global securities challenges and trends - philip kwon

Business Forum - Global trends in securities

April 2016

Philip KwonDirector, Securities | N Asia

SWIFT Business Forum Taiwan - Global trends in securities post trade 2

Background

From tightened regulations to shortened settlement cycles to investor & client due diligence, financial institutions around the world face increased pressure to have more scalable, efficient, transparent and therefore automated post trade environments.

Impact of Global/Regional Regulations: Dodd-Franks, EMIR, APAC

Efficient domestic and cross border trade processing

Room to grow: The need for greater standardization

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OTC Regulations

Dodd-Frank, EMIR, APAC

Regimes

Collateral Management & Settlement

Central Clearing

Impact of OTC Derivative Reforms

Trade Reporting

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Efficient Post Trade Process

Trade processing:

Post execution to settlement

Linking to Market Infrastructure

RegulationsOTC

Derivatives

Trade Reporting

Central Clearing

Collateral Management & Settlement

Straight Through

Processing

Linking counter-parties

Multi Asset Class

Need for greater standardizationHelping you to reduce risks thanks to automation and STP

Domestic and Global reach Internal optimization Regulations

Security and Resiliency

Automation at your own pace

Customer Care and Support

SWIFT: reconciliation, clearing, settlement, multi asset class, trade reporting, collateral management, central clearing, trade matching

6

Standardization: Post trade view & the case for SWIFT

Fund Manager(Foreign and Domestic) Stock Exchange

Central Depository

Trade Match Platform

ClearingAgent

Clearing House

Broker

Custodian

- Settlement Instruction

- Settlement- Reconciliation- Corp actions- Funds- Coll mgmt

- Clearing & Settle.- Reconciliation- Corp actions- Trade reporting- Funds- Collateral Mgmt

Clearing

Trade Execution

SecuritiesSettlement

- Confirmation- Multi asset class- Coll Mgmt

- Clearing- Settlement

- CC Coll mgmt- Clearing Settlement

- Clearing- Settlement

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No. of SWIFT Enabled Clients in Taiwan

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SWIFT Ready clients in Taiwan

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10

Standardization: Post trade view & the case for SWIFT

Fund Manager(Foreign and Domestic) Stock Exchange

Central Depository

Trade Match Platform

ClearingAgent

Clearing House

Broker

Custodian

- Settlement Instruction

- Settlement- Reconciliation- Corp actions- Funds- Coll mgmt

- Clearing & Settle.- Reconciliation- Corp actions- Trade reporting- Funds- Collateral Mgmt

Clearing

Trade Execution

SecuritiesSettlement

- Confirmation- Multi asset class- Coll Mgmt

- Clearing- Settlement

- CC Coll mgmt- Clearing Settlement

- Clearing- Settlement

Conclusion

“Great discoveries and improvements invariably involve the cooperation of many minds.”

- Alexander Graham Bell

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