T2S Direct: A Swiss solution to an international challenge April 4th, Christophe Lapaire T2S Program Director

Transcription

1 T2S Direct: A Swiss solution to an international challenge Christophe Lapaire T2S Program Director

2 Agenda T2S Direct: The SIX Securities Services approach T2S access models T2S account structure T2S settlement process Client Readiness The content of this presentation is prepared for general information purposes only and intended for the confidential use of the person addressed. SIX SIS Ltd. makes no guarantees, representations or warranties and accepts no responsibility or liability as to the accuracy or completeness of the presentation, and under no circumstances will it be liable for any loss or damage caused by reliance on any opinion, advice or statement made in this document. Information in this document is subject to change without notice. Copyright SIX SIS Ltd. 2

3 Leverage our integrated infrastructure to connect to T2S directly... EUR settlement transactions in 20 T2S markets will be settled on the T2S platform in Central Bank Money Links to subcustodians/csds to provide safekeeping and asset servicing in T2S markets T2S CSDs & Agents Non-T2S CSDs & Subcustodians Links to sub-custodians/csds to provide settlement, safekeeping and asset servicing in non-t2s markets SIX SIS Client SIX SIS clients can settle transactions across the Swiss and T2S markets in Central Bank Money EUR and across other markets in Commercial Bank Money by using a single interface to SIX SIS. Consolidated view of clients business across 65 markets. 3

4 Seamlessly access T2S markets and 65 markets globally Finland Estonia +7 Americas markets Denmark Lithuania Netherland Germany Belgium Luxembourg Slovakia France Austria Hungary Latvia 21 T2S markets +16 other European markets +15 Asia Pacific markets Italy Slovenia Romania Portugal Spain Greece Malta +7 MEA markets 4

5 T2S implementation in 4 Migration Waves Wave 1 Jun 2015 Wave 2 Mar 2016 Wave 3 Sep 2016 Wave 4 Feb

6 Program plan We are here Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Strategy, Scoping, Planning Analysis & Specification Client Readiness / T2S Working Group T2S Connectivity & ISO Development Operational Readiness SIS Testing for MW1 MW2 MW3 MW4 1. SIS internal Testing 2. T2S Pilot Testing 3. Bilateral Interoperability Testing 4. Migration Testing 5. Multilateral Interoperability Testing 6. Community Testing 7. Business Day Testing Community Testing 1. Migration Testing 2. Multilateral Interoperability Testing 3. Community Testing 4. Business Day Testing SIS Go-Live in MW1 MW2 MW3 MW4 6

7 Access model options 1 T2S access as Indirectly Connected Participant (ICP connectivity) Safekeeping SIS Client SIX SIS T2S Issuer CSD Asset servicing 2 T2S access as Directly Connected Participant (DCP connectivity) DCP / SWIFT ISO standard Safekeeping SIS Client SIX SIS T2S Issuer CSD Asset servicing 7

8 SIX SIS s Tailored Account Operator Model 3 T2S Direct access as Account Operator DCP / SWIFT ISO standard Safekeeping Client SIX SIS Agent T2S Issuer CSD Asset servicing Tailored = SIX SIS will accommodate to customer needs and priorities T2S connectivity models: ICP or DCP Cash account models: choice between 3 cash models Securities account models: choice between 2 securities models Account Operator facilities: by market, with the agent(s) of your choice 8

9 What s in it for you as a client? Services SIX SIS Direct, unintermediated access to T2S, reducing process complexity and costs Advanced cross-border asset servicing capabilities, with deep expertise in equities Unbundled services, sourced from various providers to your benefits and for greatest flexibility Registrar function in Central Bank Money 2 Safekeeping Income payment Corporate Actions Tax processing Collateral management Securities lending for fail coverage in Commercial Bank Money Deposits / FX Credit lines Core CSD services Non-banking type of ancillary services Banking type of ancillary services 9

10 New pricing model SIX SIS pricing models for T2S A Granular model Services are unbundled at granular level and priced separately, e.g. Day time vs. Night time DVP settlement B Service-based model Core settlement and safekeeping services, asset servicing, and other value add services are unbundled into major types of services and priced separately Safekeeping, asset servicing and value-add services are priced separately market-by-market Communication Custodian T2S service fee + CSD margin fee + &? bank margin 10

