June 2017 Quarterly Meeting AGENDA AT A GLANCE Documents/2017... · 2017-05-31 · June 2017 Quarterly Meeting AGENDA AT A GLANCE Dress Code for all three days is Business Casual

ISITC June 2017 Industry Forum & Working Groups June 4 – 6, 2017

Coronado Island Marriott Resort & Spa, Coronado, CA

June 2017 Quarterly Meeting

AGENDA AT A GLANCE Dress Code for all three days is Business Casual

Sunday, June 4, 2017

Time Meeting Room Floor 12:00 – 3:00 PM

Board of Directors Meeting & Luncheon Limited to Board of Directors only.

Coronado 2&3 2nd

1:30 – 2:30 PM Co-Chair Meeting Limited to Co-Chairs only.

Coronado Ballroom B 2nd

3:00 – 4:00 PM Board of Directors & Co-Chair Meeting Limited to Board of Directors and Co-Chairs only.

Coronado Ballroom B 2nd

4:00 – 4:15 PM Networking Break

Coronado Ballroom Foyer 2nd

4:00 – 4:15 PM New Member/First Time Attendee Orientation Coronado 6 2nd

4:15 – 5:45 PM Session I • Custodian • Investment Manager & Middle Office

Coronado Ballroom A Coronado Ballroom C

2nd 2nd

5:45 – 6:45 PM Cocktail Reception Current Patio Outside

Monday, June 5, 2017 Time Meeting Room Floor 8:00 – 9:00 AM Breakfast

Bayside Lawn Outside

9:00 – 11:00 AM General Session

Coronado Ballroom C 2nd

• Updates from the Chair, Ms. Erica Choinski, Brown Brothers Harriman & Co.

• T+2 Update, Mr. Matthew Schill, DTCC Matt will provide an update on the industry project to implement a T+2 settlement cycle in the US on September 5, 2017. Matt will outline the current status of the project highlighting industry testing progress. He will then discuss how the change will affect the ISITC membership – and what preparatory steps you should be taking. He will also review progress in other global markets – including Canada and Mexico which also transition on September 5th.

• MiFID II Introduction, Mr. Tony Freeman, DTCC

The implementation of MiFID II in January 2018 is being predicted by many market participants as a Big Bang moment for Europe's financial markets. This is because the scope of MiFID II covers a much broader range of financial instruments and activities than its predecessor, MiFID I. It includes new rules on investor protection, trading platform classifications and associated rules, more stringency on best execution requirements and greater transparency around trade execution. While there has been much discussion around how MiFID II will impact the trading landscape of Europe, there has been less focus on the effect of the forthcoming regulation on the post-trade space. Tony will be providing a MiFID II overview including background, overall challenges, effects on the industry, as well as impact to the post-trade landscape.

• MiFID II Panel, Moderator: Mr. Tony Freeman, DTCC

Mr. Charles-Raymond Boniver, SWIFT Mr. James Fertitta, Goldman Sachs Mr. Rich Robinson, Bloomberg The upcoming revision to the Markets in Financial Instruments directive (MiFID II) will alter the post-trade landscape for a range of financial market participants. MiFID II will have a significant impact on how firms trade and report in the EU. Even global firms that choose to trade with firms within the EU will be affected. This panel, constituting leading global practitioners, will delve into the challenges facing the industry of adapting their middle and back-office activities to comply with changes required to post-trade processing by January 2018.

ISITC June 2017 Industry Forum & Working Groups June 4 – 6, 2017


June 2017 Quarterly Meeting

11:00 – 11:15 AM Networking Break


11:15 AM – 12:45 PM Session II • Corporate Actions I • Derivatives

Coronado Ballroom A Coronado Ballroom B

2nd 2nd

12:45 – 1:30 PM Lunch

Bayside Lawn Outside

1:30 – 2:30 PM Session III • Margin & Collateral

Coronado Ballroom B

2nd

2:30 – 3:30 PM Session IV • Securities Lending

Coronado Ballroom B

2nd

3:30 – 3:45 PM Networking Break


3:45 – 5:15 PM Session V • Reference Data & Standards and Regulatory

Coronado Ballroom B

2nd

5:15 – 6:00 PM Session VI • Marketing

Coronado Ballroom B

2nd

6:00 – 7:00 PM Cocktail Reception

Bayside Lawn

Outside

7:00 PM Dinner

Current Patio Outside

Tuesday, June 6, 2017 Time Meeting Room Floor 8:00 – 9:00 AM Breakfast


9:00 – 10:30 AM Session VII • Corporate Actions II • Settlements

Coronado Ballroom A Coronado Ballroom B

2nd 2nd

*Note: Back-up space in case of inclement weather: Breakfast and Cocktail Receptions - Coronado Ballroom Foyer; Lunch and Dinner – Coronado Ballroom C

