ISITC Europe General Meeting Presentation

Transcription

ISITC Europe - Welcome
General Meeting
25th April 2016
Agenda
08:30-08:45
Welcome and Introduction
Nigel D Solkhon, Citi and CEO ISITC Europe
08:45-09:15
Keynote Speech – Cybersecurity, what is there to fear?
Edward Wallace MWR Infosecurity
09:15-10:00
Blockchain - Why, how and when for the Securities market
10:00-10:30
Coffee and Networking
10:30-11:15
Is the Regulation Tsunami over?
11:15-11:45
How can the Securities Market manage Cyber security best?
11:45-12:30
Is a collaborative Securities Industry viable or even wanted?
12:30-13:00
The Impact on Standards in a Digital world
13:00-13:15
Wrap up and Close
ISITC Europe
Nigel D Solkhon
CEO
ISITC Europe - Intro
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Nigel D Solkhon
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ISITC Europe Formed in 1992 (Silver anniversary 2017)
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Initially Fund Managers and Custodians
Proliferation of proprietary systems and manual processes
Definition of new operating structures
Definition of standards to operate across clients and custodians
Defined and introduce settlement instructions automation, reconciliation, FX and Corporate Actions
Helped ISO/SWIFT define ISO 20022 messaging and best practice
Widened remit and membership
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Head of E2C product EMEA at Citi – invited to become interim CEO of ISITC Europe Q4 2015 and CEO
April 2016
Founding member of ISITC Europe in 1992 and served continuously until 2009
IUG merged with ISITC Europe bringing in Brokers and moving ISITC Europe along the value chain
Defined ETC operating guidelines
Introduced Vendors to the governance process
Defined industry claims processing standards
Collaboration across Industry forums
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Created the MIFID working group along with Fix, RDUG and other associations
Introduced ISITC Europe as part of the industry education programme (Securities Institute)
Worked with ISITC North America and Asia to form Global board and coverage
Industry Taxonomy – Slide
from 2005 still valid today
ISITC Europe – Review Q4 2015
Plus points
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Unique forum – Owned and run by members for members
Publisher of best practice guidelines
Vendor and firm neutral
Contributing group for European issues
Educational
Provider of relevant market information
Aggregator of industry initiatives
Minus Points
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Membership attrition over past 6 years
ISITC Europe agenda not seen as current
Standards driven by third parties with no direct interest from ISITC
Time constraints on voluntary participants
Traditional membership constituents changing
ISITC Europe – New Agenda
delivering value
Value Drivers
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Fees
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Membership
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ISITC Europe have announced a single fee structure of GBP 250 (plus VAT) to all members
Funding Metropolitan University membership from Education Fund to link Industry to Academia
Other nominations welcomed
Workstreams
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Provide members with a forum to exchange information, ideas and questions on common noncompetitive issues.
Workgroups are vendor and firm neutral and work with other industry forums
Leaders are chosen by workgroup members and sit on the IELG (ISITC Europe Leadership Group)
Output is agreed at the workgroup level and shared via ISITC.EU
• Partnerships
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Drive closer partnership with ISITC North America Executive and members through collaborative
ventures
Industry bodies including Buy side, Fin tech, Academia, Cross market bodies, Sell Side, Custodians and
consultants
Agreed workgroups in 2016
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Blockchain
Standards
Regulation
Industry Engagement
Cybersecurity
Work Streams
Members have access to all workgroups or can partner with colleagues
Leaders will look to partner ISITC NAM colleagues to share intelligence
Blockchain
Regulation
Industry
Engagement
Operations
Technology
Oversight
Standards
Cyber
Security
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
Keynote
Cybersecurity, what is there to fear?
Edward Wallace
MWR Infosecurity
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
ISITC Europe
Blockchain Working Group
Acting Chairman
Gary Wright, CEO, B.I.S.S. Research
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Terms of Reference
• There will be a main focus on educating members, on the potential value
of Blockchain. The ISITC Blockchain Working Group (WG) will publish
information to assist its members and their firms to understand and make
sound decisions regarding different Blockchain initiatives and
implementation.
• The WG will invite presentations of Blockchain innovations and business
case initiatives and publish information on the impacts of such initiatives
in post-trade operations for member’s assessment. Impacts will be
assessed collectively by the WG on both buy-side and sell-side, specifically
in the areas of standards and security, but also costs and risks.
