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?	Yes - Both ISINs and local codes are supported. Users can choose which to use.
2.	Are the major participants in the market linked electronically?	FASTER: Yes - All participants are required to be linked electronically. NZCSD: Yes - All participants in the New Zealand financial markets communicate with each other through dial-up modem, secured dedicated telephone line, and fax. Members of the NZCSD can obtain all holding information through direct electronic links via terminals located at their office.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	Not currently. NZSE is working towards introducing ISO15022 messaging mid 2002.
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?	Common Shareholder Numbers (CSNs) were introduced in September 2000. These uniquely identify a holder on all New Zealand registers (all issues). Participant codes are not in an international format but will be as part of the adoption of ISO15022.