Message from Secretariat ACG

Transcription

1 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE Edition I - July, 2004 Message from Secretariat ACG Dear ACG Members, Welcome to the 1 st edition of ACG Newsletter in year 2004 We are very pleased and proud that we have been elected as ACG secretariat for the period of 2004 and we have also been given the opportunity to share information with ACG members by issuing ACG Newsletter. In this first edition for the year 2004, we have slightly different presentation of information. To keep up with the developments in international capital markets, the editor interviewed Deutsche Bank AG, Singapore, Ms. Elizabeth Chia, the Head of Product and Client Management, and Bursa Malaysia Bhd, represented by Mr. Suresh Maniam M, Manager, Business Development & Customer Relation Division, Clearing, Settlement & Depository. As pointed out in the recent General Meeting of ACG7, there has been an addition of 1 task force for accommodating new initiatives that might later become new products or services for CSD. Therefore, in this newsletter, we provide information from Thailand Securities Depository Co.Ltd (TSD), Korea Securities Depository (KSD), Indonesian Central Securities Depository (KSEI) and Indonesian Clearing & Guarantee Corp. (KPEI). We hope this first edition of ACG Newsletter will become a useful additional reference for all members and we highly appreciate all inputs and criticisms. KSEI KPEI Secretariat ACG

2 Contents Contents * Message From Secretariat ACG * ACG 7, Sharing Experience In The Island Of God * ACG7 Photographs * Interview With Deutsche Bank AG, Singapore * Post Demutualization Of Bursa Malaysia (Experience and Challenges) * KSD - Opening Indirect Investment * TSD - Future development * KSEI - Implementation Of Post Trade Processing * KPEI - Progress Update * ACG Members List ******* 2

3 ACG7, SHARING EXPERIENCE IN THE ISLAND OF GOD INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE ACG 7, SHARING EXPERIENCE IN THE ISLAND OF GOD KSEI and KPEI have successfully hosted the 7 th General Meeting of the Asia Pacific Central Securities Depository Group (ACG7) at The Ritz Carlton Hotel, Jimbaran, Bali. At the end of the program, the participants coming from 17 Central Securities Depositories from the Asia Pacific countries agreed to exchange information and experience for the development of ACG. The splash of waves of the Jimbaran beach, the strains of the Rindik music and Welcome dance through the supple movements performed by the Balinese traditional dancers marked the opening ceremony of the 7 th General Meeting of the Asia Pacific Central Securities Depository Group (ACG7) held at The Ritz Carlton Hotel, Jimbaran, Bali. As the host, KSEI and KPEI were continuously praised by the delegates consisting of 35 participants from 17 Central Securities Depositories (CSD) in the Asia Pacific countries and 30 invitees from Bapepam, the Association and the sponsor of the program. Bali s exotic Nature and panorama also supported the program that had been prepared by the committee with thumping heart. The annual program held on last October 2-3, 2003 was opened by KSEI Commissioner I Nyoman Tjager, KPEI Commissioner Agus Muhammad, and Bapepam Chairman Herwidayatmo. The three persons emphasized the need for the improvement of infrastructures in the capital market industry and expected all delegates in the meeting to co-participate in contributing their ideas and sharing their experiences in order to achieve the mission of ACG, which was established 7 years ago. Prior to the ACG7 s meeting session, the practitioners in capital market industry and the banking industry from all over the world shared their experiences. Lim Choo Peng shared his experience regarding the role of CDP in the process of demutualization. Subsequently, the discussion panel under the theme of Improving the Financial Industry s Handling of Collective Investment Vehicle discussed whether CSD could become the facilitator for investors and agents it appointed in settlement of mutual fund transactions. The speakers in the discussion panel comprised Lieven Van de Brande of Capco, Alastair Murray of HSBC, Paul Hedges of Standard Chartered Bank, and Dennis Ngan of Deutsche Bank, emceed by Gagan Rai of NSDL, India as the moderator. The topic of the discussion panel was quite interesting particularly for Indonesia s capital market, which has recently been paying its large attention to mutual fund instrument. At present in Europe, mutual fund settlement is considered inefficient, complex and relatively high-cost. Such condition produced an idea to develop a standard for trade message, connectivity, business practice and reporting and other processes related to the activity of mutual fund. 3

