Cbf2013.road to2015.final

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Cbf2013.road to2015.final

  1. 1. Road to 2015 – Initiatives UpdateCanadian Business ForumMalene McMahonSenior Business ManagerStacy RosenthalSenior Business Manager8 April 2013
  2. 2. Agenda• Legal Entity Identifier• Securities Landscape• Banking/Payments Landscape• MyStandards• Questions & answersCanadian Business Forum - 8 April 2013 2
  3. 3. • Industry and regulatory requirements for legal entity identification• Partnership between DTCC and SWIFT (2011) – Not for profit organisation – Owned by the financial industry – Serving the financial industry – Utility Infrastructure• DTCC – International and US headquartered – Avox subsidiary = recognized industry leader in reference data management• SWIFT – International and EU headquartered – Recognized industry leader in standardisation• CICI Utility launched : 21 August 2012 3
  4. 4. Regulatory Framework• Governance – Regulatory Oversight Committee (ROC) – Charter – 50 Authorities – Executive Committee – Committee of Evaluation and Standards – Oversee the global LEI system• Central Operating Unit (COU) – Foundation in CH – Federation with Local Operating Units (LOU)• Private Sector Group 4
  5. 5. CFTCReporting requirements (Part 45)• Reporting firms must report transactions to registered swap data repositories• Reporting firms must identify themselves and counterparties with CICIs• Effective Date – CDS and IRS = 31 December 2012 – FX, Commodity and Equity Derivatives = 28 February 2013 – Transactions between two non swap dealers or two non major swap market participants = 10 April 2013 http://www.cftc.gov/ucm/groups/public/@lrfederalregister/documents/file/2011-33199a.pdf 5
  6. 6. EMIR• Central role for ESMA – With Local / National supervision• Moving OTC Derivatives to centralised clearing (CCPs)• Standardisation of OTC Derivatives contracts• Increased market transparency via reporting to Trade Data Repositories• Timing – EMIR Legislation published > September 2010 – Political Agreement > February 2012 – Level 2 Measures (ESMA) > September 2012 – Regulatory Technical Standard > March 2013 – Implementation > September 2013 6
  7. 7. CICI Utility Overview• Statistics – 50,000 records – US firms = 50 % – Certification = 50 % – Funds – Users = 8,000 – Download of dB = 15,000• Next steps – Bulk files – Payment method 7
  8. 8. 8
  9. 9. Reporting RequirementsWhat does it mean for me ?• Registration – Self-Registration – Which entities, all subsidiaries, all funds ? – Certification if pre-populated records – Who is responsible for registration and maintenance• Data Management – Download the database – Cross-reference data to internal identifiers – Understand requirements – Prepare systems for reporting transactions 9
  10. 10. Take Away www.swift.com/lei www.ciciutility.org 10
  11. 11. Securities Landscape 11
  12. 12. Initiatives across the securities trade lifecycle Allocate Order Collateral Asset Reference Confirm Clearing &Settlement Management Management Servicing Data Matching Elections & MovementsEquities Extend Corporate Actions - Corporate Actions - Reach Announcements Post Trade Matching Post Trade Allocations Bilateral Collateral Management SWIFTRefFunds Funds and Tri-Party Repos LEI / CICI UtilityFixedIncomeFX Post Trade Services GTRDerivatives 2013-2014 2012 Beyond Early Canadian Business Forum - 8 April 2013 Execution 2014 12 Adoption
  13. 13. The corporate actions information flow Corporate IssuerAsset/Investment Agent/ Use of global Manager Registrar standards / messaging Data Vendor None Little Low Depository/ Exchange High Global Custodian/ Broker Dealer Sub-custodianCanadian Business Forum - 8 April 2013 13
  14. 14. ISO 20022 Corporate Actions Messages Abbreviated Equivalent MX Identifier ISO 20022 Message Names Name ISO 15022 Messages1 seev.031.002.03 Corporate Action Notification CANO MT5642 seev.033.002.03 Corporate Action Instruction CAIN MT5653 seev.036.002.03 Corporate Action Movement Confirmation CACO MT5664 seev.037.002.03 Corporate Action Movement Reversal Advice CARE MT5665 seev.039.002.03 Corporate Action Cancellation Advice CACN MT5646 seev.040.002.03 Corporate Action Instruction Cancellation Request CAIC MT5657 seev.032.002.03 Corporate Action Event Processing Status Advice CAPS MT5678 seev.034.002.03 Corporate Action Instruction Status Advice CAIS MT5679 seev.041.002.03 Corporate Action Instruction Cancellation Request Status Advice CACS MT56710 seev.035.002.03 Corporate Action Movement Preliminary Advice CAPA MT56411 seev.038.002.03 Corporate Action Narrative CANA MT56812 seev.042.002.02 Corporate Action Instruction Statement Report CAST New13 seev.044.002.02 Corporate Action Movement Preliminary Advice Cancellation Advice CAPC MT564 Canadian Business Forum - 8 April 2013 14
