December 11, 2001
Present
Terry Allison (London Stock Exchange), Michael Atkin
(FISD), John Bottega (Merrill Lynch), Phil Burch (FT Information),
Danielle Butler (Thompson Financial), Niels Hougaard (VP, Denmark),
Karl Landolt (Telekurs Finanz), Dan Kuhnel (Clearstream Banking
(Chairman), Danny Ooghe (Euroclear Bank), Scott Preiss (Standard &
Poor's), James Robinson (Reuters), Richard Robinson (Deutsche Bank),
Ted Rothschild (JP Morgan Chase), James Taylor (Standard & Poor's),
Osman Topbas (Takasbank), Nourredine Yous (Telekurs Finanz), Fulvio
Zugaro (UIC, Italy)
Via Phone
Jose Alonso (CNVA, Spain), Andrew Douglas (SWIFT),
Karin Deridder (SWIFT), Colin Gibson (Merrill Lynch), Leon Lambert
(Euronext Brussels), Uwe Meyer (Wertpapier-Mitteilungen)
ASB Status/Performance
The ANNA Service Bureau (ASB) went live at the
beginning of July 2001. There are now 1.025 million ISIN's on the
ASB database, derived from 38 master files covering 169 countries.
Critical mass has been achieved making the ASB the most
comprehensive ISIN database in existence. The ASB is now interested
in rolling out the ASB product and services directly to end-users.
FISD and SWIFT agreed to assist in ensuring visibility for the ASB.
Official Place of Listing/Register Identifiers
FISD and SWIFT cooperated to define critical data
elements required for unique security identification. The results of
the research were accepted by the ASB and presented to the ANNA
General Membership in October 2001. The key findings can be
summarized as:
-
ISIN is a unique issue identifier but not
always a unique security identifier. ISIN alone is not sufficient
for unique identification because one ISIN can be shared among
offerings in multiple locations. However, indications are that
ISIN should remain unchanged because of its importance to
front-office systems and for the aggregation of global positions.
-
The most critical data element for unique
identification is the official place of listing (OPOL).
Place of official listing identifies the primary and secondary
markets where the security is listed and is needed to
differentiate the security in the case of multiple listings. A
market issuance in multiple locations will be subject to different
settlement, pricing, tax/corporate event treatment, and allocation
of national numbers.
-
Register level information is important for
determining transferability across markets and to help route the
security to the correct place of settlement and holding.
Registration is needed to determine settlement compatibility and
must be known at the point of trade to ensure that the risk is
manageable.
-
Place of trade is not a component of
security identification but is needed as a practical matter for
due diligence and market compliance for researching trade
execution problems, transaction related taxes and for determining
trade related statistics.
Coding Structure for OPOL and Register
-
The proposal to extend the Market Identification
Code (MIC) to cover both place of official listing and place of
trade was approved by ISO-SC4 on October 2, 2001.
-
The proposal to extend the Bank Identification Code
(BIC) to cover the identification of register was also approved by
ISO-SC4 at the October meeting.
Access to OPOL/Register Data
The ASB did a survey of National Numbering Agencies (NNA)
as a gauge on the difficulty of collecting the information on
primary/secondary place of listing and place of register. Here are
the results based on positive responses to their survey:
-
Primary Place of Listing: NNA's are able to provide
Primary OPOL coverage of approximately 80% of all securities with
ISIN's assigned.
-
Secondary Place of Listing: NNA's are able to
provide Secondary OPOL coverage of approximately 30% of all
securities with ISIN's assigned.
-
Place of Register: NNA's are able to provide
Register information coverage of approximately 76% of all
securities with ISIN's assigned.
Next Steps
-
OPOL and Register level information are not a
required data elements according to either the ISO-6166 standard
or implementation guidelines. ANNA agreed to assess the process
for acquiring the information from the NNA's. The result of their
inquiry is due at the next ANNA General Meeting (May, Athens).
-
The ASB reinforced its interest in being the
collection and dissemination point for OPOL/Register level
information. The agreed to provide a complete business analysis
(access to and validation of data) and a preliminary commercial
proposal for the May ANNA General meeting.
Post GIAM Specifications
The initial phase of the ASB was designed to cover only the
information currently provided as part of the GIAM 2 feed. FISD
conducted a preliminary survey to determine the additional data
elements desired from the ASB.
There are a number of mandatory minimum data elements
that are very critical to instrument identification. The core
principle is that if the data elements are needed for unique
identification, they should be available (regardless of source) as
part of the core ASB product. If any of them are not disseminated by
the original source, the ASB should aggressively pursue getting them
from the NNA's.
| Data Element |
Equity |
Debt |
Warrants/Rights |
| Security Type |
Y |
Y |
Y |
| Issuer Name (Long) |
Y |
Y |
Y |
| *Issue Description |
Y |
Y |
Y (all information
required to uniquely describe the issue) |
| Country of Issuer |
Y |
Y |
Y |
| Currency of Issuer |
Y |
Y |
Y |
| Form (bearer/registered) |
Y |
Y |
Y |
| Rate (coupon, interest/dividend) |
Y |
Y |
Y |
| Type of Interest |
|
Y |
|
| Interest First Payment |
|
Y |
|
| Maturity/Expiration Date |
|
Y |
Y |
| Cross Reference |
Y |
Y |
Y |
| Voting Rights |
Y |
|
|
* Examples of issue description include refunding,
pre-refunding and secondary insured for municipal securities; ERISA/Non-EURISA;
convertible, exchangeable and preferred.
