10th Anniversary MeetingOrlando FloridaNovember 17, 2008

“The Role of Standards in the Consolidating Financial Services Industry”

Contents

• Bill Irving Bio

• BIAN Introduction

• Outlook for FS Standards

• Seed Questions

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Bill Irving Bio

Bill Irving is a U. S. based industry and consulting professional with over 30 years of Financial Services experience. He has served the industry in both bank management and professional services roles. He has experience with individual participant issues related to operational efficiency, regulatory compliance and control, and financial management and business intelligence. He has also been engaged in broader industry initiatives including consolidation, cross-border integration and standards development. Bill’s individual focus is on organizational and operations effectiveness, including the implementation of related technology solutions.

Bill was formerly President of the Capital Markets Company, an international consultancy focused on the transformation of financial services including the development and management of alternative operating models to increase efficiency and improve business performance. Prior to that he was a Principal and practice leader for capital markets at PricewaterhouseCoopers where he coordinated the development and delivery of consulting services and solutions for global clients. He is a regular speaker at industry conferences and has been active in groups such as the International Financial Services Association (IFSA), Securities Operations Forum (SOF) and the Securities Industry Association (SIA) addressing topics of business transformation, operational risk, global sourcing and technology investment.

Before joining PricewaterhouseCoopers, Bill held management positions in banking with the Irving Trust Company and Marine Midland Bank, and in consulting with Decision Resources Corporation and Peat, Marwick, Mitchell & Co. Bill holds Bachelor of Arts (BA) and Master of Business Administration (MBA) degrees.

Bill IrvingExecutive Director & North American

Leader

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Contents

• Bill Irving Bio

• BIAN Introduction

• Outlook for FS Standards

• Seed Questions

4

Industry Changes• Market structure and capital

flows• Voluntary and forced

consolidation and convergence

• Regulatory reform and supervisory refocus

• Customer needs and care

• Market structure and capital flows

• Voluntary and forced consolidation and convergence

• Regulatory reform and supervisory refocus

• Customer needs and care

Bank Priorities• Realigning business and

operating models• Identifying growth

opportunities• Increasing revenue and

margins• Improving investment returns

• Realigning business and operating models

• Identifying growth opportunities

• Increasing revenue and margins

• Improving investment returns

IT Architecture• Reducing tightly-coupled and

silo-based systems • Improving overall agility and

flexibility• Reducing complexity• Decreasing cost of ownership• Extending applications and

systems life cycles

• Reducing tightly-coupled and silo-based systems

• Improving overall agility and flexibility

• Reducing complexity• Decreasing cost of ownership• Extending applications and

systems life cycles

IT Investment• Focusing on strategic priorities • Improving time to market of

new IT functions• Increasing re-use• Shifting from build to buy• Moving from software license

to SaaS

• Focusing on strategic priorities • Improving time to market of

new IT functions• Increasing re-use• Shifting from build to buy• Moving from software license

to SaaS

Opportunities to Improve (SOA)

in Banking

Opportunities to Improve (SOA)

in Banking

• Creating a standard banking services landscape

• Ensuring consistent service definitions, levels of detail and boundaries

• Moving from a proprietary to an standardized services model to accelerate the commercial availability of products

• Creating a standard banking services landscape

• Ensuring consistent service definitions, levels of detail and boundaries

• Moving from a proprietary to an standardized services model to accelerate the commercial availability of products

SOA can help in Banking, but …

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Tomorrow

Today

Ind

ust

ry S

OA

-Focu

s

Banks can develop their semantic service definitions on a consistent basis through BIAN to enable internal and commercial SOA-based solutions according to a standardized industry model.

BIAN’s envisions a SOA-enabled banking industry with both internal and industry-wide agility and flexibility. BIAN supports banks to define their internal services based on industry collaboration and best practices.

standard

Internal SOA-Focusproprietary best practices

BIAN today

MajorityOf Banks

inte

rnal

exte

rnal In

dust

ry S

OA

-Focu

s

standard

Internal SOA-Focusproprietary best practices

BIAN tomorrow

inte

rnal

exte

rnal

BIAN’s vision

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Value:• To enable banks to fully leverage their SOA investments and focus scarce IT

resources on strategic initiatives. • To enable independent software and services providers to build productized services

to industry standards ensuring efficiency, quality and adoption.• To enable faster strategic and operational change in banking through the broad

implementation of agile and flexible service-oriented architectures.

Mission:As an industry-owned and independent not-for-profit association, BIAN will provide standard, i.e. systematically defined and banking specific, semantic services to enable its members to accelerate their SOA deployment.

BIAN, defining services for banking

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• BIAN was founded as an independent, member owned, not-for-profit association.

• BIAN has 23 members including 6 banks, 11 service providers, and 6 software vendors.

