DOCSLIB.ORG

A SUSTAINABLE SOLUTION to COMBAT the GLOBAL COLLATERAL CHALLENGE Luxembourg

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
A SUSTAINABLE SOLUTION to COMBAT the GLOBAL COLLATERAL CHALLENGE Luxembourg A SUSTAINABLE SOLUTION TO COMBAT THE GLOBAL COLLATERAL CHALLENGE Luxembourg Madrid Sâo Paulo Johannesburg Sydney TABLE OF CONTENTS THE LIQUIDITY ALLIANCE A global response to the global collateral challenge 4 THE REGULATORY LANDSCAPE Navigating seismic changes to the world’s financial industry 6 LIQUIDITY ALLIANCE PARTNER VIEWS ASX Collateral: building a world-class, globally-connected infrastructure for Australia 8 By Andrew White, General Manager, Settlement Services, ASX, Australia The Liquidity Alliance puts a global spotlight on Brazil’s experience in collateral management 10 By Wagner Anacleto, Chief Operating Officer, Cetip Securities Unit, Brazil Supporting local markets with award-winning collateral management technology 12 By Stefan Lepp, Member of the Executive Board and Head of Global Securities Financing, Clearstream, Luxembourg Collateral management services are now a “must have“ for any service provider wanting to attract assets under custody 14 By Jesús Benito, Chief Executive Officer, Iberclear, Spain Establishing a market standard for collateral management in the South African financial markets 16 By Anthony van Eden, Strategic Projects Director, Strate, South Africa RESEARCH ROUND-UP Recent market studies into the global collateral challenge 19 ABOUT THE LIQUIDITY ALLIANCE PARTNERS 22 THE LIQUIDITY ALLIANCE A global response to the global collateral challenge The global financial industry is in the midst of a period of unprecedented change as it navigates the aftershocks of the 2007-2008 banking crisis. Adapting to these changes is the biggest challenge financial institutions have faced for a long time. The advent of new regulations will have adopted by the members of the Liquidity the effect of opening up the global Alliance, an association launched by five industry to even greater competition at the organisations which share a similar approach same time as institutions face increasing to the global collateral challenge. demands on their investment budgets to ensure compliance with the requirements The Liquidity Alliance was established in of the emerging regulatory landscape. In January 2013 by Australian financial market particular, the new regulatory focus on risk infrastructure group ASX, Brazilian central and liquidity management is key in driving securities depository (CSD) Cetip, the the industry need for greater collateral international central securities depository optimisation. (ICSD) and CSD Clearstream, Spanish CSD Iberclear and South African CSD Strate. While every institution has an individual These five market infrastructures have strategy to adjust to the “new normal”, decided to leverage the same collateral cooperation with other market players technology system and to share their is key to finding sustainable competitive expertise, experience and efforts in creating and efficient solutions. This is the strategy a global response to growing demands for sophisticated collateral management. 4 A SUstaINABLE SOLUTION TO COMbat THE GLOBAL COllateral CHALLENGE CENTRE OF INDUSTRY EXPERTISE JUST THE BEGINNING The Liquidity Alliance members are already The collateral management technology sharing extensive information about trends, behind the Liquidity Alliance delivers a developments and business opportunities white-labelled solution that is unique in in both domestic and international markets. the industry as it enables domestic assets Cooperating in this way is enabling the to remain in custody within the domestic members to identify common customer infrastructure and the domestic jurisdiction. needs and solutions which can be built The Liquidity Alliance is therefore based on into to the award-winning collateral a model that supports local markets to grow management technology each has and develop their collateral management committed to using. services without extracting domestic assets into an external infrastructure or a custodial This system – Clearstream’s Liquidity Hub GO (or “long box”) model. Future phases will (Global Outsourcing) – went live with Cetip extend cross-border collateral mobilisation in 2011 and is being rolled out with the other in real time. Alliance founding members in the course of 2013. Collaboration