11 T2S account structure overview 11

12 Cash Account Models for T2S 1 SIS-CM SIS - Cash Model - Clients use the DCA of SIS (sponsored by SECB - Swiss Euro Clearing Bank) - Participant Accounts are linked to the DCA account of SIS in T2S 2 PB-CM Payment Bank - Cash Model - Clients use the DCA of a Payment Bank (PB) - SIS links the clients Participant Account to the DCA of the PB 3 NCB-CM National Central Bank - Cash Model - Clients use own DCA in T2S (linked to own T2 cash account at the National Central Bank - SIS links the clients Participant Account to the clients DCA 12

13 Securities Account Models Omnibus Model For the cross-border business of ICP customers New Position Type Model For the Issuer CSD business and for DCP customers. With auto-realignment service for SNB Repo and Collateral Mgmt business 13

14 A new position type TS for T2S Deposit Account Sample Total Holding Position Type Detail Holding Novartis 500 DI 150 Dispo RE 250 Registered DS 0 Dispo Static TS 100 new for T2S With optional auto-realignment service between TS and DI / NO positions for ease of settlement and collateral management services 14

15 Your choice of T2S Connectivity, Cash & Securities Models T2S Connectivity Cash Model Securities Model SIX Securities Services Service Range SIS CM Registrar function in Central Bank Money 2 ICP PB CM NPT Safekeeping Income payment Omnibus Corporate Actions Tax processing NCB CM Collateral management Securities lending for fail coverage in Commercial Bank Money PB CM Deposits / FX DCP NPT Credit lines NCB CM Registrar function 15

16 Technical information process for ICP client Life Cycle Management Corporate Action Life Cycle Management 16

17 DVP settlement in T2S for an ICP participant Timeline Trade date date Client instruction Receive Status Intimation from SIX SIS Receive settlement confirmation from SIX SIS MT543 MT548 MT547 SIX SIS (SECOM) Order Validations Instruction to T2S Send Status Intimation Process messages from T2S Send settlement confirmation to BP SESE023 SESE024 SESE025 DVP SIX SIS Counter CSD Validation & Matching Participant A/c NCB-1 Participant A/c NCB-2 confirmations to SIX SIS SECB DCA Counterparty DCA 17

18 Life Cycle Management ICP Client DCP Client ISO ISO ISO SIX SIS (SECOM) Acceptance ISO Conversion Trade Repair Acceptance Matching Allegements Modification / Cancellation Custody / Cash Booking Mirroring Cash & Security Planning Modification / Cancellation Custody Cash Credit Facility Management Partial Pre-advice Function Autocollateralization Partial Linked Confirmation Status Transition Reporting Allegements Confirmation Status Transition Reporting Reports Reports and Queries Fee Invoicing to Clients Auto-Position Realignment Queries Fee Invoicing to SIX SIS 18

19 Life Cycle Management (Sample 1) Services Acceptance Matching Status Transition Reporting Custody & Cash SIX SIS (SECOM) Accepted status intimation will be sent to client after T2S accepts the instruction. Refer to Appendix A01 No Matching in SECOM any longer Pre-matched instructions (Locked-in trades) from its participants for T2S settlement will be sent as already matched instruction to T2S Refer to Appendix A02, A03, A04 SIX SIS client can opt to receive intimations based on statuses Refer to Appendix A05 No change to current process T2S will perform business validations and SIX SIS - specific validations on the settlement instruction sent by SIX SIS (for ICPs) and DCP. instruction (in-csd & cross-csd) will be matched in T2S as per T2S matching criteria Pre-matched instructions will not be considered for matching SIX SIS will receive status update intimations for ICP and DCP clients DCP can subscribe to receive status intimations On the settlement date, T2S will book the custody & cash account if sufficient balances are available T2S processes the settlement instructions in batches at night and real-time in the day T2S will invoke auto-collateralization or clientcollateralization in case of a lack of cash Allegements No change to current process SIX SIS will send allegement notifications to clients based on allegement notification received from T2S. T2S sends allegement messages to SIX SIS for ICP clients and directly to DCPs based on subscription 19

