Post Trade Services for NYSE BondMatch 20 January 2011 General PTS - - PowerPoint PPT Presentation

Post Trade Services for NYSE BondMatch™

20 January 2011

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General PTS scheme

• NYSE BondMatch™ platform will be connected to LCH.Clearnet SA

clearing house which will:

• Become Central CounterParty (CCP);
• Send the relevant Delivery Versus Payment (DVP) instructions to the National and

International Central Securities Depositories (NCSDs and ICSDs).

• Upon NYSE BondMatch™ start in March,
• A first interim settlement solution will be available;
• Later on a target settlement solution will be put in place.

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Securities characteristic & trade capture

• Securities admitted both on existing market and the “Cassiopeia” MTFs

(e.g. NYSE BondMatch™) may have different characteristics:

• “Cassiopeia” products will receive specific trading code starting with “BO”. They will not

be fungible with NYSE Euronext / Bourse de Luxembourg Cash products;

• Position will be managed on distinct Position Account and Delivery Account for the new

clearing segment “Cassiopeia”;

• Margin Account and Risk calculation will be specific to “Cassiopeia” products.

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Expression of the Quantity – FMT / UNT

• From trading to clearing, all “Cassiopeia” eligible securities will be

managed in FMT, including French corporate bonds:

• One listing / trading in FMT for the NYSE BondMatch™ “Cassiopeia” market;
• One listing / trading in UNT for the French Cash market.
• French products settling in EF will be expressed in UNT (in EF reporting
• nly) temporarily until the completion of the UNT/FMT migration project on

the French market. Settlement in EB will be done in FMT as today.

• Clearing model will follow current CNS principle, will settle at trade date + 3

and will be sent at ISD-1 evening to the settlement platforms. End of day fails are reinserted in the next netted position to be settled the next day.

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Interim PTS solution: March 2011 (1/2)

Transactions

 Transactions validation  Positions management  Corporate events  Netting and Delivery vs payment instructions  Risk management and margin call  Fails, buy-in and default management  Audit trails  Reporting Clearing Member Trading Member Clearing Members InterBolsa Settlement Agent

Net instructions

NYSE BondMatch™

Net instructions

Settlement Agent LCH.Clearnet SA

Euroclear Bank

Euroclear France Euroclear Belgique Euroclear Netherland Clearstream Banking Luxembourg

Realignment to be made by the client

Trading Member

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Interim PTS solution: March 2011 (2/2)

• The clearing member will need to have an account

within the relevant NCSDs/ICSDs directly or indirectly via a settlement agent:

• Securities admitted in the NCSD (EF, ENL, EB) can be settled at the choice of the

member in the NCSD or in EB;

• Portuguese Securities will settle in Interbolsa;
• Other foreign securities will settle in EB.
• Once delivered in the above mentioned entities the bonds could be re-

delivered by the clearing member (or its settlement agent) to other NCSDs/ICSDs including Clearstream Banking Luxembourg.

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Transactions  Transactions validation  Positions management  Corporate events  Netting and Delivery vs payment instructions  Risk management and margin call  Fails, buy-in and default management  Audit trails  Reporting

Clearing Member Trading Member Clearing Member Settlement Agent Trading Member Settlement Agent LCH.Clearnet SA

Euroclear Bank Clearstream Lux

Euroclear France Euroclear Belgique Euroclear Netherland Interbolsa

NYSE BondMatch™

Other NCSDs: CBF…

Phase II Phase I Net instructions

PTS target solution: Phase I & II (1/2)

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PTS target solution: Phase I & II (2/2)

• Phase I: few months after the launch (Q3 2011 TBC) LCH.Clearnet SA will
• ffer the STP settlement in Clearstream Banking Luxembourg on top of

the other NCSDs/ICSDs already available.

• The clearing member will need to have an account

within relevant the NCSDs/ICSDs directly or indirectly via a settlement agent.

• Phase II: then it is envisaged that NYSE BondMatch™ platform could be

settled in other NCSDs. A thorough feasibility study is ongoing and the conditions of its implementation will be communicated when the volumes and members appetite will be confirmed.

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LCH.Clearnet SA fees

• LCH.Clearnet SA Clearing fees will be 0.10 € per posting.
• LCH.Clearnet SA Settlement Related costs, (i.e. a variable fee per

instructions depending on the chosen NCSD/ICSD, which corresponds to the passing back of the costs charged by the NCDS/ICSD to LCH.Clearnet SA) are today.

• 0.41€ per instruction settled in Interbolsa,
• 0.63€ per instruction settled in Euroclear France, Euroclear Belgium, Euroclear Netherland,
• Between 1.27€ and 1.50€ per instruction settled in Euroclear Bank.
• LCH.Clearnet SA comprehensive and updated fee grid is available on our

website http://www.lchclearnet.com/fees/sa/products/cash_markets.asp .

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LCH.Clearnet SA contacts

Should you need any further information on the clearing conditions of NYSE BondMatch™ transactions do not hesitate to contact: Mykael LEMOSLE mykael.lemosle@lchclearnet.com +33 (0) 1 70 37 65 27