Securities Market Practice Group (SMPG)
The mission of SMPG is to develop global standards and market practices of securities settlement, corporate actions processing and investment fund operations. The organisation harmonises practices across markets and ensures uniform interpretations of ISO standards to improve straight-through processing (STP) in international securities trading.
SMPG works globally as well as locally through National Market Practice Groups. It is comprised of custodian banks, broker/dealers, investment managers, central securities depositories and regulators.
The main areas of SMPG work in 2015 included: the application of LEI codes in settlement messages, the impact of T2S on the global settlement practice, and the development of portfolio transfer standards. The discussions included the impact of the CSDR and the ESMA technical standards on the global market practice of settlement including settlement operation codes, instruction status codes, list of fields which require matching, buy-in. Work continued to harmonise global market practice documents with ISO20022. Draft modifications of market claims messages were developed.
KDPW co-ordinates NMPGs in the areas of Settlement and Reconciliation and Corporate Actions. NMPG co-ordinators represent the Polish market in the global SMPG structure. The goal of NMPGs is to harmonise local practices with international standards.
In 2015, the Settlement and Reconciliation NMPG PL
worked among others to update pre-matching rules including counterparty identification in settlement instructions, as well as the development of the target model of processing repos and BSB in KDPW. Discussions included the reporting of volumes of debt financial instruments as notional amount instead of quantity.
Documents prepared by S&R NMPG PL:
Polish Market Practice of Settlement
- - version 5.2
(valid from April 2017)
NMPG PL Recommendation concerning identification of the trade counterparty in the process of matching settlement instructions
(version 3.0, approved on 4th March 2015)
Since June 2015, the Polish Market Practice of Settlement and the Recommendation concerning identification of the trade counterparty in the process of matching settlement instructions are also available on My Standards
(access upon prior registration on MyStandards http://mystandards.swift.com/
Corporate Action NMPG PL
is gradually developing corporate actions processing standards accommodating the specificity of the Polish market.