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International Securities Services Association Josef Landolt / Peter Gnepf ISSA Update 10 th ACSDA General Assembly Panama City
International Securities Services Association
Josef Landolt / Peter Gnepf
ISSA Update
10th ACSDA General AssemblyPanama City
Criteria for ISSA work items
Impact beyond a single market
Attacking inefficiency
Relevance beyond one provider segment
Mitigating operational risk
Today's Agenda
1. Current ISSA activity
2. ISSA Symposium 2008
- Removing Giovannini Barrier 1
- OTC Derivatives
- Mutual Funds Processing in Europe
Removing Giovannini Barrier 1
"National differences in the information technology
and interfaces used by clearing and settlement
providers should be eliminated via an EU-wide protocol.
SWIFT should ensure the definition of this protocol….."
2011
Removing Giovannini Barrier 1
"National differences in the information technology
and interfaces used by clearing and settlement
providers should be eliminated via an EU-wide protocol.
SWIFT should ensure the definition of this protocol….."
Top 50
infrastructure
users
29 CSDs
9 CCPs
OTC Derivatives Working Group
Improve management of risk, complexity & efficiency
OTC Derivatives Working Group
1. Valuation principles
Best practice recommendations
2. Trade capture
Process management and improvement
3. Trade confirmation
Process management and improvement
OTC Derivatives Working Group
- Sharing the work load
- Involving our members
- Pooling expert knowledge
Fund Working Group
Align mutual funds processing to equity settlements
TA 1
Fund A
InvestorInvestor
InvestorInvestor
TA 2
Fund B
Distributor y
InvestorInvestor
Investor Investor
TA 3
Fund C
Distributor x
InvestorInvestor
Investor Investor
The Transfer Agent Model:
Like a stock market without CSDs
Complex, expensive, fraught with risk
Fund Working Group
TA 1
Fund A
Distributor x
InvestorInvestor
Investor Investor
Distributor y
InvestorInvestor
Investor Investor
Distributor z
InvestorInvestor
Investor Investor
TA 2
Fund B
TA 3
Fund C
Central Hub
The Hub Model:
Transfer Agents (TA) and Distributors need only one link, in their preferred format
Fund Working Group
Fund Working Group
Custodian, Transfer Agent,Distributor
Fund Manager Depository Messaging
Reference data and messaging
Settlement
Order routing and execution
Registration and custody
Fund Working Group
Five work areas, in order of priority:
Distribution
Order Processing Data
Portfolio &Corporate Action Data Prospectus Data
Performance Data
European Fund Data Base
= EFAMA's Fund Processing Passport
Fund Working Group
TA 1
Fund A
Distributor x
InvestorInvestor
Investor Investor
Distributor y
InvestorInvestor
Investor Investor
Distributor z
InvestorInvestor
Investor Investor
TA 2
Fund B
TA 3
Fund C
Central Hub
Settlement Area:
No need to change the market.
But many opportunities to realize efficiency gains!
Fund Working Group
So much for Europe.Now let's turn
to mutual funds!
Funds Processing in Europe…
ISSA Symposium 2008
ISSA 14
June 3–6, 2008Wolfsberg, Switzerland
ISSA Symposium 2008
1. Wealth Management Trends and Needs
Capital market drivers in the next five to ten years
New products, new investment styles
…. and what does this all mean for operations and the market infrastructures?
"Looking out"
2. ISSA Focus Sessions
Fund processing OTC Derivatives Tax processing / G30 ISSA Tax Model
…. and possible next ISSA topics?
"Looking close"
ISSA Symposium 2008
3. ISSA Forum
Member feedback on ISSA: Perceptions, expectations, needs. Suggestions for increasing the value of a membership and making ISSA more visible, effective and efficient
"Looking into the mirror"
ISSA Symposium 2008
4. Key Note
Power shifts in the global economy
Wider implications of the subprime credit crisis
"The independent view"
ISSA Symposium 2008
Wolfsberg, June 3-6
ISSA Symposium 2008
Wolfsberg, June 3-6
June 7-29
ISSA Symposium 2008
International Securities Services Association ISSA c/o UBS AGFNND OZTH P.O. Box CH-8098 Zurich, Switzerland
Phone : +41-44-235 74 21Fax: +41-44-236 14 74
Thank you for your interest!