2017 BOARD OF DIRECTORS

ChairMs. Erica ChoinskiBrown Brothers Harriman & Co.40 Water StreetBoston, MA 02109(617) 772-1437

Vice ChairMs. Malene McMahonCorporate Actions ExecSponsorMarketing Committee ExecSponsor120 Jamestown RoadBasking Ridge, NJ 07920(917) 658 8369

TreasurerMs. Lisa IagattaFinance Committee ChairReconciliation & ReportingExec SponsorFiserv184 Liberty CornerWarren, NJ 07059(781) 828-2355

SecretaryMs. SalomeWingeCustodian Exec SponsorSecurities Lending ExecSponsorNorthern Trust Company801 South Canal StreetChicago, IL 60607(312) 630-1493

Mr. Jason BrasileSettlements Exec SponsorMargin & Collateral ExecSponsorState Street Corporation225 Liberty StreetNew York, NY 10281(917) 790-4199

Mr. Paul FullamCorporate Actions ExecSponsorVendor/Utility Exec SponsorFidelity Information Services,LLC (FIS)545 Washington BlvdNew York, NY 07310(646) 445-8356

Ms. Evelyn GaleanoMembership Committee ChairMarketing Exec SponsorMiddle Office Exec SponsorSecurities Lending ExecSponsorStandard Chartered Bank1095 Avenue of AmericasNew York, NY 10036(646) 845-1091

Ms. Lori GivensNominating Committee ChairCustodian Exec SponsorBNY Mellon400 South Hope StreetLos Angeles, CA 90071(213) 553-9690

Ms. Kristin HochsteinReference Data & StandardsExec SponsorRegulatory Exec SponsorThomson Reuters8055 East Tufts AvenueDenver, CO 80237(646) 734-2215

Ms. Ana LothariusReconciliation & ReportingExec SponsorRegulatory Exec SponsorVendor/Utility Exec SponsorDTCC55 Thomson PlaceBoston, MA 02210(617) 880-6654

Mr. Paul McSherryMiddle Office Exec SponsorLiquidnet Inc.498 7th AvenueNew York, NY 10018(646) 660-8058

Mr. Charles MottingerState Street Global AdvisorsOne Lincoln StreetBoston, MA 02111(617) 664-3292

Mr. Louis RosatoInvestment Manager ExecSponsorBlackRock, Inc.100 Bellevue ParkwayWilmington, DE 19809(302) 797-2145

Ms. Krista R. ScharfenbergerReference Data & StandardsExec SponsorSettlements Exec SponsorBNY Mellon135 Santilli HighwayEverett, MA 02149(617) 382-6628

Mr. JasonWardInvestment Manager ExecSponsorMiddle Office Exec SponsorFidelity Investments1 Spartan WayMerrimack, NH 03110(603) 791-5938

Ms. CarissaWarnerDerivatives Exec SponsorMargin & Collateral ExecSponsorMorgan Stanley1585 BroadwayNew York, NY 10036(212) 761-0218

June 2017 Quarterly Meeting June 4 – 6, 2017


Working Group & Forum Guidelines Mission The mission of the Forums is to provide common approaches to identifying and resolving issues, and to recommend and implement solutions with other ISITC participants with the ultimate goal of improving STP. The Forums coordinate with each other to educate members on industry issues and to achieve the most effective solutions to commonly acknowledged goals. Members:

• Broker Dealers • Global Custodians • Investment Managers • Vendors

Structure and Participation of the Forums:

1. Forum Co-Chairs will meet on a regular basis to schedule session topics. 2. All Forum sessions will be open to individuals of any member firms.

