2009 marcus evans clearing&settlement final

  • View
    130

  • Download
    2

Embed Size (px)

Text of 2009 marcus evans clearing&settlement final

  • 1. 1Prsentation dIneum ConsultingT2S and its practical implications for Investor Services12th Annual Clearing and Settlement ConferenceLondon, October 2009 www.ineumconsulting.com

2. Agenda 2 T2S Business implications T2S Organisational implications T2S Reality for a service provider and service taker Lisbon agendawww.ineumconsulting.com 3. Project functional scope is laying foundation for EU competition with rest of the world 3T2S impactHuman InformationAccountLifecycle ResourcesTechnology Management Management SecuritiesCorporateReporting Financing actionsData Network Connectivity Margins Management ManagementCollateral Cash Product Management Management Distributionwww.ineumconsulting.com 4. that has implications on all industry participants in the value chain4 T2S catalyst and driverInvestor : Purchasing powerEU: Single capital marketInvestor Quality of ServiceTrade: Cost reduction Reduction in costs Products diversity and coveragePost trade : Business modelTrade One stop shop solution Real-time and onlineInvestorTradingStandardisation MarketCCPParticipantsCustodiansCost control and CSDs Post tradeCustomer retentionHarmonised functionality Custodians Growth engineT2S catalyst and driver European footprint and CSDsCost reductionTransparency www.ineumconsulting.com 5. On which industry participants can take different actions CurrentLocal market AForeign market X Tax5 Trading Broker/AssetGlobal SubCentralIssuance Venue DealerCSDBank ManagerCustodian Custodian Registration CentralCustodianGlobal SubCentralTaxCSDCSDBankBankBankCustodian Custodian IssuanceTaxIssuance RegistrationForeign market Y RegistrationFuture Asset Manager View Global Custodian View (I)CSD viewSub custodian viewLocal market AM BDTRAM BD TR AM BD TRAM BDTR x x CU CSD CB x xCU CSDCB x CU CSDCBSCCSDCBx x GCGC GCx GC GCx GC x x GC GCGC xSCSC x x SCSCx xSCSC SC SCSC xCSDCSD x CSDCSDx xCSDCSD x x CSD CSD CSD Foreignx x CBXCBY x x CB X CB Yx xCBCB x x x CB XCBYCBZ countryX Y www.ineumconsulting.com 6. Agenda 6 T2S Business implications T2S Organisational implications T2S Reality for a service provider and service taker Lisbon agendawww.ineumconsulting.com 7. Covering any aspect in an organisation7 BusinessCorporateProduct ProductNetworkPricing andSalesMarketing Projects Risk, audit, legal Mngt Dev Mngtbilling Lobbying and Modular SettlementReview of Branding onMigration and Integration of CSD and/or road shows componentseligibility rules SLAs EU level testing nature ofT2S contracts Customer Integration ofHold andAccount T2S whiteChangeservice andCounterparty profitabilityCCBM2 release managementpaperManagementcomplexity ofliabilities andfunctionality function service into regulatoryand T2Sexisting fee reinforcementOnline schedule s Unbundling and transparencyOperations Information TechnologySettlement andPayments andComplianceConnectivity andEnterprise IT process re-Static dataStrategycustodyIncome and controls trainingArchitecture engineering managementNew deadlines Corporate Integration of T2S Helpdesk Business and ITEU structuring, Lifecycle mngtISO20022/4217/and transaction actions on flow monetary ISO20022 integrated analyzing and and matching10962/4177/316types Integrated T2 transactions instructions and vision of Target planning of Configuration,6/18773-4/6166/Positionpayment flowInvestor reportingmodelarchitectureinterface and ISO/IECmanagementcomplianceIT sourcingconnectiviy 7002:2005and statussuch asrequirementsParty referenceschangeregistrationwww.ineumconsulting.com 8. Agenda 8 T2S Business implications T2S Organisational implications T2S Reality for a service provider and service taker Lisbon agendawww.ineumconsulting.com 9. The service taker will not wait to put pressure on its providers9QoS Transpa Profitability rancyMaximal Commun added valueKQI &Testingication KPI access AgilityValuationandStructuredCoststools andAutomatioanalytics nResponsivemethodsAssetCompliance nessallocationOpenstandardsLow risk Reliability Customerservice www.ineumconsulting.com 10. And the providers will have to respond with common sense10 Economics of scope Economics of scale Functional driven Cost price and political drivenConcentration of depositsClient proximity (Hub and Growth marketsSpoke model, merger or joint Effective methodologyClient integrationventureBest practices programsInnovative tools (In-house,Managing changeOpen architectureoff the shelf customised orBusiness performance Early adaptor Operational efficientMerger or Joint venturebuying of provider)Volume discountsCommoditization andindustrialisation ofservice offerings (e.g.back office) www.ineumconsulting.com 11. Agenda 11 T2S Business implications T2S Organisational implications T2S Reality for a service provider and service taker Lisbon agendawww.ineumconsulting.com 12. To what extend is this perspective reality 12 UDFS2.04CB Internal testsSoftware development and technical integrationMigration period20072009 2011 2013 Preparation phaseSpecification Phase Migration PhaseProduction Programme plan ECB acceptance testingURD5.0 1)Project risks1) Realisation of CCBM2, T2S Online, Pricing and T2S Contracts 2)Regulatory impacts 3) UCITSIV, Harmonisation of securities law, MiFID2, new SFD, 4) Repositioning of EU custodians, US and EU global custodians, 3)Reshuffling of business models and competitionEuroclear and Clearstream5) Legislation, lending, Risk Management, Capital markets and 4)(Un)-Materialised aspects of the credit crisisrestructuring6) Globalisation, issuance growth, automation, standardisation, T+0, 5)Market trends collateral demand, 7) Adding of corporate actions, derivatives and commodities to the 6)T2S Version X+1 scopewww.ineumconsulting.com 13. End 13www.ineumconsulting.com