1 Straight Through Processing The Success Story in TSD.
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Transcript of 1 Straight Through Processing The Success Story in TSD.
1
Straight Through Straight Through ProcessingProcessing
The Success Story in The Success Story in TSDTSD
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Force Driving for STPTSD Success Story & Current State
STP Processing FlowFuture Development Paths
AGENDAAGENDA AGENDAAGENDA
Centralized securities depository
Drivers Changes Outcome
OTC Transaction
/RTGS
Pre-Settlement Matching
Corporate Action
STPSTP
Pre
sen
tFu
ture
Force Driving of ChangeForce Driving of Change Force Driving of ChangeForce Driving of Change
Elimination of manual intervention
Lack of standard
Reduced Operational Costs & Risks
TSD Success Story & Current TSD Success Story & Current StateState TSD Success Story & Current TSD Success Story & Current StateState
Since 15 May 2006, the depository of public debt securities has been migrated from the BOT to TSD
Clearing of government bonds has been done at the BOT whereas for corporate bonds at the TSD
The centralization of the securities depository and the clearing and settlement system will help improve efficiency and reduce the cost of securities clearing and settlement
Befo
reP
resen
tB
en
efi
ts
5
TSD Success Story & TSD Success Story & Current State (Continued)Current State (Continued) TSD Success Story & TSD Success Story & Current State (Continued)Current State (Continued)
Clearing & Clearing & Settlement Settlement
from Tradingfrom Trading (Gross (Gross
Settlement)Settlement)
OTC OTC TransactionTransaction
(With/Without (With/Without Payment)Payment)
TSD adopted STP for TSD adopted STP for 1) OTC Transaction for 1) OTC Transaction for
Government Bond Government Bond 2) RTGS in Bond & Equity2) RTGS in Bond & Equity
Way o
f S
uccess
Way o
f S
uccess
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STP for OTC TransactionSTP for OTC Transaction STP for OTC TransactionSTP for OTC Transaction Transfer Without Payment (Delivery Free)Transfer Without Payment (Delivery Free)
Member A(Transferor)
Member B(Transferee)
MT 542 (DF) MT 540 (RF)1 1
MT 546 (DF Confirm ) MT 544 (RF Confirm )4 4
Match DF & RF
2
Debit Member A
A/C
Credit Member B
A/C
3 3
End-to-EndIntegrated Front to BackAutomatedValue AddedValue Added
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STP for OTC TransactionSTP for OTC Transaction STP for OTC TransactionSTP for OTC Transaction Transfer With Payment (Delivery Against Payment)Transfer With Payment (Delivery Against Payment)
Member A
(Transferor)
Member B(Transferee)
MT 541 (RVP)MT 543 (DVP)1 1
MT 298/103 (Payment Request)
BOT
4 MT 298/107 (Response Message)
5
2Match DVP &RVP3 Hold
Bond 6Debit Member A A/CCredit Member B A/C
MT 545 (RVP Confirm)
MT 547 (DVP Confirm)
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Clearing & Settlement from Clearing & Settlement from TradingTradingClearing & Settlement from Clearing & Settlement from TradingTrading
BOT
Payment(Cash)
BOT
Payment(Cash)
Payment Request
TSD
Clearing & Settlement
TSD
Clearing & Settlement
Execution
Confirm/Reject
Settlement
Bank
Payment Request
Confirm/Reject
ExchangeExchange
Member A
Member B
Confirm
Confirm
Automated Processing from Trade Inception to Settlement(Gross Settlement)
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Benefits for Improving Benefits for Improving Market LiquidityMarket LiquidityBenefits for Improving Benefits for Improving Market LiquidityMarket Liquidity
Minimize Processing Time for Members (Sellers & Buyers) to Increase Trading Turnover
Pave the way for possible regional central securities depository or clearing and settlement linkage in the future.
Enhance Efficient and Reliable Clearing & Settlement system to increase investors confidence
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Future Development PathsFuture Development PathsFuture Development PathsFuture Development Paths Pre-Matching : SWIFT Message (Q2 2009)
Corporate Action: SWIFT Message (Q3 2009)
Value Proposit
ion
Elimination of
manual activities
Reduce
operational risk
Shorten
Settlement Cycle
Value Proposit
ion
Elimination of
manual activities
Reduce
operational cost
Shorten Time
Future Development: Pre- Future Development: Pre- MatchingMatchingFuture Development: Pre- Future Development: Pre- MatchingMatching
Pre-Matching : SWIFT Message for Matching instructions between custodian and broker/ custodian and custodian
TSD
Manual key- In2 Steps
Manual key- In2 Steps
TSDMatch
SWIFT
SWIFT
Investors
Investors
Current Future
Future Development: Future Development: Corporate ActionCorporate ActionFuture Development: Future Development: Corporate ActionCorporate Action
Members will receive Corporate Action via SWIFT Message
TSD
Text File
MembersRe-key/SWIFT
Download
Stakeholders
CurrentTSD
Members
Stakeholders
Future
SWIFT
SWIFT
SET Issuer SET Issuer
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