2009 marcus evans clearing&settlement final
Transcript of 2009 marcus evans clearing&settlement final
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Présentation d’Ineum Consulting
T2S and its practical implications for Investor Services
12th Annual Clearing and Settlement ConferenceLondon, October 2009
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Agenda
T2S Business implications
T2S Organisational implications
T2S Reality for a service provider and service taker
Lisbon agenda
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Project functional scope is laying foundation for EU competition with rest of the world
CashManagement
CashManagement
CollateralManagement
CollateralManagementProduct
DistributionProduct
Distribution
NetworkManagement
NetworkManagement
ConnectivityConnectivity MarginsMargins
AccountManagement
AccountManagement
LifecycleManagement
LifecycleManagement
HumanResources
HumanResources
Corporateactions
Corporateactions
ReportingReporting
DataManagement
DataManagement
SecuritiesFinancingSecuritiesFinancing
InformationTechnologyInformationTechnology
T2S impact
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that has implications on all industry participants in the value chain
InvestorInvestor
TradingTrading
CCPCCP
Custodians and CSDs
Custodians and CSDs
Quality of ServiceReduction in costsProducts diversity and coverageOne stop shop solutionReal-time and onlineStandardisation
Cost controlCustomer retentionGrowth engineHarmonised functionality
European footprintCost reductionTransparency
T2S catalyst and driver
InvestorInvestor
Custodiansand CSDsCustodiansand CSDs
Tra
de
Pos
t tra
de
Investor : Purchasing powerEU: Single capital marketTrade: Cost reductionPost trade : Business model
T2S catalyst and driver
MarketParticipants
MarketParticipants
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On which industry participants can take different actions
Broker/Dealer
AssetManager
TradingVenue
CustodianBank
GlobalCustodian
CSD
Local market A Foreign market X
CSDSub
CustodianCentral Bank
Central Bank
Foreign market Y
CSDSub
CustodianCentral Bank
Tax Issuance Registration
Tax
Issuance
Registration
Tax
Issuance
Registration
Asset Manager View Global Custodian View (I)CSD view Sub custodian view
GlobalCustodian
BDAM TR
CU CSD CB
GCGC
SCSC
CB
CSD CSD
CB
x xx x
x
x xx
BDAM TR
CU CSD CB
GCGC
SCSC
CB
CSD CSD
CB
x x
xxx
x xx
BDAM TR
CU CSD CB
GCGC
SCSC
CB
CSD CSD
CB
x
xx
xx
x xx
BDAM TR
SC CSD
Loc
al m
arke
t
CB
GCGC
SCSC
CB
CSD CSD
CB
x
x xx
x GC
SC
CB
CSD
xx
CurrentCurrent
FutureFuture
Foreigncountry X Y X Y X Y X Y Z
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Agenda
T2S Business implications
T2S Organisational implications
T2S Reality for a service provider and service taker
Lisbon agenda
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Covering any aspect in an organisation
EnterpriseArchitecture
IT process re-engineering
Static data management
Strategy
Information Technology
Lifecycle mngt and matchingConfiguration, interface and connectiviy requirements
Business and IT integrated vision of Target modelIT sourcing
ISO20022/4217/10962/4177/3166/18773-4/6166/ISO/IEC 7002:2005Party references
EU structuring, analyzing and planning of architecture
Payments and Income
Connectivity and training
Settlement and custody
Compliance and controls
Operations
T2S HelpdeskISO20022 instructions and reporting
Corporate actions on flowIntegrated T2 payment flow
New deadlines and transaction typesPosition management and status change
Integration of monetary transactionsInvestor compliance such as registration
NetworkMngt
ProductDev
ProductMngt
Sales
Business
Modular componentsIntegration of CCBM2 functionality and T2S Online
Risk, audit, legalPricing and
billingProjectsMarketing
Corporate
Migration and testingChange Management
Integration of nature of service and complexity of service into existing fee scheduleUnbundling and transparency
Branding on EU levelT2S white paper
CSD and/or T2S contractsCounterparty liabilities and regulatory reinforcements
Lobbying and road showsCustomer profitability
Settlement eligibility rules Hold and release function
Review of SLA’sAccount management
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Agenda
T2S Business implications
T2S Organisational implications
T2S Reality for a service provider and service taker
Lisbon agenda
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Testing access
Valuation and
analytics
QoS
Open standards
Reliability Customer service
Maximal added value
Automation
Low risk
Responsiveness
KQI &KPI
Structured tools and methods
Agility
The service taker will not wait to put pressure on its providers
Profitability
ComplianceAssetallocation
Costs
Communication
Transparancy
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Client proximity (Hub and Spoke model, merger or joint ventureInnovative tools (In-house, off the shelf customised or buying of provider)
Concentration of depositsGrowth marketsClient integration programsOpen architectureEarly adaptorMerger or Joint ventureVolume discountsCommoditization and industrialisation of service offerings (e.g. back office)
Effective methodologyBest practices
Managing changeBusiness performanceOperational efficient
Effective methodologyBest practices
Managing changeBusiness performanceOperational efficient
Economics of scopeFunctional driven
Economics of scaleCost price and political driven
And the providers will have to respond with common sense
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Agenda
T2S Business implications
T2S Organisational implications
T2S Reality for a service provider and service taker
Lisbon agenda
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To what extend is this perspective reality
1) Project risks
2) Regulatory impacts
3) Reshuffling of business models and competition
4) (Un)-Materialised aspects of the credit crisis
5) Market trends
6) T2S Version X+1
Preparation phase Specification Phase Migration Phase
2007 2009 2011 2013
Production
Programme planProgramme plan
4CB Internal tests
Software development and technical integration
ECB acceptance testingECB acceptance testing
Migration periodMigration period
UDFS2.0
URD5.0
1) Realisation of CCBM2, T2S Online, Pricing and T2S Contracts
2) UCITSIV, Harmonisation of securities law, MiFID2, new SFD, …3) Repositioning of EU custodians, US and EU global custodians,
Euroclear and Clearstream4) Legislation, lending, Risk Management, Capital markets and
restructuring5) Globalisation, issuance growth, automation, standardisation, T+0,
collateral demand, …6) Adding of corporate actions, derivatives and commodities to the
scope
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