3. Recent Speakers
Brett King, Author, Bank 2.0 and Willem Buiter, Chief Vernon Hill, Vice Chairman,
Founder, Movenbank Economist for Citigroup Metro Bank (UK)
Andrew Tyrie, Chairman of the Peter Ayliffe, Chief Executive Sir Win Bischoff, Chairman,
Treasury Select Committee of Visa Europe Lloyds Banking Group
4. CAS-WG
The Clearing & Settlement Working Group (CAS-WG)
• A WORKING GROUP
• Interpretation of Regulatory Change on Clearing & Settlement
Infrastructures the City (and EU/Global)
• Liaison with Regulatory Authorities
• Technical infrastructure focus
• The MiFID Forum
5. CAS-WG
Subject Groups
– Market Infrastructure Subject Group
Chair: Kathleen Tyson-Quah
– Technology Standards Subject Group
Co-Chairs: Virginie O’Shea and Graeme Austin
– Regulations Subject Group
Chair: Greg Caldwell
6. Agenda
2:00 Introductions
2:15 Updates from Regulations Subject Groups from Chair Greg
Caldwell
2:45 An Overview of T2S progress and general review of clearing in
Europe from Ben Parker, EMEA Securities Clearing and
Settlement, Securities, UBS Group Operations
3:30 Break
4:00 Updates from Infrastructures and Technologies Subject Groups
from Chairs Kathleen Tyson-Quah and Virginie O'Shea
4:30 Discussion of the Europe going forward in light of recent
announcements regarding the Banking Union and EMIR with
• Andrew Simpson, Market Structure Consultant; and
• Bob Fuller, Director, Fixnetix
5:15 Call to action
5:30 Close
13. Regulation Subject-group
Conclusions From Last Session, 28th January
— Our primary value-add is to identify opportunities for financial institutions
to avoid unnecessary costs (avoid ‘digging up the road more than once’)
We termed these ‘road-works issues’ or RWIs.
— To do this for each regulation would mean that useful output from the
subject-group would take too long
— We will pilot a different approach which is to research a number of
potential RWIs across the nine key regulatory initiatives
— We may have to adopt at least one set of assumptions about a likely
future macro environment e.g. polarisation of the market into a few large
clearers and a large number of niche specialists
13
Greg Caldwell 2013
14. Regulation Subject-group
Example RWIs
— Challenge for counterparties to identify what they are to
each other in a relationship
— Similar for threshold declarations (which affect how a
counterparty is classified)
— Similar for risk classification
— For EMIR, UCITS firms have to agree a definition of certain
key events in order to be able to establish whether
thresholds have been met e.g. what constitutes a
completed confirmation
— Many of them will need to put in place or procure an
outsourced service to report to the regulator disputes when
they have met certain thresholds
Greg Caldwell 2013
16. Regulation Subject-group
1. Solicit a long list of 2. Filter and rank the
candidate RWIs RWIs
3. Analyse the best
candidates in the
4. Publish findings
subject-group
meetings
Greg Caldwell 2013
18. Regulation Subject-group
Crowdsourcing – competition
— The Financial Services Club is offering a free membership worth £500 for
the 100th RWI submitted
— Please submit your suggestions to kamila@fsclub.co.uk
18
Greg Caldwell 2013
20. Agenda
2:00 Introductions
2:15 Updates from Regulations Subject Groups from Chair Greg
Caldwell
2:45 An Overview of T2S progress and general review of clearing in
Europe from Ben Parker, EMEA Securities Clearing and
Settlement, Securities, UBS Group Operations
3:30 Break
4:00 Updates from Infrastructures and Technologies Subject Groups
from Chairs Kathleen Tyson-Quah and Virginie O'Shea
4:30 Discussion of the Europe going forward in light of recent
announcements regarding the Banking Union and EMIR with
• Andrew Simpson, Market Structure Consultant; and
• Bob Fuller, Director, Fixnetix
5:15 Call to action
5:30 Close
24. Benefits of T2S
4 Key Areas
Unbundling Flow monster/volume driven Lowest settlement pricing
Harmonisation Open trades/complexity Cost saving/simplification
Optimisation/quality
Collateral shortage
Efficient distribution
Consolidation Multiple custodians Single Custodian
24
25. Fails per Market (Monthly Average 2012)
% of overall volume
%
25
26. Practical Steps
Understand Your Business
How will T2S impact your business
Communicate Understand
Do your clients know about T2S? Your
business
Do they know how it will impact their business?
