Market reference guide - BNP Paribas Securities Services

Transcription

Market reference guide
List of markets
Australia
Germany
Italy
Spain
Austria
Greece
Morocco
Switzerland
Belgium
Hong Kong
Netherlands
Turkey
Brazil
Hungary
Poland
United Kingdom
Cyprus
India
Portugal
United States
France
Ireland
Singapore
Welcome to our market reference guide
This guide aims to provide a snapshot of the markets where
BNP Paribas Securities Services has direct infrastructure membership,
bringing together key figures and information on local practices.
As we serve an increasingly global client-base, we remain committed
to extending our direct clearing and custody network to cover 30 of the
major markets worldwide.
Indeed, we plan to offer an end-to-end solution in an additional 8
markets over the next few years.
This will enable us to put our local expertise at your service in new,
fast-growing markets.
It will give our global custody clients the benefit of extended asset
safety and service quality, as 90% of the assets we have in custody will
be safekept within our highly-rated, award-winning network.
If you have any further questions or suggestions regarding this guide or
our strategy, please contact your global or local relationship manager
or email: securitiesservices@bnpparibas.com
Definitions and sources
Key market information
Figure: level of fragmentation
Figure: 2011 GDP
What is it: percentage of trades executed out of the incumbent exchange as of last week of
December 2011 (market of reference for USA: NASDAQ – market of reference for India: NSE)
What is it: 2011 gross domestic product forecast adjusted by purchasing power parity (PPP)
Source: International Monetary Fund’s forecast for 2011 as calculated in its World Economic
Outlook (WEO), September 2011 and its WEO Update, January 2012
Key market figures
Figure: market capitalisation
What is it: total value of the tradable shares of publicly traded companies for each market
as of 31 December 2011
Source: World Federation of Exchanges, year to date monthly statistics 2011
Figure: number of listed company
What is it: number of listed companies in a given market as of 31 December 2011
Figure: 2011 value of share trading
What is it: total stock exchange turnover for 2011
Source: Fidessa fragmentation index (www.fragmenatation.fidessa.com)
Figure: number of ETF listed
What is it: number of listed exchange traded funds in a given market as of 31 December 2011
Figure: number of bonds listed
What is it: number of listed bonds in a given market as of 31 December 2011
Figure: number of futures/options contracts traded
What is it: number of futures/options traded on a given market in 2011
Key market figures
Market practices (all times are local)
Settlement cycles
Australian dollar (AUD)
Market capitalisation
USD 1,198,187 million
2011 GDP
USD 1,507,402 billion
Number of listed companies
2,079
Equities
T+3
Time zone
GMT +11 hours (summer)
GMT +10 hours (winter)
2011 value of share trading
Bonds
T+3
Numbering system ISIN and local codes
Level of fragmentation
<1%
Cash
n/a
Main stock exchange
index
Number of ETF listed
53
S&P/ASX200
Number of bonds listed
n/a
Number of futures contracts traded
in 2011
15,700,563
Number of options contracts traded
in 2011
119,605,129
Equities
Corporate bonds
Government bonds
Derivatives
Trading
ASX
ASX
ASX
SFE
Clearing
ASX Clear
ASX Clear
ASX Clear
ASX Clear
Settlement
and custody
ASX Settlement
ASX Austraclear
ASX Austraclear
n/a
Cash leg
ASX
ASX
ASX
n/a
Local market authorities and regulators
The Australian Prudential Regulation Authority (APRA)
n
n
n
The Reserve Bank of Australia (RBA)
The Australian Securities and Investments Commission (ASIC)
Derivatives
Local market infrastructures
Securities
Local currency
Cut-off times
Equities
DVP 10.30am
FoP 7pm
Bonds
DVP 4.28pm
FoP 6.28pm
Cash
4.30pm
Examples of market penalties
Equities: 0.1% of the settlement shortfall
min AUD 100 to max AUD 5,000.
Tolerance limits
ASE Settlement: Up to 500,000 AUD = 1 AUD
500,000 AUD to 1 million AUD
= 10 AUD >1 million AUD =
20 AUD
Omnibus account/security
Yes
ASX Austraclear: fixed Interest = 0
Omnibus account/cash
Yes
Buy-in practice
Pre-matching
Yes
Irrevocable pre-matching
No
Buy-ins do not exist in Australia, however
the ASX enforces a ‘close out’ process.
Short selling
No
Cash settlement/DVP
Yes
Securities lending
Yes
Foreign ownership limits
Yes
ASX settlement rules require settlement participants to close-out any settlement shortfalls that
remain after the close of business on T+5 by way
of a purchase or borrow of covering securities.
Deliveries still failing on T+10 will be subject
to the ASX investigations team and subject to
review by the ASX disciplinary tribunal.
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Depends on individual products
Give-up cut-off
T+0
Clearing cut-off
7.30pm
Yes
Tradable currencies
AUD/NZD
Adjustable ITM
(In The Money minimum)
Account structure members
n/a
Intra-day margin call
Yes
Account structure non-members
n/a
Risk algorithm
SPAN
Key market figures
Settlement cycles
Euro (EUR)
USD 85,269 million
2011 GDP
USD 425,091 billion
105
Equities
T+3
Time zone
GMT +1 hour
USD 42,356 million
Bonds
T+3
Numbering system ISIN
n/a
Cash
T+3
Main stock exchange
index
ATX
22
3,635
in 2011
346,592
in 2011
947,841
Securities
Local currency
DVP: last batch
at 4pm
FoP: last batch
at 6pm
Bonds
DVP: last batch
at 4pm
FoP: last batch
at 6pm
Cash
6pm
Penalties for failed SE trades: three times
OeNB rate of the cash amount for late interest.
Penalty of 0.3% (min. EUR 250) per day for SD+1
until SD+3 from FMA.