• The WG aims to work with a number of interested Universities to create a
Blockchain based market model per financial product, per market sector,
as agreed and the results to be made available to members and act as a
benchmark for firms to measure their own Blockchain initiatives.
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Membership & Information
• Open to every firm interested in taking part in achieving the
Terms of Reference.
• Aim is to gain membership from firms covering all sectors of
the finance industry.
• It is a working group that requires involvement and work!
• ISITC website
• LinkedIn group
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Panel Discussion
Blockchain for the Securities Market Why, how and when?
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Panel
• Justin Amos, Chief Business Development Officer, Digital Asset Holdings
• Brian McNulty, COO Europe, R3 CEV
• Peter Randall, CTO, SETL
• Fabian Vandenreydt, Global Head of Securities Markets, SWIFT
Chairman & Moderator: Gary Wright CEO, B.I.S.S. Research
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Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
Break
Please return at 10:30 sharp
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
ISITC Europe
Regulations Working Group
ISITC Europe
– The regulatory challenges in a low growth,
low margin environment…
Dr. Anthony W Kirby
Chair Regulation Working Group
25th April 2016
Industry Taxonomy
Regulation
Blockchain
Standards
Cyber-
Markets
ISITC Europe – Regulation WG
Meetings:
10th February
10th March
8th April…
Background:
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Regulation has been and continues to be the number one investment for all firms in Europe, and the
environment in 2016 sees the topic of regulation lapping FinTech, with propositions such as digital,
robo-investing and blockchain added to the mix. Both are enabling, and disruptive, forces.
Why ISITC-Europe, and why now?
•
ISITC Europe has a fine history of operational participation in industry consultation from regulators
and monitoring bodies since the 1990s, and we are looking to resurrect the Regulation WG in 2016
to focus on the cross-impacts of multiple regulations such as MiFID II on operations and technology.
Several of you took part in our previous meetings of the associated WGs since 2002 (Reference
Data User Group) and the MiFID JWGs (since 2005).
Objective of the Regulation WG:
•
To consider the broader securities market context in Europe and the disruption caused by multiple
regulations such as MiFID II (and adjacent measures such as MAR, EMIR, SFTR and PRIIPs) which
are impacting practitioner firms and suppliers alike at regional and local levels.
Strategy:
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To focus on gaps and opportunities that lie outside the efforts of existing industry associations such
as the IA, AFME, BBA, FIA/ISDA, FIX etc. and the outputs will be used to provide direction and
colour to firms looking to implement against the forward timetable from 2016-18.
Tactics:
•
The key challenges will be to deconstruct a priority regulation like MiFID II, focusing on
governance/investor protection, market impacts, and reporting/reference data plus adjacent
measures (e.g. MAR, PRIIPs etc), coupling with other ISITC-Europe Working Groups such as the
inaugural Blockchain Work Stream. The eventual intent is to evaluate a ‘quick win’ approach for
chosen areas of interest - e.g. Best Execution, with the new FinTech developments (e.g. roboinvesting, blockchain and ‘all-to-all’ propositions) in mind.
ISITC Europe – Regulation WG Results
Meeting:
10th February
Observations and Insights:
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Regulators are taking the issue of data collection, storage and retrieval to a whole new forensic level, by increasingly show signs
of wishing to ‘track and trace’ case histories during the lifecycle of an execution.
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The aspects above will extend to personal data and firms may well be constrained per where data is stored, modified or
processed. There is already a tension between the desire for transparency on the one hand and the need for data protection or
privacy on the other.
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Firms are concerned if they will be able to compile the relevant data to hand to be able to retrieve it on demand. Would smaller
firms require data warehouse-type facilities in order to be allowed to trade, or would regulators insist on tapping into or even
intervening during the early trade cycle?
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What is indisputable is that bigger pipes or larger communications lines will be needed per access to every execution venue.
Each exchange will need to process 10-15% more data – a conservative estimate – and every component will need to be timestamped every step of the way, requiring meta-data to be collected for evidencing as well.
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The requirement for regulatory data moves into the pre-trade under MiFID II and MAR. BaFIN currently has a requirement that
unexecuted orders are retained for a total of 10 years. Some traders are wondering if trading in liquid or standardised
instruments will remain a profitable activity; MiFID II best execution will also require and draw on increasing amounts of data.
