KELER A Gateway to TARGET2-Securities

Transcription

1 KELER A Gateway to TARGET2-Securities T2S Info Session Amsterdam, 27 June 2014 Peter Csiszer Director, Strategy and Client Relations KELER Ltd.

2 INTRODUCTION TO KELER GROUP

3 KELER Group Ownership Structure Wiener Börse OeKB Others 50% 18% 32% 53.33% 46.67% 0.15% 99.72% 0.13% 3

4 KELER Group History and Outlook KELER obtains special banking licence KELER CCP begins operation and takes over some CCP roles from KELER Establishment of KELER KELER is establishing KELER CCP KELER implements its new state of the art CSD platform (BaNCS) KELER settles its first crossborder transaction KELER launches the WARP system KELER launches TR services KELER joins T2S in migration wave 3 4 KELER signs contract to join T2S

5 Key Figures as of EOY2013 and % billion EUR assets under custody in securities % % 75.5 mio EUR consolidated equity +16.4% % transactions cleared and settled for Budapest Stock Exchange per day GWh daily turnover settled for the Gas and Energy markets across Europe Mio EUR consolidated EBITDA generated % 83.1 Per cent client satisfaction ratio 5 1 EUR = 280 HUF 1 EUR = 296,91 HUF + 6% The weakening HUF had an effect on our figures

6 KELER Group s Services Core CSD Services Banking Services Ancillary Services Issuer Services Value-added Clearing House Services Notary Cash Account management ISIN allocation Asset services Clearing Central safekeeping FX Registrar Collateral management Guarantee undertaking Domestic settlement Settlement loan Paying agent services Repo, DVD Central counterparty Cross-border settlement Treasury management AGM organisation Securities lending Risk management Eligible partners 6 Investment service providers Credit institutions (custodians) Issuers Foreign CSDs, ICSDs and banks Credit Banks Government Debt Management Energy Traders Others

7 Strengths of KELER Strong home base and excellent domestic relationships Experienced and highly qualified staff with excellent English language skills Wide range of services including banking services, Clearing, CCP, Fund routing Strong equity base Innovation AN INNOVATIVE CSD AND CLEARING HOUSE IN CENTRAL EASTERN EUROPE 7

8 Strategic Steps of KELER KELER is replacing its IT platforms with award-winning BaNCS solution of Tata Consulting Services KELER will join T2S in September 2016 Project to obtain the CSD license under CSDR KELER IS WILLING TO STEP-UP AS A REGIONAL CSD IN T2S AND BEYOND... 8

9 Our TARGET2-Securities Basics KELER will join T2S in September 2016 amongst the 1st CSDs in the region to provide access to the T2S platform KELER will offer access to all T2S markets from Wave 1 through SIX-SIS KELER will have direct access to T2S from Wave 3 KELER will offer ICP and DCP connectivity models KELER s state of the art system will be in place from Wave 1 KELER TO BECOME A EUROPEAN GATEWAY CSD 9

10 OUR T2S APPROACH

11 Milestones Completed T2S MOU signature June 2010 Participation in T2S bodies (ongoing) Establishment of HU-NUG May 2011 Establishment of Settlement and CA Working Groups within the NUG Sept Signature of Framework Agreement June 2012 Publication of KELER s T2S White Paper December 2013: Securities/2013_12_20_t2swhite%20paper.pdf Business Requirements Specification completed May 2014 KELER AND THE HUNGARIAN MARKET PARTICIPANTS HAVE TAKEN A FIRM DECISION TO JOIN T2S 11

12 KELER s Partial Entry Model Local currency (HUF) is not part of T2S from go-live as per decision of the Central Bank of Hungary Core settlement services of KELER are to be partially outsourced to T2S through an omnibus account model. Model was found feasible by the ECB from both legal and technical point of view. KELER prepares its IT systems to make all domestically issued, fungible securities available in T2S T2S services become fully available for participants 12

13 KELER s Partial Entry Model EUR denominated transactions would be submitted to and settled in T2S, however, KELER participants will have the freedom to open a direct securities account in T2S and settle there FOP and also HUF denom. transactions (CoSD). DVP settlement in T2S currency: place of settlement is exclusively T2S. DVP settlement in non-t2s currency: place of settlement can be T2S via Conditional Securities Delivery FOP functionality or it can be KELER via real DVP transaction. FOP settlement: place of settlement can be either T2S or KELER. CUSTOMERS SHOULD BENEFIT FROM STANDARDIZED MESSAGING AND THE NEW T2S SETTLEMENT FEATURES TO THE FULLEST EXTENT 13

14 Cash Settlement Options KELER shall provide settlement solutions both for T2S currencies and non-t2s currencies for its participants Cash side models supported for EUR settlement in T2S: 1. Settlement through a DCA opened by KELER as a payment bank (PB) in T2S (via an RTGS account at a Eurozone CB) KELER plans to continue and potentially expand on its current banking services and to become a PB in T2S 2. Settlement via KELER omnibus DCA at a separate payment bank in T2S 3. Settlement via a non-keler cash account in T2S 14 KELER SHALL PROVIDE FLEXIBLE CASH SETTLEMENT SOLUTIONS BOTH FOR T2S AND NON-T2S CURRENCIES

