December 2001

1

December 2001
2
Mission

• Create globally agreed harmonised market
  practices for the securities industry.

3
Process

• Organize national market practice groups.
• Collate national market practice rules.
• Define cross-border market practice rules.
• Harmonise market practice differences.
• Publish market practice rules.
• Identify conformance mechanisms.

4
Alliances

• FIX
• GSTPA Ltd
• ISITC-IOA
• ISSA
• Securities Industry Association (T1-US)
• ANNA
• Others as appropriate

5
SMPG Structure
Steering Committee Chairman, Vice-Chairman, and
8 functional representatives
S.W.I.F.T.
National Market Practice Groups and Convenors
Broker/dealers, investment managers, custodians,
depositories, regulators, and vendors
6
Steering CommitteeDecember, 2001

• Chairman Catherine Dias (Citibank)
• Vice Chairman Niels Hougaard (VP - Denmark)
• General Secretary SWIFT
• Program Director Alexandre Kech (SWIFT)
• Regional Directors
• Asia/Pacific Shuta Okawara (Tokyo-Mitsubishi)
• Asia/Pacific Henry Ingrouille (Morgan Stanley)
• EMEA Adriano Capellini (Unicredito Italiano)
• EMEA Open (to be elected)
• Americas Genevy Dimitrion (Deutsche Bank)
• Americas Sandy Dinetz (DTCC)

7
Overview

• July 1998 14 countries
• October 2001 30 active 10 in
  progress
• Year End 2001 39 countries targeted

8
Countries - December 2001

• Americas BR, CA, US, AR, CL, MX
• EMEA AT, BE, CH, DE, DK, ES, FI, FR, GR, IE,
  IL, IT, LU, NL, NO, PT, RU, SE, UK, TR, ZA,
  eurobond market, PL, SL
• Asia-Pacific AU, HK, JP, KR, SG, MY, CN, IN,
  TH, TW
• in progress

9
Work items

• Settlement

• Corporate actions

• Reconciliation

• TIC

10
New Topics in 2001

• Repos
• Market representatives and SWIFT have defined the
  business process and also reflected the
  requirements on the MT540s.
• Feedback from each market is required to further
  define common practices.

• Securities Lending
• US group have started defining the process with
  focus on crossborder trades. Feedback from each
  market is required to further define common
  practices

• Funds
• SWIFT and some markets produced documents and
  template for MT502,525,540s. Feedback from each
  market is required to further define common
  practices.

11
2001 Meetings

• March 21-23 - Boston
• ISITC-IOA - March 18-20 - Boston
• June 27-29 - Brussels
• June 25-26 - Pan-Euro Conference - ISITC, FIX,
  SMPG
• June 27-29 - SMPG meeting
• October - SMPG/ISITC - Oct. 14-15 - Singapore
• Sibos - October 15-18 - Singapore
• Nov/Dec - Steering Committee - 2002 plan

12
Singapore Discussions

• Function of the message
• Place of Safekeeping
• Book Transfer
• Linkages
• Forex Cancellation
• MT578-586

13
Agreed MP Documents

• Available on www.swift.com (search - smpg)
• Settlement Instructions Common Business Elements
• MT540-543
• MT535-536
• Statement of Holdings, Statement of Transactions
• MT548-537
• Settlement Status and Processing Advice,Statement
  of Pending Transactions
• Block Trades
• Place of Settlement
• When settling through multiple settlement system

14
2001 - Project Plan

• Trade Initiation Confirmation
• v4 Equities
• v4 Fixed Income
• Corporate Actions
• v3 Mandatory events, Mandatory w/options,
  Voluntaries
• v2 Claims
• Reconciliation
• v4 Pending Trades
• v4 Advice/Status
• Trade Settlement - complex transactions
• v4 Repurchase agreements
• v4 Mutual Funds Settlement
• v4 Derivatives (exchange traded)

15
2001 - Project Plan

• Repos
• v1 October 2001
• Securities Lending (Global - ISITC, RMA, SIA-US,
  ES)
• v1 October 2001
• Mutual Funds (FIX - AU, Europe, UK, US, SWIFT)
• v1 October 2001
• Market Practice Implementation
• v1 October 2001

16
2001 - Other Initiatives

• Cash Reconciliation (US)
• Claims (UK,US)
• Conformance (UK,US)
• Foreign Exchange - spot forward (SWIFT WG)
• SMPG Glossary (SWIFT)
• Registrations (CH, DE)

17
Question ?

• didier.hermans_at_swift.com
• alexandre.kech_at_swift.com