•
In the market data space, suppliers are offering ‘after the fact’ analysis. General request made as to whether more suppliers will
provide montage or ‘state of the market’ snapshots at the point of execution, particularly for illiquid securities, fast-moving
markets or under conditions of market pressure/stress.
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The system functionality required by regulators will need to be massively upgraded, particularly if regulators show ambitions to
compare fees/charges between firms, to test algorithms on workbenches and/or apply similar tests to other FinTech areas such
as digital/robo-advice.
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Given the complex inter-dependencies between asset classes, trading systems may need to be developed as a superset to be ‘fit
for purpose’ in addressing evolving FinTech models – larger than the systems on any one particular bank, for example. There are
questions as to how central banks and regulators may be funded in order to achieve this.
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The era of cross-regulations will additionally expose those regulators unable to cope with the escalating complexities. Could
high-performance ‘super-‘regulators emerge covering the more sophisticated financial centres towards the end of the decade?
Meeting:
10th March
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The European Commission’s paper 2016/0034 (COD) amending MiFIR, MAR and CSDR describes the scope of their proposal
covering transaction reporting, the transparency framework, commodity derivatives and microstructural regulation (for
algo/HFT) as follows: ‘In order to collect data in an efficient and harmonised manner, a new data collection infrastructure must
be developed. This obliges ESMA, in conjunction with competent national authorities, to establish a Financial Instruments
Reference Data System ('FIRDS'). …FIRDS will necessitate linking of data feeds between ESMA, NCAs and around 300 trading
venues across the European Union…’
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Understood that the recent RTS released in November for EMIR specifies ISIN as the only option for product identification, and
discussion around the need to specify ISINs if there is a MIC (ISO 10383 market identification code) applied to a trading venue
(defined MiFID II Art 4(1)(24)).
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Discussion concerning how to transaction report in the event of new derivative being issued not traded on an exchange
(understanding is that bilateral transactions do not need ISINs for transaction reporting providing the bilaterally traded
instrument does not relate to any other asset, or basket of assets, where there is an instrument admitted to trading or trading
on a MiFID venue.).
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The speed of issuing/releasing an ISIN was seen as a huge issue if specifying the ISIN was a pre-requisite to conducting a trade
(which MiFIR RTS 23 does). Issuing ISINs via a central mechanism such as ANNA would require global agreements and may not
be quick. Suggestion was that NNAs (national numbering agencies) would create a pre-allocated ‘roll of ISINs’ which might be
used for the purpose. Uncertain how this would work in the case of more complex derivatives (e.g. certain OTC-traded
derivatives .
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Discussion whether Systematic Internalisers (SIs) would count as execution venues and as such, would they be identified by LEIs
(legal entity identifiers) or MICs (or both?). Open issue whether an authorised SI would need its own MIC, and/or if the SI status
(assessed quarterly) would warrant changes/updates in terms of how these codes might be issued?
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The greater volume of electronic trading post-MiFID II will bring about greater potential to create data montages (e.g. featuring
‘last-look’ or ‘broker-run’ prices). More montage activity will in turn create greater potential for TCA (transaction cost analysis)
tools to rival arrangements for EQ-like products. The new requirements under the Benchmarking Regulation taking effect in Q1
2018 (coupled with FEMR in the UK) will accelerate the trend
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It is expected that the preparatory work for T+2 implementation will result in improved processes with a SDA rate that continues
to rise. The US market may actually be less ready for T+2 in view of more batch/EOD processes in the US despite a concrete
target date set of September 5th 2017.
Meeting:
8th April
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The Commission Delegated Directive was published for MiFID II on 7th April 2016. There were relatively few changes from
previous leaked versions, and the majority of details will appear in the broader Delegated Act Regulation and Delegated Act
Product Intervention documents later in the year.
•
General comments that MiFID II is ‘too big’ and ‘too complex’. Firms were struggling because they needed essential information
about market structure (i.e. pending both revised RTS and Delegated Acts Regulations publications) – e.g. what will the repurposed Systematic Internalisers and the new OTFs look like?
