Gearing Thailand’s securities market for growth

Gearing Thailand’s Securities

Market For Growth

SWIFT Business Forum Bangkok, June 2015

Introduction

Alexandre Kech, Head of Securities, Asia Pacific, SWIFT

Panel

Bordin Unakul, EVP, Head of Corporate Services Division, acting COO, Stock Exchange

of Thailand

Utumporn Viranuvatti, Head of HSBC Securities Services, for the Thailand Custodian

Club

Philippe Dirckx, MD, Head of Markets & Initiatives APAC, SWIFT

Global and regional securities markets trends

SWIFT’s response

Securities market trends in Thailand (panel)

Agenda

TH Business Forum 2015

- Horizontal and vertical

linkages among MIs

- Internationalisation/

regionalisation

initiatives

- ISO 20022

- New services (CA,

liquidity management,

collateral)

- “Hubbing” of

operations

- Refocus to other

markets (APAC,

LATAM)

- Standardisation

- Automation and best

practice

- Pressure to lower fees

and margins with

higher volumes

- ISO 20022

- Intraday liquidity

reporting

- High quality collateral

- Counterparty

identification

- Account segregation

- Resiliency, reliability,

availability

- T2

- Cyber security

- Automation and STP

- ISO 20022

- Efficiency and

transparency

- Reporting and control

- E.g. trade reporting,

PFMIs, EMIR, CSDR,

etc.

Securities Markets Trends

Regulatory pressure Business risk

mitigation Operational risk

mitigation

Business interoperability

Cost efficiency Innovation


Securities Market Infrastructures

Scaling up


• Aging technology

• ISO 20022 adoption

• Influenced by regional (eg, ABMF) and international push (eg, CPSS-IOSCO)

• ASEAN Economic Community (AEC) 2015

• Developmental forums e.g. ABMF, APFF, CSIF

• Adoption of ISO 20022 and market practice groups

Post-trade system refresh

• CPMI-IOSCO Principles for Financial Market Infrastructures

• Trade data / reporting requirements

• T+2

• More SMIs are including value added services for their community:

Funds Hub to support domestic and/or cross-border order flows

CA golden copy announcement to support date accuracy and automation needs

Collateral Management to help their community to comply with regulatory driven collateral management requirement

Regulations

Business diversification &

value added services

Regionalisation

Internationalisation

India

Maldives

Sri Lanka

Nepal Bhutan

Bangladesh Burma Laos

Thailand

Cambodia

Brunei

Vietnam

Malaysia

Singapore

Indonesia East Timor

Philippines

Hong Kong

Taiwan

South Korea

North Korea

Japan

China

Renewing Technology Clearing and Settlement Projects

Australia

• SWIFT VAP:

SWIFT C&S automation

track record

ISO standards knowledge

Past regional and global

work

Reach

Talking about

Live or planned

Technology refresh

Internationalisation

Regional integration

Message standardisation

Other trends


Corporate Actions Collateral Investment Funds

Challenges

• Mis-interpretation of issuer’s

announcements

• Manual scrubbing laborious &

error-prone

• Missing out CA announcements

& deadlines

Solution

• Issuer involvement

• Standardised templates per

event

• Automated dissemination

• New revenue for SMIs

• Address community demands

for higher quality of information

Golden Copy

Challenges

• Funding & liquidity demands

continuously increasing

• Streamlining operations to

increase securities availability

• Account segregation

• Clearstream/Euroclear initiatives

• Regulation

SWIFT Value Proposition

SWIFT automation track record

ISO standards knowledge and dedicated workflow (AFAC for funds)

Past regional and global work

International and regional reach

Initiatives in AP

• Going live: Australia, Singapore

• Working: HK, Malaysia, South

Korea, Japan, Brunei

Challenges

• Emergence of regional funds

passporting schemes

• Streamlining operations to

address manual point-to-point

process, poor service levels

• Regulatory pressure causing

scale issue (beneficial account)

Initiatives in AP

• Live: Korea, HK, TW, AU, CN

• Working: SG, ID, VN, TH

Cross-Border Settlement Infrastructure

Forum (CSIF)

