Accredited Standards Committee X9, Inc. An Introduction to Financial Industry Global Standards

Agenda Standards and standards types Standards and standards types X9—the organization X9—the organization ANSI’s role ANSI’s role ISO’s role ISO’s role International connection – management International connection – management How should your organization get involved? How should your organization get involved?

What are Standards? How does government define Standards? How does government define Standards? Types of Standards Types of Standards

Types of Standards Four types of Standards Four types of Standards Voluntary Standards Mandatory Standards Performance Specification Standards: Management System Standards Definition Standards

What is X9? X9 was granted ANSI accreditation in X9 was granted ANSI accreditation in X9 is the premier standards developer for the Financial Services industry. X9 is the premier standards developer for the Financial Services industry. X9 is a leader in moving its standards globally for adoption as ISO standards. X9 is a leader in moving its standards globally for adoption as ISO standards.

X9’s Objectives Develop, establish, maintain, and promote standards for the Financial Services industry to facilitate the delivery of financial products. Develop, establish, maintain, and promote standards for the Financial Services industry to facilitate the delivery of financial products. Focus on current and future standards needs of the Financial Services industry. Focus on current and future standards needs of the Financial Services industry. Participate, promote and grow the development of international standards. Participate, promote and grow the development of international standards.

X9’s Value Provides leadership in financial standardization globally Provides leadership in financial standardization globally Accredited international Secretariat Accredited international Secretariat Payment Standards (including checks) Payment Standards (including checks) Retail/card processing Standards (domestic and international) Retail/card processing Standards (domestic and international) Lead in industry use of Standards to secure financial transactions. Lead in industry use of Standards to secure financial transactions. Now leading ‘payment model’ internationally Now leading ‘payment model’ internationally

What is ANSI? The American National Standards Institute is based in Washington, DC, and serves as the coordinating organization for the US voluntary Standards system. The American National Standards Institute is based in Washington, DC, and serves as the coordinating organization for the US voluntary Standards system. ANSI is a federation of industry firms, Standards developing organizations, trade associations, professional and technical societies, government, labor and consumer groups. ANSI is a federation of industry firms, Standards developing organizations, trade associations, professional and technical societies, government, labor and consumer groups. ANSI serves as the US member body of ISO. ANSI serves as the US member body of ISO.

What is ANSI’s Role, what does ANSI add? ANSI does not develop Standards ANSI does not develop Standards Facilitates development of American National Standards. Facilitates development of American National Standards. Accredits Standards developers. Accredits Standards developers. Examines developers processes. Examines developers processes. Coordinates and represents Standards in the US Coordinates and represents Standards in the US Oversees the creation of Standards Oversees the creation of Standards Assess conformance to ANSI rules Assess conformance to ANSI rules Audits accredited organizations like X9 Audits accredited organizations like X9 Member body of ISO Member body of ISO

The X9 Organization X9 is organized through committees and membership levels. X9 is organized through committees and membership levels. X9’s Board/consensus body acts as oversight and management group, determines the acceptance of a draft standard to be recommended to ANSI for acceptance as an American National Standard. X9’s Board/consensus body acts as oversight and management group, determines the acceptance of a draft standard to be recommended to ANSI for acceptance as an American National Standard. The consensus body also is the US vote to ISO TC68 The consensus body also is the US vote to ISO TC68

Board acts as the consensus body voting on acceptance/rejection of X9 standards. Board acts as the consensus body voting on acceptance/rejection of X9 standards. Within the Board there are five management committees including: Within the Board there are five management committees including: Board Organization Executive Committee Finance Committee Marketing and Membership Policy and Procedures

Board of Directors (consensus body) SUBCOMMITTEES PaymentsCredit Securities Data Security E-SIGN CODES MESSAGES CHECKS CORPORATE RETAIL CRYPTOGRAPHY APPLICATION CARDHOLDER AUTHENTICATION

X9 Subcommittee Structure Currently, the X9 organization consists of four subcommittees. Currently, the X9 organization consists of four subcommittees. Each subcommittee has domain over subject areas— payments (cards/checks/corporate) credit, securities, and security—important to industry. Each subcommittee has domain over subject areas— payments (cards/checks/corporate) credit, securities, and security—important to industry. Working groups are a subset of each subcommittee they are organized when needed to develop standards for approval by the balanced consensus body. Working groups are a subset of each subcommittee they are organized when needed to develop standards for approval by the balanced consensus body.

