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December Meeting Results
January 3, 2002
Please accept
our wishes for a happy and prosperous New Year.
FISD would
also like to extend its deep and sincere appreciation to the
following companies for their support and financial contribution
to making the 5th Annual Market Data Holiday Party a wonderful
(and much needed) success:>Chicago Mercantile Exchange,
Financial Information Forum, Jordan & Jordan, Global Securities
Information Inc., Nasdaq Stock Market, New York Stock Exchange,
Reuters and Telekurs Financial.
This document
is a summary of the results from the General and Working Group
meetings held on December 11-13 in New York City. FISD is also
drafting detailed reports on the outcome of the individual
meetings. All reports will be posted to the FISD web site upon
completion.
Executive
Committee
The FISD
Executive Committee (EC) met on December 12. A separate report
on the outcome of the meetings is being written for EC members.
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Executive Committee Retreat |
The
Executive Committee is planning a working session to:
evaluate FISD projects and activities; determine budget
implications for development and ongoing maintenance;
address issues relating to operations and organizational
decision making; and evaluate dues-revenue models and the
FISD value proposition. The meeting will be held via
simultaneous videoconference (Stamford, CT and Paris,
France) on February 12. |
ANNA
Service Bureau/ISIN
FISD sits on
the ISIN User Group and attended its working meeting on December
11. The ISIN User Group was formed as part of the creation of
the ANNA Service Bureau to manage the collection and
dissemination of ISIN numbers on behalf of ANNA.
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Documents |
Report from ASB Chair
FISD on ASB Specifications
FISD Memo to ASB
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ASB
Status |
The ANNA
Service Bureau is operational and has been populated with
1.025 million ISIN's from 38 NNA master files representing
169 countries.
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OPOL/Register |
The ASB
and ANNA have accepted the results of FISD's research into
the requirements for unique security identification. The
discussion is now focused on requirements for implementation
of Official Place of Listing and Register level
identifiers. The results of the ASB initial inquiry are
outlined in the report from the chair (above). Discussions
on implementation look positive. Complete analysis and
commercial proposal is due by the May meeting of ANNA.
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ISIN Commercial Issues |
FISD is
in discussions with the ASB to assist with the licensing,
redistribution, customer support and
contractual/administrative issues associated with access to
and usage of primary security identifiers. Discussions are
focused on the role of the ASB as a commercial facilitator
for the NNA's and the commercial terms and conditions
proposed in the draft ANNA/ISIN Electronic Distribution
Agreement. FISD is in the process of drafting a proposed
joint licensing agreement for consideration by the ASB. |
General
Meeting
The following
presentations were part of the FISD General meeting held on
December 12. Separate reports on the FISD meetings will be
posted shortly.
Market
Data Policy Database
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Documents |
MDP status (pages 8-21)
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Database |
The
MDP database was launched at the WFIC in London and contains
48 exchange policies, 55 fee schedules and 50 pre-formatted
reports.
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MDP
Database Marketing |
FISD is
in the process of developing a marketing strategy to provide
exposure and stimulate usage of the database. The marketing
strategy will also address issues associated with database
functionality, navigation and the development of additional
standard reports.
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Working Group |
FISD has been asked to
re-constitute the Redistribution Working Group to help
analyze the trends from the information and begin to use the
database for best practice development and policy
rationalization -- particularly on policies related to data
usage and redistribution.
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Product Extension |
The
online library to the original contracts has been built and
is being implemented. FISD is not adding any new contracts
to the public database pending further evaluation of the
value of the database. However, FISD is considering the
addition of new "hard to analyze" contracts to the
members-only segment to help serve the requirements of the
membership. |
Market
Data Definition Language (next meeting is January 11)
Version
1.0 of the MDDL standard (ordinary shares, indices, mutual
funds) was released at the WFIC in London. The next meeting is
scheduled for January 11 and will focus on new
products/constructs, change management procedures and liaison
with other XML organizations.
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Documents |
MDDL
Presentations (scroll to presentations, six
presentations since the WFIC)
MDDL Live Demo
December Working Group Report
Change Management Draft
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Change Management |
The
release of Version 1.0 necessitates the establishment of
formal change management procedures. A
draft process has been created and will be finalized
during the January 11 meeting.
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Next Areas of Focus |
Two new
constructs query (how to request data) and update
(how to refresh data) are planned. Product extensions under
consideration are (1) completion of equities (including
certificates, depositary, partnerships and preferred) and
(2) initiation of fixed income (including
treasures/corporate, municipal, mortgage/asset-backed and
trusts). Product extensions will be associated with
resources available to do the work.
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Liaison |
FISD is
establishing formal relationships with FpML, NewsML, RIXML,
XBRL and SDMX to coordinate efforts and avoid duplication.
A Liaison Group has been formed and all organizations have
agreed to work together. In addition, the Liaison Committee
is seeking a closer working relationship with the XML
organization working on the transactions side of the
industry (i.e. ISO 15022 and SWIFT). The Liaison Committee
will debate and formalize its initial work plan at the
January meeting.
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MDDL.org |
The new
MDDL website is operational. All resources have been
migrated. A new BBS has been created to facilitate ongoing
discussion.
www.mddl.org |
Billing
Automation
FISD
presented the status of its research during a Working Meeting
held on December 13.
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Documents |
Working Meeting Report
Preliminary Findings
Billing
Process Flowchart
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Request for Proposal |
The
various segments of the membership differ on which problem
areas to address first. As a result, the members have asked
for external resources to validate the FISD research and
clearly define the practical benefits/drawbacks associated
with each activity. The RFP should be available shortly. |
S EC
Advisory Committee
FISD has done
an analysis of the final report of the SEC's Market Data
Advisory Committee. The results of that analysis were presented
during the general meeting and will be drafted as a separate
report. At this moment it is unclear what (if anything) the SEC
will do with the final report.
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Documents |
Final report
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Transparency |
The
report recognizes that the NBBO is less meaningful, but
still required as a minimum to promote market transparency.
The recommendation is to retain the display rule mandating
that all data from all markets be included in market data
displays. The recommendation is to allow exchanges to sell
data independently (outside of the consolidated feed) and to
allow exchanges to distribute additional data (not currently
required as part of the consolidated feed).
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Consolidated Data |
The
report recommends the retention of the consolidated quote
system and suggests value from the creation of competition
among consolidators. This is a contentious area. The
debate is about how to foster competition in market data
dissemination. Some members of the Advisory Committee
believe that competition among consolidators does not
provide incentive for the development of more useful data on
a more efficient basis.
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Administration |
The final
report encourages the SEC to mandate fee, contractual and
business requirement transparency. The SEC does not want to
be actively involved in the market data administration --
but rather wants to the industry to work cooperatively to
make business processes more efficient.
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Fees and Revenues |
The
report recommends no change to the current statutory
standard (fair, reasonable and not unreasonably
discriminatory). The question of revenue sharing among
exchanges is still open. The SEC is being petitioned to
allow the NYSE to withdraw from CTA. If allowed to
withdraw, all exchanges would set their own fees and manage
their own contracts/administration.
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Capacity |
The
report recommends the creation of an official NBBO
(calculated and disseminated by OPRA), avoidance of penny
increments for options and implementation of more aggressive
quote mitigation strategies. |
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