October 2011 AMEDA Conference, Cairo
Jan 11, 2016
October 2011AMEDA Conference, Cairo
Joint Venture partnersJoint Venture partners
Ten leading CSDs
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Link Up Markets
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Efficiency by interoperabilityEfficiency by interoperability
DIRECT CROSS-BORDER ACCESS via local CSD infrastructures
Single point of access for CSDs to participating markets
Easy implementation of enhanced CSD-links
Reuse of efficient local infrastructures
Absorbing differences in market standards
Best-in-class CSD services for all asset classes and multiple currencies
Continuous harmonisation of market practices
Flexible extension of market coverage in Europe and beyond
Successful launch on 30 March 2009
Link Up Markets model has replaced inefficient set-up
Other CSDs
Past
Today
Link UpMarkets
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Business opportunities for Issuer CSDBusiness opportunities for Issuer CSD
Become counterparty of foreign Investor CSD
Expansion of customer base
Efficient management of incoming link portfolio
Attract more inflow by providing efficient services
“As close to market as possible”
Upgrade of existing CSD links to full service
Participate in market harmonization efforts
Position themselves as gateway into the region
Own domestic market
Single window into their regional network
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Business opportunities as an Investor CSDBusiness opportunities as an Investor CSD
Transform business model to become specialised custodian for outbound business
Diversify services
Generate new revenue stream
Build cross-border capabilities in-house
Streamline existing cross-border business
Direct access to markets at domestic CSD cost
Simplify setup and maintenance of links
Harmonization as a result rather than a pre-requisite
Access 50% of European, 90% of African markets
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Strategic Positioning for CSDsStrategic Positioning for CSDs
“Close the gap” reasons Opportunity to “benchmark” service offering to other
CSDs in the fast evolving post-trading environment. Independence
Strengthen market and product position, while still options available for regional strategy
Educational factor and Know-How transfer Joining Link Up Markets offers comprehensive and more
useful “hands-on” involvement and knowledge transfer. Harmonisation and community effect
Harmonising connectivity, standards, formats and services between the partner CSDs.
Platform for identifying other business opportunities between the CSDs for new product development or new partnerships.
“Develop once and use many” interoperability concept.
Customer BenefitsCustomer Benefits
Features Benefits for market participants
Pooling of domestic and international business
Direct access to domestic and international markets via single, familiar interface
Increased liquidity pool allowing for greater securities financing and collateral management product usage
Greater scale and price advantage with preferred CSD gateway
Unbundling of custodian services
Significant fee saving potential* in Cross-border settlement fees Safekeeping fees for non-domestic assets
Risk reduction Supply chain consisting of market infrastructures only, no intermediaries
* Pricing at discretion of each CSD -7-
Solution delivered as promisedSolution delivered as promised
Successful launch in March 2009 with just 12 months time-to-market
Development cost well within announced budget of EUR 10 million
10 CSDs live: CBF, CSE, Helex, Iberclear, OeKB, SIX SIS, VP, VP LUX, CSE, Strate and MCDR – joined already, strong interest from other CSDs globally with highest focus in Europe
6 CSDs already transformed their business model into Investor CSD.
Solution well positioned as showcase for interoperability as well as facilitator for T2S
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Growing demand for CSD interoperabilityGrowing demand for CSD interoperability
17.5 mio messages since the beginning of Link Up Markets and 5.4 mio messages in H1 2011
17.5 mio messages representing approx. 4.4 million settlement instructions
>80% of settlements against payment
47% growth over 2010
Each new market with additional volume potential – inbound & outbound
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Key objectives in 2011Key objectives in 2011
CSDs that joined in 2010 and 2011 to become
active as both issuer and investor CSDs
Finalise positioning for post-T2S world, i.e.
Link Up Markets as common interface to T2S
and develop common solution
Further extension of market coverage in
Europe and beyond
!
Clive CherryCSD Implementation Manager
Link Up MarketsPlaza de la Lealtad, 128014 MadridEspana
Tel.: +34 91 709 5031