between the Liquidity The Liquidity Alliance partners are advancing Alliance partners is not only speeding up quickly in their aim of creating a more the development and roll-out but will also efficient global collateral network that will ensure seamless connectivity leading to a help overcome the problem of fragmentation less fragmented global collateral pool. and so enable a more efficient use of available collateral. Additionally, members will encourage the development of informed research so that The liquidity pool will continue to grow as the Liquidity Alliance becomes a trusted more infrastructures choose to adopt this source of pan-industry information, ideas shared collateral management option and and opinions. The fact that the members to join the Liquidity Alliance. In fact, the are from different regions across the world Liquidity Alliance members look forward brings together a unique pool of global to more institutions coming aboard. The insight and expertise. Liquidity Alliance is open for business. 5 THE REGULATORY LANDSCAPE Navigating seismic changes to the world’s financial industry Politicians and regulators were quick to demand changes to banking procedures after the financial crisis hit in 2008. Risk management became the main priority and an array of new regulations was drafted to ensure more transactions go through clearing houses and an even greater quantity of collateral committed to cover exposures. Basel III, BCBS-IOSCO and the concepts of A major problem for most institutions is mandatory clearing and account segregation that they do not have adequate systems in globally plus the Capital Requirements place to manage their liquidity and available Directive (CRD) IV and the European Market collateral on a real-time and cross-market Infrastructure Regulation (EMIR) in Europe basis. Complex corporate architecture and and the Dodd-Frank Act in the US are international reach means that the majority increasing the pressure and the demand of institutions are unable to have a global for collateral and this continues to cause view across all their positions and collateral concern in much of the worldwide pools. Even if some institutions have a single financial industry. view, they lack the ability to move the right collateral to the right exposure at the right time. 6 A SUstaINABLE SOLUTION TO COMbat THE GLOBAL COllateral CHALLENGE COLLATERAL BECOMES A TOP PRIORITY institutions which tend to work in a compartmentalised way resulting in One of the most significant outcomes of the fragmented, and thereby immobilised, post-crisis regulation wave is that financial parcels of collateral. institutions – and their clients on the buy- side – will be compelled to set aside more A study carried out by Accenture for capital than in the past. The need for more Clearstream in 2011 (see Research section capital leads to a growing need for more on page 19) estimated that up to 15 % of liquidity and collateral throughout the global available collateral in the banking system banking system. was unused. It concluded that the majority of institutions were unable to have a single In particular, the need for high-quality view of their collateral – a single pool – and collateral management has become a top so were unable to ensure their collateral was priority for banks since the collapse of used in the most cost-effective way. Lehman Brothers in 2008 gave rise to a new era in which interbank trust was Indeed, collateral optimisation is now one of severely diminished and the unsecured the biggest challenges faced by institutions – lending market largely disappeared in financial and, increasingly, non-financial – and much of the industrialised world. more and more are looking to their central securities depository to provide this service. Furthermore, the effect of Dodd-Frank in the US, the European Market Infrastructure A partnership APPROACH Regulation (EMIR) in the European Union plus new capital requirements mean that It is against this background that many institutions, both buy-side and sell-side, of the world’s financial infrastructures must collateralise more of their trades have been looking for specialist partners including exposures in the fast-growing which can provide sophisticated and yet OTC derivatives market. Collateral is king, cost-effective and time-efficient collateral not only now but long into the future. management capability. COUNTING THE COST OF This is the background which has led to COLLATERAL INEFFICIENCY the foundation of the Liquidity Alliance, an association of five infrastructures which are Many financial institutions have only just using a common collateral management begun to fully appreciate the high cost system. The Liquidity Alliance is open to of inefficient collateral management. The new partners who are interested in joining problem is widespread and exacerbated and thereby increasing the mutual benefits by the globalised operations of many and opportunities open to all participating institutions and their clients. 