Concept of Link-Up Markets
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Transcript Concept of Link-Up Markets
October 2011
AMEDA Conference, Cairo
Joint Venture partners
Ten leading CSDs
Link Up Markets
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Efficiency by interoperability
Past
Link Up Markets model has replaced
inefficient set-up
Single point of access for CSDs to participating
markets
Easy implementation of enhanced CSD-links
Reuse of efficient local infrastructures
Absorbing differences in market standards
Best-in-class CSD services for all asset classes
and multiple currencies
Continuous harmonisation of market practices
Flexible extension of market coverage in
Europe and beyond
Successful launch on 30 March 2009
Other CSDs
Today
Link Up
Markets
DIRECT CROSS-BORDER ACCESS via local CSD infrastructures
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Business opportunities for Issuer CSD
Become counterparty of foreign Investor CSD
Expansion of customer base
Efficient management of incoming link portfolio
Attract more inflow by providing efficient services
“As close to market as possible”
Upgrade of existing CSD links to full service
Participate in market harmonization efforts
Position themselves as gateway into the region
Own domestic market
Single window into their regional network
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Business opportunities as an Investor CSD
Transform business model to become specialised
custodian for outbound business
Diversify services
Generate new revenue stream
Build cross-border capabilities in-house
Streamline existing cross-border business
Direct access to markets at domestic CSD cost
Simplify setup and maintenance of links
Harmonization as a result rather than a pre-requisite
Access 50% of European, 90% of African markets
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Strategic Positioning for CSDs
“Close the gap” reasons
Opportunity to “benchmark” service offering to other
CSDs in the fast evolving post-trading environment.
Independence
Strengthen market and product position, while still options
available for regional strategy
Educational factor and Know-How transfer
Joining Link Up Markets offers comprehensive and more
useful “hands-on” involvement and knowledge transfer.
Harmonisation and community effect
Harmonising connectivity, standards, formats and
services between the partner CSDs.
Platform for identifying other business opportunities
between the CSDs for new product development or new
partnerships.
“Develop once and use many” interoperability concept.
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Customer Benefits
Features
Pooling of domestic and
international business
Benefits for market participants
Direct
access to domestic and international
markets via single, familiar interface
Increased
liquidity pool allowing for greater
securities financing and collateral management
product usage
Greater
scale and price advantage with preferred
CSD gateway
Unbundling of custodian
services
Risk reduction
* Pricing at discretion of each CSD
Significant
fee saving potential* in
Cross-border settlement fees
Safekeeping fees for non-domestic assets
Supply
chain consisting of market infrastructures
only, no intermediaries
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Solution delivered as promised
Successful launch in March 2009 with
just 12 months time-to-market
Development cost well within announced
budget of EUR 10 million
10 CSDs live: CBF, CSE, Helex,
Iberclear, OeKB, SIX SIS, VP, VP LUX,
CSE, Strate and MCDR – joined already,
strong interest from other CSDs globally
with highest focus in Europe
6 CSDs already transformed their
business model into Investor CSD.
Solution well positioned as showcase for
interoperability as well as facilitator for
T2S
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Growing demand for CSD interoperability
17.5 mio messages since the
beginning of Link Up Markets and
5.4 mio messages in H1 2011
17.5 mio messages representing
approx. 4.4 million settlement
instructions
>80% of settlements against
payment
47% growth over 2010
Each new market with additional
volume potential – inbound &
outbound
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Key objectives in 2011
CSDs that joined in 2010 and 2011 to become
active as both issuer and investor CSDs
Finalise positioning for post-T2S world, i.e.
!
Link Up Markets as common interface to T2S
and develop common solution
Further extension of market coverage in
Europe and beyond
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Clive Cherry
CSD Implementation Manager
Link Up Markets
Plaza de la Lealtad, 1
28014 Madrid
Espana
Tel.: +34 91 709 5031
[email protected]