In this issue

• ACSA board change
  
• T+1 in North America – What’s happened
  
• T+1 in Australia – What’s next for ACSA
  
• Elevating Women in Finance
  
• ACSA Thought Leadership Series
  
• Global Perspective – ISSA DLT Project Standards
  
• In Focus – Janelle McCoy (HSBC)
  

Introduction

In this edition of the ACSA Industry Wrap we will update you on T+1 in North America and what are the next steps in Australia. ACSA is also excited about the Elevating Women’s Voices Program which it is partnering with AIMA and 100 Women In Finance to bring to ACSA members.

The issue highlights an ACSA board change and the upcoming pre-year-end tax update webinar. We also share some interesting content best practices in DLT projects.

We are In Focus with Janelle McCoy from HSBC.

ACSA Board Change

After 4 years on the ACSA Board, HSBC is replacing Sinclair Scholfield – Head of Institutional Client Group with Janelle McCoy – Head of Client Management, Australia and New Zealand.

During his time as an ACSA Director, Sinclair has represented both HSBC and State Street and played a role as executive sponsor of both the ACSA Regulatory Working Group and provided leadership in launching the ACSA Digital Asset Working Group. Sinclair has also acted as ACSA Treasurer since 2022.

ACSA chair, Sally Surgeon commented “We would like to thank Sinclair for his effort and commitment to ACSA during his 4 years on the ACSA executive board and look forward to continuing the great contribution made by HSBC with Janelle as the new HSBC representative on the ACSA board.”

The ACSA board looks forward to working with Janelle and leveraging her knowledge in driving change and client engagement.

You can read more about Janelle below in this month’s In Focus section.

T+1 in North America – What’s happened

In the last week of May six international markets moved their settlement cycles from T+2 to T+1. These included the countries Argentina, Canada and Jamaica on 27th May 2024 and USA, Mexico and Peru on 28th May 2024.

In the USA, Depository Trust Company (DTC) has shared initial insights on the USA market which includes:

Affirmation rates: DTC analysis shows that for 29th May 2024, 94.55% of transactions were affirmed by the DTC cut-off time of 9:00PM ET on trade date. This represents a significant change from the affirmation rate observed at the end of January (73%).

Settlement fails: Continuous Net Settlement (CNS) fail rate on the first day of T+1 settlement was 1.90%. This is lower than the May average of 2.01% for T+2 settlements. Whilst the DTC Non-CNS fail rate was 2.92%. This is lower than the May average of 3.24% for T+2 settlements.

Margining requirements: In a T+1 environment, the National Securities Clearing Corporation (NSCC) Clearing Fund decreased by US$3.7 Billion (29%) from the past quarter average value of US$12.8 Billion to US$9.1 Billion.

You can read more on the DTC commentary here.

T+1 in Australia – What’s next for ACSA

Australia

The ASX (Australian Securities Exchange) has published an industry whitepaper, Considerations for accelerating cash equities settlement in Australia to T+1. This follows on from the establishment of the T+1 working group in December 2023 to provide strategic considerations for a potential transition to T+1 and provide analysis and insights to the Business Committee on settlement cycle compression.

ACSA continues to be at the forefront of discussions surrounding market infrastructure and settlement practices and has formed a T+1 working group to respond to the ASX consultation paper. If you’re interested in joining this working group, please email us at admin@acsa.com.au.

The ASX industry whitepaper Considerations for accelerating cash equities settlement in Australia to T+1 can be found here.

In addition, ACSA has released a T+1 Position Paper which can be found here.

Elevating Women’s Voices 2024 Program

ACSA has proudly partnered with the Alternative Investment Managers Association (AIMA) and 100 Women in Finance (100WIF) to foster and build the contribution of women to the financial services industry.

Elevating Women’s Voices Program was created by AIMA and 100WIF. This is to ensure women across the financial services industry and the broader communities we all serve are equally represented and Women’s expertise, talent, experiences, perspectives, voices, stories, and contributions equally drive the thinking, planning, and future of our industry. ACSA welcomed the opportunity to connect ACSA members to the program in 2024.

There are 18 ACSA members enrolled to participate in the program and 6 mentors supporting the participants.

The Elevating Women’s Voices Program was designed to;

• Provide support, guidance, confidence, and opportunities to enable our highly competent and capable women to speak to, and on behalf of, the financial services industry and the companies they represent.
  
• Provide the Australian business community with a wealth of female voices, opinions, and approaches to creating, managing, and transforming industry conventions.
• Encourage more active participation in the Financial Services Industry and provide more opportunities to do so.

If you want to find out more about the program and participate in 2025, feel free to attend the closing function for this year’s program, you can find the registration link to the closing here.

ACSA Thought Leadership Webinar Series

May was a busy month for webinars with ACSA who hosted KPMG to discuss Climate Reporting – Getting ready for new Australian Sustainability Standards and Coinbase to discuss Crypto ETFs – Simplifying crypto investment.
ACSA thanks KPMG and Coinbase for sharing insights on these important topics. If you missed the KPMG presentation you can find it here in the ACSA website.