20 T2S Matching (Appendix A02 a) (Sample 2) T2S settlements will be matched in T2S SIX SIS participants will have to provide the counterparty CSD BIC in the PSET field of their settlement instruction. Pre-matched instructions (Locked-in trades) received by SIX SIS will be sent as already matched instructions to T2S. SIX SIS clients should send all SIS-mandatory matching fields. SIX SIS will take care of generating the other fields required for T2S When an additional matching field is filled by one of the parties, then the other counterparty must fill it in its instruction When both parties provide a value in the optional matching field, then these values should be matched; if not this will be ignored by T2S T2S Matching Fields Mandatory Matching Fields SIX SIS Matching Fields Payment Type Securities Movement Type Type Intended Date Intended Date Quantity Quantity Delivering Party BIC Code (DEAG) Trading Party (SIS BP ID) Receiving Party BIC Code (REAG) Counterparty (SIS BP ID) Delivering CSD BIC Code (PSET) - Receiving CSD BIC Code (PSET) - Trade Date Trade Date ISIN Code ISIN Code Credit/Debit Code - Currency Currency Amount Amount Additional Matching Fields Opt-out ISO transaction condition indicator - CUM/EX Indicator - Optional Matching Fields Common Trade Reference - Client of delivering CSD participant - Client of receiving CSD participant - Securities account of the delivering party - Securities account of the receiving party - 20

21 T2S Matching (Appendix A02 b) (Sample 3) Standing settlement instruction: BIC required in PSET field Trading party Counterparty BIC in 'PSET' Comments Client of SIX SIS Client of SIX SIS Client of another T2S CSD BIC = SIX SIS BIC = T2S CSD Market specific 21

22 Day Schedules SIX SIS (SECOM) Real-Time Gross S-1 18:45 19:00 20:00 21:00 BOD Night-time EOD (Reports to clients) BOD (Reports to clients) 22:00 23:00 00:00 01:00 02:00 Batch settlement in sequences within two settlement cycles Each cycle split into different sequences -First cycle Sequence 0,1,2,3,4 -Last cycle -- Sequence 4,X,Y,Z 03:00 04:00 Maintenance Window 05:00 06:00 Real-time Real-time Gross S 07:00 08:00 09:00 10:00 11:00 12:00 S The real-time settlement preparation The real-time settlement closure Any DvP, FoP or PFOD instruction successfully settled during the period 07:00 18:00 will attract the daytime surcharge 13:00 14:00 15:00 16:00 Deadline for intra-day DVPs 17:00 18:00 18:45 Deadline for intra-day FOPs EOD 22

23 Corporate Actions Life Cycle Management ICP Client DCP Client ISO SIX SIS (SECOM) ISO ISO (Booking confirmations only) Event setup Notifications Reminder Service Instruction processing Custody Benefit computation Planning Pre advices Custody distributions Cash Cash distributions Booking confirmations Tax services Market claims / Transformations Reports Queries Reports Fee Invoicing to Clients Buyer Protection Fee Invoicing to SIX SIS 23

24 Client Readiness Key client deadlines SIX SIS information schedule 24

25 T2S Client Readiness - Key Client Deadlines Provide details of your Single Point Of Contact (SPOC) for T2S co-ordination within your organization Gather T2S information to ensure operational readiness from our T2S web portal Inform us of your preferred T2S account set-up Implement T2S related adaptations within your organisation and ensure your operational readiness for T2S Start of T2S Community Testing (mandatory for all SIX SIS Ltd. clients) Mar 2015 Start of T2S Business Day Testing (mandatory for all SIX SIS Ltd. clients) May 2015 GO LIVE with T2S settlement for Migration Wave

26 T2S Client Readiness Information Schedule 1 st draft Technical / Message Specifications Mar st Securities Services Business Engineering Information Group (SBIG) Mar nd draft Technical / Message Specifications Jun st SECOM Interface Working Group (SIWG) Jun 2014 Detailed Community Test Plan Jul rd draft Technical / Message Specifications Sep nd Securities Services Business Engineering Information Group (SBIG) Sep nd SECOM Interface Working Group (SIWG) Nov 2014 Final Technical / Message Specifications Dec rd Securities Services Business Engineering Information Group (SBIG) Feb 2015 SECOM Close-Up Document for T2S Mar 2015 Market Guide & Product Guide updates with T2S Mar

27 For more information SIX Securities Services Web SIX SIS Private Web For commercial enquiries: For technical enquiries: 27

28 Solutions for the future. Now. The content of this presentation is prepared for general information purposes only and intended for the confidential use of the person addressed. SIX SIS Ltd. makes no guarantees, representations or warranties and accepts no responsibility or liability as to the accuracy or completeness of the presentation, and under no circumstances will it be liable for any loss or damage caused by reliance on any opinion, advice or statement made in this document. Information in this document is subject to change without notice. Copyright SIX SIS Ltd.