T+2 SettlementMarket Implementation Group (MIG)

22 October 2015

1a) Welcome and Presenters

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Rodd Kingham

Senior ManagerEquity Post Trade ServicesASX

Karen Webb

ManagerEquity Post Trade ServicesASX

Mark Wootton

Acting Head of Clearing & Custody ServicesBNP Paribas Securities Services

Agenda1. Introductions & Action Items

a) Welcome & presenters

b) Agenda overview

c) Action items

2. Project Update

a) Project Roadmap

b) Next Vendor and Participant workshops

3. Readiness Update

a) Readiness timeline

b) Readiness Questionnaire, Testing, Attestation

c) Retail investor communication

4. Topics of Interest

a) Fixed interest transition to T+2

b) Matching statistics

5. Q&A

Reminder to submit questions

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1c) Action Items

Publication of new T+2 Settlement documents on http://www.asx.com.au/t2 :

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• Market Implementation Group webinar material – recording and presentation slides from June 2015 meeting

• Frequently Asked Questions document – updated in October – based on questions from June 2015 MIG, Questionnaires and other queries

• Market Notices - 19 August - questionnaire / testing information, 24 September – October MIG

• Links to NZX and AFMA information on T+2

• T+2 Retail Brochure

• Attestation forms

• Details about the next round of Vendor and Participant workshops

Bilateral meetings held

Code of Practice Business Committee updated on 27 August 2015

2. Project Update

2a) Project Roadmap

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2b) Second round – vendor & participant workshops

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System Vendor Registration link Workshop Date & Time Location

Broadridge click here to register1.45pm for 2pm startTue 10 Nov 2015

ASX, 20 Bridge Street, Sydney phone

Dion Global click here to register1.45pm for 2pm startWed 11 Nov 2015

ASX, 20 Bridge Street, Sydney phone

SecuritEase click here to register1.45pm for 2pm startWed 18 Nov 2015

ASX, 20 Bridge Street, Sydney phone

GBST click here to register1.45pm for 2pm startThu 19 Nov 2015

ASX, 20 Bridge Street, Sydney phone

Agenda to include: review project timeline, vendor specific timeline, testing progress, corporate action transition, trade confirmation process, attestation, Q&A

Bilateral workshops for in-house systems available on request

3. Readiness Update

3a) Readiness Timeline

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Key dates for CHESS vendors and participants

ASX Customer Technical Support (CTS) team will contact CHESS vendors and clearing and settlement participants at each checkpoint, and the Attestation due date

Attestation forms now available on www.asx.com.au/t2

3b) Readiness Questionnaire

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Questionnaire responses requested by ASX 19 August 2015, deadline 31 August 2015

• All CHESS vendors, clearing and settlement participants

• a small number outstanding

• Responses to “any issues” question tracked by ASX and responded to where necessary; Q&As added to the FAQ document published on T+2 web page

General theme of issues/questions noted

• Scope / comparison with other markets (incl. impact on ETOs)

• Communication to clients

• Participant dependencies

• Testing and test support, test kits

• Readiness / attestation / go/no go

Information for payment providers and market participants also available on T+2 web page

3b) Testing

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• CHESS testing overview provided on 19 August 2015

• CHESS testing available now

• A number of participants have submitted test files to date

• ASX will release final CHESS changes (TAS, cum/ex non-netting) to CHESS test environment (RTE) during November – likely mid November (date tbc)

• Contact T2Settlement@asx.com.au for test support

3c) Retail investor communication

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Targeted retail investor communication about T+2 changes commenced October by ASX:

• T2 Brochure published www.asx.com.au/T2Brochure

• ASX Investor Update

• SAA Newsletter

• CHESS Holding Statements

• Information on www.asx.com.au

• ASX Twitter

4. Topics of Interest

4a) Fixed Interest transition to T+2 – Q&A with

Mark WoottonActing Head of Clearing & Custody ServicesBNP Paribas Securities Services

Chair, AFMA FI T+2 Steering Committee

4a) Fixed Interest transition to T+2 – Q&A

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Q1 Can you confirm the target date for AFMA’s transition to a convention of T+2 settlement for fixed income products?

Q2 The target is good news for participants in the market, and that ASX, AFMA and NZX are now aligned. Do you have any other targets that you are setting for market participants?

Q3 And what does that mean? What if a participant does not demonstrate readiness by a particular date?

Q4 ASX has received a few queries on the scope of the change for the fixed income market. Are any products excluded or out of scope from this transition?

Q5 How are you liaising with AFMA members and other stakeholders on the transition?

4a) Fixed Interest transition to T+2 – Q&A

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Q6 How often do the committees meet, and have there been any concerns expressed about the transition?

Q7 What do you consider to be the key benefits of the transition?

Q8 ASX has assessed if there is any impact on Austraclear processing with transition to T+2, and no change is required. Are there any other technical changes required?

Q9 How confident are you and AFMA about being ready for the transition deadline?

Q10 What is your view of how the various market transitions should proceed if one market is not ready by that target date?

Q11 If participants need more information who can they contact?

4b) Market Matching Statistics – Settlement Notification July 2015

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What are the statistics telling us:

15% of instructions are released prior to T+2 (T, T+1)

85% of instructions are released on T+2 or after

4b) Market Matching Statistics – Settlement MatchingJuly 2015

What are the stats telling us:

79% matched before 11:30am on T+2

21% matched after 11:30am on T+2

What are the stats telling us:

58% matched before 11:30am on T+2

42% matched after 11:30am on T+2

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5) Q&A

Please use

webinar facility to post questionsWe will allow 10 minutes in the agenda for questions and answers

Thank you