International Trends CSDs and how SWIFT can help

International Trends, CSDs and how SWIFT can help AECSD – 15 th October 2009 John Falk – Securities Initiatives, EMEA

Agenda • • • Securities Market Infrastructures - trends CSD business conducted over SWIFT Use of SWIFTNet by CSDs SWIFT Alliance Lite Professional Services Education AECSD 15 th October 2009 2

Three major trends affecting Securities Market Infrastructures 1. Focus on core business to develop added-value services for their user-community 2. Internationalisation of their landscape (participants and new competitors) 3. Drive towards full Straight Through Processing to decrease risk and processing costs Growing importance of international market practices and standards (ISO 15022, ISO 20022) in a domestic market AECSD 15 th October 2009 3

Typical CSD workflows Message Volumes: Large Medium Small Settlement Management Registrar flows Depository Function Safekeeping Asset Servicing flows Custodians Corporate Action notifications, instructions, confirmations, proxy voting Asset Servicing Central Registrar Issuers, issuer agents Shareholder statements asset servicing Support Reporting Admin 4 AECSD 15 th October 2009

SWIFT solution toolkit for CSDs STa. QS Smart. Stream Accord for Securities (future) MT-MX ISO 15022 – ISO 20022 Non-ISO (proprietary, FIX, Fp. ML. . ) Support Partners, Training Integration Project management Hosting services Closed user group with centralized billing FIN Instructions Confirmations Statements CA reporting Collateral Mgmt (ISO 15022 only) File. Act Putting legacy file transfer on SWIFTNet (proprietary formats or ISO 15022 or ISO 20022) Inter. Act Putting legacy messaging on SWIFTNet (proprietary formats or ISO 15022 or ISO 20022) Browse Putting legacy screen-based access on SWIFTNet Alliance Access Alliance Gateway Messenger, Web. Station Connect Silver or Gold SNL, HSM, PKI certificates Integrator Standards Development Kit + for CSD participants Alliance Entry Starter Set Kits, Lite Connect Bronze Service Bureau Member concentrator 5 AECSD 15 th October 2009

Asset Class Equities, FI Forex Money Markets Listed derivatives OTC derivatives Commodities Repos Syndicated Loans Cash Trading (FIX and FIN) Trade Capture – New! Trading (FIX and FIN) Trade confirms Trade notification (FIN+Fp. ML), Affirmation Trade confirms Pre-settlement matching Allocation processing as well as confirmation matching, SSI – New! Settlement & Reconciliation Agent notices, Credit agreement, Rollover (Fp. ML) Transaction cycle Pre-trade / trade Post-trade / pre- settlement Clearing & Settlement Trade confirms Trade notification Settlement & Reconciliation Trade confirms Trade notification, Trade notification Affirmation Settlement & Reconciliation CLS 3 rd Party service Settlement & Reconciliation (FIN+Fp. ML) Payments Cash management Asset servicing & Administration Cash reporting Cash settlement Cash reporting Data distribution Corp. Action (Corp. Action) Agent notices (Fp. ML - EOC CUG, DTCC) Proxy voting Portfolio Administration Cash reporting Exception Management Total Portfolio Valuation (TPV) – New! Collateral Management Collateral management Collateral Management – New! Portfolio Reconciliation – New! Securities Financing – New! Regulatory Reporting Transaction Reporting Planned solutions Securities Financing – New! Transaction Reporting Available Solution AECSD 15 th October 2009 6

SWIFT Reach: > 8600 financial institutions Banks Custodians Pension providers Fund Administrators / Registries Brokers-dealers SWIFT AECSD 15 th October 2009 Securities Market Infrastructures ETC Providers Insurance Companies Corporates Investment Managers Payment Market Infrastructures Fund Supermarkets 7

CSD business conducted over SWIFT • Core functionality: – Instructions – Status reporting – Confirmations – Statements – Corporate Actions – Link with NCB – Borrowing/Lending AECSD 15 th October 2009 • Non-core functionality – General payments – CSD-CSD links – Funds processing 8

Securities Market Infrastructures on SWIFT >80 institutions from 50 countries Argentina Australia Austria Belgium Brazil Caja de Valores Australian Securities Exchange Austraclear Oe. KB Euroclear Belgium Euroclear Bank MTS National Bank of Belgium CBLC Canada Chile CDS Deposito Centrale de Valores S. A. Croatia Sredisnja Depositarrna Agencija Czech Republic Denmark Estonia Egypt UNIVYC Hungary Indonesia Ireland Israel Italy Japan Kazakhstan Korea Kuwait Latvia NASDAQ OMX VP Estonian Securities Depository NASDAQ OMX MCSD MISR for Clearing, Settlement and Depository France Germany Greece Hong Kong Euroclear Finland NASDAQ OMX Euroclear France Euronext Paris – MATIF MTS Eurex Clearing Clearstream Banking AG MTS Hellenic Exchanges SA Bank of Greece Hong Kong Exchanges and Clearing Hong Kong Monetary Authority (CMU) AECSD 15 th October 2009 CCG Monte Titoli MTS Bank of Japan Jasdec Korea Securities Depository Kuwait Clearing Company Bank of Latvia Central Depository NASDAQ OMX Lithuania NASDAQ OMX Netherlands New Zealand Clearstream Banking SA S. D. Indeval Euroclear Nederland MTS EMCF VPS Poland National Depository for Securities– KDPW Portugal Qatar Romania Russian Federation Bank of Slovakia CDCP Slovenia Central Securities Clearing Corporation – KDD South Africa STRATE JSE Ltd Spain Iberclear MEFF MTS Sri Lanka Sweden Switzerland Taiwan Thailand Turkey UAE - Dubai United Kingdom RBNZ Austraclear NZX Ltd Norway USA Interbolsa Banco de Portugal – SITEME MTS Doha Securities Market Depozitarul Central Depository Clearing Company The National Depository Center The Central Depository (Pte) Ltd Monetary Authority of Singapore Slovakia Central Securities Depository Kazakhstan Stock Exchange Midclear Central Depository Luxemburg Singapore Tel Aviv Stock Exchange Lebanon Mexico Finland Keler KSEI Euroclear UK & Ireland Zimbabwe Central Bank of Sri Lanka (Lanka. Secure) Euroclear Sweden NASDAQ OMX SIX x-clear Taiwan Depository & Clearing Corporation Thailand Securities Dep Co. Ltd. TAKAS Bank NASDAQ Dubai Euro. CCP Euroclear UK & Ireland ICE Futures Europe LCH. Clearnet London Stock Exchange Chicago Mercantile Exchange Clearing Corporation DTCC Federal Reserve Banks Omgeo Options Clearing Corporation Reserve Bank of Zimbabwe 9