Next up Fiscal Finale – ACSA Pre year-end tax update

As the financial year draws to a close, the tax leaders of ACSA have provided a briefing on key matters for ACSA members and their clients. This interview provides an important update from industry tax leaders on regulatory change, emerging trends, and potential implications for ACSA member companies. With the ever-evolving landscape of tax laws and regulations, staying informed is paramount to ensuring compliance and strategic tax planning.

During the update, we delve into key topics such as the latest developments in third party tax governance, tax treatments and withholding tax. This information will provide you with important knowledge as we head into year end.

By fostering collaboration and knowledge exchange, ACSA members can leverage collective expertise to mitigate risks. Ultimately, this briefing aims to empower tax leaders with the information and resources necessary to navigate the upcoming financial year-end with confidence and agility.

Note: The information shared by participants is their own opinion and do not represent the opinions of any individual’s organisation.

Our panel will discuss:
1. An overview of key tax matters
2. Discussion on third party tax governance
3. Tax Treatments – Burtons
4. Certificates of residency

Our Panel:
1. David Travers (ACSA CEO)
2. Duncan Lyon – JP Morgan
3. Fergus Walshe – BNP Paribas
4. Phil Barlin - Northern Trust
5. Nicole Ma – JP Morgan

The webinar is on 14th June at 12pm. Follow the link here to register.

Global Perspective – Best practices within DLT projects

The International Securities Services Association (ISSA) is a global association that supports the Securities Services industry. ISSA’s focus is on finding progressive solutions to reduce risk and improve efficiency and effectiveness from issuer through to the investor. They also provide broader thought leadership to help shape the future of the industry.

ISSA’s Distributed Ledger Technology (DLT) Working Group published the findings of the 2023 ‘DLT in the Real World Survey’ in October 2023.

One of the key conclusions from this research was that “We are getting better at planning and realising returns from our DLT projects.” Considering the material differences between DLT and normal project management that have been observed and, with the current maturity level of understanding these differences, the ISSA DLT Working Group has compiled a Best Practice Report to help its members navigate the specific complexities of DLT projects.

The ISSA DLT Working Group conducted a review of DLT projects executed by its members and identified several common themes across firm and project type, containing both positive learnings and, equally importantly, challenges which need to be carefully managed.

You can read more about ISSA research on best practices within DLT projects here. 

In Focus –Janelle McCoy

Janelle joined HSBC Markets and Security Services as Head of Client Management for Australia and New Zealand at the beginning of April 2024, bringing over 25 years of financial services experience across Sydney and London. Prior to joining HSBC, Janelle worked for Royal Bank of Canada for nearly 18 years in a variety of roles including: Coverage, Relationship & Client Management and Business Management.

Prior to that, Janelle worked in senior management unit registry and operational roles at Perpetual Investments and Bankers Trust.

Quick fire five

Coffee or Tea? Tea
Tik Tock, Instagram or Facebook? Facebook
Pop, Rock or Rap? Pop
Cocktail or Wine? Wine
Summer or Winter? Summer


Can you briefly describe your role and responsibilities?
As Head of Client Management for Australia and New Zealand for HSBC Security Services, I am responsible for the overall client experience and satisfaction of our Asset Manager / Asset Owner clients. This means delivering on our promise and ensuring we are aligned to our clients’ needs and priorities.

What is the most satisfying part of your role?
I only joined HSBC at the beginning of April, so I am still very much in the learning phase and meeting a lot of internal stakeholders to enable me to navigate the organisation. I have now also met with most of our clients – the client interaction and learning about their businesses has been the most satisfying part of my role so far.

How do you motivate yourself and your team?
My motivation comes from the ability to deliver to our clients and add value. I draw my energy from others, so collaboration and being surrounded by a strong team is really important to me. I motivate my team by building trust, providing clear direction and support, providing constructive feedback, and celebrating success at every opportunity.

What are some of the exciting places your career has taken you?
When I joined Royal Bank of Canada in 2006, I had never travelled overseas (other than to New Zealand and Fiji which doesn’t count!). I was fortunate enough to travel to Toronto, Paris, Luxembourg, Hong Kong, Malaysia, and Singapore…but most importantly London. I loved London so much that I moved there for 11 years whilst working for RBC…and returned to Sydney permanently a few months ago.

What advice would you give your 21-year-old self?
Soak up as much knowledge as you can and don’t be afraid to make lateral moves to build your career. Build a strong network, be open to change and believe in yourself.

What’s excites you about the future of our Industry? (Include role of ACSA)
To see how technology, particularly AI, the use of data analytics, and the automation of processes, will shape the industry and future roles for the next generation. I’m excited to be joining the ACSA Board, where our organisations can share knowledge, learnings and be part of shaping the future.