Tolerance limits
EUR 25
Omnibus account/securities
Yes
Yes
Buy-in practice
Pre-matching
Yes
Buy-in processed by CCP.A:
No
Short selling
No
– On SD+3 after 2nd SE cycle until SD+4. Buy-in
and cash settlement cost EUR 250
Cash settlement/DVP
Yes
Securities lending
Yes
No
Corporate bonds
Government bonds
Listed derivatives
Trading
Vienna Stock Exchange
Clearing
CCP.A
CCP.A
CCP.A
CCP.A
Settlement
and custody
OeKB
OeKB
OeKB
n/a
Cash leg
Central bank (Target 2)
n/a
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
5.40pm
Give-up cut-off
T-1
Clearing cut-off
5.40pm
Yes
Tradable currencies
EUR/USD
Adjustable ITM
Segregated
No
Segregated
Risk algorithm
n/a
Austrian Financial Market Authority (FMA), the single statutory supervisory body directly responsible for
banking, insurance and pension funds, securities and stock exchange supervision
Österreichische Nationalbank (OeNB), the central bank of Austria
Derivatives
n
Equities
Example of market penalties
Penalties for failed OTC transactions: for nonpayment a default interest of 0.015% per day
for max 20 business days in favour of the buyer.
The revaluation fee is EUR 18 per day in favour
of OeKB.
Equities
n
Cut-off times
– Cash settlement will occur on SD+5 (with
a rise of 20% for securities and 10% for
subscription rights)
Key market figures
Settlement cycles
Cut-off times
Euro (EUR)
USD 176,646 million
2011 GDP
USD 529,046 billion
151
Equities
T+3
Equities
4pm
Time zone
GMT +1 hour
USD 105,633 million
Bonds
T+3
Bonds
4pm
36%
Cash
T+0
Cash
5pm
Main stock exchange
index
BEL 20
42
202
in 2011
Included in NYSE Liffe
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
NYSE Euronext
NYSE Euronext
NYSE Euronext
NYSE Liffe
Clearing
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
Settlement
and custody
Euroclear Belgium
National Bank of
Belgium or Euroclear
Belgium
National Bank of
Belgium or Euroclear
Belgium
n/a
Cash leg
n/a
n
n
The Financial Services and Markets Authority (FSMA) has responsibility for financial market supervision
and consumer protection
The National Bank of Belgium is in charge of prudential supervision of financial institutions from both
the micro-prudential and the macro-prudential angles, and the prompt detection of systemic risk
MV ≤ EUR 1 million – 0.01%
MV > EUR 1 million and ≤ EUR 5 million – 0.02%
MV < EUR 5 million – 0.03%
plus EUR 2 per fail
Yes
Yes
Pre-matching
Yes
n
No
n
Short selling
No
Cash settlement/DVP
Yes
n
Securities lending
Yes
Tolerance limits
Yes
EUR 25 for repos
Daily penalty caps as follows:
Less than 10 times a month: EUR 1,500
Between
10 times and 20 times a month:
EUR 7,500
More than 20 times a month: EUR 15,000
EUR 2 for OTC transactions
Buy-in practice
According to LCH.Clearnet SA’s procedures, buyin can be triggered between SD+1 and SD+7.
Derivatives
in 2011
Securities
Local currency
Examples of market penalties
LCH.Clearnet SA’s penalty fees apply to all
guaranteed securities (equities, bonds, coupons,
warrants etc) based on market value (MV).
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
5.30pm (options)
5.35pm (futures)
Give-up cut-off
T+5
Yes
Clearing cut-off
8pm
Adjustable ITM
Tradable currencies
EUR
Yes
Segregated and omnibus
Risk algorithm
SPAN
Key market figures
Settlement cycles
Local currency
Brazilian Real (BRL)
2011 GDP
373
Equities
Time zone
GMT -3 hours
USD 930,698 million
Numbering system ISIN and local
numbering system
0%
Spot
options
10
IBOVESPA
253
in 2011
21,650,138
in 2011
838,948,597
Trading
Clearing
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
BM&F Bovespa
BM&F Bovespa
BM&F Bovespa
BM&F Bovespa
CBLC
CETIP
SELIC
BM&F
Settlement
and custody
CBLC
CBLC/CETIP
BM&F
n/a
Cash leg
BACEN
BACEN
BACEN
n/a
The Comissão de Valores Mobiliários regulates the securities market, including the stock exchange
n
n
n
n
Securities
Bonds
Banco Central do Brasil regulates the fixed income market
The National Monetary Council sets the guidelines for monetary, credit and foreign exchange policies
The National Association of Financial Market Institutions is a Brazilian non-profit civil entity working
towards the integration of Brazil’s National Financial System
Derivatives
Main stock exchange
index
Cut-off times
T+3
T+1
OTC: T+0 Net :T+0/
T+1 Gross T+0
Equities
3pm
Bonds
6.30pm
10.15pm for SISBEX
Cash
6pm
A 0.2% penalty fee of the traded amount (not
including broker and exchange fees) is charged
if the securities are not delivered by T+3.
Another 0.2% penalty fee of the traded amount
is charged if the securities are not delivered
by T+4.
Tolerance limits
Gov.
bonds
T+0/T+1
BRL 70
Cash
T+1
Buy-in practice
Yes
Yes
Pre-matching
No
No
Short selling
No
Cash settlement/DVP
Yes
Securities lending
Yes
Yes
Buy-in launched at T+4 10am by BM&F Bovespa
and CBLC and needs to be executed by T+6.
This buy-in order execution has to be confirmed
by the broker to CBLC by T+7. If the buy-in order
cannot be executed, the buy-in order will be
valid for the next 3 days after the restart of
trading of the security.