Validate Strategic Aims
Communi Validate
How will T2S help or hinder your
cate Strategic Aims
strategic aims
T2S
Execute
Do it now. Benefits can accrue before Assess the Market
Assess the
T2S goes live What product offerings are there
Execute Market
Now?
How to
connect?
What is the best way to connect?
Direct, via a CSD, and ICSD, Custodian
26
28. Agenda
2:00 Introductions
2:15 Updates from Regulations Subject Groups from Chair Greg
Caldwell
2:45 An Overview of T2S progress and general review of clearing in
Europe from Ben Parker, EMEA Securities Clearing and
Settlement, Securities, UBS Group Operations
3:30 Break
4:00 Updates from Infrastructures and Technologies Subject Groups
from Chairs Kathleen Tyson-Quah and Virginie O'Shea
4:30 Discussion of the Europe going forward in light of recent
announcements regarding the Banking Union and EMIR with
• Andrew Simpson, Market Structure Consultant; and
• Bob Fuller, Director, Fixnetix
5:15 Call to action
5:30 Close
30. Technology Standards Group Progress
• Working on an RFI to send out to
clearers, CCPs and CSDs/ICSDs – provide hub
for standards and technology requirements for
connectivity and interaction with key market
infrastructures
• Also plan to include T2S requirements as and
when they are confirmed
31. Technology Standards Group Progress
• Monitoring working groups in key post-trade
areas – middle office trade confirmation, trade
repository reporting etc
• Provide a hub for discussion of this work –
highlighting areas of crossover such as
FIX, SWIFT, ISITC and AFME work on trade
confirmation
• Got a list of working groups already and
outreach to others
32. Technology Standards Group Progress
• Championing an update of the Investment
Roadmap for Standards – originally produced
in 2008 and updated with XBRL in 2010
• Intent at the time was to highlight areas of
crossover between standards coverage and
allow coexistence under the banner of ISO
20022 – discourage more crossover in future
34. Agenda
2:00 Introductions
2:15 Updates from Regulations Subject Groups from Chair Greg
Caldwell
2:45 An Overview of T2S progress and general review of clearing in
Europe from Ben Parker, EMEA Securities Clearing and
Settlement, Securities, UBS Group Operations
3:30 Break
4:00 Updates from Infrastructures and Technologies Subject Groups
from Chairs Kathleen Tyson-Quah and Virginie O'Shea
4:30 Discussion of the Europe going forward in light of recent
announcements regarding the Banking Union and EMIR with
• Andrew Simpson, Market Structure Consultant; and
• Bob Fuller, Director, Fixnetix
5:15 Call to action
5:30 Close
35. Future meetings
14th March 2013 18th April 2013
CAS-WG Plenary Meeing “Meet Britain’s biggest fraudster”
BT Auditorium Tony Sales
19th March 2013 29th April 2013
“The Branch: reports of my recent “Are banks just big bullies?”
demise have clearly been over-stated” Jeremy Roe, CEO, Bully Banks UK
Kevin Blair, CEO, New Ground
14th May 2013
9th April 2013 “Fixing our banks – the
“The future for Europe and the Euro: bank, employee and customer view”
whither Europe?” Charles Middleton, CEO, Triodos Bank;
Professor Grzegorz Kolodko, former Dominic Hook, Head of Finance &
Deputy Prime Minister, Poland Legal, UNITE; and James Daley, Head
of Personal Finance, Which? Magazine
36. Future meetings
12th June 2013 17th April 2013
“Social Media: Friend of Foe?” Launch of the
Andrew Walker, Chief Innovation Financial Services Club
Officer, Tweetminster Poland
27th June 2013 5th June 2013
Dinner: “How technology has The future of money
transformed credit from past time to Professor Jakub
real-time” Gorka, Warsaw
Errol Damelin, CEO, Wonga University
David Birch, Consult
Hyperion