•
General questions around the extra-territorial reach of the measures e.g. how to treat the reporting of EU/EEA-denominated
instrument or a transaction undertaken for EU/EEA-domiciled clients when trades are booked in third countries such as
Switzerland, Singapore or the U.S. Firms need to know what they will need to do to ensure they are truly ‘MiFID II-compliant’
when ESMA set a precedent by issuing a fine for EMIR transaction reporting and when ESMA publish recommendations (such as
Q&A or Guidance) vs. regulators such as the FCA publishing Rulebooks.
•
Regulation and DLT: The financial press reported early signals of concern raised by bodies such as the Bank of England, the BIS,
ESMA and the FSB. IOSCO created a fintech/blockchain task force . CFTC Commissioner J. Christopher Giancarlo commented
how ‘…It may make possible new “smart” securities and derivatives that can value themselves in real time, report themselves to
data repositories, automatically calculate and perform margin payments and even terminate themselves in the event of
counterparty default’. Luisa Geiling of the BaFIN commented ‘…The lack of a central authority on conduct and regulations could
pose problems here in particular’.
•
Future years 2019/2020 will see blockchain innovations reaching production and expansion. This will have an impact on the
treatment of segregated vs. omnibus accounts. There will be a need to educate the regulators in order for migration to DLT to
occur over the next 3-5 years. There is as yet no consistent approach to regulating DLT-type activity across the EU – a situation
comparable with the regulation of cybercrime which is being handled on a country-by-country basis.
•
Meanwhile, the Global Data Protection Regulation (GDPR) is due to come into effect during 2018 (right after MiFID II). The
movement of data between the US and EU will be rendered more complex as the safe harbour principle is no longer in place.
Comment that regulation is jurisdictionally-based and applied vs. digital which doesn’t recognise borders. Could end up with
regulatory arbitrage as firms elect to perform certain activities in certain markets with regulators losing control.
•
This classification will also be important for prudential reasons. The regulatory treatment for derivatives already has a material
effect on a bank’s capital, so the question is whether quasi-derivatives (or the representation of the same in digital assets) will
warrant a similar treatment.
The global scope of regulatory reform
post-G20 – Regulatory-driven change is a
major disruptor…
•
There are different global, regional and local regulatory measures impacting financial institutions on the prudential and conduct levels. Regulators are adopting collegiate,
intrusive, extra-territorial and local (thematic) approaches. The ‘triple witching’ aspects are having a significant, sustained impacts on cost/Income ratios here and now.
Global measures
► Basel III (& IV?)
► Recovery & Resolution Planning
► FSB/Shadow Banking
► AML/OFAC ATF/ABC
► eInvoicing
► eGovernment
► BCBS FRTB
► BCBS data measures
UK measures
► Individual Accountability Regime (IAR)
► Fair & Effective Markets Review (FEMR)
► Financial Advice Market Review (FAMR)
► Remuneration
► Other ongoing FCA thematic reviews:
►
►
►
►
►
US measures
► Dodd Frank Act - Titles I/IV/VI/VII/IX/X
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
Title I – Financial Stability/Basel III
measures and Orderly Resolution Planning
Title IV – HF Registration
Title VI – Volcker Rule/securitisation
Title VII – OTC derivatives (some carveouts for FX); LSOC concerns
Title IX – Compensation/
Whistle blowing/Mkt Abuse
Title X – Investor protections
FATCA disclosures/HIRE Act 871(m)
SEC Forms ADV & NPORT
SEC Regulations AT, SCI and V
SEC Cyber-security measures
SEC Liquidity Risk Mgmt.
SEC 18f-4 (1940 Act funds use derivs)
FinCEN AML Regulation
IRS 871(m) Withholding Tax
Sarbanes-Oxley controls
►
►
►
►
Mis-selling/§166
Outsourcing (contingency planning/step-in rights)
Client assets/money (CASS Rules)
Late Trade Allocations/Wall-Crossing
Market Abuse measures
RDR (II?)/Dealing Commissions
Best Execution and PFOF
Transparency in the UK Bond Market
HFT and Dark Pools
Global Regulatory Reform (G20+)
► Plethora of different regulatory approaches, not all
convergent – colleges, substituted compliance,
third country equivalence tests/mutual recognition,
private placement regimes, collegiate and thematic
approaches …
► The ‘Precautionary Principle’ (preventative
paradigm) is increasingly in evidence post-2012;
‘what if’ has replaced ‘what is’…
► The focus has shifted onto the personal aspects.
