade, book transfer

2011 – 2012 Achievements Finalized Global Market Practice Documents (New or Revamp) MT536 - SecuritiesSettlementTransactionPostingReport_V5.8_ Physical Settlement MT535 - Balance Custody and Accounting Report_v5.3.pdf Receiving Delivering Depository - PSET PSAF MP v5.4 S&R Basic Sec lending/borrowing v1.7 Global Time Deposit SMPG v2.4 S&R Book Transfers v6.0 Common Elements: minimum list of elements needed in every transaction PSET / PSAF : X-border / CSD transactions. Variations for scenarios between ICSD and NCSD. Heated discussions St. of Hold: mix of custody statement (reconciliation) and accounting. ISO20022 2 statements, End of discussions? Status Reporting: Flow diagram of lifecycle of a transaction between moment of instruction and settlement Linkages: All situations where linkages are used Simple ones (cancellation, settlement confirmation, status advice) Complicated: pair off, turnaround, block trade, book transfer

2011 – 2012 Achievements Finalized Global Market Practice Documents S&R Linkages v5.2 S&R Pair Off v4.1 S&R Settlement Allegement v6.0 S&R Split v4.1 S&R_Financial Instrument Identification_MP_v1_0 Securities Settlement Transaction Pending Report MP v7.0 -> BUT one pending item related to the Cancelled transaction (see agenda) Common Elements: minimum list of elements needed in every transaction PSET / PSAF : X-border / CSD transactions. Variations for scenarios between ICSD and NCSD. Heated discussions St. of Hold: mix of custody statement (reconciliation) and accounting. ISO20022 2 statements, End of discussions? Status Reporting: Flow diagram of lifecycle of a transaction between moment of instruction and settlement Linkages: All situations where linkages are used Simple ones (cancellation, settlement confirmation, status advice) Complicated: pair off, turnaround, block trade, book transfer

2011 – 2012 Achievements MyStandards Global MP’s loaded on MyStandards Reviewed and published S&R Common Elements Hold and Release Automatic Registration -> feedback from SMPG members has been discussed during the session on MP granularity (share with group main decision on this) Common Elements: minimum list of elements needed in every transaction PSET / PSAF : X-border / CSD transactions. Variations for scenarios between ICSD and NCSD. Heated discussions St. of Hold: mix of custody statement (reconciliation) and accounting. ISO20022 2 statements, End of discussions? Status Reporting: Flow diagram of lifecycle of a transaction between moment of instruction and settlement Linkages: All situations where linkages are used Simple ones (cancellation, settlement confirmation, status advice) Complicated: pair off, turnaround, block trade, book transfer

2011 – 2012 Achievements Securities Financing Subgroup “The goal of this SMPG market practice sub-group is to define best practices for the communication of security finance instruction, status, confirmation and reconciliation messages covering the business and messaging process for bi-lateral repo, tri-party repo, and global lending. This group works collaboratively with other industry and NMPG groups to define MX messaging and data content best practice recommendations.  The initial focus of the sub-group will be to define the best practice for MX messaging flows of a bi-lateral repo contract, associated collateral and related cash.” -> Initial meetings explained the objective of the sub group -> should reconvene when MP Repo finalised (to be checked with Jason) Common Elements: minimum list of elements needed in every transaction PSET / PSAF : X-border / CSD transactions. Variations for scenarios between ICSD and NCSD. Heated discussions St. of Hold: mix of custody statement (reconciliation) and accounting. ISO20022 2 statements, End of discussions? Status Reporting: Flow diagram of lifecycle of a transaction between moment of instruction and settlement Linkages: All situations where linkages are used Simple ones (cancellation, settlement confirmation, status advice) Complicated: pair off, turnaround, block trade, book transfer

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 Revision of translation Rules (ISO15022/20022) -> SR2013 Consultation with PMPG Creation of MP of Securities related Cash / FX Processes Work Closely with NMPGs to harmonise Local S&R MP’s Potential changes to MPs under T2S umbrella