Press Policy The Association welcomes press at its General Session ONLY during its quarterly meetings/conferences, its Annual Industry Forum and Vendor show, and other informational workshops. One complimentary press pass per publication will be offered. Additional Press passes can be purchased at a one-day attendee rate. All press representatives must wear their name badge and identify themselves. The chairs will regularly invite the press to meet with them at the luncheon directly following the General Session to answer any questions regarding ISITC. Only the ISITC Chair and/or Vice Chair will represent ISITC’s position on industry matters. All industry forums and working group sessions will be closed to the press. Forum and working group committee leaders are instructed to ask the press to leave if they are attending a session.

Corporate Actions Mission Statement: The U.S. Corporate Actions Working Group mission is to examine business processes throughout the life cycle of a corporate action. Our goal is to define standards for the US market and examine variances with global market practice for the purpose of harmonizing corporate action messaging standards and move toward increasing automation and achieving greater STP throughout the industry. The Working Group recommends enhancements/modifications to the ISO corporate action message standards to ensure they meet the needs of the market. The Working Group is also the forum for discussing and recommending enhancements to business processes and collaborating with other industry groups in addressing new business processes within corporate actions. Executive Sponsors:

Paul Fullam Malene McMahon Fidelity Information Services, LLC (FIS) [email protected] [email protected] (646) 445-8356

Co-Chairs:

Jennifer Baker Steve Sloan BNY Mellon DTCC [email protected] [email protected] (412) 234-1382 (972) 471-5262 Steven Gale Deirdre Walsh Northern Trust Company Loomis, Sayles & Company, L.P. [email protected] [email protected] (312) 444-4799 (617) 346-9786

Meeting Date and Time: Monday, June 5, 2017 11:15 AM – 12:45 PM Tuesday, June 6, 2017 9:00 – 10:30 AM

Agenda: Session I

1. Executive Board Update 2. Review March 2016 Conference Minutes 3. Q2 & Q3 2017 Conference Call Schedule

a. June 14, 28 July 12, 26 August 9, 23 September 13, 27

4. DTCC Transformation Project Update 5. SMPG Updates

a. Review SMPG templates

Session II 1. SR2018 Business Cases

a. A review of what was submitted 2. MyStandards

a. An update from the SWIFT representative

b. How do we get our effort off the ground?

3. Open issues log: a. 5 Day Tender – discussion b. BMET vs CONS events c. NOOF vs TEND

Working Group Agenda



mailto:[email protected]





NTAC:3NS-20

Custodian Mission Statement: The mission of the Custodian Industry Forum is to provide common approaches to identifying and resolving custodian bank issues, and to recommend and implement solutions with other ISITC and industry participants with the ultimate goal of achieving STP. We interact with the other constituency forums to educate institutions on the issues impacting global custodians and to achieve the most effective solutions to commonly acknowledged goals. Executive Sponsors: Lori Givens Salome Winge

BNY Mellon Northern Trust Company [email protected] [email protected] (213) 553-9690 (312) 630-1493

Co-Chairs:

Dannette Fleming Lisa Seibold Northern Trust Company J.P. Morgan Chase [email protected] [email protected] (312) 444-2414 (718) 242-0428 Lorraine Morrison BNY Mellon [email protected] (212) 635-8233

Meeting Date and Time: Sunday, June 4, 2017 4:15 – 5:45 PM Agenda:

1. SWIFT GPI (Global Payments Innovation) Overview – Charles-Raymond Boniver, SWIFT 2. Omgeo GC Direct Q & A – Koushik Chakrabarty, DTCC 3. Collateral Working Group Update – Amy Caruso, DTCC 4. Trade Automation Discussion

Forum Agenda







Derivatives Mission Statement: The mission of the OTC Derivatives Working Group is to work in conjunction with the AMF and other industry groups to create market practice standards around derivatives processing, focusing on trade notification, reconciliation, collateral movements, and interest payments (resets). Executive Sponsor:

Carissa Warner Morgan Stanley [email protected]

(212) 761-0218 Co-Chairs:

Michael Burg Brian Manning State Street Corporation State Street Corporation [email protected] [email protected] (412) 298-5160 (617) 985-2651 Ky Dong Richard Robinson Franklin Templeton Investments Bloomberg LLC

[email protected] [email protected] (916) 463-1405 (609) 279-3467 Meeting Date and Time: Monday, June 5, 2017 11:15 AM – 12:45 PM Agenda:

1. UTI/UPI update 2. Cleared/Listed derivative margin work with Futures Industry Association 3. Market Practice updates 4. 871(m) derivatives best practice use case 5. Regulatory updates







Investment Manager & Middle Office Investment Manager Mission Statement: The mission of the Investment Management Forum is to deliver value to the Investment Management constituents by facilitating collaboration within the industry and foster innovative solutions for the challenges faced by the community. The forum will help members establish meaningful and relevant business relationships, and will deliver education, communication, and information for the advancement of member firms. Middle Office Mission Statement: The mission of the Middle Office Forum is to advance the discussion on common issues, business process requirements and best practice initiatives impacting the post-execution/pre-settlement processes. Investment Manager Executive Sponsors:

Charles Mottinger Jason Ward State Street Global Advisors Fidelity Investments [email protected] [email protected] (617) 664-3292 (603) 791-5938 Louis Rosato BlackRock, Inc.

[email protected] (603) 791-5938

Middle Office Executive Sponsors:

Evelyn Galeano Jason Ward Standard Chartered Bank Fidelity Investments [email protected] [email protected] (646) 845-1091 (603) 791-5938 Paul McSherry Liquidnet [email protected] (646) 660-8058

Investment Manager Co-Chair:

Paul Brooks Abhijit Choudhary Fidelity Investments Goldman Sachs Asset Management [email protected] [email protected] (617) 563-2269 (917) 343-5326

Middle Office Co-Chairs:

Andrew Clark Sarah Mattes ITG Wellington Management Company, LLP [email protected] [email protected] (617) 239-8617 (617) 263-4083 Altaf Hossine Martin McCluskey Boston Company Asset Mgmt. J.P. Morgan Securities, Inc [email protected] [email protected] (617) 722-7125 (212) 834-5809

Meeting Date and Time: Sunday, June 4, 2017 4:15 – 5:45 PM

Forum Agenda














Investment Manager & Middle Office Agenda:

1. MIFID II – Cost & Charges and its impact on middle office 2. T+2 – Readiness Status 3. Trade Confirmation Trends in OTC derivatives and its challenges 4. Un-cleared Margin Rules – How is it working now? Any best practices and changes in middle office processes? 5. FIX Post Trade Activity – Discuss progress on Initiatives firms are engaging into in this space

Forum Agenda



Margin & Collateral Mission Statement: The community will develop recommendations and best practices supporting the collateral management lifecycle. Key focus areas for this Working Group include: • Operational best practices for collateral management processing. • Messaging standards covering collateral calls, dispute resolution, margining, and asset movement/

segregation supporting all collateralized instruments. The Working Group will also serve to provide subject matter expertise and thought leadership to members on regulatory jurisdiction rules and timelines. Executive Sponsors: Jason Brasile Carissa Warner State Street Corporation Morgan Stanley [email protected] [email protected] (917) 790-4199 (212) 761-0218 Co-Chairs: Amy Caruso Wayne Forsythe

DTCC-Euroclear GlobalCollateral State Street Corporation [email protected] [email protected] (646) 477-1374 (949) 932-4668

Meeting Date and Time: Monday, June 5, 2017 1:30 – 2:30 PM Agenda:

1. ALERT/Collateral SSIs 2. FINRA 4210 3. MiFID II







Marketing Mission Statement: The mission of the Marketing Committee is to plan, promote and execute events that keep the ISITC membership informed and make an impact on the securities industry. This includes developing and organizing conferences, discussion forums, workshops, seminars and on-going public relations initiatives. Executive Sponsors:

Evelyn Galeano Malene McMahon Standard Chartered Bank [email protected] [email protected] (646) 845-1091

Co-Chairs:

Ted Anastasi Danielle Castrechini Fidelity Corporate Actions Solutions Citisoft, Inc. [email protected] [email protected] (617) 563-4224 (401) 323-3365


1. June 2017 Quarterly Meeting Feedback: a. PMA Update b. Agenda c. General Session d. Working Group Sessions e. New Member Engagement f. West Coast Outreach Effectiveness