Regulators such as the FCA have focused on
control functions/code staff/skilled persons (SMR).
New EU regulations such as MAR and MiFIR are
also calling for ID specifications (e.g. trader/PM).
European measures
► European Banking Union and Capital Markets Union
► SRM & Liikanen
► Banking Recovery & Resolution Directive (BRRD)
► Basel III – CRD III & IV
► EMIR
► MiFIR/MiFID II
► AIFMD I/II
► MAR/MAD II
► UCITS V/VI
► CSDR (and T2S)
► PRIIPs
► Sec. Financing Trans. Reg (SFTR)
► MLD IV
► Benchmarking Regulation
► IDD
► Financial Transaction Tax (FTT)
► MMFs/ELTIFs
► Securities Law Directive II
► TD II
► Shareholder Rights Directive II
► CRS
► General Data Protection Reg (GDPR) ► EUSD II
►
FiDLEG
►
FinfraG
Asia-Pacific measures
► HK SFC Fund Auth./Code of Conduct
► New Investor protections (HK/SG/esp. AU)
► MAS Outsourcing Guidelines
► HK/CN/SG Mutual Recognition
► ASEAN Fund Passport (SG/MY/TH)
► ASEAN Fund Passport (Other ASEAN Countries)
► Market Abuse/Insider Trading (HK/SG/AU/IN/MY)
► OTC Derivatives reform (JP/HK/SG/AU/KR/IN …)
► HK Multi-currency Clearing
► HFT vigilance (HK/AU)
► Cybercrime/Blockchain legislation (HK/SG/AU)
► AML/KYC Measures (ASEAN incl. ID and TW)
Source: Anthony Kirby 2016
.
Common issues:
►
Most firms are trying to differentiate their “must do” measures from “good to do” measures e.g. MUST DO: Laws, regulations, directives, RTSs vs GOOD TO DO:
Recommendations, guidelines etc. Managing BAU against the broader need for managing horizon risk is a challenge for most firms
►
Firms are trying to manage public/political perceptions, conflicting measures, extraterritorial consequences and slippery timelines…
►
When it comes to global footprint, nirvana is optimising factors such as legal entity structures according to optimal tax, capital and regulatory ‘cost to serve’ …
Page 27
Regulatory Convergence post G20 – Dr Anthony W Kirby
Regulatory Impacts, Synergies
and Opportunities…
►
Financial firms, market infrastructure providers and suppliers are typically responding to a range of impacts which will create the need for
business and operating model change. Some of these measures are regulatory, and by the end of the decade, we will see regulatory
approaches converge with new technology solutions…
Regulations
►
Brexit Referendum Vote
►
Impacts
Synergies
Opportunities ►
Governance
On-boarding Procedures
Practitioners to inform
Risk Appetite
Shared Solutions
…
Policies & Procedures
Shared Platforms
Systems & Controls
Shared Networks
Reporting
Client Reporting
Management Info (MI)
Regulatory Reporting
etc
Data Handling
…
Data Warehousing
…
Technology
►
Block-chain
Changing Demographics
►
Digital/Robo-
►
Macro-economic Shifts
►
Cloud Technologies
►
Political Shifts (US/CN)
►
Crypto-currencies
►
Tax Transparency
►
Virtualisation
►
Etc.
►
Cyber-crime
►
Social Networking
►
etc.