Settlement
Cash
Give-up
Yes
Trading cut-off
6pm
Give-up cut-off
T+0
Clearing cut-off
5pm
n/a
Tradable currencies
USD/AUD/CAD/NZD/EUR/CHF/JPY/
CNY/GBP/TRY/CLP/MXN/ZAR
Adjustable ITM
Yes
Segregated
Risk algorithm
FRP
Segregated
Key market figures
Settlement cycles
Euro (EUR)
USD 2,853 million
2011 GDP
USD 25,665 billion
106
Equities
T+3
Time zone
GMT +2 hours
USD 484 million
Bonds
T+3
n/a
Cash
T+0
Main stock exchange
index
CSE general index
0
63
in 2011
n/a
in 2011
n/a
Securities
Local currency
Equities
Corporate bonds
Government bonds
Trading
CSE
CSE
CSE
Clearing
CSE
CSE
CSE
Settlement
and custody
CDCR
CDCR
CDCR
Cash leg
Alpha Bank Cyprus
Alpha Bank Cyprus
Alpha Bank Cyprus
The Central Bank of Cyprus supervises and controls all banking entities in the country
n
n
The Securities and Exchange Commission supervises the exchange, issuers of listed securities,
investment firms and brokers
Cut-off times
No
No
Pre-matching
Yes
No
Short selling
No
Cash settlement/DVP
Yes
Securities lending
No
Yes
The general manager of the CSE may impose a
fine of up to EUR 3,500.
Equities
OTC 2.15pm
On exchange 11pm
Tolerance limits
Bonds
11pm
n/a
Cash
6pm
Buy-in practice
Strict buy-in practice on T+3.
If the trade is not covered by then, there is a
second buy-in window on T+4.
Key market figures
Settlement cycles
Cut-off times
Euro (EUR)
2011 GDP
586
Equities
T+3
Equities
4pm
Time zone
GMT +1 hour
Bonds
T+3
Bonds
4pm
40%
Cash
T+0
Cash
5pm
Main stock exchange
index
CAC 40
522
2,556
in 2011
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
NYSE Euronext
NYSE Euronext
NYSE Euronext
NYSE Liffe
Clearing
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
Settlement
and custody
Euroclear France
Euroclear France
Euroclear France
n/a
Cash leg
n/a
n
n
The Autorité des Marchés Financiers (AMF) is in charge of safeguarding investments in financial
instruments, ensuring information to investors and of the good health of financial markets in general
The Banque de France, the central bank, is responsible for supervising activities of financial institutions
plus EUR 2 per fail
Yes
Yes
Pre-matching
Yes
n
No
n
Short selling
Yes
Cash settlement/DVP
Yes
n
Securities lending
Yes
Tolerance limits
Yes
EUR 25 for repos
Between 10 times and 20 times a month:
EUR 7,500
Buy-in practice
Derivatives
in 2011
Securities
Local currency
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Give-up cut-off
T+5
Clearing cut-off
8pm
Yes
Tradable currencies
EUR
Adjustable ITM
Yes
Risk algorithm
SPAN
Key market figures
Settlement cycles
Euro (EUR)
2011 GDP
746
Equities
T+2
Time zone
GMT +1 hour
Bonds
T+2
34%
Cash
T+2
Main stock exchange
index
DAX
899
22,463
in 2011
660,641,307
in 2011
743,697,229
Corporate bonds
Government bonds
Listed derivatives
Trading
FSE
FSE
FSE
Eurex
Clearing
Eurex Clearing AG
Eurex Clearing AG
Eurex Clearing AG
Eurex Clearing AG
Settlement
and custody
CBF/CBL
CBF/CBL
CBF/CBL
n/a
Cash leg
n/a
The Federal Financial Supervisory Authority (BaFin) conducts banking, insurance and securities markets
supervision and ensures the proper functioning, stability and integrity of the financial system in Germany
n
n
The Deutsche Bundesbank is the German central bank and plays a significant role in banking supervision
Derivatives
Equities
Securities
Local currency
Cut-off times
Equities
1.15pm
DVP RTS* 4pm
FoP RTS* 6pm
Tolerance limits
Bonds
1.15pm
DVP RTS* 4pm
FoP RTS* 6pm
Buy-in practice
Cash
6pm
* Real Time Settlement only in case of bilateral agreement
Yes
Yes
Pre-matching
Yes
No
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
No
Penalties exist only for bond settlements
resulting from Eurex expiries.
EUR 25 or USD 25
CCP trade: 1st buy-in attempt on S+5, 2nd
buy-in attempt on S+10, 3rd buy-in attempt
on S+27; Cash settlement on S+30 to S+36,
next buy-in attempt S+37.
Buy-in costs 10% of outstanding buy-in
amount (min. EUR 250/CHF 400, max.
EUR 5,000/CHF 8,000).
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Give-up cut-off
T+2
Clearing cut-off
Yes
Tradable currencies
CHF/EUR/GBP/USD
Adjustable ITM
Segregated
Yes
Risk algorithm
RBM method
Key market figures
Settlement cycles
Euro (EUR)
USD 33,778 million
2011 GDP
USD 312,042 billion
272
Equities
T+3
Time zone
GMT +2 hours
USD 27,295 million
Bonds
T+3
0%
Cash
T+0
Main stock exchange
index
ATHEX 20
3
68
in 2011
10,038,456
in 2011
392,628
Securities
Local currency
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
ASE
n/a
HDAT
Athens Derivatives
Exchange
Clearing
Athens Exchange Clear
Athens Exchange Clear
n/a
Athens Derivatives
Exchange
Settlement
and Custody
CSD
Cash leg
CSD
Bank of Greece
n/a
n/a
The Bank of Greece supervises and controls all banking operations in the country
n
n
The Capital Market Commission supervises the exchange, investment firms, brokers and mutual funds
Derivatives
Cut-off times
No
Yes
Pre-matching
Yes
No
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
Yes
Penalties only apply if the fail continues past
T+3. This is not a usual scenario.
Equities
OTC 5.20pm
On exchange 4pm
Tolerance limits
Bonds
3.30pm
EUR 3, only for government bonds
Cash
6pm
Buy-in practice
Strict T+3 buy in practice.
