T2S - the UK market. Progress and developments. T2S UK NUG chairman PUBLIC

Transcription

1 T2S - the UK market Progress and developments Henry Raschen T2S UK NUG chairman 4 April 2014

2 The UK in Europe Joined the EEC in % of the EU's population; 6% of the land area; 97% of the rainfall One of 10 EU countries still using own national currency 358 UK and overseas banks operating in the UK Most major international investment banks and custodians have a presence in UK UK % of EU securities volumes (*): - traded on London Stock Exchange 29% - settled at Euroclear UK & Ireland 21% Trading in many countries and currencies worldwide Important to distinguish UK market from GBP * figures based on ECB Blue Book 2012 data excluding ICSDs 2

3 T2S and the UK Keenly involved since T2S inception in 2006 Banks, CSD, NCB and trade associations on T2S AG and committees, WGs, TFs etc. London Stock Exchange owns Borsa Italiana Group UK CSD is part of Euroclear Group UK will have substantial participation in T2S through UK-originated trading of EUR denominated securities 3

4 T2S and GBP GBP is the official currency of the United Kingdom, Channel Islands (part), Isle of Man, South Georgia, South Sandwich Islands, Tristan da Cunha and the British Antarctic Territory Benefits of T2S examined extensively by Bank of England BoE very interested in UK market participants' views Views of participants vary substantially 28 Sep 11: BoE wrote to ECB "sterling will not participate in T2S" -cost - governance EUI not offering GBP or EUR settlement in T2S 4

5 UK National User Group First met 3 August 2007 Met monthly until late 2010; nowadays meets before and after each AG meeting Visited by members of the T2S project team Members, minutes and agenda are on T2S website Main topics: Structure of T2S and GBP joining onwards - T2S project implementation and UK harmonisation 5

6 UK and harmonisation Squaring the circle UK intends to use European market best practice Supports T2S's substantial contribution to dismantling Giovannini barriers Some areas of difference remain in: - night time settlement - registration - corporate actions (but general UK conformance to CAJWG) UK? T2S 6

7 UK, GBP, T2S and the future T2S going live Crucial catalyst for consolidation of EU securities post-trade infrastructure Immediate benefits include cross-border costs and collateral management Long term economies of scale A different way of using infrastructure will emerge in Europe T2S will evolve UK and GBP markets will consider further 7

8 Disclaimer This document is issued by HSBC Bank plc ( HSBC ). HSBC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and is a member of the HSBC Group of companies ( HSBC Group ). HSBC has based this document on information obtained from sources it believes to be reliable but which have not been independently verified. Any charts and graphs included are from publicly available sources or proprietary data. Except in the case of fraudulent misrepresentation, no liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. HSBC is under no obligation to keep current the information in this document. You are solely responsible for making your own independent appraisal of and investigations into the products, investments and transactions referred to in this document and you should not rely on any information in this document as constituting investment advice. Neither HSBC nor any of its affiliates are responsible for providing you with legal, tax or other specialist advice and you should make your own arrangements in respect of this accordingly. The issuance of and details contained in this document, which is not for public circulation, does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security, commodity or other investment product or investment agreement, or any other contract, agreement or structure whatsoever. This document is intended for the use of clients who are professional clients or eligible counterparties under the rules of the FCA only and is not intended for retail clients. This document is intended to be distributed in its entirety. Reproduction of this document, in whole or in part, or disclosure of any of its contents, without prior consent of HSBC or any associate, is prohibited. Unless governing law permits otherwise, you must contact a HSBC Group member in your home jurisdiction if you wish to use HSBC Group services in effecting a transaction in any investment mentioned in this document. Nothing herein excludes or restricts any duty or liability of HSBC to a customer under the Financial Services and Markets Act 2000 or the rules of the FCA. HSS Compliance ref: M 2014/18 dated 2 April