Welcome to Alliance Lite AECSD 15 th October 2009 10

The only thing you need to connect to SWIFT AECSD 15 th October 2009 11

Plug your SWIFT USB Token in the USB Slot of your PC AECSD 15 th October 2009 12

The Service Web server SSL Work flow SWIFTNet Interface Signed messages Auto. Client Business Integration Manual Browser Interface Alliance Lite Customer AECSD 15 th October 2009 SWIFT Security SWIFT Managed Internet Alliance Lite Central Infrastructure SWIFT Messaging SWIFT Network SWIFT Community Counterparties 13

SWIFT Professional Services Who we are Cross-divisional teams of SWIFT professionals that have: – Expertise in business or technical analysis of your operational flows, vendor applications, technology and infrastructure – Comprehensive understanding of message standards, and end to end processing – Access to a large Knowledge Base and competitive benchmarking data – Project or Service Management experience – Extensive knowledge of financial markets, SWIFT infrastructure and/or latest technological developments AECSD 15 th October 2009 14

Consulting services offering – Compare and Benchmarking against Peers – Assessment of business or technical operations – Analysis and Design of optimal solution – Implementation and go-live assistance – Training and knowledge management – Operational Support and Service Management – Tactical review of current infrastructure AECSD 15 th October 2009 15

iew Rev t Sup por Live Go- in Tra lem ent Imp ign Des Com Ana lyse par e SWIFT Professional Services Portfolio of services covering your needs Technical and Business Consulting Implementation and Integration Services SWIFT Support and Training The experts are chosen from various teams as appropriate AECSD 15 th October 2009 16

iew Rev Sup por t Live Go- in Tra Imp lem ign Des Com Ana lyse par e ent Analysis and design of the optimal solution • Review: • Business, operational and functional requirements, • Business criticality and resiliency targets • Regulatory requirements, procedures, SLAs • Optimal usage of available infrastructure components • Integration options and abilities • Design the a cost efficient infrastructure or integration solution. Our expertise can help to design the infrastructure matching your needs AECSD 15 th October 2009 17

• • • iew Rev Sup por t Live Go- in Tra Imp lem ign Des Com Ana lyse par e ent Implementation and Go-Live Technical Project Management Assistance Implementation Project Management and governance Installation and migration assistance Configuration and deployment of SWIFT integration package Rapid prototyping and transfer of information Training requirements assessment SWIFT consulting services can help to speed up the implementation process AECSD 15 th October 2009 18

iew Rev Sup por t Live Go- in Tra Imp lem ign Des Com Ana lyse par e ent Tactical review of current infrastructure • Review of your environment in terms of scalability, robustness and capacity • Assess ability of architecture in view of migrations and new flows • Technical health-check (OS, versions, patches, …) • Review of Daily, Monthly, … procedures • Audit of security profiles and users • Incident management and disaster site activation The requirements may have changed over time AECSD 15 th October 2009 19

Example: Review of current infrastructure Do I have the right procedures? Recommendations on operational procedures • Tailored to your specific infrastructure • Based on your operational and business requirements • According to best market practice • In-line with SSE guidelines AECSD 15 th October 2009 20

SWIFT Training AECSD 15 th October 2009 21

Training solutions for everyone Classroom courses AECSD 15 th October 2009 On-site training SWIFT e. Training General knowledge Payments Securities Trade Treasury SWIFT Web class Connectivity 22

Classroom courses • In-depth training on SWIFT’s products and services • High interactivity between instructor and participants • Available in a variety of locations throughout the world (over 130 countries) • The instructor speaks your language (over 15 languages) • Courses from 1 to 3 days AECSD 15 th October 2009 23

On-site training • Content personalised to your specific needs • Only the topics you are interested in • As many days as you require • Training in the comfort of your office • No travel expenses for your staff • Can be combined with public classroom courses or SWIFT e. Training Contact the SWIFT Training team to discuss your personalised training package AECSD 15 th October 2009 24

SWIFT e. Training NEW! n State-of-the-art training modules n Reference material n With voice-over and interactive animations n Ready-to-use in a few seconds n Learn any time, anywhere AECSD 15 th October 2009 Your low-cost solution for high quality training 25

International Trends, CSDs and how SWIFT can help AECSD – 15 th October 2009 John Falk – Securities Initiatives, EMEA