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?	The Lithuanian capital market is using ISIN system in accordance with ISO 6166. The codes for all corporate securities are granted by CSDL, while those for Government securities are given by CSDL together with the Ministry of Finance. The assignation of ISIN codes is provided in the Rules on Accounting of Securities and Their Circulation. The unique ISIN code is granted for each issue of fully fungible securities.
2.	Are the major participants in the market linked electronically?	A vast majority of financial intermediaries is linked electronically with CSDL. Electronic links dominate between CSDL and SE, BL, MF, Latvian CSD and also between SE and its members.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	CSDL communicates using its own proprietary securities messages.
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?	The market is using local identification codes for counterparties and client accounts. The individual codes for counterparties (brokers, banks, issuers and their securities issues) are determined by CSDL. Clients are codified according to the Securities Commission Rules, by which individual and unique codes for clients must be used. Brokers present the information on those codes to SC weekly. That codification system is not based on global identification methodology but can easily be transformed starting with international transactions and clients.