• BIAN‘s initial focus is to accelerate SOA for its members by developing and publishing its work products:

– Architecture• Services Landscape• Business Object Model• Meta Model, Methodology and Guidelines

– Service Definition• Account Balance & Maintenance• Analytics (market & credit risk)• Lending (sales vs. operations)• Manage Business Partner• Payments (internal view)• Pricing (simple, complex)

– Building Blocks• Architecture Management• Service Lifecycle Management • Service Repository …

BIAN, the organization

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Contents

• Bill Irving Bio

• BIAN Introduction

• Outlook for FS Standards

• Seed Questions

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FS XML based standards initiatives

Need for Standards

Consistent views and understanding of financial data

Connectivity among banks, counterparties, exchanges, clients and regulators

Transparency via real-time, straight-through, low-latency processing of transactions based on industry standards

Financial Market Disruptions

Credit Crunch

Liquidity Crisis

Revenue Replacement and Margin Contraction

New Regulatory Supervisory Frameworks

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RDUG

ISO

ISTIC-IOA

FIX Protocol Limited

OmgeoFIX

FpML(Derivatives)

MDDL

BIC

MIC

SEDOL

15022

DUNS #

ISIN

ANSI X9D (US)

SIIA

S&P

REDAC

FISD

CUSIP

ANNA

ALERT

WG11

Telekurs

ASB

Ownership Stake

CFI LSED&B

SWIFT(Reg.

Authority)

ISO Standards

Registration Authority

Registration Authority

WG10 WG6WG10

US Representative

to ISO

Owns

Agreement to make ISO 15022 “XML Aware”

Convergence(Integration)

ISO 15022 XML

Adopting

Adopting Owns

Domestic Identifiers

(~65 in total)

Part of ISIN

Maintains

MaintainsAmerican

Bankers Assoc. (ABA)

Contracts

Ownership Stake

SWIFT(Network)

Standard (Reference Data or Message)

Developed

Developed

OASIS(XML

Conformance Standards)

XML Conformance Standards

XML Conformance Standards

Membership

Facilitation

Membership

Developed

Organization

BSI (UK)

TBMAAMF

Recommenda-tions

Business Entity

Identification

Fund Identification

ISDA

Instrument Identification

WG8

Membership Involvement

McGrawHill

Owns

SC4

TC68

VocabularyData Model

Key Issue XBRLFinancial Reporting

WG11

RDUG

ISO

ISTIC-IOA

FIX Protocol Limited

OmgeoFIX

FpML(Derivatives)

MDDL

BIC

MIC

SEDOL

15022

DUNS #

ISIN

ANSI X9D (US)

SIIA

S&P

REDAC

FISD

CUSIP

ANNA

ALERT

WG11

Telekurs

ASB

Ownership Stake

CFI LSED&B

SWIFT(Reg.

Authority)

ISO Standards

Registration Authority

Registration Authority

WG10 WG6WG10

US Representative

to ISO

Owns

Agreement to make ISO 15022 “XML Aware”

Convergence(Integration)

ISO 15022 XML

Adopting

Adopting Owns

Domestic Identifiers

(~65 in total)

Part of ISIN

Maintains

MaintainsAmerican

Bankers Assoc. (ABA)

Contracts

Ownership Stake

SWIFT(Network)

Standard (Reference Data or Message)

Developed

Developed

OASIS(XML

Conformance Standards)

XML Conformance Standards

XML Conformance Standards

Membership

Facilitation

Membership

Developed

Organization

BSI (UK)

TBMAAMF

Recommenda-tions

Business Entity

Identification

Fund Identification

ISDA

Instrument Identification

WG8

Membership Involvement

McGrawHill

Owns

SC4

TC68

VocabularyData Model

Key Issue XBRLFinancial Reporting

WG11

Financial Services Standards Organizations and their Relationships (illustrative, circa 2005)

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Standards Roadmap for the Securities Industry

12

SEC Announces Successor to EDGAR Database“IDEA” Will Make Company and Fund Information InteractiveFOR IMMEDIATE RELEASE2008-179Washington, D.C., Aug. 19, 2008 — Securities and Exchange Commission Chairman Christopher Cox today unveiled the successor to the agency’s 1980s-era EDGAR database, which will give investors far faster and easier access to key financial information about public companies and mutual funds.

XBRL and the SEC Mandate for Financial Reporting

SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 229, 230, 232, 239, 240 and 249 [Release Nos. 33-8924; 34-57896; 39-2455; IC-28293; File No. S7-11-08] RIN 3235-AJ71 Interactive Data to Improve Financial Reporting AGENCY: Securities and Exchange Commission. ACTION: Proposed rule. SUMMARY: We are proposing rules requiring companies to provide financial statement information in a form that would improve its usefulness to investors.

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