FISD NEWS

We are pleased to welcome the following new members this month:

• CounterpartyLink  Main Contact: Christoph Lammersdorf, Managing Director
• Fruition Partners  Main Contact: Steve Dickey, Managing Director
• Chicago Trading Company  Main Contact: Jessica Jordao, Manager Exchange Relations/Market Data

• Istanbul Stock Exchange Main Contact: Canan Guven Okan, Chief Information Officer

WFIC 2009: Dates and Location Announced!
Save the date and budget accordingly for the 2009 World Financial Information Conference (WFIC), October 4 – 7 in Athens.  Scheduled biennially, WFIC is the only global conference focused exclusively on the issues associated with the dissemination, management and use of financial information.  Two and a half days of educational sessions, meals and off-site networking events allow attendees to interact in a neutral environment to develop better communication with the major players in the market data industry. Sessions include a combination of keynotes, panel discussions, case studies and interactive presentations featuring cutting edge topics and issues.  Sponsorship information will be available  beginning in the Fall.  Watch for WFIC updates via this newsletter.

New Executive Committee Chair:
The Executive Committee selected Richard Jacobi, Vice President/Exchange Specialist of Citi to serve as Chair of the FISD Executive Committee through the end of 2008.

Latest update on certification:
We had a great response to our recent survey which is now closed; 441 of you responded and we are now immersed in data analysis thanks to the amount of information that was provided. Many of you did not fill in the survey but we do understand there is a kind of survey fatigue in both our business and personal lives. In retrospect we also recognise that we might have asked too many questions of you – hindsight is a wonderful gift!

Obviously a much more detailed report will be generated using the statistics gleaned from the survey and this will form the factual basis on which the FISD Executive Committee and the Certification Steering Group, in consultation with FISD and SIIA management, can make an informed decision as to the next steps. A couple of high level results give some insight – when asked to comment nearly 75% of respondents specifically agreed with the premise that “a certification program would be good for our industry” contrasted against only about 7½ % who specifically disagreed. A variety of other statements drew a similar response within the survey. However, some of the most useful insight was gained from free format comments provided in the questionnaire and from face to face discussions carried out in parallel to the survey. Within this data set we have received some very positive ideas but we have also been clearly, and in some cases passionately, informed of some of the potential pitfalls and problems associated with a program of this type; this very constructive criticism is highly useful in formulating any kind of final decisions.

We are still very open to receiving such free format input which should be directed at either David Anderson and/or Tom Davin. Anyone wishing to take an even more active role in the forthcoming decision making process would be very welcome to join the Certification Steering Group.

Increase your Company’s Visibility: We have expanded the scope of the FISD website to include member press releases and white papers. This is a complimentary service available to FISD members only. For more information or to participate please contact Elizabeth Cummings (+1 202 789 4452).


LEGISLATIVE/REGULATORY AGENDA

SEC Continues to Move Forward on Interactive Data, Hosts International Roundtable:
On June 10, 2008, the Securities and Exchange Commission held an International Roundtable on Interactive Data for Public Financial Reporting to hear from a wide range of countries regarding their practices for requiring public companies to submit financial reports.  Topics discussed at the Roundtable included the experience in countries that have already adopted interactive data; the views of countries currently considering adopting interactive data; and the perspectives from analysts and users of financial information about how best to take advantage of the capabilities of interactive data.

The Roundtable follows the issuance on May 30, 2008, of a proposed rule on Interactive Data to require U.S. reporting companies to provide their financial statements and footnotes in interactive data starting, for large companies, with reporting periods ending on or after Dec. 15, 2008.  The SEC is accepting comments on the proposed rule until August 1, 2008. 

http://www.sec.gov/news/press/2008/2008-108.htm

MiFID Real-time Working Group:
The MiFID Real-time Group met on June 2 in London. The group discussed the problems associated with real-time market transparency in the post-MiFID world. Among the issues that were discussed: cost impact on end-users, quality of data provided by new data sources, availability of information on subject securities, and traffic issues. The group plans to detail its concerns in letters to various relevant regulatory agencies. Contact Tom Davin for more information or to get involved.

