1 / 52

S ociété I nterprofessionnelle pour la CO mpensation et le DE pôt des VA leurs M o bilières

S ociété I nterprofessionnelle pour la CO mpensation et le DE pôt des VA leurs M o bilières. Functioning of the Tunisian Central securities depository and the company for clearing and settlement of securities. Presented by Mrs Kaouther RAACH. Agenda. Brief presentation of the company

betty_james
Download Presentation

S ociété I nterprofessionnelle pour la CO mpensation et le DE pôt des VA leurs M o bilières

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Société Interprofessionnelle pour laCOmpensation et leDEpôtdes VAleurs Mobilières Functioning of the Tunisian Central securities depository and the company for clearing and settlement of securities Presented by Mrs Kaouther RAACH AMEDA 3rd meeting 20-21 April 2006- Morocco

  2. Agenda • Brief presentation of the company • To be member • Activities and services • Perspectives • Statistics AMEDA 3rd meeting 20-21 April 2006- Morocco

  3. Background • Sticodevam was established on December 28, 1993 as a Public company (S.A : société anonyme in french). • It’s a private company AMEDA 3rd meeting 20-21 April 2006- Morocco

  4. Sticodevam Capital 1994 • At the establishment’s date, Sticodevam’s capital was 160 thousand Tunisian dinars (about $ 110 thousand) AMEDA 3rd meeting 20-21 April 2006- Morocco

  5. OwnershipShareholding structure in 1994 AMEDA 3rd meeting 20-21 April 2006- Morocco

  6. The role of Sticodevam • Sticodevam was approved by the law number 94-117 published on November 14th, 1994. AMEDA 3rd meeting 20-21 April 2006- Morocco

  7. Central Depository & Clearing &settlement Tunisian financial market organization CMF = Financial market Council = Control authority Issuers Tunisian Treasury Primary dealer Banks Brokers Stock Exchange Tunisian Central Bank AMEDA 3rd meeting 20-21 April 2006- Morocco

  8. Current shareholding structure AMEDA 3rd meeting 20-21 April 2006- Morocco

  9. Structure of the company 19 employees • six departments • Admission department (3 employees) • Settlement and clearing (3 employees) • IT (5 employees) • Financial department (2 employees) • HR and accounting department (2 employees) • General Administration secretary and reception (3 employees) • General Manager who manages the company (1) A board of Director s manage Sticodevam. AMEDA 3rd meeting 20-21 April 2006- Morocco

  10. Activities & Services • Central depository. • Settlement and Clearing. • Management of corporate actions. • Management of Treasury Bonds AMEDA 3rd meeting 20-21 April 2006- Morocco

  11. Central depositoryMembers • Brokers • Banks • Issuers • Tunisian Central Bank • The Treasury AMEDA 3rd meeting 20-21 April 2006- Morocco

  12. Condition to be a memberBrokers • Brokers must be participant and shareholder in accordance with the law 94-117 that reorganized the financial market. AMEDA 3rd meeting 20-21 April 2006- Morocco

  13. Condition to be a member Issuers • Issuer for equity or bonds listed on stock exchange or going to be listed : compulsory • Issuer for equity or bonds that can be listed on stock exchange in few times : optional AMEDA 3rd meeting 20-21 April 2006- Morocco

  14. Condition to be a memberBanks There are three kinds of participation for banks • To be an issuer • To be a clearing bank, • To be a bookkeeper for securities bonds or Treasury bonds • Fees : 5 thousand dinars per year AMEDA 3rd meeting 20-21 April 2006- Morocco

  15. Condition to be a memberOthers • Primary dealer s • Central Bank • Treasury : there is an agreement between Sticodevam and the Treasury that imposes to the Treasury to pay 130 thousand dinars per year for all services. AMEDA 3rd meeting 20-21 April 2006- Morocco

  16. CENTRAL DEPOSITORYMembership structure AMEDA 3rd meeting 20-21 April 2006- Morocco

  17. Securities Admission • Listed securities • Bonds • Treasury bonds • Short term maturity Treasury bonds (BTC) • Long term maturity Treasury bonds (BTA) AMEDA 3rd meeting 20-21 April 2006- Morocco

  18. Securities managed AMEDA 3rd meeting 20-21 April 2006- Morocco

  19. ISIN Numbering • Sticodevam is the Tunisian securities numbering agency. • Sticodevam is a member of ANNA (Association of National Numbering Agencies). • Sticodevam allocates free of payment the ISIN codes which permit the sole identification of the securities deposited in its books. • Sticodevam has diffused 693 ISIN codes. AMEDA 3rd meeting 20-21 April 2006- Morocco

  20. Securities form • All securities hold by Sticodevam were dematerialized since march 2000. • This dematerialization was made by law. • All securities are in a scripless/electronic form on behalf member such as custodians. • Securities are declared fungible AMEDA 3rd meeting 20-21 April 2006- Morocco

  21. Account identification Each account is identified at Sticodevam by : • ISIN code, • Member code, • Account type code (ordinary securities, securities blocked…..) • Holding category : Sticodevam is presently applying book segregation : • Domestic client assets • Foreign client assets • Mutual fund holding • Own account holding • ……… AMEDA 3rd meeting 20-21 April 2006- Morocco

  22. Settlement & clearing • Stock exchange transactions • Treasury bonds market : primary and second market • Refinancing operations (banks with central bank) : money market and open market AMEDA 3rd meeting 20-21 April 2006- Morocco

  23. Settlement & clearing cycle • On 1995 the settlement cycle was T+5 • On may, 1999 Sticodevam improved settlement cycle : it became at T+4 • On 1st January, 2003 the settlement cycle was improved another time so it passed from T+ 4 to T+3. • Current settlement cycle is T+3 AMEDA 3rd meeting 20-21 April 2006- Morocco

  24. Settlement & clearingFunction • Both securities and cash are netted on a bilateral basis on a T+3, with simultaneous netted cash settlement over cash accounts at Central Bank. DVP AMEDA 3rd meeting 20-21 April 2006- Morocco

  25. Settlement & clearingstock exchange transactions Sticodevam receives : • daily via a dedicated line the exchange transactions file from the Tunisian stock exchange. • Sticodevam receives the execution notices from brokers holding securities accounts and all the movements that affect securities accounts such as : • Transfers, • Rights conversion to shares, ... At T+1 at 12 p. m AMEDA 3rd meeting 20-21 April 2006- Morocco

  26. Settlement & clearingstock exchange transactions • Adjustment between banks and brokers : T+1 at 12 p.m. Sticodevam receives a file from banks containing all operations. AMEDA 3rd meeting 20-21 April 2006- Morocco

  27. Settlement & clearingTreasury bonds auction Sticodevam treats two kinds of auctions : • Weekly for short term maturity Treasury bonds • Monthly for long term maturity Treasury bonds AMEDA 3rd meeting 20-21 April 2006- Morocco

  28. Settlement & clearingSecond market for Treasury bonds • Second market for Treasury bonds is an over the counter market. • Participants to this market are banks and primary dealers, they deal in this market in accordance with an agreement established by the financial ministry. • It’s controlled by the Treasury department and the financial market council (CMF). AMEDA 3rd meeting 20-21 April 2006- Morocco

  29. Settlement & clearingSecond market for Treasury bonds • The settlement and clearing date for transaction deals in the second market depends on the primary dealer choice : • T+1 • T+2 • T+3 AMEDA 3rd meeting 20-21 April 2006- Morocco

  30. Settlement & clearingSecond market for Treasury bonds • The seller sends a matching order • The buyer sends a matching order • The two orders are matched electronically by Sticodevam’s system. If there is any difference in the amount, securities number, …the order is rejected AMEDA 3rd meeting 20-21 April 2006- Morocco

  31. Settlement & clearingRefinancing operations • In order to insure efficiency and security of the operations, the Tunisia Central Bank uses the Sticodevam clearing/settlement system for refinancing operations with Tunisian banks. • these operations have security guarantee concerning securities settlement. Treasury bonds long term maturity are accepted as a refinancing operations guarantee by  Central Bank of Tunisia . AMEDA 3rd meeting 20-21 April 2006- Morocco

  32. Settlement & clearingRefinancing operations • Presently, Sticodevam processes refinancing operations with maturities between 3 and 7 days or three months. One have to notice that restitution operation occur automatically. AMEDA 3rd meeting 20-21 April 2006- Morocco

  33. Settlement & clearingOpen Market • Central Bank uses Sticodevam’s settlement and clearing for the open market operations. AMEDA 3rd meeting 20-21 April 2006- Morocco

  34. Settlement & Clearing • The clearing is done at the Central Bank • Each broker has a clearing bank • Each bank gives Sticodevam a permanent authorization to be able to debit its account for and for the broker cleared for the net cleared in the Central Bank AMEDA 3rd meeting 20-21 April 2006- Morocco

  35. Settlement & clearing • Securities settlement and cash payment occur the same day : DVP, • Guarantee of simultaneous settlement in cash (Clearing at Central Bank of Tunisia) and delivery of the securities. AMEDA 3rd meeting 20-21 April 2006- Morocco

  36. Corporate ActionsDividend payment • For all securities managed, Sticodevam offers direct payment procedure that is an efficient service that allows payments to be made on due date : automatic income payments in Central Bank • This service includes: • notification of payment and an estimated amount to be received three days prior to payment AMEDA 3rd meeting 20-21 April 2006- Morocco

  37. T+ 3 T+ 3 T - 4 T - 4 T T Corporate ActionsDividend payment Balance of securities number to be used for dividend payment T - 1 T - 1 T+ 3 T - 4 T Payment of the bookkeeper TRANSMISSION OF THE ESTIMATE AMOUNT TO THE ISSUER AMEDA 3rd meeting 20-21 April 2006- Morocco

  38. Corporate Actionsinterest payment • This procedure is used for paying bonds interest, Treasury bonds interest and capital redemption. • The payment is made on due date • If there are any transactions between D-1 (D : due date for payment) and D+2 : Sticodevam regulates them. • Sticodevam uses direct payment via the Tunisian Central Bank for the clearing. AMEDA 3rd meeting 20-21 April 2006- Morocco

  39. Corporate ActionsCapital increase • At D : date of the capital increase; an account for rights is created based on the balance of each bookkeeper on D-1 ( D = due date of capital increase) • Conversion of rights must be done by the bookkeeper AMEDA 3rd meeting 20-21 April 2006- Morocco

  40. REPORTING • Since October, 1st 2005 Sticodevam is using the web technology to communicate with all members • A private area was created on Sticodevam web site • Each member access to his personal account using an identification code and a password AMEDA 3rd meeting 20-21 April 2006- Morocco

  41. REPORTING • Daily movements report • Account balance • Files of movements download • Files of movements to be transmitted to Sticodevam • Documentation AMEDA 3rd meeting 20-21 April 2006- Morocco

  42. AMEDA 3rd meeting 20-21 April 2006- Morocco

  43. NETWORK STRUCTURE AMEDA 3rd meeting 20-21 April 2006- Morocco

  44. Perspectives • Electronic signature • All communications with members will be base on electronic system • Real time for OTC market : repurchase agreement, second market for treasury bonds AMEDA 3rd meeting 20-21 April 2006- Morocco

  45. StatisticsTransactions number AMEDA 3rd meeting 20-21 April 2006- Morocco

  46. STATISTICSSecurities number Treated AMEDA 3rd meeting 20-21 April 2006- Morocco

  47. STATISTICSTotal amount Settled for stock exchange transactions AMEDA 3rd meeting 20-21 April 2006- Morocco

  48. STATISTICSTotal amount cleared in the Central Bank AMEDA 3rd meeting 20-21 April 2006- Morocco

  49. STATISTICSNumber of movements AMEDA 3rd meeting 20-21 April 2006- Morocco

  50. CONCLUSION Three words could define the role of Sticodevam: • security, • efficiency • transactions’guarantee AMEDA 3rd meeting 20-21 April 2006- Morocco

More Related