Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Netherlands

Status: February 20, 2002

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 use of ISIN code is prescribed by the Dutch stock exchange authorities. ISIN code is also used by other national and the international depositories Clearstream and Euroclear.
Custodians can use their own internal security codes, that have to be transformed to ISIN in the settlement process.

2. Are the major participants in the market linked electronically? All major participants use SWIFT as electronic messaging system between Investment Managers, Global Custodians and Broker/Dealers. It is also possible to use telefax or telex systems.

3. Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging? The Dutch depository uses a quasi SWIFT message structure, meaning only the SWIFT message structure, but not the SWIFT mark up language. The international communication is based on the SWIFT message structure and SWIFT mark up language.

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 Dutch securities market use BIC codes to identify the relevant participants and ISIN codes to identify the relevant securities. Custodians may use their own internal security codes. These will have to be transformed to ISIN in the settlement process. An international account number for cash transfers (IBAM) is in development.

1.	Does the market use ISIN as the primary securities identification code?	The use of ISIN code is prescribed by the Dutch stock exchange authorities. ISIN code is also used by other national and the international depositories Clearstream and Euroclear. Custodians can use their own internal security codes, that have to be transformed to ISIN in the settlement process.
2.	Are the major participants in the market linked electronically?	All major participants use SWIFT as electronic messaging system between Investment Managers, Global Custodians and Broker/Dealers. It is also possible to use telefax or telex systems.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	The Dutch depository uses a quasi SWIFT message structure, meaning only the SWIFT message structure, but not the SWIFT mark up language. The international communication is based on the SWIFT message structure and SWIFT mark up language.
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 Dutch securities market use BIC codes to identify the relevant participants and ISIN codes to identify the relevant securities. Custodians may use their own internal security codes. These will have to be transformed to ISIN in the settlement process. An international account number for cash transfers (IBAM) is in development.