VP SECURITIES. VP SECURTIES A/S - a financial service company

Transcription

1 VP SECURITIES VP SECURTIES A/S - a financial service company By Birger Schmidt, CCO T2S Info Session, Copenhagen, 1 December 2015

2 1 VP an Introduction 2

3 VP an introduction A financial services company Established in 1980 Central Securities Depository (CSD) in Denmark and Luxembourg Settles securities for more than EUR 5,000 billion per year 3.3 million investor securities accounts Largest supplier of investor services in the Nordic 170 employees Owned by strong players in the Danish financial market 8% 8% 32% Banks and stockbroking companies Bonds issuing companies 24% The National Bank of Denmark Share issuers Institutional investors 28% 3

4 A first mover history First in the world with full dematerialisation of securities First in the world with all registration at final investor level First in the world with fully virtual AGMs First in Europe with the establishment of a CSD in the euro zone (Luxembourg) First in Europe to bring an additional currency to T2S along with the Euro First Nordic CSD on T2S 4

5 Providing capital market infrastructure Issuance security of existence, capital and returns Clearing effective turnover with netting and a low liquidity requirement Issuance Settlement secure exchange of cash for securities (DVP) Safekeeping investor protection and effectiveness for the final investor Interest, dividend, etc. effective distribution to investors Investor communication targeted dialogue between investor and company Clearing Safekeeping Settlement Interest, dividend, etc. Investor communication 5

6 The value chain Core CSD services Value added services: Asset servicing Investor Services Issuing Agent Investment Fund Services Investor Services Issuing Agent Issuance Clearing & settlement Securities account management Asset Servicing 6

7 Clients Nordic banks & brokers Int. banks & brokers Turnover in 2014 Investment Funds Shareholding companies Mortgage bonds issuers CSD/CCP s 12% 8% Nordic banks & brokers Int. Banks & brokers Inv. Funds 6% 56% Shareholding Comp. 14% Mortgage bond CSD/CCP's 4% 7

8 EUR billion Million A growing market Trade Settlement Transactions Unit trust certificates Shares Bonds Growing market value of shares and funds Growing investment fund activity More retail investors in the market Securities in safekeeping accounts 1,200 1, Unit trust certificates Shares Bonds 8

9 European distribution Issuer and investor CSD links Links to major investor hubs Assessed for transfer of collateral within the Euro system VP hub Link established Link to be established 9

10 Benefits of the end-investor accounts VP operates an end-investor account model which provide a number of benefits: Investor protection Asset segregation Compliance reporting (Tax, KYC, etc.) Shareholder/investor reporting Shareholder rights Direct distribution of corporate actions and proceeds 10

11 VP LUX a European hub Established in 2008 The first licensed CSD in Luxembourg Under supervision of the Luxembourg FSA (CSSF) and oversight of the Luxembourg Centralbank (BCL) Issues approved for collateralization within the Eurosystem Business model - to support the issuance of mortgage bonds and investment funds in EUR Will connect to T2S in September

12 2 VP and the T2S project 12

13 T2S a 10 year project After almost 10 years the T2S process is approaching completion Considerable effort has gone into understanding, defining and implementing the new platform The total cost of the adaptation of the VP platform to T2S will exceed 25 mill. EUR At the same time VP will have a modern and harmonized platform The investment will ensure an integrated Danish capital market ECB initiates discussions with the CSD s concerning T2S 2006 VP signs letter of intent with ECB concerning participation in T2S (DKK and EUR) VP joins the preparatory work concerning T2S VP initiates a development project and costs are made. New mortgage bond model is started VP signs Memorandum of Understanding It becomes clear that adherence to all Corporate Action standards is required for T2S participation Board approval and signature for VP and VP Lux s T2S connectivity. EUR in 2016 and DKK in 2018 VP will be connected with DKK VP and VP Lux is connected with EUR in the 3 rd wave 13

14 VP will join T2S in wave 3 12 September 2016: VP and VP LUX join T2S for settlement in EUR Q4 2018: VP expects to join T2S for settlement in DKK SIX SIS VP SECURITIES BOGS Depozitarul Central Malta Stock Exchange NBB Euroclear (ESES) Interbolsa VP LUX CBF OeKB LuxCSD Iberclear Baltic CSDs Euroclear (Finland) CDCP Contingency Monte Titoli (August 2015) Keler KDD Wave 1 22 June 2015 Wave 2 28 March 2016 Wave 3 12 Sept Wave 4 6 Feb Contingency Sept. 2017

15 VP accounts T2S accounts The Layered Model Bankes Inst. investors Brokers Etc. Omnibus account Aggregated T2S users holdings from the VP system Mirroed T2S accounts (proffesionals) Accounts with settlement in VP (retail investors) 15

16 VP s final steps to T2S Preparations: 17 September February 2016 Community testing: 22 February August 2016 Go-live EUR: 12 September 2016 Preparations, testing etc... Go-live DKK: 4Q

17 3 VP post T2S 17

18 VP s service offering 2016/18 Considerable investments in a modern and harmonized platform Scalable and cost-efficient End-investor account model T2S integrated European distribution Re-use of infrastructure to support European/Global securities Harmonized corporate actions Harmonized interfaces (ISO 20022) Compliant with regulatory requirements (CSD-R, IOSCO, EMIR) 18

19 The future is here New regulation (CSD-R, SLL, EMIR, AIFMD, UCITS IV) New infrastructure T2S CSD links New services Updated platform Increased competition National CSD s ICSD s Custodian banks Harmonisation ISO Opening days Corporate Actions T+2 19

20 A trusted partner In a rapidly changing market, we wish - in every way - to be a trusted partner that contributes to developing our customers' business. VP SECURITIES Niels Olsen, CEO 20

21 VP SECURITIES Birger Schmidt T2S Info Session, December 2015 vp.dk/en