1F inancial Times (2012) “EU financial reforms could cost EUR 50bn“, 24 June. 7 ASX Collateral: building world-class, globally-connected infrastructure for Australia By Andrew White, General Manager, Settlement Services, ASX, Australia September 2012 Bulletin, “at present there is around AUD 240 billion outstanding in Commonwealth
Load more

Recommended publications
  • Clearstream: General Court Confirms Commission Decision
    Antitrust Clearstream: General Court confirms Commission Decision Rosalind Bufton and Eduardo Martínez Rivero (1) 1 On 9 September 2009 the Court of First Instance and settlement services. Clearstream Banking AG is (now the General Court) dismissed the action for Germany’s only CSD. annulment (2) brought by Clearstream Banking AG (also known as Clearstream Banking Frankfurt or 1.2. The 2004 Decision CBF) and Clearstream International SA against the 2 June 2004 Commission decision in the Clearstream The Commission decision found that Clearstream case. The decision had found that Clearstream Banking AG enjoyed a dominant position in the Banking AG and its parent company Clearstream market for the provision of ‘primary’ clearing and International SA violated Article 82 EC (now Art- settlement services for securities issued under Ger- icle 102 TFEU) by refusing to supply certain clear- man law to CSDs in other Member States and to ing and settlement services to one of its customers international central securities depositories (IC- 3 (Euroclear Bank SA), and by applying discrimina- SDs) ( ). For certain categories of companies seek- tory prices to that same customer. ing to provide efficient and less costly services to their customers, the decision found that the use of 1. Background ‘secondary’ clearing and settlement through an in- termediary could not be a substitute for access to ‘primary’ clearing and settlement services as it does 1.1. Clearing and settlement not offer the same level of service. It also found Clearing and settlement services are necessary steps that Clearstream Banking AG, together with its par- for a securities trade to be completed.
    [Show full text]
  • ISIN Guidelines 2018
    ASSOCIATION OF NATIONAL NUMBERING AGENCIES scrl ISIN UNIFORM GUIDELINES RELATING TO ISO 6166 (8th edition) Version 14: March 2018 Implementation date by National Numbering Agencies: April 16, 2018 ANNA - ISIN Uniform Guidelines 2018 Page 1 of 18 Contents 1. INTRODUCTION 3 2. EXCEPTIONS 4 2.1. SPECIFIC CASES RELATING TO FUNGIBILITY 4 2.2. GUIDANCE RELATING TO ALLOCATION RULES 6 2.3. COUNTRY SPECIFIC ASSIGNMENT PRACTICES 9 3. FINANCIAL INSTRUMENTS OTHER THAN SECURITIES 10 4. CONSEQUENCES OF CORPORATE ACTIONS 12 5. SUBSTITUTE NUMBERING AGENCIES (SNAS) 15 6. RE-USE OF ISIN CODES 15 7. ISIN CODE STRUCTURE 16 8. ISIN DOCUMENTATION 16 9. LEI & ISIN LINKAGE 16 10. NUMBERING AGENCIES NOT IN LINE WITH THE GUIDELINES 17 11. FINANCIAL INSTRUMENTS OUT OF SCOPE OF ISO 6166 17 12. FOOTNOTES 17 ANNA - ISIN Uniform Guidelines 2018 Page 2 of 18 ISIN Guidelines 2018 1. INTRODUCTION The ISO 6166 standard describes the structure of the ISIN codes and which organizations are allowed to allocate ISIN codes to which securities. Competence on the allocation and maintenance of ISIN codes is split between NNAs and DSB, a numbering agency designed to operate on a global basis as regards the OTC derivatives. The aim of these guidelines is to obtain a uniform process among the various National Numbering Agencies for the allocation of ISIN codes under their competence. In line with the ISIN Quality Management concept, as defined by the Association of National Numbering Agencies (ANNA, registration authority for ISO 6166), we encourage the use of the list of Operational Contacts - as indicated on ANNA web for the majority of NNAs - to ensure timely and proper allocation of ISIN codes.