15 Connectivity Options 1. ICP Uses KELER proprietary interface (KID) in U2A or A2A mode, ISO15022 SWIFT messages or TCS BaNCS GUI (direct access to CSD system) KELER intends to shield clients from adaptation efforts 2. DCP Communication with T2S without using KELER as relay or proxy, KELER receives copy messages from DCP activities KELER will authorize the DCP Access to the T2S services (i.e. settlement services), custody and other value added services will still require a KELER connection ISO KELER S PARTICIPANTS CAN OPT FOR BOTH INDIRECT OR DIRECT CONNECTIVITY

16 New Service Offering with T2S (Highlights) Settlement restrictions Conditional and linking functionality Lifecycle management process will be harmonized with T2S (validation, allegement, matching, maintenance, etc.) Optimising procedures to increase the number and value of transactions settled in T2S: optimisation, technical netting, partial settlement, prioritisation. Night-time settlement Payment bank functionality, auto-collateralization Market Claim, Transformations, BP processing according to CASG standards Harmonized operations (e.g. CA management according to CAJWG standards) KELER will be an investor CSD for the entire T2S geography with special focus on CEE 16 MOST OF T2S FUNCTIONALITIES WILL ALSO BE AVAILABLE FOR DOMESTIC AND REGIONAL (NON-T2S) MARKETS

17 KELER s Add-ons in Settlement Functionality Instruction management (repair for OTC transactions, sophisticated status management) Repo specific instruction type (extension, termination, substitution functionality) with auto-generation of delivery leg DVD specific instruction type Provisioning of settlement loan Securities L&B functionality Investment Fund Order Routing (WARP) KELER WILL HARMONIZE WITH T2S ITS HOME MARKET FUNCTIONALITY AND WILL PROVIDE ADDITIONAL SERVICES ON THE TOP OF T2S AS AN INVESTOR CSD 17

18 T2S ADAPTATION: STRATEGIC MODERNISATION PROGRAMME (SMP)

19 SMP Objectives Modernize the CSD platform in line with international standards Adopt international expertise and know-how Establish an efficient T2S connectivity Innovate IT platform to create business opportunities and increase competitiveness MODERNISATION AND NEW BUSINESS OPPORTUNITIES ARE GRANTING A POSITIVE BUSINESS CASE FOR KELER 19

20 KELER s Historic Investment - Joining T2S in 3 phases over 5 years System replacement project Tender System implementation T2S testing and migration T2S assessment T2S adaptation T2S project 20 Phase 1 Vendor selection Phase 2 CSD system replacement Phase 3 T2S testing and migration

21 Roadmap what is ahead of us? BaNCS implementation Development, internal testing Market testing (from January 2015) Go-live (March 2015) Roll-out of new services T2S implementation Start of bilat. testing (in March 2015) ECB Certification (by June 2015) Multilateral testing (from June 2015) Community testing (from Febr. 2016) Go-live wave 3 (September 2016) SPECIAL FOCUS ON MARKET READINESS AND SUPPORT 21

22 KELER S STRATEGY: A WINDOW TO CEE

23 Gearing-up for TARGET2-Securities KELER is working on developing the best solution for T2S. Established the NUG in Hungary, settlement and corporate actions sub-groups 3 years ago Participates several ECB working groups Issues Newsletters to the market on a regular basis Prepared and issued a white paper pioneering in the region 23

24 KELER s Future Service Offering State-of-the-art platform Efficient T2S connectivity Direct links to CSDs Strong on-the-ground asset servicing and cash settlement (CeBM and CoBM) Best-in-breed ancillary services Recognized brand as a regional CSD, entry point to CEE REGIONAL SOLUTION SINGLE POINT OF ENTRY FOR THE REGION 24

25 Regional Offering KELER will offer full range of investor CSD services for the CEE region Safekeeping & Settlement Services Asset Services & Tax Cash Services Reporting & MIS Market Information Value Added Services Different levels of partnership Single point of access to the region via T2S via direct connectivity for all value-added services Regional partners to provide high quality asset servicing and CoBM if and where needed HARMONIZED SERVICES ACROSS ALL CEE MARKETS 25

26 Safekeeping, Settlement, Asset Serving & Tax Flexible account structure (omnibus and segregated accounts, Account Operator model) Same STP requirements for T2S and non-t2s markets Proactive fails management and exception handling Liquidity provision via T2S, regional CBs and commercial banks Several interface options (ISO15022, ISO20022, GUI) KELER offers full range of corporate actions, income, proxy and tax services using the local CSD or 3rd party agents in the markets Services are based on CAJWG and SMPG standards Harmonized message types OPERATIONAL FLEXIBILITY AND HIGH QUALITY INFORMATION 26

27 THANK YOU FOR YOUR ATTENTION! MR. PÉTER CSISZÉR Director, Strategy and Client Relations MR. KRISTÓF MATUSZKA Head of Strategic Modernisation Programme, PM T2S Tel.: Tel.: