Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Austria

Status: October 11, 2001

Recommendation 1
Recommendation 2
Recommendation 3
Recommendation 4

Recommendation 5
Recommendation 6
Recommendation 7
Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1. Does the market use ISIN as the primary securities identification code? No, but a project has been set up to establish ISIN as the primary securities identification code as of April 2003.

2. Are the major participants in the market linked electronically? Yes, via S.W.I.F.T for the sending/receiving of instructions and via leased lines and internet for dialogue connections.

3. Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging? OeKB uses ISO standards where possible and tries to follow recommendations given by market practice groups. BIC and ISIN are standards which are accepted by OeKB participants. Additionally, so-called "data source schemes" (following ISO-15022 terminology) are used for proprietary codes (e.g. participant identification, error codes for validation purposes). On the other hand, no other way has been found to communicate specific information (such as information concerning serial bonds or additional information concerning compensation in settlement confirmations) than using narrative information.

4. Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology? OeKB supports both BIC-codes as well as local codes to identify counterparties. In links to other CSDs and ICSDs, also local codes (e.g. account number of Euroclear-or Clearstream Banking participants) are used.

1.	Does the market use ISIN as the primary securities identification code?	No, but a project has been set up to establish ISIN as the primary securities identification code as of April 2003.
2.	Are the major participants in the market linked electronically?	Yes, via S.W.I.F.T for the sending/receiving of instructions and via leased lines and internet for dialogue connections.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	OeKB uses ISO standards where possible and tries to follow recommendations given by market practice groups. BIC and ISIN are standards which are accepted by OeKB participants. Additionally, so-called "data source schemes" (following ISO-15022 terminology) are used for proprietary codes (e.g. participant identification, error codes for validation purposes). On the other hand, no other way has been found to communicate specific information (such as information concerning serial bonds or additional information concerning compensation in settlement confirmations) than using narrative information.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	OeKB supports both BIC-codes as well as local codes to identify counterparties. In links to other CSDs and ICSDs, also local codes (e.g. account number of Euroclear-or Clearstream Banking participants) are used.