Settlement
Cash and physical
Give-up
Yes
Trading cut-off*
5.20pm
Give-up cut-off
No
Clearing cut-off**
5.20pm
No
Tradable currencies
EUR/USD
Adjustable ITM
Segregated
Yes
Segregated
Risk algorithm
RI.VA
*Exceptions: for exercise: 5.50pm. Exercise stock repo/stock lending: 3.20pm
**Exceptions: expired stock futures & stock options (physical delivery) on T+3
Key market figures
Settlement cycles
Cut-off times
Hong Kong Dollar (HKD)
2011 GDP
USD 246,941 billion
1,496
Equities
T+2
Equities
3.45pm
Time zone
GMT +7 hours (summer)
GMT +8 hours (winter)
Bonds
Varies
Bonds
4pm
0%
Cash
Varies
Cash
6pm
77
192
in 2011
50,673,370
in 2011
88,735,785
Main stock exchange
index
Hang Seng
Securities
Local currency
Equities
Corporate bonds
Government bonds
Derivatives
Trading
SEHK
OTC via CMU
OTC via CMU
SEKH/HKFE
Clearing
HKSCC
n/a
n/a
SEOCH/HKCC
Settlement
and custody
HKSCC
CMU
CMU
n/a
Cash leg
HKICL
HKMA
HKMA
n/a
The Hong Kong Monetary Authority (HKMA) acts as the central bank and the regulator of banks
n
n
The Securities and Futures Commission (SFC) acts as the securities and derivatives regulator
Derivatives
Yes
Yes
Pre-matching
Yes
No
Short selling
Yes (some eligible securities)
Cash settlement/DVP
Yes
Securities lending
Yes
No
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Give-up cut-off
6.45pm
Clearing cut-off
6.45pm
No
Tradable currencies
HKD
Adjustable ITM
Yes
Risk algorithm
SPAN
Key market figures
Settlement cycles
Cut-off times
Hungarian Forint (HUF)
USD 18,773 million
2011 GDP
USD 147,874 billion
54
Equities
T+3
Equities
5.30pm
Time zone
GMT +1 hour
USD 19,172 million
Bonds
T+3
Bonds
5.30pm
0%
Cash
T+2
Cash
Varies
1
158
in 2011
2,687,681
in 2011
10
Main stock exchange
index
BUX
Securities
Local currency
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
BSE
BSE
MTS Hungary
BSE
Clearing
KELER
KELER
KELER
KELER
Settlement
and custody
KELER
KELER
KELER
n/a
Cash leg
MNB
MNB
MNB
n/a
The Hungarian Financial Supervisory Authority is responsible for regulating and supervising the
securities markets (brokerage houses, financial institutions, the stock exchange and CSD)
n
n
The National Bank of Hungary is responsible for the stability of the financial system as a whole and
supervises local banks that are holding direct nostro account with them
Derivatives
Default fee (charged in case of securities or
cash non-performance on SD after 11.30am):
HUF 60,000 to be paid to the CSD and HUF
40,000 to be paid to the CCP.
Non-performance fee (charged in case of
securities non-performance on SD after
11.30am): scaled depending on the value of
the failed trade, fee between HUF 300,000 and
1,000,000 per day.
Yes
Yes
Pre-matching
Yes
No
Short selling
Yes
Non-performance surcharge (charged in case of
securities non-performance after SD at 4.00pm):
National Bank of Hungary base rate.
Cash settlement/DVP
Yes
Tolerance limits
Securities lending
Yes
HUF 5,000 for OTCs, the buyer’s price prevails.
Yes
No tolerance limit for trades on stock exchange.
Settlement
Cash and physical
Give-up
n/a
Trading cut-off
5pm
Give-up cut-off
n/a
Clearing cut-off
n/a
No
Tradable currencies
Various
Adjustable ITM
No
Risk algorithm
SPAN
Key market figures
Settlement cycles
Indian Rupee (INR)
2011 GDP
6,752
Equities
T+2
Time zone
GMT +4.30 (summer)
GMT +5.30 (winter)
USD 737,331 million
Bonds
T+N
20%
Cash
T+2
Main stock exchange
index
59
SENSEX/NIFTY
7,193
in 2011
319,230,215
in 2011
904,525,413
Corporate bonds
Government bonds
Derivatives
Trading
NSE/BSE
OTC
NDS/RBI
NSE/BSE*
Clearing
NSCCL/ICCL
NSCCL/ICCL
CCIL
NSCCL/ICCL
NSDL/CDSL
Cash and securities
settled (SGL or CSGL)
NDSL/CDSL
RBI
Clearing bank
Settlement
and custody
NSDL/CDSL
Cash leg
Clearing bank
Clearing bank
* For derivatives – NSE: cash settled (ie no securities settlement), BSE: Single Stock F&O is delivery based and Index F&O is
cash settled
n
n
n
Finance Ministry of India
The Securities and Exchange Board of India (SEBI)
The Reserve Bank of India (RBI)
Derivatives
Equities and ETFs
Securities
Local currency
n Position limit violation by any player in
derivatives segment will attract a penalty
Cut-off times
Equities
10.30am – Pay in
2pm – Pay out
n
Corporate
bonds
11am (T+N)
3pm (T+0)
n
Government
bonds
10am – Pay in
8pm – Pay out
Cash
10.30am – Pay in
2pm – Pay out
osition limit violation on equity segment
P
will attract a penalty
In case of a pay-out, if the shares are not
transferred within 24 hours to the client’s
account, a penalty of 0.006% of the value of
the shares will be charged
Tolerance limits
None for BSE and NSE, however a small
difference between exchange and client data
can be adjusted against the brokerage amount.
Alternatively clients can provide their custodian
with a standing instruction to match their trades
with NSE or BSE within an agreed tolerance.