    [Show full text]
  • Automated Securities Lending Programme Product Guide Automated Securities Lending Programme
    Automated Securities Lending Programme Product Guide Automated Securities Lending Programme Clearstream Banking AG, Frankfurt Document number: F-GSF13 January 2018 This document is the property of Clearstream Banking AG. (“Clearstream Banking”). No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, for any purpose without the express written consent of Clearstream Banking. Information in this document is subject to change without notice and does not represent a commitment on the part of Clearstream Banking, or any other entity belonging to Clearstream Banking. © Copyright Clearstream Banking AG (2017). All rights reserved. Clearstream and Xemac® are registered trademarks of Clearstream Banking AG. Foreword This guide (the “Product Guide”January 2018) describes the Clearstream Banking Frankfurt (CBF) Automated Securities Lending Programme, a lending service as defined in the Special Conditions for Securities Lending of Clearstream Banking AG, Frankfurt and in the Supplementary Conditions to the Special Conditions for Securities Lending of Clearstream Banking AG, Frankfurt. The Special Conditions for Securities Lending of Clearstream Banking AG, Frankfurt together with the Supplementary Conditions to the Special Conditions for Securities Lending of Clearstream Banking AG, Frankfurt are governing documents for the use of the Automated Securities Lending Programme and prevail over this Product Guide. The agreement is governed exclusively by German law, which means that it benefits from clear, efficient and protective laws on securities and pledges. Client Services The daily administration of the Automated Securities Lending Programme is handled by a dedicated team in Frankfurt as follows: Securities Lending Frankfurt Tel.: +49-(0) 69 - 2 11-1 31 80 Fax: +49-(0) 69 - 2 11-61 31 80 Email:[email protected] Service hours: 08:00 to 17:451.
    [Show full text]
  • Clearstream Global Securities Financing the Global Liquidity Hub Excellence in Collateral Management
    Clearstream Global Securities Financing The Global Liquidity Hub Excellence in collateral management Live since 2009 24/7 Real-time Across locations Across timezones Across asset classes Innovative solutions Award-winning service Clearstream’s world-leading Global Liquidity Hub encompasses a pioneering, comprehensive and flexible The Global Liquidity Hub regularly suite of products which deliver advanced collateral receives top marks in industry surveys such as the Global Custodian Triparty management and securities lending and borrowing for Securities Financing Survey and the both financial and non-financial institutions worldwide. Global Investor / ISF Triparty Survey. Clearstream is always particularly We’ve turned a vision into reality commended for its outstanding collateral management services The Global Liquidity Hub was launched offers a comprehensive collateral and its efficient customer service. in 2009 but is built on Clearstream’s management and securities financing long-standing experience in post- environment. Our highly sophisticated trade services. Indeed, we were the systems enable customers to manage first supplier to launch triparty repo their collateral efficiently in real-time, in Europe in 1992. Today, Clearstream’s regardless of asset class, location award-winning Global Liquidity Hub or timezone. A global priority How the Global New regulations adopted in the wake of the financial crisis require systemic Liquidity Hub changes for many financial institutions and corporate treasuries. The current regulatory focus on risk management has a major impact on the way institutions works for you around the world securitise their exposures. In a nutshell, the whole market will need to optimise collateral to make the most of their assets. The Global Liquidity Hub’s open architecture maximises opportunities for customers.
    [Show full text]
  • Creation Quick Tax Reference Matrix Disclaimer
    Creation Quick Tax Reference Matrix Disclaimer This Quick Tax Reference Matrix is intended as a high-level overview of applicable tax rates and documents to be submitted by Clearstream Banking customers that use the Creation platform to Clearstream Banking for obtaining relief at source from, or by refund of, taxes applied at source to securities deposited in Clearstream Banking. It is not designed to give comprehensive information concerning all taxation issues relating to securities held with Clearstream Banking, including those mentioned in this document, nor to give exhaustive information on tax relief available by virtue of domestic or international law. It does not constitute legal or tax advice. Clearstream Banking believes the information provided in this Quick Tax Reference Matrix to be correct at the time of publication, but disclaims responsibility as to the accuracy and completeness of the information. Note: Customers must refer to the following sources of information in the order indicated to obtain complete information and to obtain copies of most of the documents that are mentioned in this Quick Tax Reference Matrix: 1. Market Taxation Guide; 2. Clearstream Banking Announcements; 3. Customer Service Tax Help Desk. The Quick Tax Reference Matrix is currently applicable for customers using the Creation platform only. Average refund time The estimated time for receiving a refund can vary depending on the time that the application is filed and the complexity of the information supplied in the reclaim form. Clearstream Banking has collected the information published in the “Average refund time” column of the Quick Tax Reference Matrix from sources considered reliable but does not guarantee the accuracy of the timings presented.
