Chair & Rapporteur:

Darren Pearson - Principal Consultant - TRG Post-Trade Services
Kiri Self, CEO - TRG Post-Trade Services

Venue: BT Centre, 81 Newgate Street, London

• Introduction by DP whom welcomed attendees to the first Standards subject-group meeting.
• DP expressed thanks to BT for hosting the event.
• DP advised that 'Chatham House’ rule applies to facilitate full & frank debate.
• Brief introduction to the floor by each attendee.

Overview:

• KS reiterated key messages from CAS subject-group launch meeting in February 2012

Meeting Scope & objective

• To discuss & agree 3 initial actionable items for the initial plenary meeting on Wednesday 30 May, 2 - 5pm at The London Stock Exchange, 10 Paternoster Square, EC4M 7LS. Register Here
• DP opened the floor for questions

The following is a list of issues/questions raised & discussed:

Legal Entity Identifiers (LEI’s)

• What will be the impact of the roll-out of LEI’s in July’12?
• What level of mapping & data-base change is likely to be required to facilitate use of LEI’s?
• Will this impact staff-costs?
• Can the industry agree a single instrument id to be the standard applied globally? e.g. cusip, isin, sedol etc
• Can a true 'one-for-all’ security id be enforced by regulators as voluntary-usage is unlikely? *

• CCP clearing - Are the existing standards being utilized sufficiently by the market e.g. messaging formats & the impact to trade-data flows.
• FACTA & payment standards - It was requested that retail payments are also incorporated into discussions in this area per interest expressed from the floor.
• T+2 and the impact to post-trade processes e.g. fund allocation, confirmations, and settlement instructions ++. How will this shortened time-line impact these processes? These areas will suffer from timeline 'compression’ so it is hoped that this will feed through to stricter guidelines & discipline in terms of timely trade-bookings. The impact otherwise shall be increased cost in-terms of failedtrades, late-matching, buy-ins which can likely trigger further-issues downstream in Operations.
• T2S - Will this change aid or hinder standards globally?

Summary:

Agreed actionable items for the subject-groups initial plenary meeting:

1. 1/ LEI; - All aspects detailed above
2. 2/ LEI; can the industry agree a single instrument id to be the standard applied globally, e.g. cusip, isin, sedol etc?

Background:

The Standards Subject Group is focused upon:

• Legal Entity Identifiers (LEI’s) and the Financial Stability Board (FSB)
• CCP clearing
• The Foreign Account Tax Compliance Act (FATCA) and payment standards
• The move to T2S – Will this aid or hinder global standards?
• Unique identifiers in trade messaging
• CCP’s & the use (or not) of existing standards
• Retail banking implications as a result of FATCA developments
• TARGET2 for Securities (T2S) & post-trade compression

The Group has Darren Pearson of the Realisation Group as Acting Chair and is open for nomination for this position.