No
No
Pre-matching
No
No
Short selling
No
Cash settlement/DVP
Unconfirmed trades with the exchange
will be settled as DVP (counterparty
brokers instead of exchange)
Securities lending
Yes
RBI and SEBI
Buy-in practice
Yes
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
3.30pm
Give-up cut-off
Immediate
Clearing cut-off
4.15pm
N : 0.01
Tradable currencies
INR/USD/EUR/GBP/JPY
Adjustable ITM
Segregated
Prefunding
Segregated
Risk algorithm
SPAN +
additional
margins
Key market figures
Settlement cycles
Cut-off times
Euro (EUR)
USD 108,393 million
2011 GDP
USD 222,269 billion
55
Equities
T+3
Equities
T+2 3pm
Time zone
GMT
USD 8,956 million
Bonds
T+3
Bonds
T+1 1pm
13%
Cash
T+0
Cash
6pm
1
21,095
in 2011
n/a
in 2011
n/a
Main stock exchange
index
ISEQ
Equities and ETFs
Bonds
Trading
Irish Stock Exchange (ISE),
London Stock Exchange (LSE)
ISE Xetra
Clearing
Eurex Clearing, LCH.Clearnet Ltd
LCH.Clearnet Ltd
Settlement
Euroclear UK + Ireland (EUI)
EUI, Euroclear Bank
Custody
EUI
EUI, Euroclear Bank
Cash leg
CREST payment banks
CREST payment banks
n
The Irish Ministry of Finance has overall responsibility for the securities industry, but has delegated
its authority to the Central Bank of Ireland. It regulates financial market participants including banks,
exchanges, brokers and depositories
Securities
Local currency
Matching discipline
Settlement discipline
Tolerance limits
GBP 10
EUR 15
Yes
USD 15
Yes
Pre-matching
No
Buy-in practice
No
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
Yes
On exchange securities:
– Earliest request: ISD+15
– Second attempt: ISD+18
– Third attempt: ISD+20
– Cash settlement on ISD+30 to ISD+37
Key market figures
Settlement cycles
Cut-off times
Penalties are calculated applying the following
percentages to the value of net short positions:
Euro (EUR)
USD 332,373 million
2011 GDP
328
Equities
T+3
Equities
4pm
n
0.001% for corporate and governments bonds
Time zone
GMT +1 hour
USD 919,167 million
Bonds
T+3 (T+2 for BOT*)
Bonds
4pm
n
16%
0.02% for all other securities
Cash
T+0
Cash
5pm
Main stock exchange
index
FTSE MIB
570
826
in 2011
20,531,593
in 2011
27,291,557
Securities
Local currency
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
Borsa Italiana
Borsa Italiana MOT
MTS
MTS
Clearing
CC&G
CC&G
CC&G/LCH.Clearnet SA
CC&G
Settlement
and custody
Monte Titoli
Monte Titoli
Monte Titoli
n/a
Cash leg
n/a
The Commissione Nazionale per le Società e la Borsa (CONSOB) is the public authority responsible for
regulating the Italian securities market
n
n
The Bank of Italy, the Italian central bank overseen by the Ministry of Treasury, pursues aims of
general interest in monetary and financial matters such as price stability, and the overall efficiency
of the financial system
Derivatives
* Buoni Ordinari del Tesoro
Tolerance limits
EUR 5
Yes
Buy-in practice
Yes
Pre-matching
Yes
Yes
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
Members who have not delivered the financial
instruments for a given end of validity day will
be charged with a commission consisting of a
fixed fee of EUR 1,000 plus a valiable fee of 0.1%
of the countervalue of the financial instruments
purchased through the buy-in agent on each
buy-in executed.
No
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
5.40pm
Give-up cut-off
T+2
Clearing cut-off
6.30pm
No
Tradable currencies
EUR
Adjustable ITM
Yes
Risk algorithm
TIMS data
Key market figures
Settlement cycles
Moroccan Dirham (MAD)
USD 60,087 million
2011 GDP
USD 101,767 billion
76
Equities
T+3
Time zone
GMT -1 hour*
USD 4,314 million
Bonds
T+3
0%
Cash
Varies
Main stock exchange
index
FTSE CSE
0
48
in 2011
n/a
in 2011
n/a
*GMT -1 hour starting from Ramadan – ending in October
Securities
Local currency
Equities
Corporate bonds
Government bonds
Trading
CSE
CSE
OTC
Clearing
Maroclear
Maroclear
Maroclear
Settlement
and custody
Maroclear
Maroclear
Maroclear
Cash leg
BAM
BAM
BAM
The Conseil Déontologique de Valeurs Mobilières (CDVM) is the capital market authority, its main
functions are to oversee the sector and to have a set of relevant operational tolls, such as sanctions,
at its disposal to enforce those regulations
n
n
n
The Bank Al Maghrib is the Moroccan central bank and plays a significant role in the banking supervision
The Minister of Finance controls financial institutions and approve investment services providers
Cut-off times
Yes
Yes
Pre-matching
Yes
Yes
Short selling
No
Cash settlement/DVP
Yes
Fail coverage/SL
No
No
Established market penalties for on-exchange
failed trades.
Equities
OTC SD 3pm
On exchange SD-1 2pm
Tolerance limits
Bonds
OTC SD 3pm
On exchange SD-1 2pm
There is no market tolerance on the settlement
amount.
Cash
4pm
Buy-in practice
Counterparties have until SD+6 to settle failed
trades. Failing that, buy-in procedures can be
activated on SD+7. The exchange undertakes the
buy-in, with securities priced at +6% for equities
and +2% for debt instruments. The difference is
paid for by the defaulting broker. Buy-ins settle
three days after the buy-in trade.