2. September 2017 Quarterly Meeting: a. Speakers and Topics

3. December 2017 Quarterly Meeting: a. Speakers and Topics

4. March 2018 Annual Conference: a. Renaming of Annual Vendor Show b. Speakers and Topics

5. Other Business

Committee Agenda







Reference Data & Standards and Regulatory Forum Reference Data & Standards Mission Statement: The mission of the Reference Data & Standards Working Group is to advance critical dialog and solutions on issues impacting financial reference data and provide insight and education into the technologies and best practices that deliver more seamless and successful transaction lifecycle results to the securities industry. Regulatory Mission Statement: The main objective of the Regulatory Forum is to increase understanding of new regulations across our constituency and partner with regulators and industry standards organizations to define best practices. Reference Data & Standards Executive Sponsors:

Kristin Hochstein Krista Scharfenberger Thomson Reuters BNY Mellon

[email protected] [email protected] (646) 734-2215 (617) 382-6628

Regulatory Executive Sponsors:

Kristin Hochstein Ana Lotharius Thomson Reuters DTCC

[email protected] [email protected] (646) 734-2215 (617) 880-6654 Reference Data & Standards Co-Chairs:

Koushik Chakrabarty Peter Smith DTCC Markit [email protected] [email protected] (617) 880-6646 (646) 679-3227 Peter McNally CUSIP Global Services

[email protected] (212) 438-6580 Regulatory Co-Chair:

Roger Fahy CUSIP Global Services [email protected] (212) 438-4221


1. GLEIF Update and Latest on LEI – Jefferson Braswell, Chair, Technical and Operations Standards Committee, Board of Directors, Global Legal Entity Identifier Foundation (GLEIF)

2. Panel Discussion: Impact of Regulation on Reference Data and Standards, including LEIs Moderator: Mr. Tony Freeman, DTCC Mr. Charles-Raymond Boniver, SWIFT Mr. Jefferson Braswell, GLEIF Mr. James Fertitta, Goldman Sachs

3. Update from Reference Data & Standards Working Group 4. Update from Regulatory Forum









Securities Lending Mission Statement: The Securities Lending Working Group's mission is to establish comprehensive market practice standards for all securities lending related activity. Executive Sponsor: Evelyn Galeano Salome Winge Standard Chartered Bank Northern Trust Company [email protected] [email protected] (646) 845-1091 (312) 630-1493 Co-Chairs: Tony Camarota David Reinknecht Brown Brothers Harriman Prudential Investment Management [email protected] [email protected] (617) 772-2161 (973) 367-2330 Juan Nunez SWIFT [email protected] (212) 455-1976 Meeting Date and Time: Monday, June 5, 2017 2:30 – 3:30 PM Agenda:

1. RMA / ISITC Joint Call a. Sell notification best practice - Message type and timing b. Buy in workflow management - Roles and responsibilities of Lender, Agent, and IM c. Best practice for sale partials - Timing considerations, responsibility for instruction d. Future Calls

2. AOB


June 2017 Quarterly Meeting June 4 - 6, 2017



Settlements Mission Statement: The mission of the Settlements Working Group is to define best practices for the communication of settlement instructions and confirmation messages for all securities-related financial instrument types; third party and bank for foreign exchange transactions; collateral messaging and currency movements. This group works collaboratively with other industry and ISITC Working Groups. Executive Sponsors:

Jason Brasile Krista Scharfenberger State Street Corporation BNY Mellon [email protected] [email protected] (917) 790-4199 (617) 382-6628

Co-Chairs:

Kimberly Dowd-Glaiel Gary Heald Brown Brothers Harriman Loomis, Sayles, & Company, L.P [email protected] [email protected] (617) 772-1322 (617) 748-1708

Meeting Date and Time: Tuesday, June 6, 2017 9:00 – 10:30 AM Agenda:

1. Welcome and Introductions 2. Accomplishments since Last Conference – Review of Conference Calls and Market Practice Updates 3. Updates on pending required votes for Market Practice Finalization 4. Compensation and Claims MP update 5. Global Updates – SMPG 6. Time Deposits 7. TBA’s 8. Market/CSD Mandate Impacts 9. SR2016/SR2017 NDF Changes-(Non Deliverable Forward Foreign Exchange ISITC MP) 10. Foreign Exchange Subgroup Update 11. Updates on documented Open Issues







Antitrust Guidelines 1.0 Antitrust Compliance Policy

The policy of the International Securities Association for Institutional Trade Communication (“ISITC” or “the Association”) is to comply with all federal, state and local laws, including the antitrust laws. It is expected that all company member representatives involved in Association activities and Association staff will be sensitive to the unique legal issues involving trade associations and, accordingly, will take all measures necessary to comply with U.S. antitrust laws and similar foreign competition laws. The Association recognizes the potentially severe consequences of failing to comply with these laws.