    [Show full text]
  • Reaching a New Investor Base Via the ICSD Model
    EUROBOND OPPORTUNITIES FOR APAC ISSUERS Reaching a New Investor Base via the ICSD Model EUROBOND OPPORTUNITIES FOR APAC ISSUERS Reaching a New Investor Base via the ICSD Model The international bond market, commonly known as the Eurobond market, encompasses a diversified range of fixed income debt securities products, ranging from short-term to extremely long-term (or even perpetual) debt, and from plain vanilla bonds to structured instruments. At the end of the second quarter of 2020, Clearstream/Euroclear figures show that the market hosted €10.7 trillion in outstanding issuance from thousands of financial and nonfinancial companies, with bonds in scores of currencies (although issuance in dollars, euros, yen, and The increasing role of Asia sterling predominates). -Pacific, and in particular “Despite their name, Eurobonds can be issued in any currency, including China, in the global the issuer’s home currency, and do not have to be issued and/or placed economy means that in Europe,” says Rosa Scappatura, Head of ICSDs Relationships at international investors’ BNY Mellon Corporate Trust. “Instead, the common features of these allocations to bonds from products are that they are issued internationally (typically outside the market where the borrower resides) and through the International the region are growing as Central Securities Depositories (ICSDs) (Clearstream and Euroclear).” they add exposure. The Eurobond name is a legacy of the first issuances in the 1960s denominated in U.S. dollars and placed with European investors. From the start of the market, and especially today, the market has always been global in nature. Asia-Pacific borrowers have accessed the Eurobond market for decades, but issuance has grown strongly in the past decade.
    [Show full text]
  • Economic Paper 163. Giovannini Group. Cross-Border Clearing And
    ECONOMIC PAPERS EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR ECONOMIC AND FINANCIAL AFFAIRS http://europa.eu.int/comm/economy_finance Number 163 February 2002 The Giovannini Group Cross-border clearing and settlement arrangements in the European Union Brussels, November 2001 ECFIN/112/02-EN This paper only exists in English. ©European Communities, 2002 FOREWORD The evolution of the European economy is the result of the interaction of markets and technical progress. On this interaction are superimposed government initiatives - which should be, and are generally, aimed at reforming national institutions towards greater economic efficiency – as well as co-ordinating initiatives conceived and developed at the European level. Such co-ordination ensures that efficiency- inducing reforms at the national level satisfy compatibility criteria defined by the free movement of goods, services and people within Europe. In the financial field, the most important co-ordinating initiative has been the process of monetary integration and the elimination of national discretion in the management of monetary policies and of flexible exchange rates within Europe. The initiatives grouped under the Financial Services Action Plan are designed to strengthen the European financial industry, by encouraging both free access and competition, and the creation of more efficient markets. The financial industry contributes to efficient allocation of capital and risk in an economy and it is a fundamental infrastructure that permits other economic activities to function and develop efficiently. This infrastructure needs in turn another infrastructure, both physical and non-physical, in order to function properly. The latter includes financial market rules and regulations, a payments system, and a system to permit the exchange of financial assets.
