The Club

• The Financial Services Club is the number one networking group for senior executives in financial services in Europe

• Now established for eight years, the Financial Services Club attracts the key decision makers involved in banking and technology

• The Financial Services Club runs over 40 meetings a year to network, learn and develop relationships.

• Our activities touch 12,000 people in financial services every day, through our blog and daily news service

CAS-WG

The Clearing & Settlement Working Group (CAS-WG)• A WORKING GROUP• Interpretation of Regulatory Change on Clearing & Settlement

Infrastructures the City (and EU/Global)• Liaison with Regulatory Authorities• Technical infrastructure focus• The MiFID Forum

CAS-WG

• Subject Groups– Risk Subject Group Chair: Paul Young, Associate Director for Business 

Risk Services, Grant Thornton– Market Infrastructure Subject Group Chair: Kathleen Tyson-Quah of 

Granularity Ltd– Standards Subject Group Chair: Virginie O’Shea, Lead Analyst with 

Aite Group– Regulations Subject Group Chair: Rory Webster, Director with 

CapitalTrack Ltd

Agenda

• Update from the Risk Subject Group– Shaun Cooke, Co-Chair

• Update from the Market Infrastructure Subject Group– Kathleen Tyson-Quah, CEO of Granularity and Chair

• Panel Discussion of EMIR– Robin Poynder, Thomson Reuters– Peter Randall, Equiduct– Kathleen Tyson-Quah, Granularity

• Break (15:30)

Agenda

16:00 • Update from the Standards Subject Group

– Virginie O’Shea, AITE Group and Chair

• Update from the Regulations Subject Group– Rory Webster, CapitalTrack and Chair

• Panel Discussion of LEIs– Graeme Austin, ISITC Europe – James Whittle, ISO– Richard Young, SWIFT 

• Close (17:15)

Panel Session 1: The implications of the European Commission consultation paper regarding OTC Derivatives and Clearing

EMIR

• Reduction of counterparty risks by:– Defining the framework for the application of the clearing obligation;– Specifying the risk mitigation techniques for OTC derivatives not

centrally cleared; and– Laying down the requirements for the application of exemptions to

non-financial counterparties and intragroup transactions

EMIR

• Safe and resilient CCPs by:– A comprehensive set of organisational, conduct of business and

prudential requirements for CCPs

EMIR

• Increased transparency by:– Specifying the details of derivatives transactions that need to be

reported to trade repositories;– Defining the trade repositories’ data to be made available to relevant

authorities; and – Setting the information to be provided to ESMA for the authorisation

and supervision of trade repositories.

European Market Infrastructures Regulation • Issued: 25th June 2012• Open Meeting: 12th July 2012• Consultation Closes: 5th August 2012• EU Endorsement: 30th September 2012

Panel Session 1: The implications of the European Commission consultation paper regarding OTC Derivatives and Clearing• Robin Poynder, Head of Regulation, Marketplaces, Thomson 

Reuters• Peter Randall, CEO, Equiduct• Kathleen Tyson-Quah, CEO, Granularity Ltd

Agenda

16:00 • Update from the Standards Subject Group

– Virginie O’Shea, AITE Group and Chair

• Update from the Regulations Subject Group– Rory Webster, CapitalTrack and nominated Chair

• Panel Discussion of LEIs– Graeme Austin, ISITC Europe – James Whittle, ISO– Richard Young, SWIFT 

• Close (17:15)

CAS-WG Standards

Chair Virginie O’Shea(post-trade technology analyst at Aite Group)

Too many cooks?

Standards Group Agenda• To highlight work that is currently ongoing within the industry 

around data standards and market practices in the post-trade space

• To identify the common points of interest/pain within these groups and facilitate communication across groups (buy-side/sell-side etc) – reduce duplicative work

• To examine how all of this work will impact the clearing and settlement lifecycle as a whole – are we pushing risk further down the process?

Don’t ignore what’s going on around you…look at the bigger picture.

Aims• Tracking industry standards and market practices 

progress – living document• Identify areas of common interest • Map to clearing and settlement lifecycle – where 

are groups missing a trick?• Which data standards are currently being used by 

the incumbent market infrastructures?

Keeping in mind ESMA’s trade reporting proposals

• ID standards: Mention of LEI, BIC and BEI; unique trade identifier; unique product ID

• Clearing – market practice implications• Trade repository reporting market practices

Areas of FocusTopics closest to the top of your agendas that we should focus on initially:

• New data standards – LEI, UPI, USI, UTI etc• Messaging standards – FIX, ISO, FpML etc• Market practices for C&S process- allocation, 

confirmation, affirmation, settlement , low tech clients, reconciliation

• Regulatory influence – which pieces of regulation can we have a material impact upon?

• Points of interaction between clients and firms – how do we change downstream issues? Can standardise internally but point of entry remains a problem

• Cultural issues internally – raising the profile of these standards issues for C-level

• Global dynamics – are we on the same page?

Regulations of interest• MiFIR/MiFID II• EMIR• CSD Directive• Securities Law Directive• Dodd-Frank• Solvency II (for buy-side)• FATCA• Basel 2.5 and III• Financial stability/living wills regulation

Next steps• Which pieces of regulation can be influenced?• Where are market practices lacking? Review common 

areas of focus across working groups• What can be learned from other markets?• How do we make post-trade teams’ lives easier?• Contributions to the living document and priority list• Keeping an eye on infrastructure developments…

FSB’s List of Trade Repositories

Interest rate

DTCC DDRL (U.K.)

Regis TR (Luxembourg)

HKMA (Hong Kong)

DTCC DDR (U.S.)

ICE Trade Vault  (U.S.)

Reval (U.S.)

Credit

DTCC-WT (U.S.)

DTCC DDR (U.S.)

ICE Trade Vault  (U.S.)

Equity

DTCC DDRL (U.K.)

Regis TR (Luxembourg)

DTCC DDR (U.S.)

Commodities

DTCC-EFETnet  (Netherlands)

Regis TR (Luxembourg)

ICE Trade Vault  (U.S.)

DTCC-GTR (U.S.)

Reval (U.S.)

FX Derivatives

DTCC-SWIFT-DDRL (U.K.)

Regis TR (Luxembourg)

HKMA (Hong Kong)

DTCC DDR (U.S.)

ICE Trade Vault  (U.S.)

Reval (U.S.)

Agenda

16:00 • Update from the Standards Subject Group

– Virginie O’Shea, AITE Group and Chair

• Update from the Regulations Subject Group– Rory Webster, CapitalTrack and nominated Chair

• Panel Discussion of LEIs– Graeme Austin, ISITC Europe – James Whittle, ISO– Richard Young, SWIFT 

• Close (17:15)

Panel Session 2: The market implications of LEIs (Legal Entity Identifiers) with the G20 requirement for a central repository• Graeme Austin, ISITC Europe • James Whittle, ISO• Richard Young, SWIFT 

CAS-WG

• Subject Groups– Regulation– Risk– Standards– Market Infrastructures

• If you want to join a Subject Group, sponsor the CAS-WG or more on the Financial Services Club– email: events@fsclub.co.uk or admin@balatroltd.com– tweet: @FSClub

• Next plenary meeting planned for September 2012