Our Association brings significant, procompetitive benefits to industry participants, suppliers, and customers. It must not, however, be a vehicle for firms to reach unlawful agreements regarding prices or other aspects of competition, or to boycott or exclude firms from the market.

2.0 Antitrust Violations Can Have Severe Consequences

Violations of the antitrust laws can have very serious consequences for the Association, its members and their employees.

2.1 Criminal Penalties Antitrust violations may be prosecuted as felonies and are punishable by steep fines and imprisonment. Individual violators

can be fined up to $1 million and sentenced to up to 10 years in federal prison for each offense, and corporations can be fined up to $100 million for each offense. Under some circumstances, the maximum fines can go even higher than the Sherman Act maximums to twice the gain or loss involved. The events that give rise to an antitrust violation often provide the basis for other charges, such as wire fraud, mail fraud, and making false statements to the government. Those charges, if proven, carry additional penalties.

The consequences of a criminal antitrust violation for an association or corporation include: exposure to follow-on treble damages suits, exposure to enforcement actions in other jurisdictions or countries, disruption of normal business activities, and the expense of defending investigations and lawsuits. The consequences for an individual who commits an antitrust violation include: loss of freedom (jail), loss of job and benefits, loss of community status and reputation, loss of future employment opportunities, and exposure to litigation.

2.2 Civil Penalties

In contrast to criminal actions, civil cases can be initiated by individuals, companies, and government officials. They can seek to recover three times the amount of the damages, plus attorney's fees. Even unfounded allegations can be a significant drain on an association’s and membership financial and human resources, and an unproductive distraction from the Association's mission. For these reasons, the Association strives to avoid even the appearance of impropriety in all its dealings and activities.

3.0 Basic Antitrust Principles and Prohibited Practices 3.1 Antitrust Statutes

The principal federal antitrust and competition laws are the Sherman Act, the Clayton Act, the Robinson-Patman Act, and the Federal Trade Commission Act.

• The Sherman Act in broad terms prohibits “every contract, combination . . . or conspiracy” in restraint of trade, as well as monopolizing, attempting to monopolize, or conspiring to monopolize any part of trade or commerce.

• The Clayton Act prohibits exclusive dealing and “tying” arrangements, as well as corporate mergers or acquisitions which may tend substantially to lessen competition.

• The Robinson-Patman Act prohibits a seller of goods from discriminating in price between different buyers when the discrimination adversely affects competition. This statute applies only to sales of commodities; it does not cover sales of services or intangibles.

• The Federal Trade Commission Act prohibits “unfair methods of competition” and “unfair or deceptive acts or practices” in or affecting commerce.

3.2 “Hard Core” Offenses (Criminal Prosecution Likely) Certain antitrust violations are referred to as “hard core” or “per se” offenses. Conduct that falls in this category is automatically presumed to be illegal by the courts, and the absence of any actual harm to competition will not be a defense. Conspiracies falling in the hard core category are likely to be prosecuted as criminal offenses, and include the following:

• Price-fixing agreements: Agreements or understandings among competitors (or potential competitors) directly or indirectly to fix, alter, peg, stabilize, standardize, or otherwise regulate the prices paid by customers are automatically illegal under the Sherman Act (“illegal per se”). An agreement among buyers fixing the price they will pay for a product or service is likewise unlawful. “Price” is defined broadly to include all price-related terms, including discounts, rebates, commissions, and credit terms. Agreements among competitors to fix, restrict, or limit the amount of product that is produced, sold or purchased, or the amount or type of services provided, may be treated the same as price-



fixing agreements. • Bid-rigging agreements: Agreements or understandings among competitors (or potential competitors) on any method

by which prices or bids will be determined, submitted, or awarded are per se illegal. This includes rotating bids, agreements regarding who will bid or not bid, agreements establishing who will bid to particular customers, agreements establishing who will bid on specific assets or contracts, agreements regarding who will bid high and who will bid low, agreements that establish the prices firms will bid, and exchanging or advance signaling of the prices or other terms of bids.

