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.
In 2017, the following subjects were discussed within the SMPG forum: the impact of regulations and reporting obligations on ISO messages; detailed questions concerning settlement processing in T2S; and the principles governing the use of payment messages relating to corporate actions. The practical use of LEI codes in messages was examined, in particular in relation to the matching of settlement instructions.
The SMPG has published a white paper describing a proposed method for standardising the processing of market claims.
In 2018, KDPW will be hosting the SMPG global meeting, which will be held in April 2018.
KDPW coordinates the work of the NMPG national user groups in the fields of Settlement and Reconciliation and Corporate Actions. The group coordinators represent the Polish market at the SMPG global structure level. The goal of the NMPG national user groups is the harmonisation of local market practices with international standards.
In 2017, the NMPG PL Settlement and Reconciliation group discussed the streamlining of the process for linking settlement instructions (linked instructions). Changes to these processes have been planned for Autumn 2018, following approval of the final model. The S&R NMPG PL group has prepared changes to the principle of processing repo and sell/buy back transactions, which were introduced to the Polish market in April 2017 and which are reflected in the updated version of the NMPG PL Market Practice Guide. In 2018, there are plans to continue work on the standardisation of identifiers for settlement operations.
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.