TIME
Impact of the Various Regulations
in the Pipeline – Indicative only
Key
High
Medium
Low
NA
* Potential
for up to
one year’s
delay to be
qualified
Timing
Buy-side
Impact
Sell-side
Impact
Custodian
Impact
FMI
Impact
Governance
/LE Impact
Risk
Impact
Business
Impact
Systems
Impact
Data
Impact
AIFMD Reporting
Jul 2014
LOW-HIGH
LOW-MED
MEDIUM
LOW
LOW
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
TD II
Nov 2015
LOW
LOW
LOW
LOW
MEDIUM
LOW
LOW
LOW
LOW
UCITS V
Mar 2016
LOW
LOW
MEDIUM
LOW
LOW
LOW
LOW
MEDIUM
MEDIUM
EMIR
Jun 2016
LOW-HIGH
HIGH
MED-HIGH
MED-HIGH
MEDIUM
MED-HIGH
LOW-HIGH
LOW-HIGH
HIGH
Statutory Audit Dir. II
Jun 2016
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
LOW-HIGH
MAR
Jul 2016
MEDIUM
HIGH
LOW
HIGH
MEDIUM
MEDIUM
MEDIUM
MED-HIGH
HIGH
PRIIPs
Dec 2016
HIGH
LOW
LOW-MED
LOW
MEDIUM
HIGH
HIGH
HIGH
HIGH
SFTR
Jan 2017
MED-HIGH
HIGH
MED-HIGH
MEDIUM
MEDIUM
MEDIUM
MED-HIGH
MED-HIGH
HIGH
MLD IV
Jun 2017
HIGH
HIGH
HIGH
LOW
MEDIUM
HIGH
MEDIUM
HIGH
HIGH
CRS
Sep 2017
MED-HIGH
HIGH
HIGH
LOW
MEDIUM
MEDIUM
MEDIUM
MEDIUM
HIGH
Nov 2017?
LOW-HIGH
HIGH
MEDIUM
HIGH
MEDIUM
HIGH
HIGH
MEDIUM
HIGH
LOW-HIGH
LOW
MEDIUM
LOW
LOW
LOW
MEDIUM
MEDIUM
MEDIUM
HIGH
HIGH
MEDIUM
HIGH
LOW
MEDIUM
HIGH
HIGH
HIGH
LOW-HIGH
LOW
MEDIUM
LOW
LOW
MEDIUM
MEDIUM
MEDIUM
HIGH
Benchmark Reg.
ELTIF/MM Regulation Dec 2017?
MiFID II
Jan 2018
IDD
Jan 2018
SRD II
Q1 2018?
LOW
MEDIUM
HIGH
MEDIUM
HIGH
LOW
LOW
LOW
MEDIUM
GDPR
Q2 2018
HIGH
HIGH
HIGH
HIGH
HIGH
HIGH
HIGH
HIGH
HIGH
FRTB
Q1 2019?
LOW
HIGH
MEDIUM
LOW
MEDIUM
HIGH
MED-HIGH
HIGH
HIGH
CSDR final
Q1 2020?
MEDIUM
HIGH
HIGH
MED-HIGH
LOW
MEDIUM
MED-HIGH
MED-HIGH
HIGH
Common issues for firms:
►
►
►
►
The impacts of regulations are selective and depend to some degree on strategy and business models
Some firms will experience LOW impacts because of their strategy and/or likely sense of preparedness
The probability of the measures landing as described at the outset varies by type of regulation as well as sequence of the measure
Typical ‘high impact’ means significant changes to business models, systems/controls, reporting and data elements, warranting spends in excess of $5-10m/firm…
Panel Discussion
Panel
•
•
•
•
Henry Raschen, HSBC
Bob Fuller, Fixnetix
Caroline Holmes, Columbia Threadneedle
Chad Giussani, Standard Chartered Bank
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
ISITC Europe
Cybercrime Working Group
Progress Update
• Leader and outline Terms of Reference circulated
• Inaugural Working Group meeting held 13th April 2016
• Areas for consideration by ISITC EU being developed:
–
–
–
–
Internal / External view - outsourced view
Due Diligence and InfoSec policy
Standardisation or certification – e.g. ISO27022
Insurers have a view - two perspectives, specific threats to insurance
companies suffering cyber-attacks and the insurance / financial risk of
supporting others in financial services against the cyber threat.
– Development of an Industry standard template ?
– Benchmark against industry best practice – ISITC EU can help set industry best
practice?
– ISITC EU should take a role in industry education - assessment of areas of risk?
• Next Meeting - teleconference 25 May 2016 details tbc
ISITC Europe
Cybercrime Working Group
Leader: David Ewings
Scope: This work stream will look at the ongoing risks to the ISITC member organisations from the changing threat landscape in cyber security and
cyber crime. It will look at how different members are considering the threat level, both internal and external, and how they are responding to what
is a fast moving topic. It will consider which threats are emerging, how they relate to specific members operational activities, changes in regulation,
data privacy and disclosure.