4 ACG7, SHARING EXPERIENCE IN THE ISLAND OF GOD The main program was held on October 2 after lunch and on October 3, preceded by the sharing session from every CSD regarding the achievement and development that are on the way or planned for the subsequent years. The information given by each CSD delegate was quite interesting and beneficial to other delegates so that many questions were raised at the session, such as for example account structure and development plan in conducting direct reporting to the level investors through internet. The next meeting session held on October 3 was focused more on discussion among the task force members with the main agenda of discussing matters such as the Best Practice, Exchange of Information, Technology, Settlement and Risk Management as well as Cross Border Linkage. The members of the task force agreed to implement their respective missions aimed at strengthening communication and coordination in providing inputs for the members by using comparative survey and analysis from the distributed questionnaires. The result will be disclosed through presentation made by the chairpersons of each Task Force at the general meeting. During the discussion about the Task Force Exchange of Information, one of the members admitted to know absolutely nothing about the straight through processing (STP) issue and its benefits for the CSD in his country, which is still domestic investor oriented. Based on the result of the discussion, it was concluded that exchange of information had not met the need of the members yet so that a solution was required. The distribution of questionnaires alone was considered ineffective enough because every task force distributed questionnaires with almost the same content so as to cause trouble for the members. As a whole, the series of discussions chaired by Benny Haryanto, the President Director of KSEI appointed then as the chairman by ACG members, run well and dynamically. With his leadership style Benny asked ACG members to review the existence of task forces formed in 1998 at the 3rd General Meeting in New Zealand and whether the five task forces namely the Best Practice, Settlement & Risk Management, Exchange of Information, Technical and Cross Border Linkage are still relevant under the present development. We do not want the task force team members to only function to collect questionnaires without knowing what to do with the results, said Benny referring to the explanation given by ACG members when they passed on information regarding the development of each member. Some of the members were in the process and some have successfully developed the products that have value added services for the participants. The products were among other things, mutual fund settlement, and direct reporting to the level investors or discussion on CSD s role in implementing good corporate governance. Benny recommended the formation of task forces that accommodate or discuss the initiative of developing new products for CSD and those needing information from other CSDs that have successfully developed the 02 and 04 October Bali, Indonesia products. The Thailand Securities Depository and the Taiwan Central 4

5 ACG7, SHARING EXPERIENCE IN THE ISLAND OF GOD INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE Securities Depository have, for example, successfully developed back office service for mutual fund. Meanwhile, India ha implemented STP for the delivery of contract notes from brokers to custodian banks and investment managers, almost similar to the system being developed by KSEI, namely Post Trade Processing (PTP). At the session, CSDs from other countries such as Hongkong, Japan, Singapore, Taiwan, Thailand, Bangladesh and Malaysia shared their opinions. At the end of the discussion, the participants agreed to merge the ce Best Practice and the Cross Border Linkage into the Exchange of Information Task Force. A new task force was formed namely, the New Initiative Task Force to accommodate discussion on the development of new CSD s products in Asia Pacific, accordingly, the number of the Task Force becomes 4, namely; the Settlement Risk Management, Exchange of Information, Technical and New Initiatives. Due to the fact that KSEI and KPEI hosted the ACG7 meeting, KSEI- KPEI are automatically appointed as the secretariat of ACG7 which will end until the organization of the ACG 8 to be held in Taiwan in KSEI- KPEI s tasks are among other things publishing newsletters and cooperating with all existing task forces to obtain and disseminate information to all members of ACG. The series of the ACG7 program ended on October 3, 2003 evening packed under a farewell dinner party with the background of the Bali Fair. Similar to that at the welcome cocktail at the opening ceremony, all guests had fun time and enjoyed the dynamic and exotic Balinese atmosphere. The àla Bali dinner became more glittering when the Balinese dancers managed to persuade the discussion participants to dance together on the stage. All ACG7 working team members convey their gratitude for the appreciation given by all the delegates and guests. See you again in the ACG8 to be held in Taipei, Taiwan. BARONG 5

