Securities and Exchange Commission Philippines joins ANNA

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Confirmed at ANNA’s General Meeting, Brussels, June 2 & 3, 2022

London, 15th June 2022 – The Association of National Numbering Agencies (ANNA), a global association dedicated to the support of efficient capital markets through the use of widely embraced International Organisation for Standardisation (ISO) standards, today announced that the Securities and Exchange Commission Philippines has joined the Association of National Numbering Agencies as Partner. This was confirmed at ANNA’s 30th Anniversary General Meeting (GM), hosted by Euroclear Bank SA/NV in Brussels, June 2 & 3, 2022.

The Securities and Exchange Commission is the national regulator of the Philippines capital markets and is the designated National Numbering Agency (NNA) for the Republic of the Philippines. ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes for more than 200 jurisdictions. Currently, there are more than 85 million ISINs and related information available worldwide.

Mr Christian Engelen, Head of Unit – Borrowing and Lending Operations, European Commission and Giulia Ferraris, Senior Policy Officer, Data Reporting Unit, European Securities and Markets Authority (ESMA) delivered keynote speeches for the ANNA Meets the Market event preceding the GM, highlighting the importance of standards in transforming capital markets.

Following a presentation by Karin De Ridder, Head of Standards Development, SWIFT, on the standards development and maintenance processes, GM discussions were held on the status of ISO standards, in particular on the revised ISO 6166 ISIN standard, and the related implementation by NNAs, and updates from the ANNA working groups. The meeting further oversaw the re-election of two ANNA Board Members, Laura Stanley (London Stock Exchange, UK), and Torsten Ulrich (WM Datenservice, Germany), each for a three year term.

Dan Kuhnel, Chairman of ANNA, said, “We are thrilled to have all been able to come together for our general meeting in person for the first time since the pandemic. The past year has been very busy, with ANNA celebrating the 40th anniversary of the ISIN and the 30th anniversary of ANNA itself. We are incredibly pleased to have the Philippines Securities and Exchange Commission join ANNA at this time when our member organisation is growing, and as international financial standards are continuing to become ever more important to ensure global interoperability and transparency in the capital markets. This has been an incredibly successful meeting in terms of both the calibre of speakers as well as NNAs being able to share knowledge and experiences.”

 

Media contact for ANNA

Charlotte Wilson
Streets Consulting
+44 (0)20 7959 2235
Charlotte.wilson@streetsconsulting.com

 

About ANNA

The Association of National Numbering Agencies (ANNA) is a global member association seeking to foster standardisation within the financial industry by upholding the International Organization for Standardization (ISO) principles and by promoting ISIN, FISN and CFI codes for financial instruments. This is achieved through ongoing, collaborative work with market participants, regulators and other standards bodies.

Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. Founded in 1992 by 22 numbering agencies, today ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes on behalf of their local jurisdictions. By putting in place rigorous governance around the development, allocation and sharing of ISIN, FISN and CFI codes, ANNA helps facilitate open, transparent markets diminishing barriers to access, while protecting the integrity of the standards. As a result, ISIN has become the recognised global standard for unique identification for all types of financial and referential instruments, helping to connect and protect global markets.

In addition, ANNA has established the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the specific operational and regulatory requirements of the over-the-counter derivatives markets.

For information about ANNA, its members and activities, please visit anna-web.org.

ANNA and GLEIF win A-Team Innovation Awards 2022

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ANNA and GLEIF win ‘Most Innovative Data Standards Initiative’ at the A-Team Innovation Awards 2022
Second win in a row for the ISINs to LEIs linkage initiative which aids the global financial industry

London, 23rd March 2022 – The Association of National Numbering Agencies (ANNA) and the Global Legal Entity Identifier Foundation (GLEIF) today announced that for the second year running they have won the ‘Most innovative data standards initiative’ at the A-Team Innovation Awards.

Since April 2019, when ANNA and GLEIF first launched the ISIN to LEI service, they have provided a daily consolidated list of ISIN-to-LEI linkages provided by National Numbering Agencies (NNAs). By bringing two ISO standards together, ISIN (ISO 6166) and LEI (ISO 17442), both issuer and issued securities are linked together. ISIN-to-LEI mapping data is also published free of charge and available to everyone on the GLEIF website, alongside the entire LEI data pool. This has worked to bring about increased harmony in the financial markets by promoting further standardisation and availability of essential data. Organisations are now able to aggregate data easily, improving their risk management and transparency of exposures.

To date, over 6 million ISINs have been linked to over 85,000 unique LEIs. These linkages have been voluntarily provided by NNAs, with ISIN coverage across 60 jurisdictions. ISIN-to-LEI mapping data serves as a global directory to promote transparency. There are currently 24 NNAs who have opted into the initiative, with more to follow in the coming months.

The linking of ISINs and LEIs has also been endorsed by regulators, including the Financial Stability Board (FSB) in their Thematic Review on Implementation of the Legal Entity Identifier and the European Securities and Markets Authority (ESMA) within their SFTR consultation.

Uwe Meyer, Executive Director & Secretariat, ANNA, said, “We are delighted to be recognised by A-Team for our joint initiative with GLEIF. This initiative underlines ANNA’s and GLEIF’s commitment to promote the use of standards, and through the use of technology has allowed for broad industry integration and adoption through open data. Integrating standards has helped facilitate firms to meet regulatory trade reporting requirements, as well as improved timeliness to market participants for issuer and issuance mapping.”

