What is 'ASC X9'

ASC (American Standards Committee) X9 is a body established by the American National Standards Institute (ANSI) to develop, establish, maintain and promote standards for the financial services industry with the goal of facilitating the delivery of financial services and products. The scope of activity for X9 was initially approved by the ANSI in 1974, and it was granted official accreditation in 1984.

BREAKING DOWN 'ASC X9'

ASC X9 operates under its own procedures as well as those prescribed and approved by ANSI. It operates numerous technical subcommittees and dozens of technical working groups that develop technical standards and guidelines for the financial industry. ASC X9 plays a crucial role in developing and adopting new technologies used in the banking, insurance and brokerage industries.

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, and submits X9 American National Standards to the international committee to be considered for adoption as international standards or ISO standards. Membership in ASC X9 is open to all U.S. domiciled companies and organizations in the financial services industry. ASX X9 develops, establishes, maintains, and promotes standards for the Financial Services Industry in the United States in order to facilitate delivery of financial services and products.

ASC X9 is composed of five subcommittees based on Financial Services business sectors:

  • X9A - Retail Payments (including mobile payments and a card not present fraud group)
  • X9B – Checks and Back-office Operations (all things related to checks)
  • X9C – Corporate Banking (B2B payments and the Balance Transaction Reporting Standard (BTRS) standard)
  • X9D – Securities (stocks and bonds, CUSIP);
  • X9F – Data & Information Security (methods and cryptography to secure financial data)

Examples of ASC X9 Standards In Use

Examples of ASC X9-developed standards commonly used today in the US and around the world are:

  • Paper and electronic check standards (X9 owns nearly 98 percent of the standardized real estate on the front and back of checks, the magnetic ink character record was originally developed by X9, the credit and debit card transactions standard operating all card transactions was also first developed under X9.
  • Numerous data security standards for financial services including the "PIN" personal identification standard in wide use today.
  • Data Encryption Standard (DES) and its successor Triple DES, the current encryption security algorithm, is used in securing most banking transactions all over the world.
RELATED TERMS
  1. ISO 14001

    ISO 14001 pertains specifically to the requirements for using ...
  2. Underwriting Standards

    Underwriting standards are guidelines established to ensure that ...
  3. International Accounting Standards ...

    International Accounting Standards are an older set of standards ...
  4. Revenue Recognition

    Revenue recognition is a generally accepted accounting principle ...
  5. Statement of Financial Accounting ...

    The Statement of Financial Accounting Concepts is issued by the ...
  6. Accounting Research Bulletins - ...

    Accounting Research Bulletins were documents published by the Committee ...
Related Articles
  1. Insights

    Standard of Living Vs. Quality of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  2. Investing

    Not All Advisors Are Working in Your Best Interest

    Just because someone calls themselves a financial advisor does not mean they are working in your best interest.
  3. Investing

    Why Standard Deviation Should Matter to Investors

    Think of standard deviation as a thermometer for risk, or better yet, anxiety.
  4. Investing

    How New Fuel Efficiency Standards Will Affect Americans

    While stringent, the new fuel efficiency standards will mean more for the average American than just less trips to the pump.
  5. Insights

    Trump Rolls Back Auto Emissions Standards

    Trump's pledge to automakers likely to set up a showdown in court.
  6. Investing

    The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  7. Tech

    Get Your House In Order By Choosing a Financial Advisor

    As the old saying goes, people don't plan to fail, they just fail to plan.
  8. Financial Advisor

    Why the Fiduciary Rule is Good for All Investors

    The new fiduciary standard should help lower what middle- and lower-income investors pay, on average, to brokers for retirement planning advice.
  9. Financial Advisor

    How to Make the Fiduciary Standard Work for You

    This is how you can tell if your financial planner genuinely has your best interests at heart.
  10. Investing

    Understanding The Sharpe Ratio

    The Sharpe ratio describes how much excess return you are receiving for the extra volatility that you endure for holding a riskier asset.
RELATED FAQS
  1. What is a relative standard error?

    Find out how to distinguish between mean, standard deviation, standard error and relative standard error in statistical survey ... Read Answer >>
  2. How is standard deviation used to determine risk?

    Understand the basics of calculation and interpretation of standard deviation, and how it is used to measure and determine ... Read Answer >>
  3. How is risk aversion measured in modern portfolio theory (MPT)?

    Find out how risk aversion is measured in modern portfolio theory (MPT), how it is reflected in the market and how MPT treats ... Read Answer >>
  4. What is the gold standard?

    Learn more about the gold standard, including its complicated global history and its connection to the fiat system and the ... Read Answer >>
  5. What is the difference between standard deviation and Z-score?

    Understand the basics of standard deviation and Z-score, and learn how each is calculated and used in the assessment of market ... Read Answer >>
Trading Center