  15. 15. DTCC messaging implementation Timeline and status Jan Feb Mar Apr May 2011 Jun Jul Aug Sep Oct Nov Dec 2012 2013 A n n o u n c e m e n t s Full lifecycle P i l o t for distributionsSample messagesControlled-volume(10-20 msgs/day)Full volume forannouncements (SR2010)Full volume forannouncements (SR2011)Distributions lifecycle DTCC Livemessages (SR2012) for AnnouncementsRedemption and reorglifecyclemessages (SR2013) 15
  16. 16. DTCC messaging implementation Timeline and status Jan Mar Jun 2012 Sep Oct Nov Dec Jan 2013 Mar Jun Nov Dec 2014 Distributions Lifecycle Redemptions and ReorgsSample messages forentitlements andmovements (SR2012)Sample messages fordistributions elections(SR2012)Entitlements andmovements live (SR2012)Distribution elections live(SR2013)Redemption and reorglifecycle messages(SR2014) - Tentative Canadian Business Forum - 8 April 2013 16
  17. 17. Banking/Payments Landscape Canadian Business Forum - 8 April 2013 17
  18. 18. Banking/Payments Initiatives Regulation/ Standards Solutions Compliance ISO 20022 – Payments (e.g. 3SKey Sanctions SEPA), eBAM, Screening Reporting Business Common Global Intelligence (SWIFT Implementation Watch, Index) Sanctions Testing Integration – IPLA SWIFTRef 18
  19. 19. SWIFT Index Insights for better economic growth forecasting• The following graph shows a year-on-year GDP estimate by SWIFT based on the SWIFT Index, which captures global payments traffic.• It clearly indicates a recovery for the four aggregates (OECD, UK, EU27, DE) and a nearly flat evolution for the US. Canadian Business Forum - 8 April 2013 www.swift.com/swiftindex 19
  20. 20. RMB TrackerWhat is it?Monthly reporting andstatistics on renminbi(RMB) progresstowards becoming aninternational currency.Canadian Business Forum - 8 April 2013 20
  21. 21. RMB TrackerJanuary• Chinese RMB payments fail to take off in the United States• In December, 95.5% of the payments value between the United States and China/Hong Kong was still performed in USD, with only 0.3% in RMB• RMB remains world currency #14 Canadian Business Forum - 8 April 2013 21
  22. 22. Balancing Sanctions Concerns Testing: with Tuning: a response to Increased a response to Regulatory Pressure Cost Concerns Effectiveness Efficiency• Getting Assurances that • Reduce False Positives through Systems Work iterative tests• Gage the performance of your • Build optimisation tests into Fuzzy Matching your processes• Assess coverage of • Develop a test & tuning sanctions lists framework aligned to your• Align System to your needs Risk Appetite • Do it yourself Canadian Business Forum - 8 April 2013 22
  23. 23. Electronic Bank Account Management (EBAM)In Production – FileAct in SCORE Account Opening Account Maintenance Mandate Maintenance Account Closing Account Reporting 15 XML ISO 20022 messagesExisting Customers (no KYC) Digital Signatures V2 of standards – Mayanticipated ISO certification Naming conventions – FileAct & Attachments Canadian Business Forum - 8 April 2013 23
  24. 24. 3SKeyNot just another token 1. ONE TOKEN - One device to reach multiple banks and on any channel 2. SECURE - Strong user authentication and use of personal tokens & signatures 3. COST EFFECTIVE - reduce TCO by outsourcing proprietary infrastructures  Transaction from attributed signer  Content has not been changed  Proof of signature after the approval processCanadian Business Forum - 8 April 2013 24
  25. 25. 3SKey usage scenarios Multi-banked Corporates Internal Use A single 3SKey personal token Use of 3SKey to to reach multiple banks over strengthen security in SWIFTNet, proprietary or internal approval domestic channels workflows Proprietary Security User Authentication Replace or enhance proprietary solution with Strong 2-factor 3SKey the 3SKey PKI service authentication in on-line services Communities 3SKey as a standard and shared market solution amongst banks Market Infrastructures Use of 3SKey for individual approvals and/or signatures on SWIFTNet or Canadian Business Forum - 8 April 2013 proprietary channels 25