6 ACG 7 PHOTOGRAPHS 6

7 ACG 7 PHOTOGRAPHS 7

8 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE Head Of Product & Client Management, Asia Pacific As we have mentioned before, we intend to publish interviews with executive who have a long experience in the finance industry. In this edition of the ACG Newsletter, we interview the Deutsche Bank AG, Singapore represented by Elizabeth Chia, who so gladly wished to exchange views, information may turn out to be interesting discussion material for the coming 8 th ACG General Meeting in Taiwan this year. May it be useful. Financial Market Infrastructures There is an opinion stating that Financial Market Infrastructures obtain a very competitive pressure, such as: First, the competition between stock exchange and clearing and settlement Organization. Second, non-financial institutions providing trading services, clearing and settlement services to financial markets. Third, large custodian especially global custodian. Do you agree with this opinion? How do you see it as a leading custodian bank in this region? From a custodian perspective what is the risk implication of that pressure. In a given market place, a number of different organisations are bound to perform specific roles for their individual customers, often serving one another in the process and benefiting from this. Stock exchanges and depositories have clearly defined roles, to facilitate trading and clearing/settlement for their members or customers, respectively. They provide adequate and robust infrastructure and, though their customers may overlap, are not really able to fulfill all customer needs on their own. Global custodians are bringing investments into those markets where they are being serviced by domestic custodians; both may do similar work but their orientation and function are quite different and, thus, both parties can co-exist. In this environment of proven and professional providers, non-traditional institutions face the challenge to find a proposition for their clients while adding value to the market and finding ways to work with other market participants. In Europe, the debate is on about the preference for a vertical model (one organisation provides trading/clearing/settlement) or the horizontal model (different organisations provide specific services). Either way, the providers performing the individual services will have to live up to the value expectations of their client base, and organisations not committed to this process, regardless of which system they prefer, will face an uphill battle in any market place. 8

9 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE The last few years of continuous development in the Asian markets have allowed market participants to identify, ring-fence, and largely cover in an adequate manner the risks arising in the securities market. New risks are created from new products and new processes but are typically quickly explained and addressed with proven methods. It is not to be doubted that financial market infrastructures are facing challenges in this matter, namely high technology requirement to be more efficient and benefits for shareholders. What do you think of this kind of opinion? Do you think that financial market in Asia Pacific is much more than ready in facing these challenges? Technology is certainly an important factor in addressing current and future challenges in our industry. However, the correct application of technology remains crucial. Cutting edge, web-based reporting systems may be of limited use if market participants cannot connect their systems to a depository or pre-match automatically, as STP and real-time feeds will continue to be goals, not achievements. Technology does not have to be big and complicated, as the demise of GSTPA has shown. Today, technology is cheaper and easily available. Most often, measured improvements are better placed to achieve significant results. Here, the willingness to address outstanding issues is as important as the tools to make it happen. This is where the Asian markets are more than ready to move ahead. You might be aware that some of the central depository or clearing & settlement organization are working hard to develop single platform communication or system solutions to provide value added services for capital market transactions by maximizing the high technology to reduce risk, reducing cost and efficiency. However, the market participant such as custodian have different point of view by giving their argument that central depository business strategy should not enter into their core services, i.e. mutual fund settlement, central matching or direct reporting to investor. What do you think of this? At the time of physical settlement, the market called for central depositories that could make all that paper go away, consolidate the often fragmented settlement process and provide a safe and reliable environment for domestic and foreign investors. The depositories had a formidable job on their hands but have nonetheless achieved this target. In the meantime, the market and the focus of the investors have moved on.today, market participants are concerned about transaction costs and processing speed as they face their clients in an ever increasing competitive environment. Again, they are looking at the depositories as proven, and central solution providers to address those challenges, e.g. lower costs, access to more securities, and interfaces where there are none. As a result, both parties are servicing their clients, the depositories the market participants and the market participants the investors in turn. In the area of risk or market initiatives, both parties are working together for the benefit of the market and, ultimately, of the investors. These roles seem to work well for all parties and make up a significant portion of the confidence investors have for a particular market. 9