Working Groups Working Groups are established by the Board or Subcommittee to deal with specific technical areas. Working Groups are established by the Board or Subcommittee to deal with specific technical areas. Working Groups contain the expertise to develop standards answers to issues facing the industry. Working Groups contain the expertise to develop standards answers to issues facing the industry. They may reorganize, become active to meet new industry challenges or upon completion of a body of work become inactive They may reorganize, become active to meet new industry challenges or upon completion of a body of work become inactive Working groups are not permanent committees Working groups are not permanent committees

Who is ISO? ISO is a network of the national standards institutes of 157 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. See ISO is a network of the national standards institutes of 157 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. See ISO is a non-governmental organization: its members are not, as is the case in the United Nations system, delegations of national governments. ISO is a non-governmental organization: its members are not, as is the case in the United Nations system, delegations of national governments.

What is TC68 to ISO (ISO TC68)? TC68 is one of 230 – ISO technical committees – the only dedicated to financial standards TC68 is one of 230 – ISO technical committees – the only dedicated to financial standards TC68 has produced more than 70 universally implemented financial standards – ISO has produced more than 25,000 international standards TC68 has produced more than 70 universally implemented financial standards – ISO has produced more than 25,000 international standards

Why is X9 involved in ISO and how can you participate? Make an informed choice in which standardization projects your company should participate; Make an informed choice in which standardization projects your company should participate; Influence international standards development in such a way that the resulting standards are fit for your company to achieve its business targets; Influence international standards development in such a way that the resulting standards are fit for your company to achieve its business targets; Define difficulties in relating your participation directly to the business goals of your company; Define difficulties in relating your participation directly to the business goals of your company; Prioritize standardization activity your company should participate in; Prioritize standardization activity your company should participate in; Alternative approaches to standards development in case of common interests or conflicting interests; Alternative approaches to standards development in case of common interests or conflicting interests;

About ISO TC68 TC68 is ISO’s designated standards development group for the Financial Services industry. TC68 is ISO’s designated standards development group for the Financial Services industry. X9 (under ANSI) holds secretariat of TC68 and SC2, X9 members are active participants in developing and forwarding global standards. X9 (under ANSI) holds secretariat of TC68 and SC2, X9 members are active participants in developing and forwarding global standards. Presently, the technical subcommittees under TC68— Security Management, Securities and Related Instruments, and Core Banking. Presently, the technical subcommittees under TC68— Security Management, Securities and Related Instruments, and Core Banking. Currently leading effort on financial messaging, including payments, securities, trade/finance, e-invoice and more. Currently leading effort on financial messaging, including payments, securities, trade/finance, e-invoice and more.

ISO Technical Committee TC68 Financial Services UNIFI RMG SEG Payments SEG Securities RA SEG FX RMG members nominated by P-member countries and A- liaison organisations SEG members nominated by all member countries and liaison organisations SC7 Banking SC4 Securities SC2 Security WG4 UNIFI Review SEG Trade Services CARD SEG

ISO Technical Committee 68 Financial Services – reporting committees Subcommittee 2- Security Subcommittee 2- Security Subcommittee 4- Securities Subcommittee 4- Securities Subcommittee 7- Core Banking Subcommittee 7- Core Banking RMG reports to TC68 as does RMG reports to TC68 as does TC68/WG4 revising ISO TC68/WG4 revising ISO 20022

Industry Payback – why join, why participate? “X9 doesn’t cost, it pays.” “X9 doesn’t cost, it pays.” Influential in standard processes both domestically and internationally. Influential in standard processes both domestically and internationally. Skilled at development of voluntary consensus-based standards Skilled at development of voluntary consensus-based standards Works with organizations not often part of the industry. Works with organizations not often part of the industry. Needs total participation from industry. Needs total participation from industry.

Additional Information Contact ASC X9, Inc West Street, Suite 200 Annapolis, MD