  26. 26. SWIFT Business Intelligence offering Business Intelligence Services  Consulting services helping you to leverage the full potential of WATCH products  Consulting services providing more information WATCH Analysers – e.g. peer benchmarking  Interactive database with possibility to build customized reports  Complete set of data with value and currency or only number of transactions WATCH Insights Reports focusing on four specific business domains: Trade Finance, Payments, Network management, Operations Subset of dataCanadian Business Forum - 8 April 2013 27
  27. 27. MyStandards Canadian Business Forum - 8 April 2013 28
  28. 28. Managing standards – challenges…. How to…. Costly … understand and find Standards all standards-related … describe, document & information ? maintain usage guidelines ? Prone to errors Resource-intensive Automation of… keep track of changes and business processesassess impact of releases ? … efficiently implement standards ? Canadian Business Forum - 8 April 2013 Time consuming 29
  29. 29. Managing standards with MyStandards Content … a collaborative web platform MyStandards to better manage standards definitions and usagein the financial industry Features Canadian Business Forum - 8 April 2013 30
  30. 30. Centralize all of your standards-related information on-line Content Base Standards: SWIFT MT/MX/ISO 20022Contributors ISO 20022 Global market practices Market Market Local market practices infrastructures practice groups Bilateral guidelines Financial Internal specifications institutions Canadian Business Forum - 8 April 2013 31
  31. 31. MT / MX / ISO 20022 Usage guidelines Browse Capture guidelinesAnalyse Publish Implement CollaborateCanadian Business Forum - 8 April 2013 32
  32. 32. Target audience Market practice groups Financial Market institutions infrastructuresB usiness analysts S tandards implementers P roduct managers O perations staff Canadian Business Forum - 8 April 2013 33
  33. 33. Value for financial institutions Automate analysis Control and release and improve management your standards usage and Accelerate management implementation Centralize all of your standards- Simplify creation related information and publication of customer andCanadian Business Forum - 8 April 2013 internal guidelines 34
  34. 34. Value for market infrastructures Formally capture ENTER and maintain your Simplify guidelines standards management for your Share & control community access with your members Generate customized documentation Automate analysis and releaseCanadian Business Forum - 8 April 2013 management 35
  35. 35. Value for market practice groups Formally capture and maintain your Streamline market practices your market practice management Share and centralize feedback on-line From draft to final version Explore opportunities for Share and publish harmonization market practices on-lineCanadian Business Forum - 8 April 2013 36
  36. 36. Available licenses Basic Content and basic features service MT/MX/ ISO 20022 Browsing Public & shared usage Collaboration PDF generation guidelines Premium service Advanced features Capture & Excel & Analytical maintain schema framework generation guidelinesCanadian Business Forum - 8 April 2013 37
  37. 37. Explore MyStandards now MyStandards@swift.comwww.swift.com/mystandards Log in Browse Contact us with your the if you like1 2 3 swift.com base to evaluate credentials standards and the platform or register public market for your as a new practice organisation user informationCanadian Business Forum - 8 April 2013 38
  38. 38. Centralise all your standards information Automate Improve user-friendly release documentationmanagement Standards made simple MyStandards Enable efficient Streamline collaboration usage guidelines management Speed up accurateCanadian Business Forum - 8 April 2013 implementation 39
  39. 39. Q&A ?Canadian Business Forum - 8 April 2013 40
  40. 40. Thank youCanadian Business Forum - 8 April 2013 41

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