NO 243 – MAY 2013

WFE Focus May 2013
Post trade

ADX enhances DVP model

The Abu Dhabi Securities Exchange implemented an improved Delivery Versus Payment process from 5 May 2013 with the Buyer Cash Compensation (BCC) option. The new BCC procedure means that a buying investor will be paid cash compensation in the event of securities being unavailable for delivery to the buying investor on settlement date.

ASX to extend OTC derivatives clearing solution

ASX plans to extend its new OTC Derivatives Clearing Service to deliver a client clearing solution. This aims to provide important new risk management controls to Australian investors and asset managers, giving them the choice to protect their individual positions and collateral in the event of a significant default. This extension of ASX’s OTC Derivatives Clearing Service is scheduled for delivery by the end of 2013, subject to regulatory approval and customer readiness.

BME participates in enhancing Spanish clearing and settlement system

BME welcomes the publication by the Spanish Stock Market regulator, CNMV, of the document called “The reform of the Registration, Clearing and Settlement System”, whose aim is to show the main progress made in the development of the new securities clearing, settlement and registration system of the Spanish Market. Together with participants and the Spanish supervisory bodies, BME has actively participated in the entire project design through technical committees. Thanks to the contributions of the working groups, the model features more efficient post-trade processes, which help the Spanish market to confront the forthcoming changes at European level.

CCP12 elects new chair, vice chairs and executive committee

On 8 May 2013, the members of CCP12, the Global Association of Central Counterparties, elected the new Chair, two Vice-Chairs and the Ordinary Executive Committee members at its Annual General Meeting held in Busan, South Korea, hosted by the Korea Exchange. The Chair is Siddharta Roy from CCIL (India), and the two vice-chairs are Glenn Goucher from CDCC (Canada) and Marcus Zickwolff from Eurex Clearing.

Clearstream develops customized collateral solutions

Clearstream developed customized collateral management services for customers of Standard Chartered Bank and BNP-Paribas for their mutual clients. On one hand, Clearstream and Standard Chartered have signed a letter of intent that has signaled the start of their development collaboration to enable customers of both Clearstream and Standard Chartered to benefit from the Liquidity Hub Connect collateral management service. This will allow Standard Chartered customers to be able to consolidate their collateral holdings through Clearstream’s Global Liquidity Hub and cover their global exposures from a single collateral pool. On a second hand, a collateral management service developed for customers of both Clearstream and BNP Paribas Securities Services has now been launched across multiple markets and for both fixed-income and equities. The live service enables mutual customers to use Clearstream’s global collateral allocation.

DTCC and Euroclear to launch joint collateral service

Euroclear and the Depository Trust & Clearing Corporation have signed a Memorandum of Understanding to create a joint collateral processing service which will significantly increase efficiency, reduce risk and support the growing collateral needs of industry participants. DTCC and Euroclear will also establish mutual links, permitting firms to manage collateral held at both firms’ depositories as a single pool.

Moscow Exchange to increase maximum amount of foreign currency accepted as collateral for derivatives

Besides Russian rubles, foreign currency and securities may be now used by a clearing member as collateral for derivatives trades to the Moscow Exchange’s clearing. The members may post up to USD 50 m while before only USD 20 m.