10 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE Going forward, there is definitely a need for one or more service providers to provide centralized communication hubs and additional facilities such as trade matching to improve efficiency and reduce systemic risk in the capital markets. In the mutual fund industry, different markets have found their own solutions or over time, solutions have evolved to satisfy participant requirements or the general needs of the market. The overall benefits at the transactional level will include market efficiencies and better risk management making further contributions toward development of the capital market. For instance, in Indonesia, the development and growth of the mutual fund industry has not only provided individual investors with an alternative investment choice to a bank deposit but is also becoming a significant pool of funds for the capital markets. Mutual funds are significant holders of recap bonds. Examples from markets around the world do not indicate any one business model for a central depository. In the trade transaction lifecycle, market participants are constantly moving along the value chain in an effort to fine tune services or seeking opportunities to improve services. These changes ultimately make the market more efficient. An infrastructure utility such as a central depository will be characterized as being reliable, having sound IT infrastructure, is reputable, having relationships with critical financial institutions and is strategically placed to service key market participants such as brokers, custodians, insurance companies, banks. These characteristics and their strategic placement in the financial market places a central depository in an advantageous role in providing related and ancillary services, should it choose. In the United States, the post trade processing stage of the mutual fund industry has been well served by a single service provider which is largely a private enterprise. In Europe there are several products which are basically communication hubs between participants, for example, between a bank distributor and a transfer agent in the processing and settlement of a mutual fund application transaction. These services are being provided by communication companies with an established reputation, highly regarded by the financial institutions, have systems with a high level of security and built with a robustness to handle high transaction volumes of high value. These systems also operate cross-border and can handle in multiple currencies. What this illustrates is for any particular market there is no one solution. The market environment and the particular forces at play may determine the solution. A vacuum may exist where in any particular market there may not be a viable domestic service provider or an external solution may not be practical. In such a situation, as a public policy issue the capital market authorities may not want to leave it up to market forces, or time may not allow and may therefore take the 10

11 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE initiative. A central depository as an existing infrastructure utility would be a prime candidate for providing services such as mutual fund post trade settlement or central matching facility. In some markets the central depository is already providing this type of functionality. Can a central depository make the jump to providing an expanded range of services? This can be done, but it must becareful not to move too far away from its core competency of providing market infrastructure for the capital markets. The dangers may arise when the provision of services becomes too remote from these competencies such as servicing retail investors. Another consideration will be to ensure there is a real need by the targeted financial institutions for the services and they are attractively priced. 11

12 Post Demutulalization Of Bursa Malaysia (Experience and Challenges) In the beginning of January 2004, Bursa Malaysia Berhad (formerly known as Kuala Lumpur Stock Exchange) has completed its conversion into a public company limited while at that very same time a demutualization process was also conducted turning KLSE into the Exchange Holding Company, the now renamed Bursa Malaysia Berhad. Indonesia and perhaps other capital market institution of the Asia Pacific region are now making a feasibility study on or are undergoing demutualization. Let us now observe an interview we made with Mr. Suresh Maniam M, Manager, Business Development & Customer Relation Division, Clearing, Settlement & Depository, Bursa Malaysia Bhd, and hope that we may come up with useful information for a discussion. What reason or factor caused the Bursa Malaysia Berhad (formerly known as Kuala Lumpur Stock Exchange) to conduct demutualization? a) Competitive pressure faced from the following: i) Globalization and deregulation ii) Advances in technology iii) Market participants are becoming increasingly sophisticated. b) The needs to strategically reposition itself to meet and address the competitive performance-oriented environment, and remain a relevant player in the regional and global capital markets, it has to demutualize and broaden its outlook to all its strategic stakeholders. How did Bursa Malaysia determine the demutualization model? Upon review of various legal requirements and other demutualised and listed exchanges corporate and organisation structures, taking into consideration the local requirements and environment, to ensure that it would be better poised to face current and future challenges. How would you describe the environmental changes following demutualization? c) Economy i) more efficient and competitive framework for market institutions; ii) greater efficiency and competitiveness will lead to reduced cost of capital and better allocation of scarce resources; iii) enhanced promotion of external relationships, where business alliances contributes positively in areas of foreign direct investment (FDI), trade, inter-government relations, etc; and iv) increased ability to retain participation of domestic companies and investors in the local capital market. 12