BUSINESS ISSUES AGENDA

Derived Data and Non-Display Working Group:
The Derived Data and Non-Display Working Group is putting the final touches on the Best Practice Recommendations document.  Given the overlap in membership between the FISD and LIBA (the London Investment Banking Association), the FISD WG continues to share work and progress with (LIBA) in order to promote uniformity and standardization on this issue.

Service Level and Communications Working Group:
In December 2008 the WG revised and updated the original Best Practice Recommendations (BPRs) focused on communication between data providers and consumers. Now the WG is looking to implement a new program to track adherence among the data providers with these recommendations.  Under the proposed plan, SL&C Working Group members (including the data providers themselves) would be eligible to submit reports on how a provider met the recommendations supplied by the BPR for an event such as a policy change, a delayed market opening or a new pricing structure.  Contact Nick Merritt if you are interested in participating in this group.

BIPPS Working Group:
The BIPPS Working Group is polling FISD member exchanges regarding their policies for usage of market data for internal administrative purposes.  Nearly 20 exchanges have completed and returned the questionnaire and these results will soon be posted on the FISD website to provide increased transparency on this subject.  The working group is about to finalize its recommended policy approach for these situations.

SECURITIES PROCESSING AUTOMATION AGENDA

WG1 – ISIN/CUSIP/ANNA:
Given the (highly sensible!) European practice of collectively vacationing during July and August of each year, it appears likely that WG1 will be relatively inactive until the fall.  The Call for Experts issued last month in reference to WG1’s new  focus on incorporating Synthetic and Structured instruments into the ISIN Standard has received only a limited response, and there is some discussion among WG1 members as to whether or not additional expertise is still required.  The definition(s) of Synthetic and Structured instruments will probably (this remains to be clarified) follow those in the Classification of Financial Instruments (CFI) standard.  A new convenor has not been elected; as it currently stands a meeting is to be scheduled sometime in late August or early September. 

WG8 – IBEI – Entity Identifiers:
The first “new” WG8 meeting was held in Zurich on June 19.  Uwe Meyer of WMdaten (the German NNA) was elected Convenor.   FISD is a member organization that participates as a “Class A liaison organization” with ISO but some have expressed concern that the US does not have a representative on the WG.  We are currently working on precisely defining scope and requirements, with an emphasis on what has changed in practice versus what has been documented over the past decade plus.  In the first meeting, the group did a preliminary review of the IBEI work item path over the past few years, the series of proposals and reasons for their lack of success as well as resolutions from the SC4 plenary meeting in November 2007. The group also briefly discussed existing identifiers, ISO-related Entity Identification standards outside of Financial Services (DOI), their scopes and current application.

FISD Data Model Wiki:
FISD launched our Data Model Wiki in Q1, and have begun compiling different industry “dictionaries”.   We have a good start on collecting dictionaries and are working with editors and volunteers to begin compiling an initial set of glossary definitions.  A member has recently begun a new section on Symbology, which is listed under Messaging Standards on the front page.

Registration for the wiki is free and requires only a valid email address.  We are actively looking for editors, please feel free to comment or contribute.  If you are interested in becoming an editor, have tools or code you would like to contribute, or a topic area where you would like to see a shared discussion, please contact Bill Nichols.

Member Only Forums:
While the wiki is open to the public, we have recently begun implementing a private workspace for members only.  This is currently being used for some WG and Constituency Group discussions.  Registration is required at http://forums.fisd.net, and each must be approved by FISD staff. If you have a general topic or a topic area where you would like to create a shared discussion forum, please contact Bill Nichols.

TRAINING

New courses, trainers and locations added. Don’t overlook the most critical resource you can provide yourself or your staff: industry training!

New Locations! Market Data Basics and Re-Thinking Market Data  will be offered in London, September 9-10, Singapore, September 18 & 19 and in Chicago, November 13 & 14. To view course content, pricing and to register visit: http://www.fisd.net/schedules/md_training.asp

EDUCATION / NETWORKING