ASC X9

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The Accredited Standards Committee X9 (ASC X9) has the mission to develop, establish, maintain, and promote standards for the United States Financial Services Industry in order to facilitate delivery of financial services and products. ASC X9 is an accredited standards committee under the American National Standards Institute (ANSI). As the standards organization under ANSI responsible for the development of all financial services standards in the U.S., ASC X9 plays a key role in the development and adoption of new technologies in the banking, brokerage and insurance industries. Many of its current work projects involve developing ecommerce standards such as better online security for financial transactions. As U.S. standards are developed, because ASC X9 is the USA Technical Advisory Group (TAG) to the International Technical Committee on Financial Services ISO/TC 68 under the International Organization for Standardization (ISO), of Geneva, Switzerland, ASC X9 can bring its new standards to the international committee to be considered for adoption as international standards by the ISO.

Under this mission ASC X9 fulfills the objectives of:

  • Support (maintain, enhance, and promote use of) existing standards;
  • Facilitate development of new, open standards based upon consensus;
  • Incorporate nonproprietary items developed by other organizations where appropriate;
  • Provide a common source for all standards affecting the Financial Services Industry;
  • Focus on current and future standards needs of the Financial Services Industry;
  • Promote use of Financial Services Industry standards; and
  • Participate and promote the development of international standards.

Contents

[edit] National Committees

ASC X9 is composed of four Subcommittees based on Financial Services business sectors:

  • X9AB - Payments;
  • X9C - Credit;
  • X9D - Securities Processing; and
  • X9F - Data & Information Security.

Subject matter experts provided by X9 member organizations are organized into Working Groups within each Subcommittee. These Working Groups develop and maintain USA standards for the Financial Services and help form the USA position on matters that arise in the development of international standards within ISO Technical Committee 68 (TC 68) and its Subcommittees.

[edit] History of ASC X9

In 1974, the American National Standards Institute (ANSI) approved the scope of activity for the X9 Standards Committee on Banking, as "Standardization for Facilitating Banking Operations."

In June, 1976, the X9 Standards Committee approved expansion of its membership to include vendors, insurance companies, associations, retailers, regulators, and others in the financial services area. With this approval, the name was changed to X9, Financial Services.

ANSI first granted X9 official accreditation in 1984. The official committee name became as it remains today, Accredited Standards Committee (ASC) X9, Financial Services. Since this time, ASC X9 was incorporated under a 501c6 non profit designation for associations.

ASC X9, Inc. operates under its own procedures as well as those prescribed and approved by the American National Standards Institute. Presently, ASC X9 operates 5 technical subcommittees and 20-to-30 technical working groups that develop financial industry technical standards and guidelines. ASC X9 is the USA Technical Advisory Group (TAG) to the International Technical Committee on Financial Services (TC 68) under the International Organization for Standardization (ISO), of Geneva, Switzerland. In this role, X9 holds the USA vote on all ISO standards of TC 68 or its subcommittees SC2, SC4 and SC7.

ASC X9 standards are widely used and recognized. Many X9 standards are either cited or required by the U.S. Federal government for use in financial procedures and transactions. In addition, X9 standards are the basis for many international standards used in facilitating global commerce. Examples of X9 standards commonly used today around the world are such everyday items as credit card magnetic stripe standards and ATM standards, so that we can use credit cards and ATM cards in millions of locations every day anywhere in the world without interoperability problems that would otherwise hinder their widespread use. X9 is also responsible for all check standards in the U.S. and pioneered the development of the magnetic ink character recognition (MICR) line now present on all U.S. checks as well as the standards for magnetic stripe cards found on all credit and debit cards. Other important X9 financial services standards include Data Encryption Standard (DES) and its successor Triple DES the current encryption security algorithm used in securing most banking transactions worldwide.

[edit] International Role and X9's Participation

Where appropriate, X9 proposes American National Standards to become adopted as international standards with the approval of ISO-the International Organization for Standardization. ISO's Technical Committee 68 (TC 68) on Banking and Financial Services is the global counterpart to ASC X9 and works toward developing worldwide technical standards for all financial service providers. ASC X9 is an experienced and enthusiastic participant in the ISO-based development of standards. Within TC 68, X9 is one of more than 30 organizations assigned by participating national standards bodies who work toward global standards development.

[edit] US TAG

ANSI has accredited X9 for the position of the US Technical Advisory Group (TAG) to the ISO committee for Banking, Securities, and Other Financial Services (TC 68). X9 supplies votes on TC 68 the development and adoption of international standards that support the financial industry. X9 approves delegates who represent the US in international meetings and participate in the international development process. In addition, X9 serves as Secretariat to TC 68 which is the administrator to the TC 68 organization.

[edit] About TC 68

In the late 1940s, members of the financial industry came together under the International Organization for Standardization (ISO) to begin developing technical standards for the banking industry to use on a world-wide basis. The name of the organization working on banking standards was Technical Committee 68, or TC 68-Banking which is the name it continues to hold.

[edit] TC 68 - Banking and Other Financial Services

Since this time, TC 68 has continued its basic mission through industry changes and the adoption of new scientific technologies that allow international commerce to continue. One of the changes made to reflect changes to the financial industry is TC 68's name. It is now referred to as Technical Committee 68 on Banking, Securities and other Financial Services.

ASC X9 holds a unique position within this ISO framework. It is the Secretariat to TC 68 and is also the leader of the official United States Technical Advisory Group (TAG) which represents the US financial services industry to the international technical committee. Within TC 68 there are, at present, three technical subcommittees, or SC's: SC2, SC4, and SC7. Subcommittees prepare and manage international standards within specific areas of concentration.

[edit] External links

[edit] References

Secretariat, ASC X9. History of ASC X9. Retrieved on 2006-11-18. Note: Citation of copyrighted material used by permission of author. Secretariat, ASC X9. X9 Mission Statement. Retrieved on 2006-11-18. Note: Citation of copyrighted material used by permission of author.