AMI-SeCo Belgian National Stakeholders Group (BENSG)

Transcription

1 AMI-SeCo Belgian National Stakeholders Group (BENSG) 19 March 2018 Yvan Timmermans Chairman

2 Agenda Introduction Status update T2-T2S consolidation project Status update ECMS project Collateral Management Harmonisation: CMH-TF reporting T2S T2S Calendar T2S Pricing European CSD developments 2 / 27

3 Status update T2-T2S consolidation project 3 / 27

4 T2-T2S consolidation Governing Council approval December 2017 Set up Target Consolidation Contact Group ( Focus: drafting User Detailed Functional Specifications (UDFS): Functional description and design focusing on the message based interaction with CLM and RTGS UDFS delivery in iterations with feedback being taken on board in the next iteration Version 1.0 (incl. all payment related messages and related message functionalities) foreseen for November / 27

5 T2-T2S consolidation 5 / 27

6 T2-T2S consolidation T2S perspective: No change in T2S governance structure No significant changes in T2S functionalities No more complex operations No change in the T2S calendar No change in the T2S cash accounts (DCAs) 6 / 27

7 Status update ECMS project 7 / 27

8 ECMS Eurosystem Collateral Management System: single system for managing eligible assets used as collateral for Eurosystem credit operations Eurosystem application used by market participants (in their roles as counterparties): Similar role as in the existing national collateral management systems As opposed to a platform to which market participants outsource their business, like T2S harmonised functionalities and ISO messaging standard 8 / 27

9 ECMS Governing Council approval December 2017 Set up Eurosystem-internal working group on ECMS (ECMS-WG) with representatives of 19 NCBs (reporting to the MIB) Drafting UDFS: Functional description and design of ECMS and defining how the user requirements will be implemented (on Service Provider side) UDFS delivery split into 8 iterations, each focusing on a different theme/part of the scope of the system Run through 2018 and into Q / 27

10 ECMS Interaction with market participants: through the AMI-SeCo and the CMH-TF through NCBs Dependency on the CMH-TF to submit harmonised business processes & workflows: Triparty collateral management Corporate actions 10 / 27

11 ECMS 11 / 27

12 Collateral Management Harmonisation: CMH-TF reporting 12 / 27

13 CMH-TF Timing: January 2018 June 2018 Objective: Defining concrete harmonisation proposals: Business processes & workflows Key data elements Focus on business processes & workflows which are the most critical in view of an ECMS: Triparty collateral management (Substream 1) Corporate actions (Substream 2) 13 / 27

14 CMH-TF: Triparty collateral management Development of harmonised business processes and workflows for priority 1 activities involving interactions with the Eurosystem: two pending activities requiring further input from the Eurosystem: Compulsory decrease of triparty collateral exposure amount due to deduction of up-coming CA event Handling of a maximum triparty collateral exposure amount two processes requiring further harmonisation: Unilateral removal of specific asset(s) Provision of real time information on securities collateralising triparty collateral exposure 14 / 27

15 CMH-TF: Triparty collateral management Work on priority 2 activities will continue in the coming weeks Business processes and workflows with market participants are expected to be largely identical as with the Eurosystem final confirmation is being obtained on the scope of some of the required processes SWIFT involvement: consider the approach for messaging required for the full lifecycle of a triparty transaction outline and launch the next steps for the reverse engineering of existing triparty messages 15 / 27

16 CMH-TF: Corporate Actions Focus on CA events deemed relevant to Eurosystem eligible collateral in view of providing input to the Eurosystem by June 2018 Descriptions of harmonised business processes and workflows per CA event are expected to be circulated shortly SWIFT confirmed the existence of relevant ISO CA messages to support the full lifecycle of each CA event 16 / 27

17 TARGET-2-Securities 17 / 27

18 T2S Calendar AMI-SeCo & MIB decision: T2S is open only if any of the T2S settlement currency RTGS are open CSG consultation on the foreseen timeline for T2S CSDs to implement the change to the T2S calendar in their respective markets: Outcome: implementation decision possible as of / 27

19 T2S Calendar In 2018 T2S will be open on Good Friday (30 March) Easter Monday (2 April) 1 May (not a T2S settlement currency RTGS opening day) As from 2019: T2S closed on Good Friday and Easter Monday T2S open on 1 May (DKK open) 19 / 27

20 T2S Calendar 20 / 27

21 T2S Pricing T2S Volumes: Total figures for 2017: Decrease by around 3.8% compared to 2016 Deviation from the initial volume projections for 2017: -33.3%. 21 / 27

22 T2S Pricing The Eurosystem aims at full cost recovery The Governing Council decided to keep the T2S pricing stable until the end of 2018 The T2S framework agreement foresees that the Eurosystem may amend the Pricing Schedule with prior notice of 180 calendar days to the contracting CSD T2S volume developments are seen as the main determinant of the T2S revenues 22 / 27

23 T2S Pricing Considering the following elements: Volumes are lower than expected Costs for enhancing cyber resilience A possible outcome of T2S pricing discussion could be a mix of: an extension of the cost recovery period; and an increase of the price The Eurosystem will continue to seek broad market advice when discussing possible changes to the Pricing Schedule 23 / 27

24 T2S Pricing Proposed timeline: 24 / 27

25 European CSD developments 25 / 27

26 VP Lux VP Securities (DK) is closing down VP Lux by the end of 2018 VP Securities is able to fully support issuers with EUR bonds eligible for Eurosystem credit operations out of Denmark: Customers can issue EUR bonds directly in VP Securities VP Securities is authorised under CSDR since January 2018, allowing them to passport services through Europe 26 / 27

27 Rooster Settlement Orange & SETL are launching a new French issuer CSD, Rooster Settlement/SETL Designed for NEU CP (Negotiable European Commercial Paper) Intention to join T2S: Signed the T2S Framework Agreement on 2 March 2018 Targeted migration: 29 October 2018 (with DKK) 27 / 27