13 Post Demutulalization Of Bursa Malaysia (Experience and Challenges) d) Capital Market i) broadened representation of stakeholder groups in the demutualized KLSE s governance; ii) reduced costs stemming from efficiency improvements which can be passed back to market participants and iii) improve overall market competitiveness; increased participation from a broader group of stakeholders, which would provide increased international coverage of the Malaysian capital markets and utilise competitive pressures to Malaysian securities industry to increase levels of professionalism and sophistication; e) Exchange itself i) increased efficiency, accountability and transparency, driven by value creation objectives; ii) iii) iv) customer driven approach, thus ensuring interests of a broader set of market participants are taken into account; increased speed and flexibility in decision-making to keep pace with the dynamic marketplace, and enhanced ability to raise capital to fund critical investments and business expansion. Was there any impact towards operations occurring at Bursa Malaysia Depository (formerly known as MCD) specifically? Did any extreme structural changes take place? Yes, whereby the operational and management of the depository was consolidated into Clearing, Settlement and Depository Business Unit which comprise of Bursa Malaysia Securities Clearing Sdn Bhd, Bursa Malaysia Derivatives Clearing Bhd and Bursa Malaysia Depository Sdn Bhd. How did Bursa Malaysia socialize its organization s structural changes, which of course influenced the efficiency of every related work process? The Exchange has recently gone through an organisation restructuring with departments with similar functions being consolidated while new divisions were created to undertake new challenges. Can you mention some of the challenges ahead brought by the new structure? f) More Professional: the exchange has to be more customer friendly and less solutions-oriented, less bureaucratic and more businessdriven. g) Sensitive: continuously look out for investors interests e.g. cost effectiveness, corporate governance, innovation, etc. h) Lead Development of Capital Market: initiate more business development and implement in a timely manner; adopt best practices and ensure practicality to both domestic and international players, etc. 13

14 Korea Securities Depository (KSD) KSD Opening Indirect Investment Asset KSD Deposit Opening & Settlement Indirect Investment System Asset Deposit & Settlement System The Korea Securities Depository (KSD) launched the Indirect Investment Asset Deposit & Settlement System on April 6, The launch of the system has made KSD the single gate of the deposit & settlement of the collective investment vehicles of all financial institutions. The system integrates and manages trade confirmation, instruction delivery, settlement method, fund-byfund method, etc. In addition, it standardizes the deposit & settlement services of securities including stocks, bonds, and CDs managed within the indirect investment assets. With the launch of the system, physical beneficiary certificates will be replaced with electronic beneficiary certificates, dramatically improving the infrastructure of the fund deposit and settlement. In addition, the fund-by-fund deposit and management will make it possible for the asset management companies, trustees, and servicing companies who manage the same funds to compare and confirm their records at any time. The newly launched system is expected to improve business efficiency and transparency. Under the previous system, financial institutions had different settlement systems and different process methods, resulting in low efficiency and transparency. Furthermore, the system, which is based on the network of institutional investors, is expected to accelerate digital innovation in the securities and financial market, greatly contributing to the earlier-than-expected realization of T+1 and STP in Korea. 14

15 Thailand Securities Depository(TSD) Thailand Securities Depository Future Development Online Initial Public Offering (IPO Online) To enhance the ability of issuing companies to mobilize funds by listing their securities on The Stock Exchange of Thailand (SET), the TSD has developed the Online Initial Public Offering (IPO Online). This share subscription online program will be the central system for lead underwriters, underwriters and selling agents to process subscription transactions using the same system and to access and inquire online information on a real time basis. This will help reduce both the investment and operational costs of securities subscription by helping reduce information gathering time, the number of processes used, and human errors from re-keying, etc. TSD Website As TSD s website: is one major communication channel for service users to contact us, we will develop it to be a source of timely information and be increasingly user-friendly. What s more, the TSD website will be the information center for five key services (Securities Clearing and Settlement, Securities Depository, Securities Registration, Fund Registration and Back Office Service Bureau). The new version of the TSD website will be launched in the year Development of Real Time Gross Settlement: RTGS To support the clearing and settlement of any financial instrument innovation and to serve as an alternative channel of clearing and settlement for users, the TSD, in collaboration with our stakeholders, will develop the Real Time Gross Settlement system. Shortening the Settlement Cycle to T+2 in Acknowledging that a shortened clearing and settlement cycle helps the securities industry to reduce risk and enhances the liquidity in the clearing and settlement system, the TSD will cooperate with the clearing and settlement stakeholders to overcome any problems and find any needed solutions to assure the readiness of the system for market participants in order to shorten the settlement cycle from T+3 to T+2 in the year Enhancing Securities Borrowing and Lending in the Thai Capital Markets. The TSD plans to conduct a study on establishing a Securities Borrowing and Lending (SBL) market. The study will enhance the SBL business in the Thai capital markets and increase the efficiency of risk management practices in our clearing and settlement system. Additionally, the SBL business will serve as another choice for investors for increasing their income. Development of Businesses and Architectures for Post-Trading Solutions Recognizing the capability and readiness of the Thai capital markets to follow the Straight Through Processing (STP) concept, the TSD, in 2003, cooperated with the SET to develop businesses and architectures for posttrading solutions in our project called Post-Trade Integration. This project is to render flexibility in providing services to support the progress of the Thai capital markets. In 2004, the TSD will continue to develop its STP system to accomplish our objective to support the Thai capital markets with the most efficient integration post-trading system available. The primary system is expected to be in operation in

