London Stock Exchange Group plc · LSE:LSEG
London Stock Exchange — Conference Presentation (June 2013)
19 slides from London Stock Exchange's conference presentation, Jun 27, 2013
Slide 1: T2S: Two Years to Launch
T2S: Two Years to Launch The Strategy of London Stock Exchange for T2S London Stock Exchange Group
Slide 2: The London Stock Exchange offer for T2S: a flexible and efficient solution
The London Stock Exchange offer for T2S: a flexible and efficient solution Objectives Client Maximum flexibility and efficiency DCP 1 • Guarantee an easy and efficient access to the whole set of functionalities available in T2S Solutions for preserving current infrastructure and minimize 2 ICP impac
Slide 3: For DCPs T2S means: Flexibility and efficiency
For DCPs T2S means: Flexibility and efficiency • Access to the whole set of DCP functionalities available in T2S • Competitive pricing • Possibility of a “mixed” connectivity model with more functionalities and information not supplied by T2S but Swift/ Swift/ Swift Swift X-Trm X-trn available throu
Slide 4: Connectivity options
Connectivity options DCP ISO 20022 - T2S GUI Settlement ISO15022 ICP/DCP MT-X Asset servicing ISO20022 ICP Settlement ISO15022-20022 MT-X - MTA2A ICP/DCP (Pre) Settlement (*) (*) for information not directly available to DCP London Stock Exchange Group Page 4
Slide 5: Liquidity Management
Liquidity Management • Management of cash in Central Bank Money • Corporate actions payments both in T2 and T2S (client choice) • Centralised cash management through DCAs for all activity channeled via Monte Titoli • Auto-collateralisation ‘on flows’ facility • Cash forecasting
Slide 6: LSEG offering on repos
LSEG offering on repos • LSEG will keep on managing repos (DCP and ICP) • Both classic repos and buy sell back will be managed • Central engine for the calculation of the accrued interest • no risk of mismatch • Management of both spot and forward legs • Linkage between the two settlement instructio
Slide 7: Integrated cash management in central bank money
Integrated cash management in central bank money • Centralisation of liquidity within T2 / T2S • Possibility to use a single cash account in T2S to cover all settlement needs • Settlement in central bank money for all activities with counterparties connected to T2S • Neither split of liquidity nor u
Slide 8: Monte Titoli's pricing principles
Monte Titoli’s pricing principles • Investments for T2S project will not be transferred to clients • Monte Titoli confirms its commitment to maintain the cost for domestic settlement as it is until the start of the second wave of T2S inclusive of current services • Starting from Wave 2, the settleme
Slide 9: Pricing principles in T2S starting from Wave 2
Pricing principles in T2S starting from Wave 2 DCP: flat fee for each trade based on the Pricing in T2S – from Wave 2 ECB price plus a mark-up for cost recovery Price ICP: A tiered pricing structure that includes Current the following services: € 0.475 Enrichment Conversion of ISO15022 in IS
Slide 10: Status of the T2S project
Status of the T2S project London Stock Exchange Group Page 10
Slide 11: Completing the offering for T2S
Completing the offering for T2S London Stock Exchange Group Page 11
Slide 12: Main project streams
Pricing principles in T2S starting from Wave 2 Main project streams • Coverage of all markets • Corporate Actions • Fiscal services on foreign securities • Triparty collateral management Objective: Offering an unique access point to manage financial securities in T2S before the first migration wave
Slide 13: Market coverage (from 18 to 30)
Market coverage (from 18 to 30) Markets Open Link A wide coverage of all T2S markets and G8 France ESES investor CSD countries will be implemented before the Germany Investor CSD start of T2S Austria Investor CSD Luxembourg (VP Lux) Und. Devel. Investor CSD Finland Indirect via EB Spain In
Slide 14: Asset servicing: same procedures for domestic and foreign securities
Asset servicing: same procedures for domestic and foreign securities • Corporate Action Harmonisation & Automation project guarantees some key advantages (to be released phase 1 June 2013 and phase 2 in Q4 2013): Processes and messages currently in use for domestic securities will also be availabl
Slide 15: Fiscal services: complete coverage
Fiscal services: complete coverage Partnership with a major market actor to pursue the following objectives: • Supply Relief at Source services in each country where it is allowed by the local jurisdiction • Full coverage of all markets • Direct management by Monte Titoli of the whole payment proces
Slide 16: X-COM: the new Triparty Collateral platform
X-COM: the new Triparty Collateral platform Objective Planning Use of the same pool/securities account to Phase 1 (pool Bankit): September 2012 cover different trading needs, financing and Phase 2 (Markets): Q1 2014 collateral Simplification in back - Full outsourcing of the management of office fin
Slide 17: Why London Stock Exchange
Why London Stock Exchange - Offering a single point of access for T2S markets for settlement, asset servicing and collateral management - Flexible service model with full T2S functionality - Harmonization and standardization of procedures for all securities in T2S - Partnering with a CSD that operat
Slide 18: Contact Us
Contact Us Alessandro Zignani Head of Post Trade Sales Phone: +39 02 33635212 Email: azignani@lseg.com Cristina Belloni Senior Sales Phone: + 39 02 72426504 Email: cbelloni@lseg.com Giovanni Costantini Senior Sales Phone: +39 02 33635283 Email: gcostantini@lseg.com David Smith Sales – UK clients Pho
Slide 19: Ltd – Italian branch.
• The publication of this document does not represent solicitation, by Borsa Italiana S.p.A., of public saving and is not to be considered as a recommendation by Borsa Italiana as to the suitability of the investment, if any, herein described.This document has not to be considered complete and it is
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