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 ISIN system is used. Coding of issued securities is entrusted to KDD, which uses ISIN system for numbering securities and CFI codes for their types (ISO 10962 - Classification of Financial Instruments). The ISIN code of a given security is composed of a prefix, basic number and check digit. The prefix for securities issued in the Republic of Slovenia is SI. The list of Slovenian securities` ISIN codes can be found on KDD's website.
2.	Are the major participants in the market linked electronically?	Yes, all participants are linked electronically to KDD as well as to Ljubljana Stock Exchange (LJSE). The ability to install an electronic link is a precondition for participation in both institutions.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	Currently the standards used are incorporated into KDD's KIS system and are much wider than the ISO standards. The securities messaging is 100% real time and on-line. The information communicated through the system is much more detailed than the ISO standards would require. With the reform of the payment system in Slovenia both banks as well as KDD will start using the SWIFT messaging system for the monetary settlement of the stock exchange trades and will therefore encompass their current solutions and future developments with respect to the ISO standards. The securities transfer messaging in the future will stay incorporated into the KDD's new securities depository and settlement system, which will use true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging.
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?	Under provisions of the Dematerialised Securities Act every securities holder has to be identified by the Single Registry Code (SRC). For resident security holders, who are natural persons, the personal registration number is applied as their SRC. For resident legal persons their registry numbers are applied. For any non-resident person or any resident person not allowing the use of their personal registration numbers or registry numbers, KDD allocates so-called KID - KDD ID Number. As explained there are two different ID numbers (SRC with the two sub-numbers depending on investors` legal nature and KID) currently in use in central registry. With that in mind the answer to the question of compatibility with the global ID methodology depends largely on the latter.