Date post: | 06-Aug-2015 |
Category: |
Economy & Finance |
Upload: | swift |
View: | 230 times |
Download: | 2 times |
Spotlight on Latin America Business Forum – New York
3 March 2015 Fabian Banchiero Omar Lago-Rodriguez
1
What’s the landscape?
Upgrade required
<SWIFT (Not just payments)
<Standards(ISO 20022)
>Manual Post-trade
>Systems (Domestic vs. International)
>Community Buy-in
< Local Presence
2 SWIFT Business Forum New York - 3 MArch 2015
3
Major Trends
2
Regionalization – MI space • MILA – integrating 4 key securities markets
• Latinclear – looking to do the same for Central America
• C. American RTGS created discussions around Latam RTGS
1
Securities markets looking for efficiencies • Larger markets looking to implement best practices in post-trade
• Movement by MIs to ISO 20022
• Regulators creating the “compelling event” – i.e. Colombian Decree 1498
• Custodian expansion and new CSD entrants creating opportunity
SWIFT Business Forum New York - 3 MArch 2015
SWIFT Business Forum New York - 3 MArch 2015 4
Market Total
Focus Countries
Colombia Mexico Brazil Chile Peru
Payments 17.0% 49.5% 2.2% 51.6% 15.5% 10.9%
Securities 84% 74.1% -9.7% 159% 43.1% -57.7%
Total 26% 47.1% .5% 89.8% 17.8% 8.7%
FIN Growth Significant Latin America growth
FIN Average Daily volumes
Actual growth Year to Year 2013-2014
SWIFT Business Forum New York - 3 MArch 2015 5
Clearer/
Settlement
agent/Custodian
Broker Asset Manager Central
depository
Asset Controller/Fund administrator/Liability controller
1
2
Fax, phone, internet,
proprietary lines
Files, emails, spreadsheets
Proprietary
network
and
proprietary
standards
Proprietary
network
and
proprietary
standards
Central Bank
Securities post trade landscape The current landscape is fragmented and complex
6
Clearing Member
(DCM or GCM)
Trading Member (eg
B/D) / Non Clearing
Member
Business flows – High level overview
CCP
Stock exchange Trading Member
(eg B/D)
CM (DCM or GCM)
Trading Trading
Investor (eg,
Investment Manager)
Investor (eg,
Investment Manager)
Trade Management
Risk management
Settlement & Cash management
Trade Management
Risk management
Settlement & Cash management
Central Matching Platform
(eg, OMGEO CTM)
CSD Settlement
Agent (Local
Custodian)
Trade Confirmation Trade Confirmation
Trade Notification
Settlement (if CCP
has no POA and
CM has a SA)
Settlement
Management (if
CCP has a POA)
Settlement (if CCP
has no POA and
CM has no SA)
Settlement (if CCP
has a POA and a
SA)
Settlement Settlement
Agent (Local
Custodian)
Settlement (if
CCP has no
POA and CM
has a SA)
Settlement (if CCP
has no POA and
CM has no SA)
Settlement (if CCP
has a POA and a
SA)
Settlement
Global
Custodian Global
Custodian
Settlement
Settlement Settlement
Settlement
Trade Confirmation
Trade Confirmation
Note: This flows description will vary depending on the type of asset classes
SWIFT Business Forum New York - 3 MArch 2015
Case Studies
7 SWIFT Business Forum New York - 3 MArch 2015
8
Colombia´s Market infrastructure
SET-FX
FX trading
BVC Derivatives
Futures
BVC MEC
All fixed Income
BR SEN
Gov. Fixed
Income
BVC
Stocks
CDCC
FX CH
Trading
Systems
CRCC
Derivatives CH
BR DCV CSD
Gov. securities DECEVAL CSD
All securities
BVC
Stocks Clearing &
Settlement
systems
High Value
payment
systems
BR CUD
RTGS
BR CEDEC
Checks
BR CENIT
ACH
ACH Colombia
ACH Low value p.
