CAS-WG - Standards
Chair & Rapporteur:
Darren Pearson - Principal Consultant - TRG Post-Trade Services
Kiri Self, CEO - TRG Post-Trade Services
Venue: BT Centre, 81 Newgate Street, London
- Introduction by DP whom welcomed attendees to the first Standards subject-group meeting.
- DP expressed thanks to BT for hosting the event.
- DP advised that 'Chatham House’ rule applies to facilitate full & frank debate.
- Brief introduction to the floor by each attendee.
- KS reiterated key messages from CAS subject-group launch meeting in February 2012
Meeting Scope & objective
- To discuss & agree 3 initial actionable items for the initial plenary meeting on Wednesday 30 May, 2 - 5pm at The London Stock Exchange, 10 Paternoster Square, EC4M 7LS. Register Here
- DP opened the floor for questions
The following is a list of issues/questions raised & discussed:
Legal Entity Identifiers (LEI’s)
- What will be the impact of the roll-out of LEI’s in July’12?
- What level of mapping & data-base change is likely to be required to facilitate use of LEI’s?
- Will this impact staff-costs?
- Can the industry agree a single instrument id to be the standard applied globally? e.g. cusip, isin, sedol etc
- Can a true 'one-for-all’ security id be enforced by regulators as voluntary-usage is unlikely? *
* It was commented upon by an attendee from ISO that when this very question has been put to regulators previously, regulators have historically felt that any such standard should be agreed by financial-services participants themselves. It was felt that this was very much worth revisiting in the 'new’ climate now prevalent in the industry.
- CCP clearing - Are the existing standards being utilized sufficiently by the market e.g. messaging formats & the impact to trade-data flows.
- FACTA & payment standards - It was requested that retail payments are also incorporated into discussions in this area per interest expressed from the floor.
- T+2 and the impact to post-trade processes e.g. fund allocation, confirmations, and settlement instructions ++. How will this shortened time-line impact these processes? These areas will suffer from timeline 'compression’ so it is hoped that this will feed through to stricter guidelines & discipline in terms of timely trade-bookings. The impact otherwise shall be increased cost in-terms of failedtrades, late-matching, buy-ins which can likely trigger further-issues downstream in Operations.
- T2S - Will this change aid or hinder standards globally?
Agreed actionable items for the subject-groups initial plenary meeting:
- 1/ LEI; - All aspects detailed above
- 2/ LEI; can the industry agree a single instrument id to be the standard applied globally, e.g. cusip, isin, sedol etc?
The Standards Subject Group is focused upon:
- Legal Entity Identifiers (LEI’s) and the Financial Stability Board (FSB)
- CCP clearing
- The Foreign Account Tax Compliance Act (FATCA) and payment standards
- The move to T2S – Will this aid or hinder global standards?
- Unique identifiers in trade messaging
- CCP’s & the use (or not) of existing standards
- Retail banking implications as a result of FATCA developments
- TARGET2 for Securities (T2S) & post-trade compression
The Group has Darren Pearson of the Realisation Group as Acting Chair and is open for nomination for this position.