• CSD-RTGS linkage model

• Standardisation and harmonisation of

flows and data

• ISO 20022

ASEAN + 3 Bond Market

Forum

• Phase 3 focusing on

implementation of SF1 &

concluding SF2 work

• Market guide updates

• Country visits

• NMPG build-up

Regional initiatives


SWIFT Involvement: Report reviews

Market Guide

updates

NMPG build-up

DTCC, US

JASDEC, JP

[Post-trade]

ANBIMA, BR

T2S, EU

CSD, LI

CSD, EE

CSD, LT

ASX, AU

ISO 20022 Adoption – Securities MI & Treasury MI

CLS

Treasury MI Securities MI

SGX, SG

JASDEC &

TSE, JP

[Corp.Act]

Live

CN

BR, CSD

Live

NSD, RU

VP Lux

VP Sec

DK

AMBD,

BN

KDPW

CCP, PL NBB-SSS,

BE

KSEI,

ID

Live

Live

ABMF

CSIF


Live

Soon

Live

ECB FR

Iran

CSD

SADC


SWIFT’s response


Agenda


Transformation projects: around ISO Involved in all major APAC SMI’s projects

10

Clearing & Settlement

• ISO 20022 strategy

• High level and detailed

gap analysis review

• ISO governance support

(maintenance and new)

• MyStandards

• Implementation support

• Trainings

Corporate action (TSE)

• Specification co-writing

and maintenance


• MyStandards


• Standards strategy

• Specifications review

• MyStandards


• Community engagement

Corporate action


and maintenance


Corporate action



• Specification writing and

maintenance

• MyStandards

Post-trade


Collateral Management


and maintenance

• MyStandards

• Standards forums

• Customised trainings

• Standards consultancy

Se

cu

ritie

s M

ark

et

Infr

astr

uctu

re

Co

mm

un

ity




• Market practice discussion

facilitation




• Market practice discussion

facilitation

• Community workshops

• On boarding portal

Readiness

Portal MyStandards



• Impact assessment

• Specifications review

• Development of 100 new

messages

• Maintenance support for

existing messages

• MyStandards


• Testing of systems

• Etc.



• Specifications writing and

review



• Cross-border connectivity

• Regional market practice

support

• Local integration

• Project management

• MyStandards


• Etc

Regionalisation Initiatives Driving ISO 20022 adoption and cross-border

communication


How do we help? for ISO 20022

• Standards experts in SG, HK, JP, BE, US

• Compliance to standards and global market practices

• Integration and implementation support

• Capacity building and knowledge sharing

• Community support

Expertise

• Domestic user and practice groups

• Global SWIFT Community

• Reach-out directly to cross-border international parties Reach

• Re-use of SWIFT infrastructure

• Cost efficiency for receiving entities

• Tools to assist with operational efficiency

• Community pricing

Cost

• Proven reliable CSP used by >150 Mis globally

• Resilient, scalable, secure and operationally strong

connectivity choices and associated services

• Community management

Network


Readiness

Portal

MyStandards

13

Strategy Design Internal

preparation Testing Go Live Operate

Business Case Solution

design

Go Live

assistance

Implementat

ion services

Testing

assistance

Support

Services

End-to-end project management

Training and knowledge transfer

Generic ISO 15022 - 20022 courses and Initiative specific training

Business

mapping

Gap analysis

New message

development

& registration

Market

practice

management

Community

testing

services

Integration services

Readiness

Portal

Business and

Technical

Impact

assessment

Community

consultation

and

implementation

strategy

MyStandards

IPLA

AMH / Access

SWIFT: Supporting ISO 20022 adoption

from start to finish

Health

Check


SWIFT’s response


Agenda


Securities market trends in Thailand


Bordin Unakul Executive Vice President

Head of Corporate Services Division

acting COO

Stock Exchange of Thailand

Philippe Dirckx, MD, Head of Markets & Initiatives APAC, SWIFT

Utumporn Viranuvatti Head of HSBC Securities Services, for the

Thailand Custodian Club