• Market or customer allocation agreements: Agreements or understandings among competitors (or potential competitors) to allocate or divide markets, territories, or customers are always illegal.

3.3 Sensitive Activities

There are other activities that, though typically not subject to criminal prosecution, are nevertheless sensitive, and may lead to investigations or litigation.

• Group boycotts: An agreement with competitors, suppliers, or customers not to do business with another party may be found illegal as a boycott or “concerted refusal to deal.”

• Exclusionary standard setting, certification or code of ethics: Trade association standards-development, certification programs, and codes of ethics generally are procompetitive and lawful. Such activities may be found unlawful, however, if they have the effect of fixing prices or if they result in firms being boycotted or unreasonably excluded from the market.

• Vertical price-fixing agreements: Agreements between suppliers and resellers that establish minimum resale prices may be unlawful.

• Tie-in sales: A supplier conditioning the sale of one product on the customer purchasing a second product may be unlawful.

• Exclusionary membership criteria: Membership criteria with the intent or effect of excluding and disadvantaging others are a red flag for careful legal review.

3.4 Other Activities • Joint research and development programs: While not discouraged by the antitrust laws and potentially subject to

some legislative protection, proposals for Association involvement in these types of programs must undergo legal clearance and Board of Directors approval.

• Lobbying: While the Association's right to lobby is subject to First Amendment protections, lobbying activities will be undertaken only after Board of Directors and legal review.

4.0 Guidelines for Meetings and Other Association Functions Association meetings, conference calls, and other activities by their very nature bring competitors together, and although

they generally are lawful and procompetitive, they also might provide opportunities to reach unlawful agreements. It is important to remember that an antitrust violation does not require proof of a formal agreement. A discussion among competitors of a sensitive topic, such as the desirability of a price increase, followed by common action by those involved or present, could, depending on the circumstances, be enough to convince a jury there was an unlawful agreement.

In light of the costs involved in defending antitrust claims, even when they are without merit, it is necessary to conduct Association meetings in a manner that avoids even the appearance of improper conduct. Generally, the best way to accomplish this is by following regular procedures and avoiding competitively sensitive topics. 4.1 Meetings

Meetings of the Association will be conducted according to these procedures: • Whenever feasible, written agendas will be prepared in advance. Agendas will not include any subjects that are

identified in these Guidelines as improper for consideration or discussion. • Meeting handouts and presentations should, whenever feasible, be distributed in advance of meetings. • Meetings should follow the written agenda and not depart from the agenda except for legitimate reason, which should

be recorded in the minutes. Informal or “off the record” discussions of business topics are not permitted at meetings or other activities of the Association.

• Accurate and complete minutes should be prepared. The minutes should include the time and place of the meeting, a list of all individuals present and their affiliations, a list of all matters discussed and actions taken with a summary of the reasons therefor, and a record of any votes taken.

Because of their sensitive nature, certain topics will not be discussed at meetings of the Association unless otherwise advised by legal counsel. These prohibitions apply equally to all Association sponsored social functions or other informal Association gatherings. Off-limit topics include:

• prices, pricing methods, or terms or conditions of sale; • pricing practices or strategies, including methods, timing, or implementation of price changes; • discounts, rebates, service charges, or other terms and conditions of purchase and sale; • price advertising; • what constitutes a fair, appropriate, or “rational” price or profit margin; • whether to do business with certain suppliers, customers, or competitors; • complaints about the business practices of individual firms; • the validity of any patent or the terms of a patent license; • confidential company plans regarding future product or service offerings; and

• any ongoing litigation. 5.0 Document and E-Mail Guidelines

Many antitrust investigations and lawsuits are fueled by poorly phrased or exaggerated statements in internal documents, with e-mails being a leading culprit. Common sense should be used when composing documents and e-mails. No matter how informal or private a communication is intended to be, it must be assumed that anything written in a document or e-mail is potentially discoverable in an investigation or lawsuit. As a general rule, nothing should be put in writing that you would not want read aloud to a prosecutor, plaintiff's lawyer, or jury composed of people who know nothing about you or your business.

