diversifications by csd in china progress and initiatives member presentation for the acg 14 general...
TRANSCRIPT
Diversifications by CSD in China
Progress and Initiatives
Member Presentation for the ACG 14 General Meeting
December 3, 2010 Mumbai, India
SHEN BingChina Securities Depository and Clearing Co. Ltd
Contents Diversification on the Rise Rationale behind CSD’s Diversification Progress & Initiatives—SD&C's Perspectiv
e Opportunities and Challenges
Diversification on the rise DTCC's Services Spectrum
Asset Service Global Corporate Actions OTC Derivatives Wealth Management Insurance & Retirement
Euroclear Services EMX Message System Funds Settlement Stock Loan data Asset Servicing Proxy voting Securities Lending and Collateral managem
ent NSDL's Value-added Services and other Activities
Lending and Borrowing Tax information National Skills Registry
Diversifications by CSD are clearly on the rise.
Rationale behind CSD’s Diversification Incentives for Creating New Market and New Services
A relatively mature market for traditional depository and settlement services
Increasing pressure for lower price and costs Possible leverage on CSD’s resources and skills
Market Demand and Regulatory Requirement Diversifying customer needs Development and innovations of financial products and
trading mechanism Changing regulatory environment
Value for Participants and Customers High efficiency and service level Lower cost for market participants Safety of assets and information
Rationale behind CSD’s Diversification
Value proposition is key for successful diversification.
Progress & Initiatives – SD&C's Perspective
There are still many diversifying opportunities in a developing market.
Characteristics of SD&C's CSD Services Fully Dematerialized Securities Book-entry Sys
tem Providing STP Depository and Settlement Services
A CSD that is highly integrated with trading and clearing systems
A CSD that also Perform Registration Functions
SD&C’s Funds Services Established in 2003
Market share of 30%
Potential New Products to Cover
Collateral Management Initiative
Increasingly used Pledge Services
Collateral Management Services
Information & Data Services Initiative
Statistics and Data Services
Notary Services
Securities Industry Data Warehouse
IT Infrastructure Support for the Securities Industry
OTC market Services Initiative
Depository & Registration Services for Equity OTC market
Repository for OTC derivatives
Opportunities and Challenges
Competition & Cooperation along the Value Chain Strategic Business Case Regulatory Constraint Risks Management
Mind the gaps!
A Few Questions to be Considered
Does diversification create value for the industry and synergy for CSD’s business?
Does it help CSD to reap benefits from market development?
Does it introduce new risk exposures and how do we monitor and mitigate them?
Does it help the CSD to gain sustainable competitive advantage?
Thank you