Stephan Wolf, CEO, GLEIF, said, “We are excited to win this award for the work we do with ANNA.  GLEIF is overseen by the Regulatory Oversight Committee, which is made up of representatives of public authorities from across the globe. The ISIN to LEI linkage initiative is at the core of what we do, to ensure better financial standards which aid improved trading through transparency and efficiency.”

Angela Wilbraham, CEO of the A-Team Group, said, “Our A-Team Innovation Awards 2022 celebrate and reward those companies at the forefront of innovation within our industry. We congratulate ANNA and GLEIF in winning the ‘Most innovative data standards initiative’ award in recognition of their excellence in driving forward progress in capital markets capabilities.”

For more information and if it helps to widen the picture of the work we do, please view our very short ANNA animated video: https://www.youtube.com/watch?v=VK8e2qxYw0Q For a list of the NNA’s who have opted in to the ISIN-LEI initiative please visit ANNA’s ISIN – LEI page GLEIF’s ISIN-LEI file is available for download here

Media contact for ANNA
Lindsay Clarke
Streets Consulting
+44 (0)20 7959 2235
lindsay.clarke@streetsconsulting.com

About ANNA

Established in 1992 by 22 founding numbering agencies, ANNA is the membership organisation of national numbering agencies, which are operated by depositories, exchanges, government agencies, nationally central data vendors and other financial infrastructure organisations. ANNA also serves as the registration authority for the ISIN and FISN standards, under appointment by the International Organization for Standardization (ISO).

Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. ISINs are issued today more than 200 jurisdictions worldwide. In addition, ANNA has developed the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the operational and regulatory requirements of the over-the-counter derivatives markets. The number of national numbering agencies and nations working to establish national numbering agencies continues to grow each year, now surpassing 120 jurisdictions globally.  For information about ANNA, its members and activities, please visit anna-web.org.

About GLEIF

Established by the Financial Stability Board in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization created to support the implementation and use of the Legal Entity Identifier (LEI) worldwide.

GLEIF enables smarter, less costly and more reliable decisions about who to do business with. Its services ensure the operational integrity of the Global LEI System, providing free access to the full global LEI repository. GLEIF is overseen by the Regulatory Oversight Committee, a group of public authorities and observers from more than 50 countries around the world. It is headquartered in Basel, Switzerland. For more information, visit the GLEIF website at https://www.gleif.org/en.

ANNA Newsletter: February 2022

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ANNA Community Newsletter

Keep up to date on the latest ANNA activities in this edition which celebrates 30 years of ANNA as an association. Here you can find update from the market and industry, statistics, and news from our Members.

Click here to view the February 2022 newsletter.

Georg Eisel 1994-2008 Member of the Board – Q&A on the ANNA Anniversary

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Georg Eisel 1994-2008 Member of the Board

Q&A on the ANNA Anniversary

ANNA: Can you tell us why you think ANNA has been successful?

Georg Eisel – If you deal exclusively and intensively with one thing, you quickly forget how time flies. Also that 30 years have passed since ANNA has successfully turned to the exciting topics of developing and implementing standards in the financial industry. The success is also based on the pioneering work of specialists who recognised the signs of the times and the need for rationalisation through standardisation at an early stage and thus created the prerequisites for an ongoing process, unbroken up to our days.

What do you remember about the years before ANNA and the events which created the need for ANNA?

Georg Eisel –  In 1960, the EU bond market was characterised by the issuance of physical papers in ever larger volumes. This made efficient handling of the transfer of securities for clearing and settlement difficult. The use of an Optical Character Recognition OCR became mandatory for printing on the securities to relieve the physical exchange of documents. The “dematerialisation” only started later in 1962, initiated in France. Central institutes emerged parallel to the national custodians, EUROCLEAR-1968, CEDEL-1970, each institute still with its own identification number system. These were integrated into the ISIN standard in 1991 as common code, prefix XS.

Then, by 1970, specialists in Europe and the USA began to optimise the registration of national securities through NSINs – National Securities Identification Numbers. These working groups became ISIN specialists who enlivened the ISO 6166 standard. Only this offered ideal conditions for redesigning integrated data and information processes across national borders.

In the 1980s, increasing presence in computer technology enabled the development of financial databases based on complex relational, financial data models. The first integrated online information systems should provide information about financial instruments, issuers about prices and corporate actions. With the help of reference data feeds, computerised back office trading and clearing systems could increasingly be supported.

All of these developments required reliable data based on recognised standards. Market requirements demanded the stringent identification and classification of issuers, financial instruments, and trading venues with all their usages. The development of further workable standards for the financial industry began. This was actively supported by the national standardisation bodies such as: DE: DIN, CH: SNV, US: ANSI etc.

ANNA: What can you tell us about your memories of those early years of ANNA?

Georg Eisel – In 1992, ANNA, the Association of National Numbering Agencies, was founded by 22 members. The self-imposed task began to offer the ISO standard 6166 an active international platform. ANNA has become a committed and recognised partner for various national and international financial and information services. Last but not least, a competent partner for the operational implementation of regulations and directives for more market transparency.

The development of further sets of rules, in accordance with the dynamic market requirements, was a central task and led to committed cooperation with ISO to update ISO 6166. In addition to the central task of the NNAs to determine and register the ISIN according to the rules for their jurisdiction, there was also the requirement to exchange this with the interested NNAs at the same time. Initially, this was done using traditional media such as TELEX, FAX, TELEPHONE.