16 INDONESIAN CENTRAL SECURITIES DEPOSITORY (KSEI) Post Trade Processing KSEI Since 1 th July 2004 KSEI has implement a new feature in the C- BEST, namely Post Trade Processing (PTP). In March 2004, KSEI introduced the PTP feature to Securities Companies (SC), Investment Managers (IM) and Custodian Banks (CB), and have so far obtained positive response from them. The realization of PTP is expected to improve the quality of STP (Straight Through Processing) in Indonesian capital markets. And as the final objective, it is expected that the efficiency in the workflow and transaction settlement risk can be improved. Investment Managers and Account Linkage Previously, C-BEST can only be accessed by securities companies and custodian banks. After the application of PTP in C- BEST, investment managers will also have access to engage in the activities of securities transaction through C-BEST. One investment manager can be linked to one or several subaccounts managed by one or several participants (SC and CB). However, one sub-account can only be linked to one investment manager. An investment manager who has been linked to a sub-account can see the detail of the relevant sub-account as well as the balance of securities owned by the investment manager in the sub account. Trade Confirmation (TC) With the integration of PTP into the C-BEST, a SC will no longer need to send trade confirmations (TC) by mail or facsimile. The CB can send the confirmation through C-Best and it is directly sent to the investment manager concerned. When a SC has entered a TC to the C-BEST, the relevant investment manager can directly see this confirmation on-line. The investment manager can directly accept or refuse the TC sent by the SC through the available function. Settlement Instruction (SI) Another facility provided for investment managers by the C- Best is Settlement Instruction Creation. This function is used to allocate securities/funds to be appropriated to settle transactions and at the same time to send a settlement instruction to the relevant custodian bank and stock exchange member. This PTP module also provides a facility for inquiry of TC, SI and OTC instructions that makes it easier for stock exchange members, custodian banks and investment managers to monitor PTP transactions from the beginning up to the settlement of the transaction. With the introduction of this new PTP module and 161 stock exchange members and 18 custodian banks directly linked through the C-BEST, in addition to the inclusion of investment managers as one of C-BEST users, Straight Through Processing (STP) in Indonesian capital market is expected to be achieved. 16

17 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE INDONESIAN CLEARING AND GUARANTEE CORPORATION (KPEI) Progress Update Surabaya Stock Exchange and Indonesia Clearing and Guarantee Corporation (KPEI) had launched the trading, clearing and settlement of Foreign Index Market on Tuesday, 27 April These indexes are Dow Jones Industrial Average Index (DJIA) and Dow Jones Japan Titan 100. The trading process commence through the trading system workstation - Futures Automated Trading System (FATS) client places order through broker, where broker will input the client s order into FATS workstation. FATS will match the sell and buy order based on price and time priority. Executed trades are reported real time. At the end of trading day, executed transaction will be transmitted to KPEI for clearing, trading and margin call calculation. KPEI clears trades based on the open position, movement of price during trading hours, daily price from the market and final price from underlying market. KPEI performs clearing process through mark to market during trading hours, mark to market at the end of day and mark to market on settlement date. All member are obliged to pay for initial margin amounted to IDR 400 millions therefore all trades are validated against his/her initial margin. If certain members suffer loss equals to certain percentage from initial margin, the exchange will limit their transaction and KPEI will call for intra day margin. The commencement of the project hopefully will increase the variety of investment product for investors. Beside Futures Index, KPEI has completed its Options, Clearing and Settlement project with Jakarta Stock Exchange. In order to have successful implementation, several functional and technical testing of the system had been done to ensure it works as planned. The implementation of the project is still waiting for the approval from Securities Exchange Commission (Bapepam). Today, In order to expand its business service, KPEI is currently undertaking three main projects; the three main projects are clearing and settlement of Corporate Bonds, Government Bonds and Repo. The clearing and settlement of Corporate Bonds is the joint project among Surabaya Stock Exchange, KSEI and KPEI whereas Government Bonds and Repo is joint project with Bank Central of Indonesia. 17

