Accredited Standards Committee X 9 Inc An Introduction

Accredited Standards Committee X 9, Inc. An Introduction to Financial Industry Global Standards

Agenda n n n Standards and standards types X 9—the organization ANSI’s role ISO’s role International connection – management How should your organization get involved?

What are Standards? n n How does government define Standards? Types of Standards

Types of Standards n Voluntary Standards Four types of Standards Mandatory Standards Definition Standards Performance Specification Standards: Management System Standards

What is X 9? n n n X 9 was granted ANSI accreditation in 1984. X 9 is the premier standards developer for the Financial Services industry. X 9 is a leader in moving its standards globally for adoption as ISO standards.

X 9’s Objectives n n n Develop, establish, maintain, and promote standards for the Financial Services industry to facilitate the delivery of financial products. Focus on current and future standards needs of the Financial Services industry. Participate , promote and grow the development of international standards.

X 9’s Value n n n Provides leadership in financial standardization globally Accredited international Secretariat Payment Standards (including checks) Retail/card processing Standards (domestic and international) Lead in industry use of Standards to secure financial transactions. Now leading ‘payment model’ internationally

What is ANSI? n n n The American National Standards Institute is based in Washington, DC, and serves as the coordinating organization for the US voluntary Standards system. ANSI is a federation of industry firms, Standards developing organizations, trade associations, professional and technical societies, government, labor and consumer groups. ANSI serves as the US member body of ISO.

What is ANSI’s Role, what does ANSI add? n n n n n ANSI does not develop Standards Facilitates development of American National Standards. Accredits Standards developers. Examines developers processes. Coordinates and represents Standards in the US Oversees the creation of Standards Assess conformance to ANSI rules Audits accredited organizations like X 9 Member body of ISO

The X 9 Organization n X 9 is organized through committees and membership levels. X 9’s Board/consensus body acts as oversight and management group, determines the acceptance of a draft standard to be recommended to ANSI for acceptance as an American National Standard. The consensus body also is the US vote to ISO TC 68

Board Organization n n Board acts as the consensus body voting on acceptance/rejection of X 9 standards. Within the Board there are five management committees including: Executive Committee Policy and Procedures Finance Committee Marketing and Membership

Board of Directors (consensus body) SUBCOMMITTEES Payments • CHECKS • CORPORATE • RETAIL Credit • E-SIGN Securities Data Security • CODES CRYPTOGRAPHY • MESSAGES • APPLICATION • CARDHOLDER AUTHENTICATION

X 9 Subcommittee Structure n n n Currently, the X 9 organization consists of four subcommittees. Each subcommittee has domain over subject areas— payments (cards/checks/corporate) credit, securities, and security—important to industry. Working groups are a subset of each subcommittee they are organized when needed to develop standards for approval by the balanced consensus body.

Working Groups n n Working Groups are established by the Board or Subcommittee to deal with specific technical areas. Working Groups contain the expertise to develop standards answers to issues facing the industry. They may reorganize, become active to meet new industry challenges or upon completion of a body of work become inactive Working groups are not permanent committees

Who is ISO? n n ISO is a network of the national standards institutes of 157 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. See www. iso. ch ISO is a non-governmental organization: its members are not, as is the case in the United Nations system, delegations of national governments.

What is TC 68 to ISO (ISO TC 68)? n n TC 68 is one of 230 – ISO technical committees – the only dedicated to financial standards TC 68 has produced more than 70 universally implemented financial standards – ISO has produced more than 25, 000 international standards

Why is X 9 involved in ISO and how can you participate? • • • Make an informed choice in which standardization projects your company should participate; Influence international standards development in such a way that the resulting standards are fit for your company to achieve its business targets; Define difficulties in relating your participation directly to the business goals of your company; Prioritize standardization activity your company should participate in; Alternative approaches to standards development in case of common interests or conflicting interests;

About ISO TC 68 n n TC 68 is ISO’s designated standards development group for the Financial Services industry. X 9 (under ANSI) holds secretariat of TC 68 and SC 2, X 9 members are active participants in developing and forwarding global standards. Presently, the technical subcommittees under TC 68— Security Management, Securities and Related Instruments, and Core Banking. Currently leading 20022 effort on financial messaging, including payments, securities, trade/finance, e-invoice and more.

ISO Technical Committee TC 68 Financial Services SC 2 SC 4 UNIFI RMG SC 7 Security Securities Banking RMG members nominated by P-member countries and Aliaison organisations SEG members nominated by all member countries and liaison organisations WG 4 UNIFI Review CARD SEG Securities SEG Payments RA SEG Trade Services SEG FX

ISO Technical Committee 68 Financial Services – reporting committees n Subcommittee 2 - Security n Subcommittee 4 - Securities n Subcommittee 7 - Core Banking n 20022 RMG reports to TC 68 as does n TC 68/WG 4 revising ISO 20022

Industry Payback – why join, why participate? n n n “X 9 doesn’t cost, it pays. ” Influential in standard processes both domestically and internationally. Skilled at development of voluntary consensus-based standards Works with organizations not often part of the industry. Needs total participation from industry.

Additional Information Contact ASC X 9, Inc. 1212 West Street, Suite 200 Annapolis, MD 21401 410 267 -7707 www. x 9. org