Then in 1994, with the rapid development of global financial services, the operation of the first reference database, the Global ISIN Access Mechanism -GIAM-, was initiated. New members from the so-called emerging markets were integrated in a practice-oriented manner through special workshops. Usually, two general assemblies took place annually, often organised by new members. These meetings formed and supported the cohesion necessary for this task. A visionary and service-oriented community emerged. By the 2000s, ANNA was well established.

ANNA: What milestones after that do you think shaped its evolution?

Georg Eisel – By 2001, with the new ANNA Service Bureau, a significantly expanded quality control and timely support of the NNAs arose. GIAM had been replaced by a new global register of all financial instruments with the most important reference data. Innovative financial products demanded stringent regulations for market transparency and increased the requirements for the provision of ever faster and more complex services.

In 2003, the availability of the ISIN was the prerequisite for an important milestone for the operational, binding introduction of the ISIN in Germany and Austria. Further standards had now become the ultimate companion of the ISIN. These were the CFI, the Classification of Financial Instruments and the FISN, Financial Instrument Short Name. Now the fundamental reference data was completely up-to-date and high quality, ready to be fed into the information service process chains.

Then in 2005, with the growing acceptance of the ISIN, ANNA increasingly qualified as a service provider in matters of data and services. The task of the board also consisted of moderating an often challenging coordination with market participants who were also ANNA members. A solid understanding of the members’ responsibility, derived from many years of working together, ensured the continuous growth of this organization. The number of members grew steadily, in line with the increasing globalisation of the financial markets.

ANNA: Where do you think ANNA will be needed in the future?

Georg Eisel – New market developments will determine the program. These also ensure the highly complex online issuing of ISINs for structured financial products with an extremely high frequency. A further expanded ANNA service office in London with a future-oriented computer system would ensure the necessary presence. It is hoped that this will continue to direct ANNA’s gaze into a challenging future.

The constant expansion and innovation of the financial markets will make ANNA forget in the future how quickly time flies, and it is to be allowed to grow older, but not to put on any moss.

ANNA 30th Anniversary Celebrations: Digital Assets Round Table

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The Association of National Numbering Agencies 30th Anniversary Celebrations: Digital Assets Round Table

In celebration of ANNA’s 30th anniversary, ANNA held a Round Table with industry experts to discuss Digital Assets and the importance of the role international financial standards play in ensuring efficient and transparent global trading. Participants included John Ho, Head of Legal, Financial Markets, Standard Chartered Bank, Bruno Schneider Le Saout, FinTech start-ups board advisor and strategist, European BlockTech Federation AISBL board member, Silvan Andermatt, FinTech enthusiast and member of the Board of the Swiss Finance and Technology Association, and Rosa Giovanna Barresi, FinTech lawyer and Associate Member of the BABEL research unit at the University of Florence.

ANNA: What are some of the central banks’ concerns regarding CBDCs as programmable money?

John Ho – Programmable money that is designed with embedded smart contracts and/or in-built rules may limit universal access, constrain the users from unfettered use of money, affect individual’s right to privacy and expose users to operational and cyber-security risks. These rules could mean that CBDCs expire after a fixed date, limits may be imposed on the amount of CBDC an end-user could hold, restriction on use to certain types of goods or services, and the central bank may have access to individual’s personal data and details of transactions. In addition, users may be exposed to technology-related operational risks as exemplified by the recent service disruption to DCash, the CBDC used by seven Caribbean nations. The platform went offline for two weeks in January 2022, impacting the ability of users to complete transactions using Dcash.

Bruno Schneider Le Saout Most central banks are not keen to change their governance with direct liabilities to the general public creating a general-purpose central bank digital currency. It also appears that many of them are quite reluctant to use digital currency’s potential programmability for better monetary policy efficiencies (accounts opening, bearing interests, conditional airdrops). In many cases, legal issues prevent them also from initiating any innovative but risky monetary policy paradigm shift without lawmakers’ approval while preserving the role of the banking industry and other private financial stakeholders.

Silvan Andermatt – The concerns with CBDC as Programmable Money are manifold, to name a few: is a retail or wholesale CBDC envisaged? Shall data privacy of cash be replicated in CBDC? Shall limitations be implemented (e.g. expiration rules)? How to address potential discrimination from underlying smart contract rules? Is a CBDC issued by one central bank interoperable with CBDC issued by other central banks? What consensus protocol and security standard shall be applied to the CBDC, i.e., will it be more convenient or more secure (and potentially with a higher impact on the environment)?

Rosa Giovanna Barresi – Programmable money and smart contracts are not a danger per se, but the risk they bring depends on who is delivering the actual code and on the platform that code is run. Contrary to some academic opinion, programmable money should not be described as lex machina, but rather as a very complex system resulting from the interplay of many small entities: as a consequence, concerns are about overall resilience, reliability and quality assurance.

It is increasingly clear that in the near future, programmable money will be limited to stablecoins. The pilot program for the Digital Euro CBDC has already left out any feature requiring programmable money. Commercial banks are favouring an early adoption of programmable money as it could ease the workload generated by the subcontracting business at the base of any advanced economy. After the new German “Fund Location Act” (FoG-E) (August 2, 2021), domestic special funds have the option to invest up to 20% of their managed assets in digital currency assets such as bitcoin. It has been years since European banks started offering digital asset custody as implemented by smart contracts. Still, custody is a very limited business and has not the same risk profile as programmable money.