Challenges and Opportunities: The cyber threat topic is one which touches all member organisations and is rapidly rising as a key agenda
item on the world stage. This work stream will provide a vehicle for the sharing of information on the current threats, how to combat through
people, process, education and technology solutions. It will help to inform each other on the current best practice, shared data and provide
real world scenarios for how to respond in the event of a data breach.
Roadmap: The key outputs for this will be 1) a shared report regarding the threats and techniques to combat, 2) a roadmap for upcoming
regulation or changes in legislation, such as the EU Data Protection Regulation and 3) an industry whitepaper which will be used to provide an
ongoing benchmark of the threat level, impact and likelihood of cyber crime (TBC)
Panel Discussion
How can the Securities Market
best manage Cyber Security?
Panel
•
•
•
•
Edward Wallace - MWR InfoSecurity
Richard Gale - Broadgate Consultants
John Vincent - Broadgate Consultants
Ciaran Askin - Columbia Threadneedle
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
ISITC Europe
Industry Engagement Work Stream
ISITC Europe
Industry Engagement Work
Stream
Leader: Matt Johnson
Scope: The Industry Engagement Working Group will form a working community comprised of financial markets practitioners across all sectors of
the securities industry. The group will focus on collaborating post trade SME’s and thought leaders to identify areas for development within
operations and technology and to provide an information sharing platform
Challenges and Opportunities: What types of industry working groups have already been formed and how do we ensure we don’t duplicate?
Identification of industry post trade needs is key, to allow this group to work in close coordination with the other ISITC working streams. ISITC
provide a platform to bring together the UK/European based trade associations and also be seen as a provider of education and training
Roadmap:
Member outreach: Began late January 2016
2 Meetings/Calls conducted – to continue every 4-6 weeks
Industry Engagement Stream to act as a filter for new ISITC thought leadership ideas and “The Glue” between other
streams
Begin a cross stream deep dive into CSD-R involving Regulation, Standards and Industry Engagement Streams
Panel Discussion
Is a Collaborative Securities
Industry Viable or Even Wanted?
Panel
•
•
•
•
Tony Freeman
Kevin Milne
Keith Guthrie
Murray Stolworthy
-
DTCC
Due Diligence Reports
Baillie Gifford
Jeffries Investment Bank
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
ISITC Europe
Standards Working Group
Workgroup Updates
- Standards
• Leader – Robin Leary
• Scope
– The work stream will provide education and opportunity to
identify gaps in current and future needs in standards and
best practice across the entire value chain whilst working
with complementary industry standards/associations on a
collaborative basis
• Current Activities
• Planned Activities
Workgroup Updates
- Standards
• Current Activities - Scope of Group: Today
– Looking at standards
• FIX
• ISO 20022
• ISO 15022
• Other?
– ISINs (ISO 6166), OMG FIGI Standard, LEI (ISO 17442)
– Interoperability between standards
• FIX / ISO 20022 / ISO 15022
– Review ETC document for business flows and see if still relevant
• Is everything covered?
• Do we want to expand the document to include message types and
examples of messages / reference links to messages as you would see in
ISITC / SMPG documentation?
– The role of ISITC Europe
• Should ISITC Europe be part of the Standards debate?
• Linking to the ISITC group as a whole and other Standards organisations
worldwide (eg SMPG)
Workgroup Updates
- Standards
• Planned activities
• Scope of the Group: Future
– Standards and Regulation
• ISO TC68/SC4/SG2 and the possibility of expanding
ISINs to cover derivatives
• OMG FIGI standard for financial instrument
identifiers
• ISO 20022 and ESMA
– Standards and Blockchain
• Does Standards have a role in a Blockchain world?
Panel Discussion
The Impact on Standards in a
Digital world
Panel
•
•
•
Matt Johnson, DTCC
Chris Pickles, Independent
Richard Young, Bloomberg
Agenda
08:30-08:45
08:45-09:15
09:15-10:00
10:00-10:30
10:30-11:15
11:15-11:45
11:45-12:30
12:30-13:00
13:00-13:15
Wrap up and Close
• Thank you – Audience, Panellists, Work-stream Leaders and
of course Admin (Dee)
• Participate in the work-groups
• Next General Meeting – 3Q 2016
Contact us:
[email protected]
www.isitc-europe.com

ISITC Europe General Meeting Presentation

Transcription

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