1 Agenda AGENDA: 09:00 Registration and coffee 09:30 Welcoming - - PowerPoint PPT Presentation

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Agenda

AGENDA:

• 09:00 Registration and coffee
• 09:30 Welcoming remarks by our host (Vinith Rao, Head of HSBC Securities Services,

Vietnam)

• 09:35 Update on global and regional activities (Alexandre Kech, Head of Standards APAC,

SWIFT)

• Global SMPG history and activities
• APAC SMPG activities update
• ABMF Update
• 10:30 Break
• 10:45 Discussion on the NMPG in VN (facilitated by Cindy Foo/Alexandre Kech and Thuy

Bui, VP Market Development from HSBC Securities Services)

• Objectives of the group
• Benefits of having an NMPG for the community
• Examples in other countries
• Structure of the group
• Agenda for the next meeting
• Objectives proposal for 2014/2015
• 11:45 Final words
• 12:00 End of the meeting

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Before we start. SWIFT’s role

• This is NOT a SWIFT user meeting
• Participants are NOT expected to be or to become SWIFT network

users.

• SWIFT is a cooperative with also a non for profit neutral mission of

standardisation.

– Global team of 50 building and maintaining standards that can be used on

• r off SWIFT’s Network

– RA for ISO 15022 & 20022, 9362 BIC, 10383 MIC, 13616 IBAN, active in ISO 3166 Country Code, 4217 Currency Code and ISO 17442 LEI – Neutral facilitator/expert in market practice group across the world (SMPG, NMPGs in SG, KR, IN, US, etc. PMPG, CGI, ABMF, etc.)

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Global SMPG role

• Facilitate global harmonisation of market practices
• implementation of ISO messaging in the securities space
• But not only…
• Bring together representatives of national market practice groups
• approx. 40 countries, plus ICSDs (Clearstream and Euroclear)
• two physical meetings plus conference calls
• delegates represent their market, not their own institution
• Identify commonalities and differences among national practices
• Identify opportunities for further harmonisation
• Publish agreed global market practices on www.smpg.info

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SMPG organisation

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Trade/ Post Trade Settlement & Reconciliation Corporate Actions Investment Funds IF IF IF GLOBAL STEERING COMMITTEE CA CA CA S&R S&R S&R NATIONAL MARKET PRACTICE GROUPS (dormant) Settlement & Reconciliation/Corporate Actions ISO 15022/ISO 20022 Multi-asset class Process-specific Investment funds ISO 20022 only Funds only Cross-functional

SMPG meetings

• Frankfurt meeting in April 2013
• Johannesburg meeting in November 2013
• Working Groups calls every one or two months

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NMPG role

• Open to all securities market participants
• IMIs, broker / dealers, custodian banks, central securities depositories,

regulators…

• Discuss, agree on, and publish local harmonised market practices (in

line with global practices)

• Comment on or propose SMPG global market practice working

documents (eg, IN with IPO, KR with DR, etc.)

• Send representation to the 2 global SMPG meetings

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APAC RMPG

• Establishment
• June 2012
• Purpose
• increase the engagement of the APAC community in global and regional market

practice and standards discussion

• support the creation of National Market Practice Groups (NMPG) in as many APAC

countries as possible and provide assistance to the existing ones.

• Organisation
• Light structure facilitated by SWIFT Standards Singapore (no chair)
• One physical meeting / year, conference calls
• Exchange of information and network building in all APAC countries
• Minutes, documents posted on www.smpg.info in APAC RMPG folder

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APAC RMPG founding members

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APAC CA WG

• to share information about CA issues in the APAC region and mutually

look at ways to solve them

• to promote ISO standards towards exchanges, CSD and other local

parties looking at changing/STPing their CA processes

• to discuss and establish informal CA market practices for APAC

countries where there is no NMPG CA Working group (waiting for those countries to have a NMPG CA WG to endorse the work done)

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APAC CA WG structure

• Inclusive working group
• CA Experts from exchanges/CSD, custodians, market data and

software providers, brokers, investment managers, etc.

• No chairs
• Facilitation by SWIFT Standards
• Bi-monthly WebEx/conference call
• One physical meeting per year
• Minutes, documents posted on www.smpg.info in APAC RMPG folder

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Collaboration with ABMF

• Two SMPG Steering Committee members as international experts on

ABMF SF2

• SWIFT Standards as international experts on ABMF SF2
• ABMF updates at global SMPG meetings
• ABMF support to SMPG for creation of NMPGs in ASEAN + 3
• ABMF participation to APAC RMPG and maybe global SMPG in the

future

• Etc.