ANNA: How does the recent US Fed policy report favouring an account-based digital dollar affect the chances for token-based CBDCs in the US and elsewhere?

Silvan Andermatt – China, Bahamas and other countries have already implemented their design choices. The EU, Switzerland and others have conducted studies. The US are joining a bit later in the game. Due to their size, it will be an important factor to consider for others. However, we can currently observe diverse design preferences, at least partially reflecting the regional reality and priorities, which may ultimately be considered more important than outside influence.

When it comes to evaluating the US Fed report about CBDCs and the papers that have been published after it, what are the chances of account-based CBDCs, Rosa Giovanna Barresi gave her view – The proposal of an account-based, single-tier digital dollar solution has already been rejected by both the American Bankers Association and the Republican Party. Some economists point out it could be a very efficient way for giving subsidies. Still, the opposition counters managing an account-based structure for all US citizens is totally beyond the Fed’s capabilities. From a political viewpoint, the issue of an account-based CBDC looks too divisive to be raised before the midterm elections. At present, all the Fed’s impulse is targeted at regulating stablecoins and launching the FedNow instant payment system, which is planned to happen in 2023. In my opinion, the Fed’s report describes the operation of a single-tier, account-based CBDC but does not say that it will happen in the near future. From the technical side, there are presently only three operational, account-based, single-tier CBDCs: the Bahamian Sand Dollar (2020), the Cambodian Bakong (2021) and the Nigerian e-Naira (2021). The latest two should be better described as electronic wallets guaranteed by the Central Bank but operated by the Commercial Bank retail network.

ANNA: Stablecoins or CBDCs? Which offer the greatest benefit to the public?

Bruno Schneider Le Saout – Which is the “public” we are talking of here? Public as professional or individual investors or public as consumers and businesses? As for citizens, stablecoins can’t be used as a digital cash payment solution yet. In case they will be regulated soon, they won’t be costless and they won’t be “legal tender” in many countries. Furthermore, we have to consider that stablecoins are today “probabilistic” systems where deterministic systems are required for transaction’s time and cost certainty as for industrial supply chains with machine-to-machine automated payments. For investors, banking or financial industry this is another story with better internal and cross efficiencies and costs reduction.

Rosa Giovanna Barresi – As an investment vehicle, dollar-pegged stablecoins are gaining the favour of the global public: they offer exposure to the dollar at the lowest possible cost. They can be used to bypass currency controls. They are used for making payments on a blockchain, as in the corporate-oriented JPM coin or as in the crypto-oriented tether. However, their actual circulation in everyday life is negligible, as they are not a solution to the day-to-day problems of the public. Nobody presently accepts stablecoins as a means of payment for taxes or rents, let alone a deposit for buying a new car or a house. In the economist’s language, some deals need the low-risk profile inherent to Central Bank money. In my opinion, the real benefit to the public would come from a low-cost, reliable and pervasive instant payment system which, over time, will probably evolve into some kind of CBDC.

ANNA: How might price inflation or energy shortages comprise the development of the crypto industry?

Bruno Schneider Le Saout – On one hand, the speed of innovation adoption in blockchain consensus protocols towards green or more energy-efficient protocols, including no mining solutions, is really too slow “yet” to cope with the energy crisis and net zero transition which comes with the “emergency” of climate change risks mitigation towards clean and/or renewable energies (cf. “proof of work” bans projects in many jurisdictions). On the other hand, the development of important renewable energy sources in advanced countries have to be considered, so chips makers announcements, like Intel, promising better energy saving computing solutions (1000X) for blockchain mining which have to be audited.

Silvan Andermatt – Energy consumption is, in particular, an issue for proof of work consensus mechanisms, thus a technology that is available since early stage. It is very secure, on large scale, but also energy-intensive. Arguably security comes at a price. However, for the whole DLT ecosystem, other options are available, such as proof of stake, which consumes far less energy.

Rosa Giovanna Barresi – Inflation is already having indirect consequences on crypto, as the NCBs are reacting to that by delivering less capital and at higher interest rates. We should understand that energy shortages and higher energy prices are going to be a permanent problem. Our lifestyle needs heating during winter and air conditioning in the summer. In my opinion, crypto mining is just another economic activity producing a commodity and, as such, should be regulated by the Department of Trade and Industry. That does not mean crypto mining should be forbidden, but it should be part of a global energy plan. If we want a transition to a greener economy, energy consumption should be planned and controlled in the same way that National Central Banks plans and control the availability of fiat money.

ANNA: Where does the application of DLT in financial services have the ability to make the greatest impact?

John Ho – Asset tokenisation has the potential to present the greatest impact. DLT has given us the ability to tokenise any kind of digital and real-life assets. It offers the potential to open up private markets by unlocking the full potential in illiquid, relatively high-performing asset classes through enhanced market access and wider distribution.

Bruno Schneider Le Saout – Distributed ledger technology’s positive impacts (automation, disintermediation, efficiency, …) are already established for many financial services like trade finance, payments, securities services, asset management, investment services, …, it seems too early for any impact ranking but the OECD blockchain policy centre’s research and surveys estimate the impact of DLTs on trade finance from 3 to 4 % economic growth depending of the region.

