1. International Securities Services Association ACSDA General Assembly, Santiago – Chile, April 3, 2014 Governance Communication Working Groups Symposium May 2014 ISSA Update Urs Stähli, ISSA Secretary

2. International Securities Services Association Governance - Sponsoring Institutions and Board Members Alain Pochet Hani Kablawi Lee R. Waite Phil Brown Stephen Lomas John Van Verre Andrew Gray Nick Rudenstine Mervyn Chiu Thomas Zeeb Alan Naughton Chris Church Paresh Sodha Pierre Yves Goemans Additional Board Members:Josef Landolt (Chairman) Neil Henderson, DTCC (Chair Operating Committee) Urs Stähli (Secretary)

3. International Securities Services Association Governance – Development of Membership April 2013: 80 ISSA Members from 42 Countries + 8 New Members - 5 Terminations (Mergers, no interest, arrears) April 2014:83 ISSA Members from 42 Countries

4. International Securities Services Association Governance – ACSDA and ISSA – some Numbers 28 ACSDA Members 7 21 16 3 4 4 12

5. International Securities Services Association Communication - Update ISSA Homepage new version since April 2013 www.issanet.org www.issanet.org ISSA Newsletters on a quarterly basis (4) on an ad-hoc basis (3) Spotlight Videos on Working Group Reports

6. International Securities Services Association Working Groups Regulatory Impact (Florence Fontan) Regulatory Impact (Florence Fontan) Corporate Actions (Ranjit Chatterji) Comm. Standards & Reference Data (Irene Mermigidis) Hidden Risks (Ed Neeck) Hidden Risks (Ed Neeck) 2011/2012 June 2012 June – September 2012 2013 / 2014 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) Regulatory Impact (Florence Fontan) Full Report with selected CM topics Full Report in cooperation with ACG Issue Report on Shadow Banking Reports

7. International Securities Services Association Working Group «Global Principles for Corporate Actions and Proxy Voting» Main Contents  Survey in 33 markets  Realities  Recommendations Main Contents  Survey in 33 markets  Realities  Recommendations Recommendations for Next Steps  Promote Principles actively with industry participants, particularly CSDs and Exchanges  Promote regulatory change to require the digitization of CA information at source  Take a firm stand on and actively promote the use of ISO formats for cross-border CA info exchange  The working group should repeat this survey annually  The working group should publish a case study highlighting benefits in successful markets

8. International Securities Services Association Working Group «Regulatory Impacts on the Securities Value Chain – Shadow Banking» Conclusions  Further Shadow Banking developments to be expected in 2014  Different speed and focus on a regional level  Custodians (and Fund Depositaries) to closely study the reforms to be able to make adjustments to accounting and disclosure policies and procedures  The jury is out as to whether proposed Money Market Fund reforms will impact client product appetite and whether alternatives will benefit. Conclusions  Further Shadow Banking developments to be expected in 2014  Different speed and focus on a regional level  Custodians (and Fund Depositaries) to closely study the reforms to be able to make adjustments to accounting and disclosure policies and procedures  The jury is out as to whether proposed Money Market Fund reforms will impact client product appetite and whether alternatives will benefit. Main Contents  General Description of Shadow Banking Initiatives  Impacts on Securities Lending and Repos Transactions  Impacts on Money Market Funds Main Contents  General Description of Shadow Banking Initiatives  Impacts on Securities Lending and Repos Transactions  Impacts on Money Market Funds

9. International Securities Services Association Working Group «Collateral Management Best Practices» Main Contents  Background and Key Definitions Collateral Management  37 Best Practice Recommendations  Regulatory Overview in EU; Future Trends Main Contents  Background and Key Definitions Collateral Management  37 Best Practice Recommendations  Regulatory Overview in EU; Future Trends Best Practice Recommendations  Collateral Protection (Collateral Segregation; Cash / Non- Cash Collateral; Cleared / Uncleared TRX)  Operational Processes Associated with Default Management (Pre-Default; Post-Default)  Customer Communication and Reporting (Message Automation; Pledge and Release Automation; Report Automation, Reconciliation)

10. International Securities Services Association Working Group ISSA and AGC «Out of Network Assets – Challenges in Safekeeping and Supervisory Services» Main Contents  Legal and practice framework  Advancements of Market Infrastructures  Possible approaches / recommendations to close gaps Main Contents  Legal and practice framework  Advancements of Market Infrastructures  Possible approaches / recommendations to close gaps Out of Network Assets dealt with  Third-party Time Deposits  Interests in Funds / Collective Investment Schemes and Private Equity Funds  Bank Loans  Derivatives  Precious Metals on legal nature / ownership, ownership interest and asset information, perfected security interests and title transfer arrangements.

11. Breakfast May 20 (Tue)May 21 (Wed)May 22 (Thu)May 23 (Fri) Cocktails and brief Welcome Remarks Combined Board and OC Meeting Arrival of the Participants Departure General Assembly Presentation 'Know your Customer' (Practical View) Lunch Break Presentations / Conclusions of Breakout Sessions Key note Speech 'Today's Regulatory Challenges and Trends' Speech 'Practical Application of Technology to Solve Regulatory Challenges' Introduction / Setting the Stage Closing Remarks Panel/Introduction to Breakout Sessions - Out of Network Assets - Collateral Management Breakout Sessions Part 1 (6 Groups) Breakfast ISSA Symposium 2014: Responding to the Regulatory Challenges – Implications for the Industry Breakout Sessions (6 Groups) Dinner and Drinks Presentation 'Know your Customer' (Compliance View) Panel / Q & A 'Reflection of Morning Presentations' Introduction Breakout Sessions Cocktails / Gala-Dinner with Entertainment (Wolfsberg) Breakout Sessions Part 2 (6 Groups) Feedback Reports Breakout Sessions 11 Lunch Break

12. International Securities Services Association ISSA Symposium 2014: Responding to the Regulatory Challenges – Implications for the Industry May 20 – 23, 2014