    [Show full text]
  • Select Finance
    www.deutsche-boerse.com Deutsche Börse Group: Global Funding and Financing (GFF) Financing solution: Select Finance The Select Finance trading licence provides All markets are operated on the web-based trading buyside clients access to the well-established system F7 to embrace the requirements of a interbank markets GC Pooling and Repo. By state-of-the-art trading environment. Due to the combining the markets, clients have the choice of web-based technical architecture, upcoming release different electronic secured funding and fi nancing updates do not require installation on the client solutions combined with clearing services via side, resulting in IT cost effi ciency. a central counterparty. Trading is available daily from 07:00 CET with a In contrast to the anonymous interbank markets, the pre-trading phase of 30 minutes. The main trading customised Select Finance trading permission offers phase ends at 18:00 CET with the exception of bilateral trading. This allows banks and their buyside overnight trades. The cut-off times for overnight clients to continue their existing business terms vary between the markets, products and relationships. trading permission. Buyside clients such as insurance and reinsurance undertakings, pension or investment funds located in the European Union or Switzerland may have access to Select Finance. Overview on buyside access opportunities Global Funding and Financing GC Pooling Market Repo Market Select Invest Select Finance Access to GC Pooling Market (basket trading) Access to GC Pooling and Repo Market (basket & single Net cash provider in EUR, USD, GBP, CHF ISIN trading) Direct CCP access with simplifi ed admission requirements Cash provider and cash taker in EUR, USD, GBP, CHF Direct CCP access via Clearing Agent and full membership requirements 2 GFF Financing solution: Select Finance The clients send Requests-for-Quotes (RFQ) to preferred banks or automatically to all admitted Key characteristics and benefits: interbank participants.
    [Show full text]
  • National Numbering Agency Frequently Asked Questions
    NATIONAL NUMBERING AGENCY FREQUENTLY ASKED QUESTIONS 1. What is the ISIN code? 2. What is the purpose of the ISIN code? 3. Who allocates an ISIN code? 4. What is the structure of an ISIN code? 5. What is the scope of the numbering? 6. Are all securities assigned an ISIN code? 7. How does the ISIN allocation procedure work? 8. What is the cost of an ISIN code assignment? 9. What is the turnaround time on a request for allocation of an ISIN code? 10. How can I obtain information on an ISIN code? 11. How can I access a prospectus in the CNMV Official Registers using the ISIN code? 12. Who allocates the ISIN code beginning with XS? 13. Can an ISIN code be reused? 14. What is the CFI code? 15. What is the ANNA Service Bureau? 1. What is the ISIN code? It is an international code which univocally identifies securities and financial instruments. The ISIN code (International Securities Identification Number) is developed in the standard ISO 6166. 1 2. What is the purpose of the ISIN code? The ISIN code is the only internationally recognised standard for the unique identification of securities and financial instruments. It is mainly used in the clearing, settlement and custody processes, both at a local and international level. It is also accepted by many regulators as a financial instrument identifier in the transaction reporting for the entities obliged to submit this type of information to the supervisor. 3. Who allocates an ISIN code? The National Numbering Agencies (NNAs) are in charge of allocating the ISIN codes.
    [Show full text]
  • Customer Handbook for Customers of Clearstream Banking AG Document Number: F-CI05 April 2021
    Customer Handbook For customers of Clearstream Banking AG Document number: F-CI05 April 2021 The information contained in this document is subject to change without notice and does not constitute a commitment on the part of Clearstream Banking AG, Frankfurt (hereinafter referred to as Clearstream Banking Frankfurt or CBF) or any other company belonging to Clearstream Holding AG. This document may not be reproduced or transmitted in whole or in part in any form including photocopying and recording for any purpose whatsoever without the prior written approval of Clearstream Banking Frankfurt. Unless otherwise stated, all times are given in Central European Time (CET). © Copyright Clearstream Banking AG, Frankfurt (2021). All rights reserved. Foreword The descriptions and information provided in this Customer Handbook are Technical Rules according to clause I of the General Terms and Conditions of Clearstream Banking AG. The information contained in this Customer Handbook applies in conjunction with other CBF publications (CASCADE Online Handbook, CASCADE-PC User Manual, Xemac® User Manual and Connectivity Handbook), CBF's announcements and other user manuals on connectivity, which contain further details concerning the use of CBF's services. The applicable version is always the current version published on the Clearstream website www.clearstream.com. CBF reserves the right to revise and update this Handbook from time to time in order to document the availability of new products and other improved services. Customers who have specific questions about the information contained in this Handbook are asked to contact their Client Services Officer or Relationship Manager. Clearstream Banking Frankfurt April 2021 Customer Handbook Foreword - i Customer Handbook This page has intentionally been left blank.