systems
SWIFT Business Forum New York - 3 MArch 2015
Overview & Solution
9
Condor
• IMs and Trust Banks must separate their existing Custodian function
• Creates new Custodian entities in the local market – BNP, Citi, & Banco Itau are approved
• Regulators also looking to automate post trade flows, pushing ISO standards and market
best practice
• Leveraging SWIFT integration / translation / training services
IMs and Banks
MIs – Exchange,
Central Bank, CSD,
CCP
IMs and Banks
MIs – Exchange,
Central Bank, CSD,
CCP
New
Custodian
Entities
De
cre
e 1
498
SWIFT Business Forum New York - 3 MArch 2015
Mexico Market Infrastructure
10
Banco de Mexico)
(Central Bank)
Derivatives Clearinghouse
Commodities, Futures, Swaps
DNS (T+1)
CECOBAN (ACH Clearing House)
SPEI
Real Time Payments System
(Online clearing)
Settlement
Accounts
SIAC
Settlement for FI’s connected to the Central
Bank
RTGS
DOMI
Direct Debits (T+1)
TEF
ACH Transfers
(T+1)
CHECKS
Checks
(T+ 1) PROSA
CREDIT AND DEBIT CARDS
DNS (T+1)
DALI
Securities Clearinghouse
Government Securities
DNS (T,T+1)
FINANCIAL
INSTITUTIONS
BMV & INDEVAL
e-Global
CITI and BBVA CREDIT AND
DEBIT CARDS RTGS
SWIFT Business Forum New York - 3 MArch 2015
Brazil Market infrastructure
11
Banco Central do
Brasil
Derivatives Clearinghouse
Commodities, Futures,
Swaps
DNS (T+1)
CIP - Interbank Payments Clearinghouse
STR
Funds TransfersRT
GS
Settlement
Accounts
SELIC
Govt Securities
RTGS
SILOC
Funds Transfers
DNS (T+1)
SITRAF
Funds Transfers
Hybrid
COMPE
Checks DNS (T+ 1)
CETIP
Corp. bonds, swaps, other
DNS (T+1)
RTGS
Securities Clearinghouse
Government Securities
DNS (T,T+1)
FX Clearinghouse
Interbank FX Transactions
DNS (T,T+1,2)
CBLC
Stocks, Corp Bonds &
Options DNS (T,T+1,2)
RTGS
ANBIMA Galgo Project
RSFN
National Financial System Network
BM&F BOVESPA
SWIFT Business Forum New York - 3 MArch 2015
Outcomes
What did we do?
• Promote thought leadership and offer community-friendly solutions • Understand regulatory changes
• Introduction of standards and best practices
• Workshops to understand flows and pain points
• Create a more local presence and support
• Research and offer appropriate solutions on a client-by-client and country-by-country
basis
What worked?
• Conducting technical analyses
• Phased approach to implement solutions for post-trade automation
• Working closely with regulators and market infrastructures (Central Banks & CSD’s)
What were/are the challenges?
• Unanimous buy-in from market participants
• Lack of standardization
• Lack of urgency
12
Condor
SWIFT Business Forum New York - 3 MArch 2015
Standards & Market Practice Initiatives
13 SWIFT Business Forum New York - 3 MArch 2015
Standards and Market Practice Initiatives
SWIFT Business Forum New York - 3 MArch 2015 14
Peru
Peru
Chile
Chile
Brazil
Brazil
Mexico
Mexico
Mexico
Colombia
Colombia
Colombia
Country
C2B Market Practice
Post Trade Automation
C2B Market Practice
Post Trade Automation
L
ISO 20022
Post Trade Automation
ISO 20022
C2B Market Practice
Post Trade Automation
ISO 20022
C2B Market Practice
Post Trade Automation
Initiative
Connectivity
Integration
Consultancy
Training
Facilitation
Products Services
Q&A
?
SWIFT Business Forum New York - 3 MArch 2015 15
Please provide us with your feedback!
• Kindly complete the survey form and submit upon exiting
16 SWIFT Business Forum New York - 3 MArch 2015
SWIFT Business Forum New York - 3 MArch 2015 17
Lunch
Courtesy of:
18
Thank you
SWIFT Business Forum New York - 3 MArch 2015