Examples of statements that should be avoided: • Language suggesting guilt (such as “read and destroy”). • Words of aggression or competitive exclusion (such as “dominate the market,” “kill the competition,” or “get rid of the

discounters”). • Statements or speculation regarding the legality or legal consequences of any action of the Association. • Statements suggesting or advocating that members of the Association make joint decisions on pricing, production,

capacity or other aspects of competition, such as references to “industry consensus,” “industry understanding,” “industry acceptance,” or “rational competition.”

6.0 Standards, Certification, and Codes of Ethics

Trade association standard-setting and certification programs and codes of ethics can be highly procompetitive and beneficial to suppliers and customers. Antitrust problems will arise, however, if a standard or certification program or a code of ethics is used as a device for fixing prices, restraining output, or chilling innovation, or if it has the effect of boycotting or unreasonably excluding competitors from the market.

Standards and certification programs and codes of ethics must serve identifiable public interests, such as preventing false or deceptive marketing practices, and they must do so in a manner that does not unreasonably restrict competition. Standards and certification programs and codes of ethics must not have the purpose or effect of unreasonably restraining price or quality competition, limiting output of products or services, or discouraging innovation. No company should be denied certification on grounds that it is a nonmember of any association or organization, that it is a “discounter,” or that it is a foreign corporation. No company should be boycotted on any grounds, including lack of certification or noncompliance with a code of ethics.

Standards and certification programs and codes of ethics should adhere to principles of voluntariness and due process. Due process means that all companies with a direct and material stake have a right to participate through the standards development organization in the formation of the standard, certification criteria, or code of ethics; the process is open and free from dominance by any particular industry segment or company; and there is a right to appeal from adverse actions.

More specifically, any standard, certification, or code of ethics activity of the Association will be conducted in accordance with the following basic rules:

• Participation in the creation of a standard, certification program, or code of ethics will be voluntary and will be open on reasonable terms to all persons who are directly and materially affected. Any fee or cost charged to participants will be reasonable. Membership in the Association will not be a requirement to participate in the discussion of proposed standards or market practices, but non-members shall not have a vote on the Association’s ultimate adoption of a standard or market practice document and shall not be entitled to access to meeting minutes.

• Timely notice of standards-setting, certification or code of ethics activities should be provided to all parties known to be directly and materially affected.

• No industry segment, interest group, or company should be allowed to dominate the process. All views and objections should receive fair and equitable consideration.

• Written procedures should govern the methods used to develop standards or certification criteria, and these procedures should be available for review by any interested person.

• The written procedures should specify realistic, readily available, and timely appeals procedures for the impartial handling of complaints concerning any action or inaction by the Association with regard to its standards, certification, or code of ethics activities.

7.0 Executive Responsibilities The Board of Directors has the responsibility to oversee the implementation of the Association's antitrust compliance

policy. The chief staff executive is responsible for day-to-day management and implementation. 8.0 Training

All members will receive a copy of this Antitrust Compliance Policy as part of their initial orientation and will be required to sign an acknowledgment that they have read it and have been given an opportunity to ask questions.

A copy of this Antitrust Compliance Policy will be made available on the Association's website and will also be included in quarterly conference materials 9.0 Complaint Investigation and Internal Enforcement

Reports of noncompliance or other complaints should be promptly sent to the chief staff executive. If there is reason to believe that an antitrust violation may have been committed, an investigation will be undertaken promptly. If an instance of questionable conduct is presented, the chief staff executive will consult with Association counsel promptly to determine whether an internal investigation is appropriate.

Members that violate or fail to comply with this Policy will receive a letter from Association counsel. Because compliance with Association policies is a membership requirement, membership can be terminated as a result of member company violations of the Association's Antitrust Compliance Policy.



Function Space & Meeting Rooms Floor Plan

2nd Floor



________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

FUTURE CALENDAR OF EVENTS

SSeepptteemmbbeerr 22001177 QQuuaarrtteerrllyy MMeeeettiinngg

September 17 – 19, 2017 Four Seasons Hotel

Baltimore, MD

DDeecceemmbbeerr 22001177 QQuuaarrtteerrllyy MMeeeettiinngg December 3 – 5, 2017 Four Seasons Hotel

Palm Beach, FL

2244tthh AAnnnnuuaall VVeennddoorr SShhooww

March 18 – 21, 2018 The InterContinental Boston Hotel

Boston, MA