Silvan Andermatt – DLT has the potential of disintermediation, thus facilitating direct transactions amongst peers, e.g. in cross border remittance/payments, allowing for significant cost reduction and efficiency gains by reducing the time of settlement from T+2 to almost instant (even a little quicker than SEPA instant). Lending to underbanked and unbanked people is a further potential application, with a potentially huge impact on their quality of life.

Rosa Giovanna Barresi – In my opinion, innovation in the financial markets should focus on the issuing of securities. Public Debt and Private Stock issuing processes are hindered by old requirements for notary (or official) supervision. Largely manual processes force the adoption of jumbo-sized issues and require the support of underwriters’ syndicates, whose fees add up to the cost of capital provisioning. Two experiments have been made in Europe about issuing debt certificates over a DLT. One has been conducted by Société Générale and Banque de France, and the other as cooperation between the German Department of the Treasury, the Deutsche Bundesbank and the Banca d’Italia. Also, the market for US Treasuries, which is really dispersed on many different platforms, is being targeted by innovation. Jay Clayton, former chair of the US Securities and Exchange Commission, has recently stated that the US Treasuries are the dog, and the digital dollar is just the tail of the problem.

ANNA: Which regulatory standards exist for the classification of tokens?  Where is there potential for additional regulation?

Bruno Schneider Le Saout – Despite existing regulations like the one from the Swiss FINMA or the European Union MICA one to come with their tokens classification and also many private industry bodies’ token standardisation initiatives, there is no global agreement or consensus yet. The G20, the Financial Stability Board and other financial intergovernmental bodies (IOSCO, etc…) have to develop some global standards, but this will take time. Some crypto industry stakeholders are okay with this status quo, saying it’s too early for standardisation which will stifle market innovations and kill the market.

Silvan Andermatt – Global standards were not available in February 2018, when the Swiss Financial Market Authority, FINMA, was likely the first regulator in the world setting clear guidelines for initial coin offerings (ICO), including a token classification distinguishing payment token ( intended to be used, now or in the future, as a means of payment for acquiring goods or services or as a means of money or value transfer), utility token (intended to provide access digitally to an application or service by means of a blockchain-based infrastructure), asset token (represent assets such as a debt or equity claim on the issue) and hybrid forms of them including elements from more than one of the basic type. In 2019, one year later, FINMA provided guidance on stablecoins.

In December 2018, the Swiss Federal council announced crypto nation Switzerland and adopted a report on the legal framework for blockchain and distributed ledger technology, (DLT), in the financial sector, showing that Switzerland’s legal framework is generally well suited to dealing with new technologies, including blockchain. Nevertheless, areas of further development may be found in RegTech, DeFi (de)regulation and open banking.

Rosa Giovanna Barresi – We are constantly talking about stablecoins as they were all created equals. It is not so. Some stablecoins are not directly convertible into fiat money and are more similar to a fund than to a stablecoin. The composition of stablecoins’ guarantee funds has constantly been the object of speculation. However, at the moment, there is very little that can be done: we must wait for the Executive Order about the assignment of crypto and stablecoins regulation rights to the agencies of the US Treasury. What will come out of that effort is probably a multi-tiered system based on risk profiles. And that will reflect on the classification of tokens, the so-called “taxonomy”.

ANNA: What role can standards play to support further adoption of digital assets?

Silvan Andermatt – A clear regulatory framework is of essence to foster the development of the digital asset ecosystem. For instance, institutional investors seem keen to enter the digital asset market and invest in the technology but may need assurances. The same goes for companies providing services and products. In this sense, establishing global standards will be of utmost importance for the growth of digital asset adoption.

Rosa Giovanna Barresi – Asset coding and numbering is a basic requirement for Digital Assets custody, trading and auditing services. So far, the evolution of the market has been so fast that all efforts at classification have been rapidly put out of date. How could the old hierarchical schemes help auditors distinguish between a dollar-pegged, instantly-convertible, treasuries-backed stablecoin, permissioned blockchain-traded stablecoin and another one which is dollar-pegged, fund-managed, commercial paper-backed, non-permissioned blockchain-traded? Only a multi-dimensional taxonomy could describe the risk profile of those two, offering enough space for introducing new products. A meaningful taxonomy may support the achievement of Financial Literacy and help reach the target of a uniform treatment of Digital Assets in different jurisdictions, as put forward in the Resolutions of the G20 and the Recommendations of the Financial Stability Board.

ANNA announces implementation of revised ISO 6166

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The Association of National Numbering Agencies announces timeline for implementation of revised ISO 6166 ISIN standard

Highlighting market benefits derived from the evolution of international standards

London, 23rd February 2022 – The Association of National Numbering Agencies (ANNA), a global association dedicated to the support of efficient capital markets through the use of widely embraced International Organisation for Standardisation (ISO) standards, today announced the timeline for National Numbering Agencies’ (NNAs) implementation of the revised ISO 6166 International Securities Identification Number (ISIN) standard, bringing further clarity and transparency in the identification and reporting of trades through the use of international standards.