    [Show full text]
  • Clearstream Banking IMPORTANT NOTICE to CUSTOMERS of CLEARSTREAM BANKING AG FRANKFURT
    Fee Schedule for customers of Clearstream Banking IMPORTANT NOTICE TO CUSTOMERS OF CLEARSTREAM BANKING AG FRANKFURT Please note that the German version of the Clearstream Banking Fee Schedule is legally binding on customers of Clearstream Banking AG Frankfurt only and shall prevail over any translations which have been provided for commercial purposes only. Fee Schedule Clearstream Banking Document number: 6210 First published: August 2003 This document is a Governing Document as defined in CBL’s General Terms and Conditions and is subject to the General Terms and Conditions unless otherwise specified. Information in this document may not be reproduced or transmitted in any form or for any purpose, other than for internal business use, without the express written consent of Clearstream Banking. Clearstream Banking in this document refers collectively to Clearstream Banking Luxembourg and Clearstream Banking Frankfurt. Content of this document is subject to change from time to time with prior notice. © Copyright Clearstream Banking (2010). All rights reserved. Clearstream Banking is a Deutsche Börse Group company. Clearstream Banking - fee schedule Contents Contents 1. General . 1 1.1 Validity . 1 1.2 Payment currency . 1 1.3 Payment terms . 1 1.4 Internet access to invoices . 1 1.5 Instruments . 1 2. Safekeeping services . 2 2.1 Main principles . 2 2.2 Monthly deposit value calculation . 6 2.3 Fee calculation example . 6 2.4 Minimum safekeeping fees . 8 3. Settlement and cash services . 9 3.1 Security instruction fees . 9 3.2 Cash instruction fees . 11 3.3 Minimum settlement fees . 12 3.4 Other instruction fees . 12 4.
    [Show full text]
  • Austraclear Clearing and Settlement Industry Glossary
    Clearing and Settlement Industry Glossary This glossary applies to the Clearing and Settlement industry in Australia and is written as an aid in understanding the terms most widely used, but without attempting to give a legal interpretation. A Acceptor The party on a Commercial Bill that has the primary liability to pay the money due at maturity date to the holder of the bill. Amount Issued The Amount of a Security Issued. Usually reflected as a dollar amount and depending on the "Terms and Conditions", may be increased at a later stage by a subsequent Issue. Association of ANNA makes available to its members and the securities industry as a whole, an International National Securities Identification Number (ISIN) in a uniform structure for use in any application in the Numbering Agency trading and administration of securities in the international securities industry. (ANNA) Assured Payment An assured payment is the by-product of a Real Time Gross Settlement (RTGS) system and Delivery versus Payment (DvP). Payment for a security is considered assured or guaranteed as the debiting Participants funds move to the crediting Participant in real time at the same time as the transfer of the security. Australian Bureau The Australian Bureau of Statistics is Australia's official statistical organisation. They assist and of Statistics (ABS) encourage informed decision-making, research and discussion within governments and the community, by providing a high quality, objective and responsive national statistical service. Australian The Commonwealth agency which is now responsible for prudential regulation of banks, life Prudential insurance companies, general insurance companies and superannuation funds, having taken over Regulation these functions from the Insurance and Superannuation Commission (for insurance and Authority (APRA) superannuation) and the Reserve Bank of Australia (for banks).
    [Show full text]