Gearing Thailand’s Securities
Market For Growth
SWIFT Business Forum Bangkok, June 2015
Introduction
Alexandre Kech, Head of Securities, Asia Pacific, SWIFT
Panel
Bordin Unakul, EVP, Head of Corporate Services Division, acting COO, Stock Exchange
of Thailand
Utumporn Viranuvatti, Head of HSBC Securities Services, for the Thailand Custodian
Club
Philippe Dirckx, MD, Head of Markets & Initiatives APAC, SWIFT
Global and regional securities markets trends
SWIFT’s response
Securities market trends in Thailand (panel)
Agenda
TH Business Forum 2015
- Horizontal and vertical
linkages among MIs
- Internationalisation/
regionalisation
initiatives
- ISO 20022
- New services (CA,
liquidity management,
collateral)
- “Hubbing” of
operations
- Refocus to other
markets (APAC,
LATAM)
- Standardisation
- Automation and best
practice
- Pressure to lower fees
and margins with
higher volumes
- ISO 20022
- Intraday liquidity
reporting
- High quality collateral
- Counterparty
identification
- Account segregation
- Resiliency, reliability,
availability
- T2
- Cyber security
- Automation and STP
- ISO 20022
- Efficiency and
transparency
- Reporting and control
- E.g. trade reporting,
PFMIs, EMIR, CSDR,
etc.
Securities Markets Trends
Regulatory pressure Business risk
mitigation Operational risk
mitigation
Business interoperability
Cost efficiency Innovation
TH Business Forum 2015
Securities Market Infrastructures
Scaling up
TH Business Forum 2015
• Aging technology
• ISO 20022 adoption
• Influenced by regional (eg, ABMF) and international push (eg, CPSS-IOSCO)
• ASEAN Economic Community (AEC) 2015
• Developmental forums e.g. ABMF, APFF, CSIF
• Adoption of ISO 20022 and market practice groups
Post-trade system refresh
• CPMI-IOSCO Principles for Financial Market Infrastructures
• Trade data / reporting requirements
• T+2
• More SMIs are including value added services for their community:
Funds Hub to support domestic and/or cross-border order flows
CA golden copy announcement to support date accuracy and automation needs
Collateral Management to help their community to comply with regulatory driven collateral management requirement
Regulations
Business diversification &
value added services
Regionalisation
Internationalisation
India
Maldives
Sri Lanka
Nepal Bhutan
Bangladesh Burma Laos
Thailand
Cambodia
Brunei
Vietnam
Malaysia
Singapore
Indonesia East Timor
Philippines
Hong Kong
Taiwan
South Korea
North Korea
Japan
China
Renewing Technology Clearing and Settlement Projects
Australia
• SWIFT VAP:
SWIFT C&S automation
track record
ISO standards knowledge
Past regional and global
work
Reach
Talking about
Live or planned
Technology refresh
Internationalisation
Regional integration
Message standardisation
Other trends
TH Business Forum 2015
Corporate Actions Collateral Investment Funds
Challenges
• Mis-interpretation of issuer’s
announcements
• Manual scrubbing laborious &
error-prone
• Missing out CA announcements
& deadlines
Solution
• Issuer involvement
• Standardised templates per
event
• Automated dissemination
• New revenue for SMIs
• Address community demands
for higher quality of information
Golden Copy
Challenges
• Funding & liquidity demands
continuously increasing
• Streamlining operations to
increase securities availability
• Account segregation
• Clearstream/Euroclear initiatives
• Regulation
SWIFT Value Proposition
SWIFT automation track record
ISO standards knowledge and dedicated workflow (AFAC for funds)
Past regional and global work
International and regional reach
Initiatives in AP
• Going live: Australia, Singapore
• Working: HK, Malaysia, South
Korea, Japan, Brunei
Challenges
• Emergence of regional funds
passporting schemes
• Streamlining operations to
address manual point-to-point
process, poor service levels
• Regulatory pressure causing
scale issue (beneficial account)
Initiatives in AP
• Live: Korea, HK, TW, AU, CN
• Working: SG, ID, VN, TH
Cross-Border Settlement Infrastructure
Forum (CSIF)
• CSD-RTGS linkage model
• Standardisation and harmonisation of
flows and data
• ISO 20022
ASEAN + 3 Bond Market
Forum
• Phase 3 focusing on
implementation of SF1 &
concluding SF2 work
• Market guide updates
• Country visits
• NMPG build-up
Regional initiatives
TH Business Forum 2015