18 ACG - Members List NO ACRO NAME NATION WEBSITE 1 SFE Austraclear Limited Australia mstockleysmith@sfe.com.au 2 SFE Austraclear Limited Australia dmonk@sfe.com.au a 3 ASTC ASX Settlement & Transfer Corporation Pty Limited 4 CDBL Central Depository Bangladesh Limited 5 CDC Central Depository Company of Pakistan Limited 6 CDP The Central Depository (Pte) Limited Australia angus.richards@asx.com.au Bangladesh cdbl@bol-online.com Pakistan diwan@cyber.net.pk Singapore janegoh@sgx.com 7 CDSL Central Depository Services (India) Limited 8 CDSL Central Depository Services (India) Limited India hitendra@cdslindia.com India cyrusk@cdslindia.com 9 SD&C China Securities Depository & P R China rlu@chinaclear.com.cn Clearing Corporation Limited 10 SD&C China Securities Depository & P R China jzchen@chinaclear.com.cn Clearing Corporation Limited 11 HKMA Hong Kong Monetary Authority Hong Kong Esmond_KY_Lee@hkma.go v.hk 12 HKMA Hong Kong Monetary Authority Hong Kong Stanley_TK_Chan@hkma.go v.hk 13 HKSCC Hong Kong Securities Clearing Hong Kong walreisch@hkex.com.hk Company Limited 14 HKSCC Hong Kong Securities Clearing Hong Kong derrickpyfung@hkex.com.hk Company Limited 15 HKSCC Hong Kong Securities Clearing Company Limited Hong Kong vickychan@hkex.com.hk 16 JSCC Japan Securities Settlement and Custody, Inc. Japan k-nishimukai@jssc.co.jp 17 JSCC Japan Securities Settlement and Japan m-suzuki@jscc.co.jp Custody, Inc. 18 KSD Korea Securities Depository Korea helen@ksd.or.kr 19 JASDEC Japan Securities Depository Center, Inc. 20 JASDEC Japan Securities Depository Center, Inc. 21 CDS Central Depository Systems (PVT) Ltd 22 CDS Central Depository Systems (PVT) Ltd Japan t-kumakura@jasdec.com Japan k-matsuura@jasdec.com Sri Lanka renuke@cse.lk Sri Lanka rajeeva@cse.lk 23 MCD Malaysian Central Depository SDN BHD Malaysia donna@klse.com.my 18

19 INTERVIEW WITH DEUTSCHE BANK AG, SINGAPORE ACG - Members List NO ACRO NAME NATION WEBSITE 24 NSCCL National Securities Clearing Corporation Ltd. 25 NSDL National Securities Depository Limited 26 NZCSD New Zealand Central Securities Depository India India info@nsdl.co.in New Zealand katzp@rbnz.govt.nz 27 PCD Philipine Central Depository Inc. Philipine nellie_dagdag@pcd.com.ph 28 PCD Philipine Central Depository Inc. Philipine jon_llamzon@pcd.com.ph 29 KPEI PT Kliring Penjaminan Efek Indonesia eddy.sugito@kpei.co.id Indonesia 30 KPEI PT Kliring Penjaminan Efek Indonesia hoesen@kpei.co.id Indonesia 31 KSEI PT Kustodian Sentral Efek Indonesia benny.haryanto@ksei.co.id Indonesia 32 KSEI PT Kustodian Sentral Efek Indonesia endang@ksei.co.id Indonesia 33 SCANS Securities Clearing Automated Malaysia fathi@klse.co.my Network Services Sdn Bhd 34 SCANS Securities Clearing Automated Network Services Sdn Bhd Malaysia lim_lb@klse.com.my 35 UzSCSD State Central Securities Depository republic of mf@deponet.uz of the Republic of Uzbekistan Uzbekistan 36 UzSCSD State Central Securities Depository of the Republic of Uzbekistan republic of Uzbekistan yadgarov@deponet.uz 37 TSCD Taiwan Securities Central Depository Co. Ltd Taiwan R.O.C e855110@tscd.com.tw 38 TSD Thailand Securities Depository Co. Ltd 39 TSD Thailand Securities Depository Co. Ltd Thailand kongkeaw@set.or.th Thailand contact.tsd@set.or.th 40 - Thomas Murray jwoodhouse@thomasmurray. com 19

20 BALI Indonesia Asia Pacific Central Securities Depository Group NEWSLETTER Secretariat: Indonesian Central Securities Depository (KSEI) Jakarta Stock Exchange Building, 1 st Tower 5 th Floor Jl. Jend. Sudirman Kav Jakarta Ph. (62-21) , Fax (62-21)