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SMPG (NMPG) Working Groups

• Settlement & Reconciliation
• Corporate Action
• Investment Funds

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SRWG achievements

• Global Market Practices:
• 26 global market practices published including: Common Element listing of values

for Settlement, Statement of Holdings and Transactions, Block Trades

• See www.smpg.info for more information
• Local Market Practices for 35 Countries:
• Specify specifics for the plain vanilla settlement instruction per country
• Settlement Instruction Summary sheet
• Regional Groups: ESES (Euroclear Settlement of Euronext-zone Securities),
• Nordics (Denmark, Finland, Iceland, Norway and Sweden), South-America

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SRWG on going and future developments

• Reviewing MPs
• Financial Instrument Identification
• Securities Settlement Transaction Pending Report
• Basic Securities Lending/Borrowing
• Book Transfer/Portfolio Transfer Customer to Customer Communication
• Repo
• Stamp duty
• 2014 CR reviews

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SRWG on going and future developments

• New Subjects
• Securities Financing: Process Redesign related to ISO20022
• Post Trade Flows (CCP / Bilateral Clearing)
• MyStandards
• Any other MP that needs to be described/revised
• Consultation with PMPG
• Creation of MP of Securities related Cash / FX Processes
• Work Closely with NMPGs to harmonise Local SR MP’s
• Potential changes to MPs under T2S umbrella

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CAWG in figures

• 27 member countries (NMPGs) from 3 regions (EMEA, Americas,

Japan/Asia)

• 2 industry groups :

ICSDs, MDPUG – Market Data Provider User Group)

• Monthly conference calls
• 2 physical meetings / year
• 19 active countries contributing to MPs creation
• 17 local MP documents published on web sites
• WG active since 2000
• About 270 open items discussed/solved since 2006

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CAWG achievements

• Global MPs documents cover:
• 60+ corporate action events & 5 ISO 15022 MT messages
• All CA business processes / Events flows
• Detailed MPs on:
• Messages contents (MT 56x) and fields usage
• Particular Events (e.g. Rights issues)
• Special processes (Preliminary Advice, Market Claims, Proxy Voting basics)
• "Event Interpretation Grid +" Table
• Recommended main options and data fields provided for 132 types of events (as

SMPG Global MPs) and also for 23 countries (as local MPs)

• Additional Events Interpretation tables for:
• Complex events, Redemption events and Return of Capital events
• CA Templates document: 67 events message samples fully illustrated
• COAF (Official CA Events reference) Usage Guidelines and

Registration

• Yearly CRs submission to ISO15022 maintenance
• Involved in ISO20022 CA Reverse Engineering effort

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CAWG on going and future developments

• 3 new CA market practices subgroups on:
• Tax: clarify tax rates usages and related issues)
• ISO 20022 CA: make the CA MPs ISO15022 syntax-independent and covers

specificities of ISO20022 messages

• Proxy Voting: covers ISO 20022 proxy voting messages
• Posting CA MPs on MyStandards Web-based collaborative platform
• Capture Investment Funds requirements for CA (in collaboration with

the SMPG IF WG).

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IFWG scope and participation

Terms of reference

• ISO 20022 only
• "Traditional" funds and operating models
• not hedge funds (specific complexities)
• not exchange-traded funds (trade/settle alongside equities)
• Cross-functional
• trading, settlement, corporation actions etc.
• starting/ending with Transfer Agent
• Discussion and liason with other groups engaged in fund

processing standardization

• Efama FPSG, US ICI IOAC, Lux. Findel groups

Active participants

• Countries: BR, CH, DE, DK, ES, FR, GB, IE, IT, LU, NL, NO, SE
• ICSDs: Clearstream, Euroclear

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IFWG activity

• Global Market Practice Orders & Settlement (Sept 2011 final)
• Transfers (initiated May 2009)
• message mappings drafted, awaiting further input
• consolidated process document to be re-drafted and split:

(a) portfolio level (b) stock level – TA markets (c) stock level – CSD markets

• planned completion August 2011
• Account management (initiated April 2010)
• process document/message mappings under review
• planned completion August 2011
• Statements
• planned completion December 2011
• work to commence with joint S&RWG discussion April 2011
• Corporate actions
• exploratory discussion with CAWG April 2011

Regional cooperation and market integration

under ASEAN+3 Bond Market Forum (ABMF)

NMPG Kick-off Meeting 25 March 2014, Hanoi, Vietnam

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Establishment of ABMF in 2010

 Harmonizing bond market standards and practices has been a long standing issue of Asian Bond Market Initiative (ABMI) of ASEAN+3 since 2003  No easy solution and tardy progress despite heavy discussion among government and central bank officials  To foster the discussion, Finance Ministers endorsed the establishment of ASEAN+3 Bond Market Forum in May 2010  As a common platform for harmonization in the region  To provide (non-binding) policy recommendations to ASEAN+3 officials and policy authorities

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AMBF activities during 2010-2011 (Phase 1)

 Produced comprehensive Market Guide in Apr 2012

• The first guide endorsed by

ASEAN+3 officials

• Comprehensive market

information with 1,532 pages

• Product of the collaborative

efforts of ABMF members

• Benefit bond markets in the

region by enhancing investors’ understanding of the markets

• Base material for next ABMF

activity (Phase 2)

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AMBF activities during 2012-2013 (Phase 2)

<Sub-Forum 1 (SF1)>  Based on the findings during Phase 1, to develop regionally standardized bond issuance program  By focusing on professional markets which waive full disclosure requirements  Develop a framework that allows bond issuers in any participating economies to issue bonds in any participating locations with one set of standardized documentation and information disclosure requirements, when possible. AMBIF: Asian Multi-currency Bond Issuance Framework

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AMBF activities during 2012-2013 (Phase 2)

<Sub-Forum 2 (SF2)>  Continue identification of transaction flows, messaging and market practices.  DVP flows and procedures for government bonds (phase 1)  DVP flows and procedures for corporate bonds  Interest payment and redemption of government bonds  Interest payment and redemption of corporate bonds  ISO 20022 Fit-and-gap analysis Propose a roadmap and policy recommendations to standardize and harmonize transaction flows, and to enhance STP in the region

The progress and work plan

 March 18 2014: Manila ABMF meetings

• Phase 2 reports delivery
• Starting Phase 3 activities

Implementation of AMBIF including pilot issuance Finalization and publication of DVP model, ISO 20022 and ISIN adoption roadmap, etc.

