MAC- meeting summary report 28 June 2011 - Euroclear

EUROCLEAAR<br />

FINLANDD<br />

LTD<br />

Finnish Market AAdvisory<br />

y Commiittee<br />

mee eting – Summary<br />

S y minute es<br />

Date<br />

Place<br />

Present<br />

1<br />

2<br />

3<br />

Tuesdayy<br />

<strong>28</strong> <strong>June</strong> <strong>2011</strong> 2<br />

Eurocleaar<br />

Finland, Urho Kekkoosen<br />

katu 5 C<br />

Kirsi Sakkki<br />

Maarit AAhola<br />

Esa Anddersson<br />

Reijo Jokelainen<br />

Risto Kooponen<br />

Päivi Kuuitunen<br />

Mats Råstedt<br />

Markku Savikko<br />

Anna voon<br />

Knorring<br />

1 (3)<br />

7.7.<strong>2011</strong><br />

Anu Saaarinen<br />

Eurroclear<br />

Finla and<br />

Anso Thhiré<br />

Eurroclear<br />

Finla and<br />

Hanna VVainio<br />

Eurroclear<br />

Finla and<br />

Kati Honnkajuuri-Ko<br />

okkonen<br />

Eurroclear<br />

Finla and, secretary<br />

Opening<br />

of the <strong>meeting</strong> m annd<br />

previou us minutes s<br />

The chairperson<br />

welcomed <strong>MAC</strong> members<br />

to thee<br />

<strong>meeting</strong>.<br />

Eurocleear<br />

Finland d’s compeetition<br />

file<br />

Anso Thiré informmed<br />

the members<br />

of the t ongoingg<br />

competition<br />

file. Thee<br />

Finnis sh Competittion<br />

Author rity sent Eu uroclear Finnland<br />

a requ uest for<br />

inform mation in Appril<br />

to inves stigate EFi’ ’s suspectedd<br />

dominant t market<br />

positio on and exccessive<br />

pricing.<br />

EFi sen nt its respoonse<br />

to the listed<br />

questions<br />

end off<br />

May.<br />

The in nvestigationn<br />

is presum med to take approximaately<br />

12-15 5 months duue<br />

to its complexityy.<br />

The chairperson<br />

asked whe ether there is an update<br />

on pricin ng structuree<br />

chang ges.<br />

It was s confirmedd<br />

that the file f is ongoing<br />

with thoorough<br />

inve estigation<br />

covering<br />

maintennance<br />

of cu urrent syste ems, impacct<br />

of foreseen<br />

develo opment andd<br />

regulator ry changes. . Both poteential<br />

costs and revenuues<br />

are as ssessed esppecially<br />

in contrast c to foreseen ddevelopmen<br />

nt.<br />

Roadmap<br />

for Eur roclear Finnland<br />

- upd date<br />

Hanna a Vainio gave<br />

an upda ate on EFi’s s roadmap.<br />

EUROCLEARR<br />

FINLAND LTDD<br />

P.O.Box 1110, FI-00101 Helsinnki,<br />

Visiting add dress: Urho Kekkkosen<br />

katu 5 C<br />

Phone: +358 200<br />

770 6000 – wwww.euroclear.com<br />

Registered office:<br />

Helsinki, Buusiness<br />

ID: 1061446-0<br />

Pohhjola<br />

Bank, chairperson<br />

Sveenska<br />

Hand delsbanken<br />

Skaandinaviska<br />

a Enskilda Banken B<br />

Sammpo<br />

Bank<br />

Bannk<br />

of Finlan nd<br />

Ålanndsbanken<br />

Norrdea<br />

Bank<br />

Finnnish<br />

Financ cial Services s<br />

State<br />

Treasury y

---

EUROCLEAAR<br />

FINLANDD<br />

LTD<br />

4<br />

5<br />

Broadriidge<br />

- <strong>Euroclear</strong><br />

Alliiance<br />

FIN NUUG<br />

T2S – update u<br />

2 (3)<br />

7.7.<strong>2011</strong><br />

T2S and<br />

its Frammework<br />

Agr reement are<br />

the main issues rela ated to<br />

settlement<br />

servicces<br />

in addition<br />

to Ram mses exit.<br />

Struct tured produucts<br />

and au utomation of o warrantss’<br />

processing<br />

are the ffirst<br />

steps in the so-ccalled<br />

Issue er Connect project thaat<br />

will be launched<br />

in<br />

multip ple phases.<br />

In the e Asset Serv rvicing area a a feasibilit ty study haas<br />

been started<br />

with foocus<br />

on ISO O15022 MTT564<br />

Corpo orate action ns notificatioons<br />

in the first stage.<br />

EFi’s GROWTH G innitiative<br />

explores<br />

poss sibilities to benefit from m the<br />

econo omies of scaale<br />

of CSD systems an nd has starrted<br />

with a study in coo<br />

operation<br />

with AAalto<br />

Univer rsity. The aim<br />

is to invvestigate<br />

e.g.<br />

the barrriers<br />

for iss suers to isssue<br />

and ben nefit from book-entry<br />

b<br />

system and<br />

new servvices<br />

neede ed. The initiative<br />

aims s to bring benefits<br />

to tthe<br />

whole market m withh<br />

win-w win-win outccome<br />

for af ffected stak keholders.<br />

Anu Saarinen S prresented<br />

the<br />

backgrou und and sett-up<br />

for the e <strong>Euroclear</strong><br />

allianc ce with Brooadridge<br />

an nd the futur re landscappe<br />

for <strong>meeting</strong><br />

services<br />

for<br />

espec cially the noominee<br />

hold ding chain.<br />

The sc cope of thee<br />

service wi ill cover end-to-end<br />

vooting<br />

and aim a to havee<br />

efficie ent transparent<br />

proces sses for AGM<br />

attendannce<br />

and inc crease<br />

shareholder<br />

partticipation.<br />

As the e Swedish M<strong>MAC</strong><br />

had ag greed to se et up an exppert<br />

group from majoor<br />

custod dians to validate<br />

the sub-custody<br />

s y model it wwas<br />

discussed<br />

whetheer<br />

a<br />

simila ar working ggroup<br />

would<br />

be set up p for the Finnnish<br />

mark ket as well.<br />

<strong>MAC</strong> members m shared<br />

the view v that it t would not t be needed d in Finlandd,<br />

at<br />

least for f the timee<br />

being.<br />

FIN NUG<br />

chairpeerson<br />

Risto Koponen presented p the<br />

T2S upd date.<br />

T2S project’s p maain<br />

concern ns remain la argely the ssame<br />

as pr reviously<br />

discus ssed in the <strong>MAC</strong>. The Framework k Agreemennt’s<br />

(FWA) open issues<br />

includ de governannce,<br />

liability y, SLA (e.g g. uptimes), , terminatio on, delays and<br />

pricing,<br />

among oother.<br />

A slight<br />

postponeement<br />

is fo oreseen of adoption a byy<br />

Governing<br />

Council aand<br />

thus for f FWA’s signing<br />

that t is now est timated endd<br />

<strong>2011</strong>. The e UDFS (Usser<br />

Detail led Functional<br />

Specific cations) has<br />

received a large num mber of<br />

comm ments and a new version<br />

is expec cted in Octoober<br />

<strong>2011</strong>. Network<br />

conne ectivity issuue<br />

is procee eding with tender t offer<br />

due to be e sent to<br />

netwo ork providers<br />

shortly. Go-live rem mains in Seeptember<br />

2014.<br />

EUROCLEARR<br />

FINLAND LTDD<br />

P.O.Box 1110, FI-00101 Helsinnki,<br />

Visiting add dress: Urho Kekkkosen<br />

katu 5 C<br />

Phone: +358 200<br />

770 6000 – wwww.euroclear.com<br />

Registered office:<br />

Helsinki, Buusiness<br />

ID: 1061446-0

---

EUROCLEAAR<br />

FINLANDD<br />

LTD<br />

6<br />

7<br />

Other IIssues<br />

Next m<strong>meeting</strong><br />

3 (3)<br />

7.7.<strong>2011</strong><br />

Anso Thiré vieweed<br />

that both<br />

the FWA and its schhedules<br />

wou uld require<br />

more certainty too<br />

be sufficiently<br />

stable e and enabble<br />

signing. There is a<br />

conce ern that cosst<br />

is still not<br />

presented d as an issuue<br />

in the lis st of main<br />

conce erns as it is a vital par rt of the bus siness casee<br />

for CSDs and the<br />

affected<br />

marketss.<br />

Next steps s for thhe<br />

Finnish market m is th he recommmendation<br />

th hat is plannned<br />

to be delivered tto<br />

EFi end August. A<br />

The is ssue on addding<br />

a new member to o <strong>MAC</strong> Finlaand<br />

was agreed<br />

to be<br />

kept open. o<br />

Next <strong>MAC</strong> M meetinng<br />

will be held h on Wednesday<br />

7 September r <strong>2011</strong> at 113<br />

16:00 0 EET.<br />

Next Cross-Bord<br />

C der <strong>MAC</strong> is scheduled s for f Mondayy<br />

3 October <strong>2011</strong> but wwill<br />

presumably<br />

be mmoved<br />

to an<br />

earlier da ate.<br />

EUROCLEARR<br />

FINLAND LTDD<br />

P.O.Box 1110, FI-00101 Helsinnki,<br />

Visiting add dress: Urho Kekkkosen<br />

katu 5 C<br />

Phone: +358 200<br />

770 6000 – wwww.euroclear.com<br />

Registered office:<br />

Helsinki, Buusiness<br />

ID: 1061446-0