The revised ISO 6166 standard was published in February 2021, following the systematic review by ISO. Highlights of the ISIN standard revision include:

  • an increased data set with the formal inclusion of Legal Entity Identifier (LEI), Classification of Financial Instruments (CFI) and Financial Instrument Short Name (FISN) as part of the minimum data record
  • explicit language to confirm the standard covers both financial and referential instruments
  • assignment rules for OTC derivatives as already implemented by the Derivatives Service Bureau
  • clarification that ISIN is assigned on a technology agnostic basis, including assignment for tokenised financial and referential instruments
  • emission allowances, carbon credits and baskets confirmed as instruments within the scope of ISIN assignment
  • recognition that ANNA is responsible for determination of additional ISIN prefixes to ensure full coverage, e.g. for substitute numbering agencies.

Following the revised and published ISIN standard and together with the ASB Operators, a timeline has been agreed for introducing the necessary changes to the ANNA Service Bureau (ASB) as well as an appropriate timeline for NNAs to enhance their internal systems to contribute the additional data to the ASB. The implementation date has been confirmed as 2 February 2023. Upon implementation, the changes will be available to users of the freely available ISIN Lookup Service and subscribers of ASB services.

Emma Kalliomaki, MD of ANNA, said, “ANNA has been working continuously with stakeholders to help address regulatory obligations as well as to address standardisation challenges. As the market evolves, so too has the ISIN standard under ISO’s governance.  Since the publication of the latest version of ISO 6166, there has been much discussion and collaboration on how best to set the implementation timelines, which are now agreed as February 2023. The ISIN revisions have improved clarity of terms, scope and coverage of the standard, which further enhances usability, increasing transparency and aiding risk and exposure management thereby ultimately benefiting the market.”

 

Media contact for ANNA

Lindsay Clarke

Streets Consulting

+44 (0)20 7959 2235

lindsay.clarke@streetsconsulting.com

 

About ANNA

The Association of National Numbering Agencies (ANNA) is a global member association seeking to foster standardisation within the financial industry by upholding the International Organization for Standardization (ISO) principles and by promoting ISIN, FISN and CFI codes for financial instruments. This is achieved through ongoing, collaborative work with market participants, regulators and other standards bodies.

Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. Founded in 1992 by 22 numbering agencies, today ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes on behalf of their local jurisdictions. By putting in place rigorous governance around the development, allocation and sharing of ISIN, FISN and CFI codes, ANNA helps facilitate open, transparent markets diminishing barriers to access, while protecting the integrity of the standards. As a result, ISIN has become the recognised global standard for unique identification for all types of financial and referential instruments, helping to connect and protect global markets.

In addition, ANNA has established the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the specific operational and regulatory requirements of the over-the-counter derivatives markets.

For information about ANNA, its members and activities, please visit anna-web.org.

ANNA Celebrates 30 Year Landmark Anniversary

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Celebrating 30 Years working with National Numbering Agencies to provide a global, common language of financial instruments processing

London, 1st February, 2022 – The Association of National Numbering Agencies (ANNA), a global association dedicated to the support of efficient capital markets through the use of widely embraced International Organization for Standardization (ISO) standards, today announced its 30 year landmark anniversary.

Following the publication of the International Securities Identification Number (ISIN) standard ISO 6166, on the 1st November 1981, a standard driven by an industry need to improve cross-border trading, 22 National Numbering Agencies (NNAs) established ANNA on 29th January 1992. ANNA has grown significantly over 30 years and now has 119 members and partners globally, allocating ISINs for more than 200 jurisdictions. Currently, there are more than 81 million ISINs and related information available worldwide.

ANNA is a global member association that fosters standardisation within the financial industry by upholding and promoting ISO’s principles for adoption, development and maintenance of ISIN to identify, FISN to describe, and CFI to classify financial and referential instruments. At the heart of ANNA are the member NNAs, responsible for ISIN assignment and maintenance. NNAs are the local market experts whose coordinated efforts bring consistent and harmonised assignment practices to global markets.

Dan Kuhnel, Chairman of ANNA, said, “We are delighted to be celebrating ANNA’s 30th anniversary. Over the past three decades, the collaboration between ANNA’s federated model of Member/Partner organisations and the ANNA management team has been a significant contribution to our success. Our model supports local market adoption, support and implementation of international standards, leading to the objective of truly global harmonisation. ANNA’s membership continues to grow as we constantly support existing and new standards which make the global financial markets more transparent and efficient for all stakeholders.”

Uwe Meyer, ANNA Executive Director & Secretariat, said, “Thirty years ago, financial markets needed something that identified securities around the world in a consistent and harmonised manner, increasing global interoperability, and ANNA was formed. There was a clear understanding everyone needed to cooperate and promote the use of the ISIN. From early on, ANNA really helped to foster the allocation of ISINs more widely. Through the good work of ANNA and NNAs, the financial industry itself has become more aware of the advantages of the ISIN, to enable better cross border trading. As we go into the future, ANNA continues to develop more guidelines for new standards in areas such as digital assets, helping the market around the world as it evolves.”

 

Media contact for ANNA

Lindsay Clarke
Streets Consulting

+44 (0)20 7959 2235

lindsay.clarke@streetsconsulting.com

 

About ANNA

The Association of National Numbering Agencies (ANNA) is a global member association seeking to foster standardisation within the financial industry by upholding the International Organization for Standardization (ISO) principles and by promoting ISIN, FISN and CFI codes for financial instruments. This is achieved through ongoing, collaborative work with market participants, regulators and other standards bodies.

Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. Founded in 1992 by 22 numbering agencies, today ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes on behalf of their local jurisdictions. By putting in place rigorous governance around the development, allocation and sharing of ISIN, FISN and CFI codes, ANNA helps facilitate open, transparent markets diminishing barriers to access, while protecting the integrity of the standards. As a result, ISIN has become the recognised global standard for unique identification for all types of financial and referential instruments, helping to connect and protect global markets.

In addition, ANNA has established the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the specific operational and regulatory requirements of the over-the-counter derivatives markets.

For information about ANNA, its members and activities, please visit anna-web.org.

(Blog) The Association of National Numbering Agencies : 40 Years of ISIN

FAQ
Glossary

The Association of National Numbering Agencies: 40 Years of ISIN
by Emma Kalliomaki MD of ANNA, and Executive Director and ANNA Secretariat Uwe Meyer

This week sees the 40th anniversary of the ISIN, the International Securities Identification Number. The ISIN is an International Organization for Standardization (ISO) standard, ISO 6166, uniquely identifying financial and referential instruments. It has been developed by industry under rigorous processes to become the globally adopted, common language of financial instruments processing. The ISIN is used around the world, and there are now more than 79 million ISINs and related information available, helping to harmonise financial and referential instrument information. 

Early Evolution of the Standard
Up to the late 1970s, the ISIN was still in preparation, and countries were predominantly using their own local codes. But it was around this time that stakeholders within the financial markets realised they needed something to identify securities worldwide in a consistent and harmonised manner. The first version of the ISO 6166 (ISIN) standard was published on the 1st of November, 1981.

Those involved in the development of the ISIN believed it was essential to facilitate cross border trading and the need for structured collaboration and global interoperability. ISINs became the bridge for local investors to gain access to global markets. From the late 70s, countries started coming together to develop a common identifier and the associated framework. Within each jurisdiction, a central market organisation took on the function of National Numbering Agency (NNA) to facilitate the role of ISIN assignment and maintenance.

ISIN and the Association of National Numbering Agencies (ANNA)
Following the publication of the ISIN standard, the NNAs established the Association of National Numbering Agencies, ANNA, which was founded by 22 members on January 29th, 1992. ANNA is a global member association that fosters standardisation within the financial industry by upholding and promoting ISO’s principles for adoption, development and maintenance of ISIN to identify, FISN, to describe, and CFI to classify financial and referential instruments. (More on FISN and CFIs below). At the heart of ANNA are the member NNAs, responsible for ISIN assignment and maintenance. NNAs are the local market experts whose coordinated efforts bring consistent and harmonised assignment practices to global markets. ANNA has grown significantly since its formation and now has 118 members and partners globally, allocating ISINs for more than 200 jurisdictions.

ISIN and the Evolution of Standards
Over the following decades, the ISIN grew to cover more asset classes, starting with traditional instruments like equities and debt, then shortly afterwards, in the 1990s, including further asset classes such as exchange-traded derivatives. By the 2000s, ISINs were also being issued for structured products and referential instruments. The latest significant expansion of the ISIN has been the identification of OTC derivatives which commenced in 2017, with the establishment of the Derivatives Service Bureau (DSB). The DSB is an ANNA subsidiary, and has facilitated the expansion of the ISIN standard to identify and classify OTC derivatives, enabling market participants to fulfil regulatory reporting requirements. This highlights how the ISIN has assisted in bringing greater transparency and supervision capabilities to the financial markets across the full suite of asset classes.

Another key development over the years has been the take up of the Classification of Financial Instrument (CFI) codes, an ISO standard first published in 1997. In 2015, the first version of the Financial Short Instrument Name (FISN) was also established to play a complementary role in describing financial and referential instruments. ISIN itself is a code that identifies an instrument. The CFI is a code that classifies the instrument and the FISN is a human-readable abbreviated description providing further essential details about the instrument. Both the CFI and FISN are important complementary standards that work in unison with the ISIN.

ANNA remains flexible to an evolving market, monitoring closely how markets change including the emergence of new asset classes. In ANNA’s role as ISO Registration Authority, ANNA has established and maintains guidelines for the ISIN to ensure consistency in application and global harmonisation. As ISO standards have a review cycle of five years, guidelines cover the expected approach to new instrument and asset classes between review cycles. With digital assets emerging as a new investment class, the availability of quality, standardised reference data will serve as the foundation for a trusted token market. As the Registration Authority for the ISIN, ANNA is currently working on developing guidelines for digital assets to ensure the ISIN standard will evolve to benefit the industry at large.

ISIN and the ANNA Service Bureau
A significant milestone for the ISIN came in 1993 when the first centralised ISIN reference database was established. At that stage, it was called GIAM (Global ISIN Access Mechanism). It meant that for the first time, ISINs across all jurisdictions could be consolidated in a single database, and a new central repository was created. ANNA could then provide ISIN data to NNAs and interested market participants. This database has developed into the ANNA Service Bureau, ASB, which was established in 2001. CUSIP Global Services and SIX Financial Information jointly operate and maintain the ASB providing daily support as well as evolving the service as needed, with the latest upgrade having gone live in September 2021. This upgrade included the migration of the platform to a cloud-based infrastructure allowing for reduced latency and increased cyber-security.

Once NNAs have assigned the identifiers and their associated data, the data is provided to the ASB, using a common data record to ensure quality and consistency. ASB data is made available online via a free ISIN lookup service as well as through subscription services. The ASB’s data and lookup service are available to all market stakeholders to use within their own reference data management processes. The ASB is now the largest database of ISINs and associated data globally with, as mentioned above, coverage across more than 200 jurisdictions worldwide and, +79 million ISINs and related information on file.

