“How will Fintech reshape the securities post-trade industry?”

With metaverse being a hot topic during 2021, we once again draw our attention back to Fintech and see how it influenced our industry. Supported by the ACG Secretariat, Korean Securities Depository (KSD) took the momentum of this trend and initiated the 2nd ACG Webinar on the theme of “How will Fintech reshape securities post-trade industry?”

The event took place on Nov. 24th, 2021 with more than 80 people registered via ACG website, we’re glad that colleagues from ECSDA, AECSD, AGC and HSBC have also participated in the Webinar.

We invited 5 brilliant experts from KSD, Deutsche Bank, NSDL, HKEX and TDCC to share their insights and latest usage of Fintech from their institutions, such as Artificial Intelligence, bigdata, block chain, and DLT etc. Ms. Helen Chea from KSD gave the opening remark, and Dr. Wenhua DAI, ACG Chairman, moderated the presentation and Q&A session.

First, Mr. Ki-Kwan (Tony) Park from KSD gave the presentation on the topic of “Securities Token Offering (STO) and The Future of CSD Business”. Currently, guided by the regulation of FSC in Korea, KSD has completed proof of concept for STO platform. KSD provides a settlement finality and manages a distributed ledger.

Mr. Manoj Sarangi from NSDL introduced “AI in Securities Services Industry”, starting from the overview of AI technology with a few examples of application, such as pattern detection, forsight, customization, decision making, interaction. From customer experience, operation areas and compliance & risk management perspectives, the speaker illustrated the AI applications in securities industry. Moreover, he also listed some challenges faced by regulators, including data protection, cost of implementation and prevention of bias on AI decision.

Mr. Boon-Hiong Chan from Deutche bank gave us a presentation on DB’s latest Fintech applications including AI /machine learning, tokenisation of financial services and Central Bank Digital Currency (CBDC). He presented us some with some models to better illustrate how these application works in different scenarios.

Mr. Edwin Lee introduced the latest Fintech application in HKEX. The first is HKEX CAMS (Corporate Action Message Standardisation). By standardising the format of major HK market corporate events using the agreed market practice framework, major HK market corporate events will be distributed through SWIFT infrastructure to minimise the operation risk. The pilot service has been launched in Sept. 2021 and HKEX is on-boarding new pilot clients at the moment. HKEX can share the experience on leveraging SWIFT for standardisation and distribution of events. The second is HKEX Synapse. This is a new platform to accelerate Stock Connect Settlement operations for Asset Managers/Custodians/brokers. Synapse partner with DTCC/Digital Asset/SWIFT to offer an integrated solution to facilitate the T0 market settlement operations. The platform is targeted to launch 2022.

Mr. Howard Wang from TDCC introduced their Fintech development. The first is TDCC’s e Passbook which is a replacement of its paper passbook to online app. The app integrated securities information & corporation action information (external data), mutual funds data and bank deposit data. Second, e-shareholder services which will reduce cost of issuers companies, making e-Voting, e-Meeting, e-Notice and e-Gift a one-stop service on one mobile app. Third, the Big Data in TDCC. Starting from the first stage in 2018, TDCC now has been on its expansion stage to strengthen data management and cultivate data culture.

The materials of this webinar can be downloaded via ACG official website. The 2nd Webinar is the completion of ACG major events in 2021, and the Secretariat together with ACG members will work jointly to present you more chances of communication either online or offline in the near future.