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Thank you

http://asean3abmf.adb.org

http://asianbondsonline.adb.org

For further information

• Mr. Shinji Kawai, Senior Financial Sector Specialist: skawai@adb.org

Agenda

AGENDA:

• 09:00 Registration and coffee
• 09:30 Welcoming remarks by our host (Vinith Rao, Head of HSBC Securities Services,

Vietnam)

• 09:35 Update on global and regional activities (Alexandre Kech, Head of Standards APAC,

SWIFT)

• Global SMPG history and activities
• APAC SMPG activities update
• ABMF Update
• 10:30 Break
• 10:45 Discussion on the NMPG in VN (facilitated by Cindy Foo/Alexandre Kech and Thuy

Bui, VP Market Development from HSBC Securities Services)

• Objectives of the group
• Benefits of having an NMPG for the community
• Examples in other countries
• Structure of the group
• Agenda for the next meeting
• Objectives proposal for 2014/2015
• 11:45 Final words
• 12:00 End of the meeting

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NMPG role reminder and objectives

• Open to all securities market participants
• IMIs, broker / dealers, custodian banks, central securities depositories,

regulators…

• Discuss, agree on, and publish local harmonised market practices (in

line with global practices)

• Comment on or propose SMPG global market practice working

documents

• Local relay for SMPG and APAC RMPG on queries related to local

market practices

• Send representation to the 2 global SMPG meetings

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Benefits of having an NMPG

• Enables easy access to the market by foreign investors and therefore

increase the attractiveness of the market

• Enables automation and straight through processing
• Accelerates resolution of market issues through collaboration and

information sharing

• Improves the collaboration among market players and enables

market driven innovation

• Ensures the market voice is heard at the levels where global standards

and market practices are being built

• Assists in the alignment with the global ISO messaging standards

which will be useful when VN market transitions from proprietary to ISO messaging standards

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NMPG examples

• ISITC US is the US NMPG

– One Executive committee of a dozen people – 10 working groups with 3 co-chairs (S&R, CA, Regulations, Custodian forum, broker forum, etc…) – Quarterly 3 day meetings with parallel working groups – Weekly working group calls – 150+ participants (IM, Brokers, CSD, Custodians, Vendors, etc.) – www.isitc.org

• Most markets, for example SG, UK, FR

– One or 2 co-chairs – 2 or 3 working groups (CA, S&R + Funds) – Bi-yearly to quarterly 1-2 hours meetings – Sometime with additional calls when necessary – 30 + participants (custodians, CSD, brokers, sometimes IM, sometimes vendors)

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VN NMPG proposal

• One or 2 co-chairs
• 2 working groups (CA, S&R)
• Quarterly 1-2 hours meetings facilitated by SWIFT Standards
• 30 + participants (custodians, CSD, brokers, etc. anybody interested

in contributing)

• Objectives 2014/2015 proposal

– Finalisation of the VN S&R MP based on work with custodians and VSD on ISO implementation – CA Event Interpretation Grid VN column – Any subjects that you want this group to discuss?

• Confirmations in a VN scenario where cash settles on T+2 and Securities on T+3
• VN MP for late delivery of Fixed income

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VN NMPG proposal (continued)

• Follow-up meeting proposed on 26 June

– Host? – Agenda:

• Recap of kick-off meeting (including agreeing on the structure of the group)
• Discussion on VN MP for confirmations in scenarios where cash settles on T+2

and Securities T+3

• Drafting of the VN S & R MP
• Any other topics which you would like this group to discuss?

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Discussion

• Questions?
• Comment on next steps?

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Agenda

AGENDA:

• 09:00 Registration and coffee
• 09:30 Welcoming remarks by our host (Vinith Rao, Head of HSBC Securities Services,

Vietnam)

• 09:35 Update on global and regional activities (Alexandre Kech, Head of Standards APAC,

SWIFT)

• Global SMPG history and activities
• APAC SMPG activities update
• ABMF Update
• 10:30 Break
• 10:45 Discussion on the NMPG in VN (facilitated by Cindy Foo/Alexandre Kech and Thuy

Bui, VP Market Development from HSBC Securities Services)

• Objectives of the group
• Benefits of having an NMPG for the community
• Examples in other countries
• Structure of the group
• Agenda for the next meeting
• Objectives proposal for 2014/2015
• 11:45 Final words
• 12:00 End of the meeting

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Thank You

?