ISIN: Collaboration and Regulation
ISIN is now used alongside other standards to help improve the harmonisation and interoperability within the global markets. ANNA collaborates with other standards bodies on initiatives to service the industry. The GLEIF and ANNA open-source ISIN-to-LEI relationship files, linking ISINs to Legal Entity Identifiers, LEIs, is one such initiative created to help improve transparency of exposure by linking standards on the issuer and issuance of securities.

Regulators have become aware of how important it is to use standards, particularly post-financial crisis. Through ISIN use, organisations can leverage the efficiencies related to global interoperability and realise the benefits of harmonisation across capital markets. As a result, the ISIN has become the recognised global standard for unique identification for all types of financial instruments, helping to connect and protect global markets.

Those involved at ANNA, as well as the NNAs, with ongoing collaborative work with market participants, regulators and other standards bodies, will strive to ensure the ISIN remains the trusted identifier to deliver global interoperability, harmonisation and efficiency for the next forty years and beyond. ANNA will continue to strive to ensure best practice and sound governance principles are enshrined in the ISIN standard for years to come.

ANNA Newsletter: November 2021

FAQ
Glossary

Keep up to date on the latest ANNA activites in this special 40th anniversary of ISIN edition of our newsletter. Here you can find update from the market and industry, statistics, and news from our Members.

Click here to view the November 2021 newsletter.

The Association of National Numbering Agencies: 40 Years of ISIN

FAQ
Glossary

Celebrating 40 Years of a global, common language of financial instruments processing

London, 1st November 2021 – The Association of National Numbering Agencies (ANNA), a global association dedicated to the support of efficient capital markets through the use of widely embraced International Organization for Standardization (ISO) standards, today announced the 40th anniversary of the ISIN, the International Securities Identification Number, used to uniquely identify financial and referential instruments.

The first version of the ISIN standard, ISO 6166, was published on the 1st November 1981. Development of the standard was driven by an industry need to improve cross-border trading and global interoperability. Under rigorous processes, the industry has developed the ISIN to become the globally adopted, common language of financial instruments processing. There are now more than 79 million ISINs and related information available worldwide.

Early champions of the ISIN and the first National Numbering Agencies (NNAs) founded ANNA on January 29th, 1992, to be the registration authority of the ISIN. ANNA is a global member association that fosters standardisation within the financial industry by upholding and promoting ISO’s principles for adopting, developing and maintaining the ISIN and other key international standards. ANNA now has 118 members and partners globally who are allocating ISINs for more than 200 jurisdictions.

Another significant milestone for the ISIN came in 1993 when the first centralised ISIN reference database was established. It meant that for the first time, ISINs across all jurisdictions could be consolidated in a single database, and a new central repository was created. This database has developed into the ANNA Service Bureau, ASB, which was established in 2001. CUSIP Global Services and SIX Financial Information jointly operate and maintain the ASB providing daily support as well as evolving the service as needed, with the latest upgrades having gone live in September 2021. The ASB is now the largest database of ISINs and associated data available which can be accessed via a free online lookup service or through additional subscription services.

Dan Kuhnel, Chairman of ANNA, said, “We are delighted to be celebrating ISIN’s 40th anniversary. Over the past four decades, the ISIN has assisted in bringing greater transparency and supervision capabilities to the global financial markets across the full suite of asset classes. Through ISIN use, organisations can leverage the efficiencies related to global interoperability and realise the benefits of harmonisation across capital markets. As a result, ISIN has become the recognised global standard for unique identification for all types of financial instruments, helping to connect and protect global markets.”

Uwe Meyer, ANNA Executive Director & Secretariat, said, “Having joined ANNA in 1989, I have witnessed how industry has collaborated over the past decades to promote a standard to help the industry, and to better foster cooperation between countries on cross-border identification of asset classes. The early founders’ foresight was tremendous. It is heartening to see that even after forty years, there are still countries in the world that recognise the importance of the standard in their own jurisdictions. ANNA membership continues to grow, which is a testament to its professionalism and good governance. I am proud to have been part of the early journey and thrilled to see so much enthusiasm for the ISIN into the future.”

 

Media contact for ANNA

Lindsay Clarke
Streets Consulting
+44 (0)20 7959 2235
lindsay.clarke@streetsconsulting.com

 

About ANNA

The Association of National Numbering Agencies (ANNA) is a global member association seeking to foster standardisation within the financial industry by upholding the International Organization for Standardization (ISO) principles and by promoting ISIN, FISN and CFI codes for financial instruments. This is achieved through ongoing, collaborative work with market participants, regulators and other standards bodies.

Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. Founded in 1992 by 22 numbering agencies, today ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes on behalf of their local jurisdictions. By putting in place rigorous governance around the development, allocation and sharing of ISIN, FISN and CFI codes, ANNA helps facilitate open, transparent markets diminishing barriers to access, while protecting the integrity of the standards. As a result, ISIN has become the recognised global standard for unique identification for all types of financial and referential instruments, helping to connect and protect global markets.

In addition, ANNA has established the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the specific operational and regulatory requirements of the over-the-counter derivatives markets.

For information about ANNA, its members and activities, please visit anna-web.org.