task force group reporting - acgcsd.org · year topic notes 2004 fund service acg8, taiwan 2005...
TRANSCRIPT
Task force group reporting
November, 2011
15th
ACG General Meeting
Seoul, Korea
-New Business Initiative Task Force
Contents
Task force overview
Task force topics
Activity in 2011
Future Plans
Task force overview
Founded in 2003
ACG7 general meeting in Indonesia
Initial members
Korea Securities Depository
Singapore Exchange
Taiwan Securities Central Depository
Thailand Securities Depository
National Securities Depository Limited (India)
Hong Kong Securities Clearing Corporation
Task force overview
Purpose Share knowledge experiences on the new service each member adopted or
is about to adopt
Strengthen cooperation between members on new business of common
interests
Expand CSD business areas in the long term
Activities Update activities through the website and the Executive Committee meeting
Select the new topic every year and conduct research
Share updates and experiences on the presentation and breakout sessions
at Cross Training Seminar
Activity report at the general meeting
Task Force Topics
YEAR TOPIC NOTES
2004 Fund Service ACG8, Taiwan
2005 Securities lending & borrowing ACG9, Japan
2006 Cross-border securities transactions ACG10, Pakistan
2007 E-Voting ACG11, China
2008 CSD Linkage ACG12, Singapore
2009 Collateral Management ACG13, Vietnam
2010 OTC Market Service ACG14, Mumbai
2011 E-Voting ACG15, Seoul
Select the research topic for 2011: E-Voting
Conducted Survey on preference among ACG members
E-Voting
What is E-Voting
• Electronic voting system that enables shareholders to access the voting platform to
exercise their voting rights without physically attending general meetings
Purpose
• Alleviate limits of physical meetings such as concentrated and overlapped meeting
places and times
• Increase opportunities to exercise voting rights for minor shareholders as well as
foreign investors
CSD roles
• Provide the voting platform and manage the data
Application
• Hong Kong, Singapore, Japan, Taiwan and Korea
Activity in 2011
The 13th ACG Cross Training Seminar
Hosted by: MSCH&CD, Mongolia, 14-15 September 2011
New Business Initiative Task Force
Presentation Session : E-Voting & New Services
- E-Voting by Thailand Securities Depository (TSD, Thailand)
- E-Voting system for corporates (CDSL, India)
- KSD E-Voting system (KSD, Korea)
- Taiwan Bills Index Rate (TDCC, Taiwan)
Breakout Session : What’s New- Sharing new service updates
- Joined by 18 members from 11 organizations
KSD, CDSL, HKEx, TDCC, CCDC, SGX, HKICL, VSD, JASDEC, KSEI, NSDL
Activity in 2011
Presentation1: E-Voting by Thailand Securities Depository
Post Trade Department of TSD, Thailand
• Designed and developed the voting platform
• Manage the platform and provide the service with skilled staff
• Consulting with the Ministry of Commerce to support E-Voting
Notes
• Reduced time on voting process on 5 minutes per agenda
• Adopted SWIFT message to enable straight through processing (STP), reduce
risks and comply with the global standard
• Working on balancing requirements from participants
• Update (as of Octobor, 2011): Not much progress due to the limitation with legal
protocol especially with our Ministry of Commerce
Activity in 2011
Presentation2: E-Voting System for corporates (CDSL, India)
New Projects of Central Depository Services (India) Ltd.
