Mapping local market practice to ISO The role of SMPG AMEDA Leadership Forum – 29 th April 2009...
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Transcript of Mapping local market practice to ISO The role of SMPG AMEDA Leadership Forum – 29 th April 2009...
Mapping local market practice to ISOThe role of SMPG
AMEDA Leadership Forum – 29th April 2009
John Falk
AMEDA Leadership Forum 29th April 2009 2
Three major trends affectingSecurities Market Infrastructures (SMI)
1. Focus on core business to develop added-value services for their user-community
2. Internationalisation of their landscape– participants and new competitors
3. Drive towards full Straight Through Processing to decrease risk and processing costs
Growing importance of international market practices and standards (ISO 15022,
ISO 20022) in a domestic market
AMEDA Leadership Forum 29th April 2009 3
SMI participants have to deal with different Standards, Messaging & Connectivity
Securities MarketInfrastructures
SMI Participant
Increases Costs
Increases Risk
AMEDA Leadership Forum 29th April 2009 4
Single Window from SWIFT, sameStandards, Messaging and Connectivity
SMI Participant Securities MarketInfrastructures
Standards at Work: SMPG
Securities Market Practice Group
Create globally agreed harmonized market practices which, integrated with standards, will bring the securities industry closer
to achieving STP.
STP
StandardsStandards
Market PracticeMarket Practice
7AMEDA Leadership Forum 29th April 2009
SMPG Activities
• Organize national market practice groups
• Collate national market practice rules
• Define cross-border market practice rules
• Harmonize market practice differences
• Publish market practice rules
• Identify conformance mechanisms
8AMEDA Leadership Forum 29th April 2009
SMPG Countries
• Representatives from National Market Practice Groups (NMPGs), now established in 39 markets, represent their countries at the Global SMPG level– Americas: AR*, BR, CA, CL*, CO*, EC*, MX, PE*, UR*, US,
VE* – EMEA: AT, BE, CH, DE, DK, EG, ES, FI, FR, GR, GB, IS, IE,
IL, IT, LU, NL, NO, PL, PT, RU, SE, TR, UA, ZA, Euroclear, Clearstream
– Asia/Pacific: AU, CN, HK, IN, JP, KR, NZ, SG, TH, TW
* Countries where SMPG is working on the creation of a NMPG
9AMEDA Leadership Forum 29th April 2009
SMPG Organization
Steering Committee
National Market Practice Groups and Convenors
Broker/dealers, investment managers, custodians,
depositories, regulators, and vendors
The goal: To standardize market practices and message formats10AMEDA Leadership Forum 29th April 2009
AMEDA Leadership Forum 29th April 2009 11
Securities Market: Equities and Fixed Income
Custodian
Post-trade
Pre-trade / Trade
CSD
Settlement
Reconciliation
Settlement
Reconciliation
SellerCorporat
eactions
Pre-settlement
Reconciliation
Clearingagent
Buyer
Corporateactions
Pre-settlement
Reconciliation
Proxyvoting
SMPG process
National Market Practice Groups (NMPG)National Market Practice Groups (NMPG)
National Market Practice Groups (NMPG)
Securities Market Practice Group (SMPG)
Administration
www.smpg.info Publication
Review, discussion & refinement
Collate common elements, specify additional country
requirements, identify further opportunities for
harmonization
Analyze & document local practices
12AMEDA Leadership Forum 29th April 2009
Prerequisites for sharing
• Shared vision
• Common understanding
• Perceived benefit
• Champion/s
13AMEDA Leadership Forum 29th April 2009
Corporate Insurance companies
Broker-dealers
Banks
Investmentmanagers
Stock Exchanges
DepositoriesTrustees
Clearing systems
Paymentsystems
Settlementsystems
Government institutions
MT
547
Seller’s
Broker
Buyer’s Investment Manager
MCDR
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ng
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usto
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Buyer’s Broker
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Seller’s Investment
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sC
usto
di
an
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MT
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T 541
MT
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Cen
tral
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k
MT 202 (RTGS)MT012(RTGS)
17AMEDA Leadership Forum 29th April 2009
Zoom: barrières #1 & #3
Source : First Giovannini Report on EU Clearing & Settlement Arrangements
B1
B3
Les barrières 1 et 3 ont aussi été positionnées en haut du classement en termes des coûts qu’elles génèrent pour l’industrie.
18AMEDA Leadership Forum 29th April 2009