SWIFT Involvement: Report reviews
Market Guide
updates
NMPG build-up
DTCC, US
JASDEC, JP
[Post-trade]
ANBIMA, BR
T2S, EU
CSD, LI
CSD, EE
CSD, LT
ASX, AU
ISO 20022 Adoption – Securities MI & Treasury MI
CLS
Treasury MI Securities MI
SGX, SG
JASDEC &
TSE, JP
[Corp.Act]
Live
CN
BR, CSD
Live
NSD, RU
VP Lux
VP Sec
DK
AMBD,
BN
KDPW
CCP, PL NBB-SSS,
BE
KSEI,
ID
Live
Live
ABMF
CSIF
TH Business Forum 2015
Live
Soon
Live
ECB FR
Iran
CSD
SADC
Global and regional securities markets trends
SWIFT’s response
Securities market trends in Thailand (panel)
Agenda
TH Business Forum 2015
Transformation projects: around ISO Involved in all major APAC SMI’s projects
10
Clearing & Settlement
• ISO 20022 strategy
• High level and detailed
gap analysis review
• ISO governance support
(maintenance and new)
• MyStandards
• Implementation support
• Trainings
Corporate action (TSE)
• Specification co-writing
and maintenance
• ISO governance support
• MyStandards
Clearing & Settlement
• Standards strategy
• Specifications review
• MyStandards
• Implementation support
• Community engagement
Corporate action
• Specification co-writing
and maintenance
• ISO governance support
Corporate action
• Standards strategy
• Community engagement
• Specification writing and
maintenance
• MyStandards
Post-trade
• Standards strategy
Collateral Management
• Specification co-writing
and maintenance
• MyStandards
• Standards forums
• Customised trainings
• Standards consultancy
Se
cu
ritie
s M
ark
et
Infr
astr
uctu
re
Co
mm
un
ity
• Standards forums
• Customised trainings
• Standards consultancy
• Market practice discussion
facilitation
• Standards forums
• Customised trainings
• Standards consultancy
• Market practice discussion
facilitation
• Community workshops
• On boarding portal
Readiness
Portal MyStandards
Clearing & Settlement
• Standards strategy
• Impact assessment
• Specifications review
• Development of 100 new
messages
• Maintenance support for
existing messages
• MyStandards
• Implementation support
• Testing of systems
• Etc.
Clearing & Settlement
• Standards strategy
• Specifications writing and
review
• Community engagement
• Implementation support
• Cross-border connectivity
• Regional market practice
support
• Local integration
• Project management
• MyStandards
• Implementation support
• Etc
Regionalisation Initiatives Driving ISO 20022 adoption and cross-border
communication
TH Business Forum 2015
How do we help? for ISO 20022
• Standards experts in SG, HK, JP, BE, US
• Compliance to standards and global market practices
• Integration and implementation support
• Capacity building and knowledge sharing
• Community support
Expertise
• Domestic user and practice groups
• Global SWIFT Community
• Reach-out directly to cross-border international parties Reach
• Re-use of SWIFT infrastructure
• Cost efficiency for receiving entities
• Tools to assist with operational efficiency
• Community pricing
Cost
• Proven reliable CSP used by >150 Mis globally
• Resilient, scalable, secure and operationally strong
connectivity choices and associated services
• Community management
Network
TH Business Forum 2015
Readiness
Portal
MyStandards
13
Strategy Design Internal
preparation Testing Go Live Operate
Business Case Solution
design
Go Live
assistance
Implementat
ion services
Testing
assistance
Support
Services
End-to-end project management
Training and knowledge transfer
Generic ISO 15022 - 20022 courses and Initiative specific training
Business
mapping
Gap analysis
New message
development
& registration
Market
practice
management
Community
testing
services
Integration services
Readiness
Portal
Business and
Technical
Impact
assessment
Community
consultation
and
implementation
strategy
MyStandards
IPLA
AMH / Access
SWIFT: Supporting ISO 20022 adoption
from start to finish
Health
Check
Global and regional securities markets trends
SWIFT’s response
Securities market trends in Thailand (panel)
Agenda
TH Business Forum 2015
Securities market trends in Thailand
TH Business Forum 2015
Bordin Unakul Executive Vice President
Head of Corporate Services Division
acting COO
Stock Exchange of Thailand
Philippe Dirckx, MD, Head of Markets & Initiatives APAC, SWIFT
Utumporn Viranuvatti Head of HSBC Securities Services, for the
Thailand Custodian Club