• Developed and supervised the voting system and data storage
Concept
• Internet-based facility that enables investors to cast their votes anytime anywhere
• Automated system which records votes and gives results instantaneously
• Cost efficient model as compared to physical postal ballot
Notes
• Scope of e-Voting : Postal ballot, annual general meetings and extra-ordinary
general meetings
• Controls in the system
Secured site that complies with BCP & DRS
Compliance to WCAG 2.0 (AA Standards prescribed by W3C)
Activity in 2011
Presentation3: E-Voting System (KSD)
E-Voting Part of Korea Securities Depository
• Studied the model for electronic vote infrastructure (Since 2006)
• Survey on adopting the e-voting system (2008)
• Articles of association approved by Financial Services Commission (2010.4)
• Developed the voting infrastructure and launched the system (2010)
• 5 full time personnel in operating the system
Encouraging more participation
• 37 companies in total have adopted E-Voting (As of ‘11.9)
• Hold seminars and conduct surveys among market participants
Ex) Workshop with ACGA (Asian Corporate Governance Association) members
(September, 2011)
Activity in 2011
Presentation4: TAIBIR :Taiwan Bills Index Rate
Background
• Designed and planned in order to facilitate the development of a sound financial
market by promoting the use of the short-term bill interest rate
• Planning (2009/4) → Rules established (2009/8) → Online (2009/10)
TDCC
• Developed the platform in collaboration with IT vendors
• Upload the index on its website, TAIBIR section & real-time monitoring
Promotion and application
• Valuation models completed by Bloomberg
• Market seminars: Fixed-income products markets seminars, Taipei Foundation of
Finance
• Able to be used to calculate the fair value of financial assets
• Included in the ISDA Master Agreement
Activity in 2011 •Taiwan
•Depository & Clearing
- Breakout Session
*Opportunity to share new service updates among ACG members
*Share new service updates with presentation materials or brochure
Activity in 2011
Organization Topic
KSD News update through KSD Newsletter
Presentation on Next Generation System (IT)
TDCC Presentation on STOCKVOTE
CDSL Sharing brochure on E-voting project
HKICL Presentation on Trade Repository in Hong Kong
CCDC Presentation on Bond Pricing & Personalized Reporting
Service
HKEx Presentation on RMB Equity Trading Support Facility (TSF)
Activity in 2011
Breakout session
Presentation 1. KSD Newsletter
News updates during 2Q 2011
• Opened a representative office in Hong Kong
- Assist outbound investment for participants
(Korean investors, HK investors, KDR services)
• Electronic short-term bond to be launched
- Replacing CP to promote transparent transaction
- The law on electronic short-term bond passed (August, 2011)
- Working on confirming presidential decrees and developing IT system
- System to be launched in January, 2013
Activity in 2011
Presentation 2. KSD’s Next Generation System SAFE+
Background
• Increasing market needs for the system upgrade
• System aging, lack of flexibility and scalability
• Preparation for the electronic securities system
Objectives
• Enhance customer service quality and areas with lower costs
• Process
• Formed a task force for the system upgrade (July, 2007)
• BRP consulting for 6 months
• SI project for 23 months
• Lessons learned
• Define business requirements clearly before the designing stage
• Repetition tests required in each business section
• A slight staff turnover affects the whole process
Activity in 2011
Presentation 3. TDCC
STOCKVOTE – Now & Future
• TDCC built the e-voting platform in 2008 and went online in March
2009
• Through the platform, issuers apply for shareholder meeting, provide
agenda and shareholders’ book and receive voting results
• Shareholders log in with ID to look up agenda, vote and print out
results
• Overcome physical limitations and reach out to diverse investors
and enhance convenient voting exercise
• Need to increase more participation
Activity in 2011
Presentation 4. HKICL
Trade Repository in Hong Kong
• Centralized registry maintaining an electronic database of OTC
derivatives transactions
• A new service to be offered under the Central Moneymarkets Unit
(CMU) of the Hong Kong Monetary Authority (HKMA) and developed
by the Hong Kong Interbank Clearing Limited (HKICL)
• OTC derivatives transaction records are reported to the TR
• Improve market transparency and enhance financial market stability
• Targeted for launch in September 2012
Activity in 2011
Presentation 5. CCDC
Bond Pricing and Personalized Reporting Service
• Value-added services in development
Bond Pricing Service Personalized Reporting Service
- Pricing system developed by
CCDC in 2009
- Complete and comprehensive data
including all kinds of bonds in
different market yield curves and
indices
- Applied by many government
authorities, banks, securities
companies and mutual funds
- Core indicator to observe the trend
of economics
-Bond investment report for each
investor
(Trading volume, bond depository
balance, underwriting volume..)
-Support the market monitoring of
major regulatory authorities such as
PBOC, CSRC, CIRC, MOF and
CNAO..
Breakout Session
Presentation 6. HKEx
RMB Equity Trading Support Facility (TSF) • RMB-traded equities:Key initiative in HKEx’s Strategic Plan
2010~2012
• Solution for providing sufficient and reliable RMB liquidity in Hong
Kong that support the long-term growth and stability of a RMB stock
market segment at HKEx.
• Confined to offshore RMB at least for the initial stage
• Follow existing RMB policy framework and no need to seek approval
from Mainland
• Focus on core objectives of supporting RMB equity trading, not
engaged in simply FX business
• Launch of TSF in October in 2011
Future plans
Topics for 2012
Recommended topics
- Fund Service
- Electronic securities
- Corporate action services
- Information provision services
- Others
Survey on areas of interests among ACG members
• To be conducted in January, 2012
• Share information with ACG members to further exchange information
on services they are interested in
• Upload questionnaire results on the ACG website
Future plans
Research activities
Main theme – The selected topic for 2012
- Research on common interests and current issues
- Participate in Executive Committee activities
Other topics - Provide opportunities to share during Cross Training Seminar
- Follow up on the issues of common interests among ACG members
and increase communication channels
Thank you