Key market figures
Settlement cycles
Cut-off times
Euro (EUR)
USD 458,049 million
2011 GDP
USD 858,282 billion
144
Equities
T+3
Equities
4pm
Time zone
GMT +1 hour
USD 590,618 million
Bonds
T+3
Bonds
4pm
39%
Cash
T+0
Cash
5pm
Main stock exchange
index
AEX
123
1,415
in 2011
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
NYSE Euronext
NYSE Euronext
NYSE Euronext
NYSE Liffe
Clearing
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
Settlement
and custody
Euroclear Netherlands
n/a
Cash leg
n/a
n
n
The Autoriteit Financiële Markten (AFM) is responsible for supervising the operation of the financial
markets: savings, investment, insurance and loans
The Dutch Central Bank (De Nederlandsche Bank) is responsible for prudential supervision
plus EUR 2 per fail
Yes
Yes
Pre-matching
Yes
No
Short selling
Yes
Cash settlement/DVP
Yes
n
Securities lending
Yes
Tolerance limits
No
EUR 25 for repos
n
n
Between
EUR 7,500
Buy-in practice
Derivatives
in 2011
Securities
Local currency
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Give-up cut-off
T+5
Clearing cut-off
8pm
Yes
Tradable currencies
EUR/USD
Adjustable ITM
Yes
Risk algorithm
SPAN
Key market figures
Local currency
Polish Zloty (PLN)
USD 138,244 million
2011 GDP
USD 531,758 billion
777
Time zone
GMT +1 hour
USD 86,517 million
Numbering system ISIN and local
numbering for all
commercial papers, local
government bonds etc.
0%
1
246
in 2011
14,409,463
Main stock exchange
index
WIG 20
in 2011
947,841
Settlement cycles
Securities
Equities
Corporate bonds
Government bonds
Derivatives
Trading
WSE
WSE/Catalyst
WSE/BondSpot
WSE
Clearing
KDPW_CCP
KDPW_CCP
KDPW_CCP
KDPW_CCP
Settlement
and custody
KDPW
KDPW
KDPW
n/a
Cash leg
NBP
NBP
NBP
n/a
n
The Commission for Financial Supervision (KNF) is the sole market regulator in Poland. The KNF
supervises and monitors the performance of securities companies, insurance companies, the Warsaw
Stock Exchange, the National Depository for Securities (KDPW), investment funds, pension funds,
banks, financial and clearing institutions
Derivatives
Settlement suspension penalty: 0.3% per day of
the value of all suspended trades.
Cut-off times
WSE trades
(equities, bonds)
T+3
WSE trades
(equities, bonds)
3.30pm
Tolerance limits
Debt securities
T+2
Debt securities
3.30pm
PLN 100
Cash
T+0
Cash
4pm
Buy-in practice
Yes
Yes
Pre-matching
Yes
No
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
No
On SD+3, KDPW_CCP has the right to buy-in
(sell-out) securities on participants behalf
using collateral deposits placed by the clearing
member. If this is not sufficient then the money
deposited in the Settlement Guarantee Fund by
the clearing member is used. If this is still not
sufficient then funds contributed by other SGF
members are used to buy the securities.
Settlement
Cash
Give-up
No
Trading cut-off
5.35pm
Give-up cut-off
n/a
Clearing cut-off
3.30pm
No
Tradable currencies
PLN
Adjustable ITM
Segregated
No
Segregated
Risk algorithm
SPAN
Key market figures
Settlement cycles
Euro (EUR)
USD 47,520 million
2011 GDP
USD 241,921 billion
51
Equities
T+3
Time zone
GMT
USD 37,312 million
Bonds
T+3
22%
Cash
T+0
Main stock exchange
index
PSI 20
3
324
in 2011
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
NYSE Euronext
NYSE Euronext
NYSE Euronext
NYSE Liffe
Clearing
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
LCH.Clearnet SA
Settlement
and custody
Interbolsa
Interbolsa
Interbolsa
n/a
Cash leg
n/a
The Bank of Portugal supervises and controls all banking operations in the country
n
n
The Comissão do Mercado de Valores Mobiliários (CMVM) under the supervision of the Ministry of
Finance is responsible for regulating, monitoring and supervising the activities performed by financial
agents, in addition to promoting the securities market
Yes
Yes
Equities
DVP 4pm
FoP 4.30pm
Bonds
DVP 4pm
FoP 4.30pm
Cash
4pm
plus EUR 2 per fail
n
n
Between
EUR 7,500
Pre-matching
Yes
No
Short selling
Yes
Cash settlement/DVP
Yes
Tolerance limits
Securities lending
Yes
EUR 25 for repos
No
n
Buy-in practice
Derivatives
in 2011
Securities
Local currency
Cut-off times
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
4.40pm
Give-up cut-off
T+5
Clearing cut-off
8pm
Yes
Tradable currencies
EUR
Adjustable ITM
Yes
Risk algorithm
SPAN
Key market figures
Settlement cycles
Cut-off times
Local currency
Singapore Dollar (SGD)
USD 598,272 million
2011 GDP
USD 266,498 billion
773
Equities
T+3
Equities
T+3
Time zone
GMT +8 hours
USD 285,118 million
Bonds
T+3
Bonds
T+3
0%
Cash
Varies
Cash
Varies
Main stock exchange
index
Singapore Straits Times
90
1,134
in 2011
69,964,415
in 2011
2,091,076
Corporate bonds
Government bonds
Derivatives
Trading
SGX
SGX
OTC
SGX quest
Clearing
CDP
CDP
n/a
PI (participant interface)
Settlement
and custody
CDP
CDP
MAS
n/a
Cash leg
MAS
n/a
n
Monetory Authority of Singapore conducts integrated supervision of financial services and financial
stability surveillance
Securities
Yes*
Yes
Pre-matching
Yes
No
Short selling
No
Cash settlement/DVP
Yes
Securities lending
Yes
n/a
USD 25
Buy-in practice
Buy-in process takes place on T+3 from 3pm to
5pm and will continue on T+4 until the short
positions are recovered.
*CDP approve the operation of omnibus accounts only for foreign institutional
clients and the foreign institutional client must be located outside Singapore.
Derivatives
Equities and ETFs
MAS
Tolerance limits
SGD 25
MAS
The Singapore Exchange (SGX) will impose a
penalty of SGD 1,000 or 5% of the value of the
failed contract (whichever is higher) for all
failed deliveries.
