1	REDAC The Practical Challenge Michael Atkin REDAC Secretariat SIIA/FISD June 20, 2003
2	How to Move an Industry Definition of issue Is the problem clearly defined? Are the implications fully known? Can it be explained and justified? Agreement among key participants Is the problem important enough to address? Is there buy-in on the need to fix? Where does it fall within organizational priorities?
3	How to Move an Industry Strategy and metrics Is there a shared view of how to solve the problem? How are proposed solutions evaluated? Operationally viable? Commercially acceptable? Does it solve the problem? Alignment of interests Do the involved organizations speak with a common voice? Which organizations are involved in the implementation of a solution? Standards bodies/maintenance authorities Vendors Utilities (i.e. NNA’s, SWIFT)
4	How to Move an Industry Implementation management Can the industry exert influence on solutions providers as appropriate? Is the industry able to work with solutions providers to address implementation challenges? Can the solution exist on a stand-alone basis? This is a linear process All components of the process are required Avoid putting solutions ahead of problem definition and industry buy-in Agreement at every step is required before moving to the next stage
5	REDAC Issues and Status Unique Instrument Identification Business and legal entity identification Data model and common vocabulary Other issue areas? STP Roadmap on standards Messaging standards Place of settlement, safekeeping, and registration identification Corporate actions
6	Unique Instrument Identification
7	Instrument Identification ISIN alone is not sufficient for STP automation (agreement) Place of listing is required for multiple listings (agreement) Place of trade is required for intra-day pricing and compliance (agreement) Solution must meet the criteria of uniqueness, timeliness and commonality
8	Instrument Identification Modify ISIN (not viable because ISIN is valuable as an issue identifier and modification is operationally not practical) ANNA Service Bureau (possible but requires changing the mission of the ASB) Vendor Proprietary Identifiers (possible but commercial and competitive obstacles exist) SEDOL + MIC Extension (meets the criteria for precision and is viable)
9	Business Entity Identification Business entity identification is required to manage risk and meet regulatory obligations (agreement) Issue is defined at a conceptual level Does S&P/Telekurs/D&B CrossWalk solve the problem? How does this relate to ISO IBEI? What is the role of REDAC?
10	Legal Entity Identification Fund and counterparty identification is required to improve processing efficiency (validation required) Problem to be solved (standard code for settlement and allocation instructions) is not well defined RDUG “Legal Entity Identification” paper proposes a solution path Agreement, strategy, alignment and implementation are missing How does this relate to OMGEO Alert Codes and ISO WG 8? What is the role of REDAC?
11	Data Model and Vocabulary Information architecture is the foundation of reference data management (agreement) Common understanding of financial instrument attributes (terms, definitions and relationships) are needed (agreement) ISO TC68/SC4 Working Group 11 is the coordinating activity FIX (pre-trade), MDDL (reference data, pricing, corporate actions), ISO (post-trade settlement) 15022 data field dictionary is the global repository Messaging needs and message formats UMI business model (actors, roles, business processes, and information requirements)
12	Other Issues There are a number of additional issues that have been raised but are not (yet) on the REDAC agenda STP Roadmap on standards Messaging standards Place of settlement, safekeeping, and registration identification Corporate actions The function of REDAC in a practical sense is to keep tabs on the requirements, map them to activities, exert influence as necessary and monitor the work