Accredited Standards Committee X9, Inc.

1
Accredited Standards Committee X9, Inc.

• An Introduction toFinancial Industry Global
  Standards

2
Agenda

• Standards and standards types
• X9the organization
• ANSIs role
• ISOs role
• International connection management
• How should your organization get involved?

3
What are Standards?

• How does government define Standards?
• Types of Standards

4
Types of Standards
Voluntary Standards

• Four types of Standards

Mandatory Standards
Definition Standards
Performance SpecificationStandards
ManagementSystem Standards
5
What is X9?

• X9 was granted ANSI accreditation in 1984.
• X9 is the premier standards developer for the
  Financial Services industry.
• X9 is a leader in moving its standards globally
  for adoption as ISO standards.

6
X9s Objectives

• 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.

7
X9s Value

• 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

8
What is ANSI?

• 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.

9
What is ANSIs Role, what does ANSI add?

• 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 X9
• Member body of ISO

10
The X9 Organization

• X9 is organized through committees and membership
  levels.
• X9s 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
  TC68

11
Board Organization

• Board acts as the consensus body voting on
  acceptance/rejection of X9 standards.
• Within the Board there are five management
  committees including

Executive Committee
Finance Committee
Marketing andMembership
Policy andProcedures
12
Board of Directors (consensus body)
SUBCOMMITTEES
Payments
Credit
Securities
Data Security

• E-SIGN

• CODES
• MESSAGES

• CHECKS
• CORPORATE
• RETAIL

• CRYPTOGRAPHY
• APPLICATION
• CARDHOLDER
• AUTHENTICATION

13
X9 Subcommittee Structure

• Currently, the X9 organization consists of four
  subcommittees.
• Each subcommittee has domain over subject
  areaspayments (cards/checks/corporate) credit,
  securities, and securityimportant 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.

14
Working Groups

• 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

15
Who is ISO?

• 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.

16
What is TC68 to ISO (ISO TC68)?

• TC68 is one of 230 ISO technical committees
  the only dedicated to financial standards
• TC68 has produced more than 70 universally
  implemented financial standards ISO has
  produced more than 25,000 international standards

17
Why is X9 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

18
About ISO TC68

• TC68 is ISOs designated standards development
  group for the Financial Services industry.
• X9 (under ANSI) holds secretariat of TC68 and
  SC2, X9 members are active participants in
  developing and forwarding global standards.
• Presently, the technical subcommittees under
  TC68Security Management, Securities and Related
  Instruments, and Core Banking.
• Currently leading 20022 effort on financial
  messaging, including payments, securities,
  trade/finance, e-invoice and more.

19
ISO Technical Committee TC68 Financial Services
UNIFI RMG
SC7 Banking
SC4 Securities
SC2 Security
WG4 UNIFI Review
CARD SEG
RA
RMG members nominated by P-member countries and
A-liaison organisations SEG members nominated by
all member countries and liaison organisations
SEG Securities
SEG Trade Services
SEG Payments
SEG FX
20
ISO Technical Committee 68 Financial Services
reporting committees

• Subcommittee 2- Security
• Subcommittee 4- Securities
• Subcommittee 7- Core Banking
• 20022 RMG reports to TC68 as does
• TC68/WG4 revising ISO 20022

21
Industry Payback why join, why participate?

• X9 doesnt 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.

22
Additional Information
Contact ASC X9, Inc. 1212 West Street, Suite
200 Annapolis, MD 21401 410 267-7707 www.x9.org