Portfolio Transfer using by MT586 «New Global Market Practices» (?)

Transcription

1 Schweizerische Kommission für Standardisierungen im Finanzbereich (SKSF) Commission Suisse de Normalisation Financière (CSNF) Swiss Commission for Financial Standardisation (SCFS) Portfolio Transfer using by MT586 «New Global Market Practices» (?) Reto Caviezel, November 27 th 2015

2 Schweizerische Kommission für Standardisierungen im Finanzbereich (SKSF) Commission Suisse de Normalisation Financière (CSNF) Swiss Commission for Financial Standardisation (SCFS) Agenda 1. Background of the idea 2. Timeline 3. Business and Process Perspective 4. MT586 Instruction 5. Experiences 6. Next steps 2

3 Background of the idea SCFS Sub-Commission Settlement & Reconciliation Swiss Commission for Financial Standardisation Working Group «Portfolio Transfer» Mission to develop new harmonised solution for Portfolio Transfer (mutual consent) Work Item Request «Einigung der Schweizer Institute auf einen einheitlichen Prozess bei Depotüberträgen. (Die Arbeitsgruppe soll klären, ob dieser Prozess zukünftig auch für Depotüberträge mit ausländischen Banken angewendet werden soll)» 3

4 Timeline MT Nov 2014 April 2015 June 2015 Okt 2015 Nov 2015 Dez Establish Working Group «Portfolio Transfer» by SKSF Presentation at SKSF annual conference in Switzerland Presentation at European SMPG Meeting in Brussel Go live UBS / ZKB Presentation at global SMPG Meeting in Singapore Official roll out by software provider Avaloq (from Version 3.7) Establish as market practice Go live further banks 4

5 Business and Process Perspective Client X informs its custodian of a (full or partial) transfer of position to another custodian Client X Account owner moving from Bank A (DELCUST0XXX) to Bank B (RECCUST0XXX) Client X has signed a contract with RECUBEBE to transfer all or part of its holding to them Delivering Custodian DELCUSTOXXX Delivery Settlement Details MT586 Receiving Settlement Details MT586 Receiving Custodian RECCUSTOXXX MT542 MT540 PSET Place of Settlement 5

6 Business and Process Perspective (old) Manual Intervention Not standardised Compliance Problem sensitive customer data 6

7 Business and Process Perspective (new) Straight through process Compliance reason, SWIFT versus Fax Structured dataflow Global Market Practice (?) 7

8 Business and Process Perspective Pending Position Reject Position 8

9 Business and Process Perspective Further possible options with MT586 solution DI/RE Settlement Physical Settlement PSAFE Details Funds Settlement Etc. 9

10 MT586 Instruction Custodian Request via MT586 Sequence A General Information 1 x Senders Message Reference Function of the Message (NEWM, CANC, CANC) etc.) Account Owner (Definition by delivering agent) Safekeeping Account (Definition by delivering agent) Sequence B Allegement Details Reference of the Position Identification of the Financial Instrument (ISIN) Quantity/Nominal SSI s Sequence C Additional Information Contact (Sending Bank) Contact Information ( , Phone, etc.) 10

11 MT586 Instruction Custodian Request via MT586 Sequence A General Information 1 x Senders Message Reference Function of the Message (NEWM, CANC) Account Owner (Definition by delivering agent) Safekeeping Account (Definition by delivering agent Sequence B Allegement Details n x Reference of the Position Identification of the Financial Instrument (ISIN) Quantity/Nominal SSI s Sequence C Additional Information Contact (Sending Bank) Contact Information ( , Phone, etc.) 11

12 MT586 Instruction Custodian Request via MT586 Sequence A General Information 1 x Senders Message Reference Function of the Message (NEWM, CANC) Account Owner (Definition by delivering agent) Safekeeping Account (Definition by delivering agent) Sequence B Allegement Details n x Reference of the Position Identification of the Financial Instrument (ISIN) Quantity/Nominal SSI s 1 x Sequence C Additional Information Contact (Sending Bank) Contact Information ( , Phone, etc.) 12

13 Experiences Sending MT586 Time savings - Straight Through Process Risk reduction- Counterparty BIC Code used as address Responding to / receiving MT586 Clarification Effort - Recognition of the client account (no international Standard) Time savings / Risk reduction - Automatic validation of the positions 13

14 Next steps MT586 to be established as market practice (expected December 2015) Introducing of Reminder functionality - Solution :23G:RMDR/PORT SWIFT Release 2017 Tax-relevant information provided by MT586 deeper analysis by SMPG working group Portfolio Account Standard - deeper analysis by SKSF working group 14

15 Contact Mr. Reto Caviezel Zürcher Kantonalbank Head of SCFS Portfoliotransfer Working Group +41 (0)