1. From Issuer to End Investor The Need for Standardisation John Falk AMEDA Beirut, 29 th April 2010

2. Issuers to Investors – What is it?

3. The Industry is Transforming CSD Issuer Agent Investment or Fund Manager Sub- Custodian ISO 20022 (tomorrow) ISO 15022 (today) Global Custodian XBRL Aligned w/ISO 20022 (tomorrow) AMEDA - 29 April 2010

4. What is XBRL? AMEDA - 29 April 2010 XBRL is XML dialect designed for identifying data in a business report Broad technology for business reporting contexts Key word: Taxonomy (data dictionary) XBRL is NOT Silo protocol for business transactions, rather, it adopts an existing standard (like IFRS) Not a competitor to ISO 20022, rather an adopter of ISO 20022 What problems will XBRL solve #1 problem (risk/waste/cost/manual processing) is Corporate Actions Source of problem is data quality – preventing widespread adoption Data from the source (issuer) improves quality for wider adoption of CA messages downstream

5. One Horrific Example 300+ pages to describe an ‘Exchange Offer’ 38 separate updates were published from Dec 08 to May 09, as new information was made available Validation took 12 separate sources of data Five resources worked on it extracting 63 data elements, amassing 44 pages of audit trail changes The paper-based nightmare of corporate actions continues … The challenge is to find the right data, in the right pages, buried alive somewhere in the free-text document AMEDA - 29 April 2010

6. XBRL - Issuer Tagging Process Identify Corporate Action Type Tag the Corporate Action Data Create the XBRL Data File & Automatically Validate Disseminate the XBRL Data File AMEDA - 29 April 2010

7. Example XBRL The issuer / agent / publisher will highlight and tag all relevant data elements within MS Word as they are writing the press release or prospectus The electronically tagged data elements are stored as fields within the pdf document, and this fielded data is easily extracted when it is ‘read’ XBRL The issuer / agent / publisher will highlight and tag all relevant data elements within MS Word as they are writing the press release or prospectus The electronically tagged data elements are stored as fields within the pdf document, and this fielded data is easily extracted when it is ‘read’ XBRL XBRL tagged documents can provide an electronic message for consumption by the Financial Services Industry XBRL XBRL tagged documents can provide an electronic message for consumption by the Financial Services Industry AMEDA - 29 April 2010

8. The issuer will ‘drag and tag’ and associate free text to structured data, via XBRL tool For China, for instance, can be in Chinese character set to prevent translation issues AMEDA - 29 April 2010

9. Issuers to Investors : Corporate Actions – U.S. project delivery milestones and plans May 2009 - Launched joint project Sep 2009 - Stakeholder Group & business case survey 4Q 2009 - DTCC data model (extensions) 1Q 2010 – SEC business case for review 1Q 2010 – ISO 20022 CA messages available 1Q 2010 - DTCC event templates 2Q 2010 - taxonomy for public comment 3Q 2010 - publication of taxonomy, start issuer pilots 4Q 2010 - ISO 20022 Corporate Actions on SWIFT 4Q 2010 - DTCC Pilot ISO 20022 CA Announcements 20102010 20092009 AMEDA - 29 April 2010

10. Modelling & development -Data model -Taxonomy -ISO alignment -Pilot & implementation Harmonisation: - downstream market to ISO / SWIFT messages Business drivers -Stakeholders -Communication -Business rationale Year 1Year 2 Adoption Issuers to Investors : Corporate Actions – a global template for new markets AMEDA - 29 April 2010

11. ISO 20022 – Proxy Voting

12. Shareholders’ meetings and proxy voting Meeting the challenges ISO 20022 - A new generation of standards, a new solution 8 new MX messages tailor- made for Proxy Voting Suitable for global cross-border or local market adoption Support for the EU Shareholder’s Rights Directive Auditable process Confirmation of votes lodged Results reporting Closed User Group, Proxy Agents membership AMEDA - 29 April 2010

13. Function of MessageMT ISO 15022 MX ISO 20022 Meeting Announcement or ModificationMT564 with event type CAEV = MEET, CMET, XMET, or OMET (or MT568/599) MeetingNotification seev.001.001.03 Cancellation of Meeting or Meeting Notification MT564MeetingCancellation seev.002.001.03 Confirmation of EntitlementMT564MeetingEntitlementNotification seev.003.001.03 Voting Instruction (incl voting registration, meeting attendance, appointing proxy,…) MT565MeetingInstruction seev.004.001.03 Cancellation of Voting InstructionMT565MeetingInstructionCancellationRequest seev.005.001.03 Status on Voting InstructionMT567MeetingInstructionStatus seev.006.001.03 Confirmation of Vote Executionn/a (nominal use of MT568/599)MeetingVoteExecutionConfirmation seev.007.001.03 Results of Meetingn/a (nominal use of MT568/599)MeetingResultDissemination seev.008.001.03 New SWIFT MT to MX - R eplacing ISO 15022 functionality and new functionalities AMEDA - 29 April 2010

14. Increase market practice compliance levels

15. Why does it matter - Market practice consistency and compliance improves data quality and STP Data quality is the biggest driver of Corporate Actions Market practice, integrated with standards, essential for STP Securities Market Practice Group (SMPG) –39 Countries participating with national market practice groups –Provides guidance to improve message quality Market Practice documents Event Interpretation Grid (EIG) Guidelines for placement and usage of dates, periods, prices and rates Event message examples Unique Event Reference approach –More at:: www.smpg.infowww.smpg.info AMEDA - 29 April 2010

16. National Market Practice Groups cover 39 countries, a lot of country-specific practices www.smpg.info NMPG countries NMPG countries specified on EIG AMEDA - 29 April 2010

17. SWIFT’s Asset Servicing Strategy 17 Issuers and their agents to standardise and automate the CA announcement process including XBRL Compliance with Corporate Action Market Practices using STaQS for CA Infrastructures to move from proprietary to ISO standards Corporate Actions Unique Identifier Standardise the tax processes Improve transparency and efficiency of Shareholders Meeting services Support implementation of ISO 20022 and coexistence with 15022 for CA Easy access to SWIFT messaging for smaller clients (IM/AM) C/ Increase automation and use of standards B/ Enforce and support market practice adoption A/ Replace text with data standards AMEDA - 29 April 2010

18. XBRL focus is appending data “instance” to reports; SWIFT’s to facilitating messaging Issuers and their agents ~1,000,000 events annually for ~85,000 companies and funds Intermediaries, Market Infrastructures ~20 global custodians hold 95% of all assets under custody Investors, investment/fund/asset managers Many millions of investment accounts at many layers ISO 15022 & ISO 20022 Documents and XBRL AMEDA - 29 April 2010

19. Thank you AMEDA - 29 April 2010