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
7.30am to 6pm
Give-up cut-off
T+10
Clearing cut-off
7.45am to 10pm
No
Tradable currencies
USD/SGD/JPY/EUR
Adjustable ITM
Yes
Risk algorithm
SPAN
Key market figures
Settlement cycles
Cut-off times
Euro (EUR)
2011 GDP
3,276
Equities
T+3
Equities
3pm DVP/7pm FoP
Time zone
GMT +1 hour
Bonds
T+3
Bonds
3.30pm
6%
Cash
T+0
Cash
5pm*
Main stock exchange
index
IBEX
75
4,914
in 2011
35,959,645
in 2011
31,613,557
Securities
Local currency
Equities and ETFs
Trading
Corporate bonds
BME
AIAF
Government bonds
Derivatives
SENAF
Mercado Español
de Futuros
Financieros
Clearing
n/a
n/a
LCH.Clearnet SA/Meffclear
Meff
Settlement
and custody
Iberclear
Iberclear
Iberclear
n/a
Cash leg
n/a
Bank of Spain supervises and controls all banking operations in the country
n
n
The Comisión Nacional del Mercado de Valores (CNMV) is the national securities market commission,
in charge of Spanish securities markets
Derivatives
* Although Target 2 is open from 5pm to 6pm CET, cash transfers in this timeframe
should be exceptional and be subject to agreement (by phone) of the central
treasury departments of both participants involved
No
Yes
Pre-matching
Yes
Yes
Short selling
No
Cash settlement/DVP
Yes
Securities lending
Yes
Yes
Short-selling is not permitted and is penalised
by Iberclear. The current penalty is 10 bp per
day of the gross sale amount for each day that
passes between the sale trade date and that of
the RR stock justifying the sale. Confiscation of
profit will also be charged by Iberclear. A grace
period exists for short sales settled by loans.
Tolerance limits
EUR 10
Buy-in practice
Buy-in on T+4 (penalty is 2% on the amount
of the purchase). Iberclear applies a late
settlement fine by passing the cost of their
centralised lending program.
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
5.35pm
Give-up cut-off
No
Clearing cut-off
7pm
No
Tradable currencies
EUR
Adjustable ITM
Yes
Risk algorithm
MEFFCOM2
Key market figures
Settlement cycles
Swiss Franc (CHF)
2011 GDP
USD 665,898 billion
280
Equities
T+3
Time zone
GMT +1 hour
USD 886,526 million
Bonds
T+3
34%
Cash
T+0
Main stock exchange
index
SMI
645
1,498
in 2011
Included in Eurex data
in 2011
Included in Eurex data
Securities
Local currency
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
SIX Swiss Exchange
SIX Swiss Exchange
SIX Swiss Exchange
Eurex
Clearing
SIS X-Clear AG/
LCH.Clearnet Ltd
SIX X-Clear AG
SIX X-Clear AG
Eurex Clearing AG
Settlement
and custody
SIX SIS AG
SIX SIS AG
SIX SIS AG
n/a
Cash leg
Swiss Interbank Clearing
n/a
n
The Swiss Financial Market Supervisory Authority (FINMA) addresses the government supervision
of banks, insurance companies, stock exchanges and securities dealers as well as other financial
intermediaries. Three bodies have been merged: the Federal Office of Private Insurance (FOPI), the Swiss
Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority into FINMA
Derivatives
Cut-off times
Equities
DVP 2.30pm/
FoP 9.30pm
Bonds
DVP 2.30pm/
FoP 9.30pm
Cash
3pm
Penalties apply only to trades conducted on
the Swiss Stock Exchange. Fines vary according
to the settlement amount with a minimum
of CHF 100 per failed settlement per day.
50% of the fine collected is passed on to the
receiver of securities as compensation for the
late settlement.
Tolerance limits
Yes
Yes
Pre-matching
Yes
No
Short selling
Yes
Cash settlement/DVP
Yes
Buy-in practice
Securities lending
Yes
No
Issuing services
Yes
Buy-ins apply only to trades conducted on the
Swiss Stock Exchange. Buy-in timings vary
according to securities segment and central
counterparty.
CHF 40
EUR 25
USD 25
GBP 10
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Give-up cut-off
T+2
Clearing cut-off
Yes
Tradable currencies
All major currencies
Adjustable ITM
Segregated
Yes
Risk algorithm
RBM method
Key market figures
Settlement cycles
Cut-off times
Turkish Lira (TRY)
USD 197,074 million
2011 GDP
USD 763,096 billion
264
Equities
T+2
Equities
4pm
Time zone
GMT +2 hours
USD 412,911million
Bonds
T+0
Bonds
4.30pm
0%
Cash
T+0
Cash
5.30pm
Main stock exchange
index
XU 100
12
120
Number of derivatives contracts
traded in 2011
74,287,630
Trading
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
ISE
ISE
ISE
TurkDex
Clearing
Takasbank
Takasbank
Takasbank
Takasbank
Settlement
Takasbank
Takasbank
Takasbank
n/a
Custody
CRA
CRA
CBRT
n/a
Cash leg
Takasbank
Takasbank
The Capital Markets Board of Turkey
n
n
n
n
The Undersecretariat of Treasury
The Banking Regulation and Supervision Agency
The Central Bank of the Republic of Turkey
CBRT
n/a
Derivatives
Securities
Local currency
Equities: the penalty ranges from the prevailing
market overnight interest rate until 3 times this
maximum.
Bonds: prevailing market overnight Interest
0.25-3 times maximum.
Tolerance limits
No
Yes
Pre-matching
Yes
n/a
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
No
10 TRY for equities only
Buy-in practice
Participants failing to cover their settlement
obligations by T+2 4pm will be deemed to be in
default and will have to cover by T+3 9.30am.
