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1 Straight Through Processing The Success Story in TSD.

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Presentation on theme: "1 Straight Through Processing The Success Story in TSD."— Presentation transcript:

1 1 Straight Through Processing The Success Story in TSD

2 2 Force Driving for STP TSD Success Story & Current State STP Processing Flow Future Development Paths AGENDA AGENDA

3 Centralized securities depository Drivers ChangesOutcome OTC Transaction /RTGS Pre-Settlement Matching Corporate Action STP Present Future Force Driving of Change Force Driving of Change Elimination of manual intervention Lack of standard Reduced Operational Costs & Risks

4 TSD Success Story & Current State TSD Success Story & Current State Since 15 May 2006, the depository of public debt securities has been migrated from the BOT to TSD Clearing of government bonds has been done at the BOT whereas for corporate bonds at the TSD The centralization of the securities depository and the clearing and settlement system will help improve efficiency and reduce the cost of securities clearing and settlement Before Pres ent Benefits

5 5 TSD Success Story & Current State (Continued) TSD Success Story & Current State (Continued) Clearing & Settlement from Trading (Gross Settlement) (Gross Settlement) OTC Transaction (With/Without Payment) TSD adopted STP for 1) OTC Transaction for Government Bond 2) RTGS in Bond & Equity Way of Success

6 6 STP for OTC Transaction Transfer Without Payment (Delivery Free) Member A (Transferor) Member B (Transferee) MT 542 (DF)MT 540 (RF) 11 MT 546 (DF Confirm ) MT 544 (RF Confirm ) 4 4 Match DF & RF 2 Debit Member A A/C Credit Member B A/C 33 End-to-EndIntegrated Front to BackAutomated Value Added

7 7 STP for OTC Transaction Transfer With Payment (Delivery Against Payment) Member A (Transfe ror) Member B (Transferee) MT 541 (RVP) MT 543 (DVP) 1 1 MT 298/103 (Payment Request) BOT 4 MT 298/107 (Response Message) 5 2 Match DVP &RVP 3 Hold Bond 6 Debit Member A A/C Credit Member B A/C MT 545 (RVP Confirm) MT 547 (DVP Confirm) 77

8 Clearing & Settlement from Trading BOT Payment (Cash) BOT Payment (Cash) Payment Request TSD Clearing & Settlement TSD Clearing & Settlement Execution Confirm/Re ject Settlemen t Bank Payment Request Confirm/Reject Exchange Member A Member B Confirm Automated Processing from Trade Inception to Settlement (Gross Settlement)

9 9 Benefits for Improving Market Liquidity Minimize Processing Time for Members (Sellers & Buyers) to Increase Trading Turnover Pave the way for possible regional central securities depository or clearing and settlement linkage in the future. Enhance Efficient and Reliable Clearing & Settlement system to increase investors confidence

10 10 Future Development Paths Pre-Matching : SWIFT Message (Q2 2009) Corporate Action: SWIFT Message (Q3 2009) Value Proposi tion Elimin ation of manua l activiti es Reduc e operat ional risk Shorte n Settle ment Cycle Value Proposi tion Elimin ation of manua l activiti es Reduce operati onal cost Shorte n Time

11 Future Development: Pre- Matching Pre-Matching : SWIFT Message for Matching instructions between custodian and broker/ custodian and custodian TSD Manual key- In 2 Steps Manual key- In 2 Steps TSD Match SWIFT Investors Current Future

12 Future Development: Corporate Action Members will receive Corporate Action via SWIFT Message TSD Members Re-key/SWIFT Download Stakeholders Current TSD Members Stakeholders Future SWIFT SETIssuer SETIssuer

13 13 Thank You


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