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ISSUE 215 15 May 2019 Post trade in a post-Brexit world Delegates gathered in London for the 12th AFME Post Trade Conference, which concentrated on life post-Brexit China’s technology boom ALFI London Conference Financial innovation in the custody space is Although the asset management industry has a gaining momentum great future ahead it will be a rough road At your side worldwide. www.commerzbank.com/worldwide The Euromoney Awards for Excellence honoured Commerzbank as Germany’s Best Bank for its strategic approach that is creating a ‘stable, efficient and more profitable lender’ amidst challenging times for the German banking sector. Euromoney, 07/2017 issue triResolve Margin - AST Ad - Streamline.pdf 1 01/06/2018 16:41 C M Y CM MY CY CMY K Lead News Story WhiteMocca/shutterstock.com Fund managers to launch blockchain ecosystem FNZ has partnered with several global fund managers to launch a “None of these transactions are synchronised in real-time. Everyone production blockchain-powered market infrastructure for the asset has a different view of ‘the truth’, that often persists for days and management industry. months, leading to errors and exceptions, high back-office costs and risk for all participants.” The global fund managers include Aberdeen Standard, Equity Trustees Fund Services, Kames Capital, Legg Mason, and Merian Goffin continued: “In initially bringing this to market, particularly in Global Investors. the early stages of production operation, we have worked with FNZ- powered platforms and those asset managers for whom FNZ is the According to FNZ solution, the ‘FNZ ChainLink’ leverages blockchain transfer agent.” technology to replace the thousands of copies of transaction and holdings in the managed funds industry. “However, FNZ ChainLink is an open-market solution, based on open- source Hyperledger Fabric. We are working with a number of transfer It will do this with a single, secure verifiable source of ‘the truth’, agents, asset managers, and platforms that aren’t FNZ-powered to universally accessible by all parties, FNZ noted. ensure the benefits are shared by the whole industry.” FNZ explained that this vastly reduces cost, complexity, and risk in FNZ’s CEO and founder, Adrian Durham added: “FNZ processes on back-office operations that is ultimately borne by retail. average, half a billion pounds sterling in mutual fund orders every day in the UK, and over a billion pounds on peak trading days.” Phil Goffin, head of innovation at FNZ, commented: “The global fund industry today relies on a plethora of peer-to-peer connections “We are committed to lowering cost and risk, not just for FNZ, but for between investors, managers and platforms to effect basic fund the entire industry. We also plan to evolve the nature of managed activities such as trading, settlement, transfers, distributions funds themselves, enabling innovation in how asset managers deliver and reconciliations.” solutions for retail investors.” 3 Asset Servicing Times www.assetservicingtimes.com ... and climbing. A global player in asset servicing... Offering leading value in investor services demands constant evolution. At CACEIS, our strategy of sustained growth is helping customers meet competitive challenges on a global scale. Find out how our highly adapted investor services can keep you a leap ahead. CACEIS, your comprehensive asset servicing partner. www.munier-bbn.com www.caceis.com Caceis adv climb EN 203x267H.indd 1 18/04/2016 10:16 Contents W: www.assetservicingtimes.com T: @ASTimes_ Editor: Becky Butcher [email protected] +44 (0)203 750 6019 Custody Services Fund Administration Legae Peresec has selected Standard Bank Institutional Advisory Services Group has Reporter: Jenna Lomax to provide domestic custody and derivatives formed a new company offering fund [email protected] clearing business services services to investment managers +44 (0)203 750 6018 p7 p11 Reporter: Maddie Saghir [email protected] +44 (0)203 750 6019 Contributor: Barney Dixon Designer: James Hickman AFME Conference Report China Focus [email protected] Delegates gathered for the 12th AFME In the 1970s, China experienced its +44 (0)203 750 6021 Post Trade Conference in London, which first financial industry boom, now a new concentrated on post-trade life post-Brexit technology boom is on its way Publisher: Justin Lawson p17 p20 [email protected] +44 (0)203 750 6028 Associate Publisher: Joe Farrell [email protected] +44 (0)203 750 6024 Office Manager: Chelsea Bowles ALFI Conference Report Industry Appointments [email protected] At this year’s ALFI conference, it was noted All the latest asset servicing industry that the asset management industry has a comings and goings at BNY Mellon, Link Published by Black Knight Media Ltd great future ahead but it will be a rough road Asset Services, and more Copyright © 2019 All rights reserved p23 p26 A range of apps that will transform your securities finance business 2016 and 2017 Best Software Provider 5 Asset Servicing Times www.assetservicingtimes.com Deutsche Bank Global Transaction Banking We’re not just providing custody services. We’re creating solutions that focus on your post-trade goals. #PositiveImpact Find out more at cib.db.com/solutions/securities-services/ This advert is for information purposes only and is designed to serve as a general overview regarding the services of Deutsche Bank AG, any of its branches and affiliates. The general description in this document relates to services offered by Global Transaction Banking of Deutsche Bank AG, any of its branches and affiliates to customers as of May 2018, which may be subject to change in the future. This advert and the general description of the services are in their nature only illustrative, do neither explicitly nor implicitly make an offer and therefore do not contain or cannot result in any contractual or non-contractual obligation or liability of Deutsche Bank AG, any of its branches or affiliates. Deutsche Bank AG is authorised under German Banking Law (competent authorities: European Central Bank and German Federal Financial Supervisory Authority (BaFin)) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available on request. This communication has been approved and/or communicated by Deutsche Bank Group. Products or services referenced in this communication are provided by Deutsche Bank AG or by its subsidiaries and/or affiliates in accordance with appropriate local legislation and regulation. For more information: www.db.com. Copyright © May 2018 Deutsche Bank AG. All rights reserved. Latest News ASX opens CDE for equities clearing and settlement Australian Securities Exchange has opened the customer development environment (CDE) for its new equities clearing and settlement system to replace the clearing house electronic subregister system (CHESS), which is based on distributed ledger technology. Additional functionality will be released at approximately eight-week intervals, culminating in full functionality in the CDE by mid-2020. ASX is also providing other options to access clearing and settlement services–these being the ISO 20022 global messaging standard via advanced message queuing protocol and SWIFT, and a web browser option for low volume, infrequent usage. According to ASX, these options will help minimise costs for those who need traditional connectivity options. The development of CHESS by ASX more than 25 years ago enabled the dematerialisation of the cash equity market, a move to T+5 settlement—which was lowered to T+2 in March 2016—and improved the efficiency and effectiveness of post-trade processing in Australia. Rich T Photo/shutterstock.com Volante expands VolPay-as-a-Service Legae Peresec selects Standard Bank for custody services for payments South African broker, Legae Peresec investment banks, corporates, broker- Volante Technologies has expanded VolPay- has selected Standard Bank to provide dealers, and liquidity providers. as-a-Service, its cloud-based ecosystem of domestic custody and derivatives clearing business services, to combine corporate to business services. Lester Bailey, director of prime services bank connectivity, corporate on-boarding and and settlements at Legae Peresec, said: end-to-end processing of all US domestic and Standard Bank is a provider of “We have a long-standing relationship with cross-border payment types. investor services across the African Standard Bank and given their leadership continent and provides product in the custody and clearing market we saw The service simplifies the handling of suites in custody, derivatives clearing, them as a natural partner to support our corporate enterprise resource planning and securities lending, trustee services and market leading brokerage business.” acknowledgement formats and automates the investment administration. process of connecting corporate customers Rajesh Ramsundhar, head of investor to their institutional payment service providers Legae Peresec provides brokerage services South Africa for Standard