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
5.35pm
Give-up cut-off
T+0
Clearing cut-off
T+1 2.30pm
Yes
Tradable currencies
TRY
Adjustable ITM
Segregated
Yes
n/a
Risk algorithm
NOR
Key market figures
Settlement cycles
Cut-off times
Pound sterling (GBP)
2011 GDP
2,558
Stock
T+3
Stock
T+2 3pm
Time zone
GMT
Bonds
T+1
Bonds
T+1 1pm
45%
Cash
T+0
Cash
2.30pm
960
17,593
in 2011
347,667,886
in 2011
201,848,294
Main stock exchange
index
FTSE 100
Securities
Local currency
Equities and ETFs
Corporate bonds
Government bonds
Derivatives
Trading
London Stock Exchange
(LSE)
BrokerTec
LSE
NYSE Liffe
Clearing
LCH.Clearnet Ltd
LCH.Clearnet Ltd
LCH.Clearnet Ltd
LCH.Clearnet Ltd
Settlement
and custody
Euroclear UK + Ireland
(EUI)
EUI
EUI
n/a
Cash leg
EUI + UK payment
banks
EUI + UK payment
banks
EUI + UK payment
banks
n/a
The Bank of England is responsible for the stability of the financial system as a whole
n
n
The Financial Services Authority (FSA) supervises individual banks and other financial organisations
including recognised financial exchanges such as the London Stock Exchange
Derivatives
Matching discipline
Settlement discipline
Tolerance limits
GBP 10
EUR 15
Yes
USD 15
Yes
Pre-matching
No
Buy-in practice
No
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
No
On exchange securities:
– Earliest request: ISD+5
– Notice issue: day of request
– Buy-in: notice issue +6
– Second attempt: buy-in +5
– Matching of buy-in: T+1
– Settlement of buy-in: T+2
Settlement
Cash and physical
Give-up
Yes
Trading cut-off
Give-up cut-off
T+0
Clearing cut-off
Yes
Tradable currencies
EUR/USD/GBP/YEN
Adjustable ITM
Yes
Risk algorithm
SPAN
Key market figures
Settlement cycles
Varies by broker
Cut-off times
US Dollar (USD)
2011 GDP
4,988
Equities
T+3
Equities
Varies
Time zone
GMT -5 hours
Bonds
T+3
Bonds
Varies
Varies by broker
77%
Cash
Varies
Cash
Varies
Buy-in practice
1,429
n/a
in 2011
3,056,541,757
in 2011
5,062,299,165
Numbering system CUSIP
Main stock exchange
index
DJ/NASDAQ 100/S&P 500
Securities
Local currency
Government bonds
Corporate bonds
Derivatives US options
Derivatives futures
Trading
NYSE, NASDAQ
NYSE, NASDAQ
Primary dealers
AMEX, BOX, CBOE,
ISE, NASDAQ,
NYSE, PHLX
CME Group
Clearing
DTCC
Bank of New York
GSCC
OCC
CME Group
Settlement and
custody
DTCC
DTCC
GSCC
n/a
n/a
Cash leg
DTCC
DTCC
GSCC
n/a
n/a
n
n
n
n
The Securities and Exchange Commission (SEC)
The Federal Reserve, which regulates banks
The Financial Industry Regulatory Authority (FINRA), which regulates broker dealers
Other regulators include the Commodity Futures Trading Commission (CFTC) which guides futures and
commodities trading
Yes
Yes
Pre-matching
Yes
Yes
Short selling
Yes
Cash settlement/DVP
Yes
Securities lending
Yes
Yes
OCC – settlement
Derivatives
Equities
Tolerance limits
Reg 204 – A short sale causing the fail must be
bought-in on T4.
Reg 204 – A long sale causing the fail must be
bought-in on T6.
Customer DVP – Must file Reg T extension if
not settled after 35 calendar days, or execute
sell-out.
Broker Fail to Receive – Intent to buy-in 10
business days past SD.
Cash and physical
CMECBOT – settlement
Cash and physical
Trading cut-off
Depends on individual
products
Trading cut-off
4pm
Clearing cut-off
7pm
Clearing cut-off
8pm
Tradable currencies
USD
Tradable currencies
USD and 17 others
Give-up
Yes
Give-up
Yes
Give-up delay
T+2
Give-up cut-off
T+2
Adjustable ITM (In The Money
minimum)
N: 0,01
Adjustable ITM
Yes
Yes
Yes
Risk algorithm
STANS
Risk algorithm
SPAN
The information contained within this document (‘information’) is believed to be reliable but BNP Paribas Securities Services does not warrant its completeness or accuracy. Opinions and estimates contained herein constitute BNP Paribas Securities Services’ judgment and are subject to change without notice. BNP Paribas
Securities Services and its subsidiaries shall not be liable for any errors, omissions or opinions contained within this document. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. For the avoidance of doubt, any information contained within this document will not form
an agreement between parties. Additional information is available on request.
BNP Paribas Securities Services is incorporated in France as a Partnership Limited by Shares and is authorised by the ACP (Autorité de Contrôle Prudentiel) and supervised by the AMF (Autorité des Marchés Financiers). BNP Paribas Securities Services’ London branch is subject to limited regulation by the Financial Services
Authority for the conduct of its investment business in the United Kingdom and is a member of the London Stock Exchange. BNP Paribas Trust Corporation UK Limited and Investment Fund Services Limited are wholly owned subsidiaries of BNP Paribas Securities Services, incorporated in the UK and are authorised and regulated
by the Financial Services Authority. Details on the extent of our regulation by the Financial Services Authority are available from us on request.
The services described in this document, if offered in the U.S., are offered through BNP Paribas and its subsidiaries and its affiliates. Securities products are offered through BNP Paribas Securities Corp., a subsidiary of BNP Paribas, a broker-dealer registered with the Securities and Exchange Commission and a member of SIPC,
the Financial Industry Regulatory Authority, New York Stock Exchange and other principal exchanges.
Edited March 2012

Market reference guide - BNP Paribas Securities Services

Transcription

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