20070620-Project Management Approach to moving · Web viewTitle 20070620-Project Management Approach to moving to T 3 Subject EPO Author Arlette Macfarlane Last modified by meeras

Project Management Approach for

Moving to T+3

Created by: Meera SunkerReviewed by: Brett Kotze: Des DavidsonQuality Assured: Enterprise Project Office (EPO) Approved by: Clearing & Settlement Advisory Committee (CSAC)Date: Wednesday, 20 June 2007Version: 2.0 Final

Table of Contents

1. References........................................................................................................3

2. Version Control.................................................................................................3

3. Introduction.......................................................................................................4

4. Objective............................................................................................................4

5. Overview of the Project....................................................................................5

6. Project Acceptance Criteria.............................................................................5

7. Assumptions and Constraints........................................................................6

8. Project Deliverables.........................................................................................6

9. Controlling and Monitoring the Plan..............................................................8

10. Project Organization........................................................................................8

11. Managerial Process Plans.............................................................................12

12. Distribution......................................................................................................15

13. Glossary..........................................................................................................15

14. Sign-Off............................................................................................................16

document.doc 20/06/2007 Page 2Copyright © 2007 JSE Limited

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1. References

Document Author Version DateThe “Non-Trivial” move from T+5 to T+3

Bobby Johnston 1.1 24/10/2001

FSB Licence Approval Registrar of Securities 22/11/2006Setting Course for T+3 (Presentation to EXCO)

Brett Kotze 19/03/2007

Workshop Report: T+3 Mandi van der Heever 29/04/2004Group of Thirty and International Securities Services Association Recommendations (Annex B)

Group of Thirty

2. Version Control

Version Author Date Reason for Changes0.1 Meera Sunker 05/06/2007 Document creation.0.2 Meera Sunker 12/06/2007 Update with Comments from Brett

and Des0.3 Meera Sunker 14/06/2007 Format editing1.0 Meera Sunker 14/06/2007 Move to 1.0 Final for distribution to

CSAC1.1 Meera Sunker 20/06/2007 Update with comments from

CSAC2.0 Meera Sunker 20/06/2007 Moved to final for circulation to

JSE Exco


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3. Introduction

Whilst South Africa continues to pride itself on the fact that there have been no failed trades for equity securities since go-live of electronic settlement, a pertinent issue is the fact that South Africa seems to be playing catch up with its T+5 processing times as other global markets have embraced T+3 and some are now looking to move to T+1.

G30 recommendation VII states that “a rolling settlement system should be adopted by all markets. Final settlement for all trades should occur no later than T+3”

With the JSE’s 2007 annual licence renewal the FSB advised that they were of the opinion that the JSE should:-

start the process towards reducing its settlement cycle for the settlement of equities from a T+5 cycle to a T+3 settlement cycle.

With its 2008 licence renewal application, the JSE is to:-

present a document detailing the potential barriers to move to T+3 and the action points required to overcome such barriers.

which is to take the form of a high-level project plan to move the exchange towards a T+3 settlement cycle for equities

If the JSE is to remain competitive and attractive for global investment it must ensure that its investment process is cost effective, customer centric, secure and aligned to global best practices with the focus of T+3 being aligning to global best practice.

Its become apparent that it is now not only a regulatory requirement, but in the best interest of the South African market to move from T+5 processing to the global benchmarked T+3 processing.

The “Moving to T+3”project aims at identifying all the potential barriers that hinder the move to T+3 and the action points to overcome the barriers with minimum risk and disruption to the South African market.

4. Objective

The objective of this Project Management Approach is to ensure clarity upfront among all stakeholders as to how the project will be managed from start to finish. It will also provide the base from which any changes can be made. Uncertainties are minimised by clearly defining all management processes that will be used to define how the project will be executed, monitored, controlled and closed off. Another key element of this management approach is the clear definition of roles and responsibilities for the duration of this project.

Covered herein will be the details of the initiation phase of the T+3 Implementation.


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5. Overview of the Project

The Project is broken into 2 distinct phases. Phase 1 is to create a document entitled “Action Plan – Moving to T+3” detailing the potential barriers and the actions points required to overcome such barriers as agreed by the market as well as a high-level project plan which has to be submitted by the JSE with their 2008 annual licence renewal to the FSB. Phase 2 is the actual implementation of T+3.

This project will only deal with Phase 1.

6. Project Acceptance Criteria

The following items will be used to evaluate Phase 1 of the “Moving to T+3” project success:

Signed-off documentation detailing barriers and action points to overcome the barriers


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7. Assumptions and Constraints

Assumptions and Constraints Impact to Plan if not TrueAll Workshop Delegates agree to timelines and deliver timeously

Delivery for October 15th is not negotiable therefore the impact is limited to a costing issue.

All Stakeholders/Workshop Delegates will embark upon this project with a high-level of commitment and priority.

8. Project Deliverables

8.1 Master Schedule Key Deliverables

The master schedule of the “Moving to T+3” project indicating the planned and high level time frame for the key deliverables is noted below.

Item No

Project Phase Deliverable Timeframe

20

June

07

03 J

uly

07

July

07

Aug

07

Sep

07

02

Oct

07

15 O

ct 0

7

1 Project Initiation Deliver Approach Document to Clearing & Settlement Advisory Committee (CSAC)

1.1 Nominations of participants to form Workshop Delegates

1.2 Kick-off workshop & scope presentation to Workshop Delegates

1.3 Identify & propose solutions to barriers

1.4 JSE Exco review & sign-off1.5 Deliver signed-off document

to FSB


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8.2 Workshop Deliverables

Item No

Project Phase Deliverable WorkshopDates

1 Kick off workshop Agree all barriers to be investigated 03 July 2007

2

Barrier 1: Dematerialisation

Barrier 3:Securities Lending & Borrowing (SLB)

Agree action points to overcome barriers including measurements

10 July 2007

3

Barrier 2: Straight-through Processing (STP)

Barrier 5:Systems availability


24 July 2007

4 Barrier 4: Corporate Actions


7 August 2007

5

Barrier 6:Moving shares between registers

Barrier 9: Off-market transactions


21 August 2007

6Barrier 7:Providing Settlement Assurance


04 September 2007

7

Barrier 8:Central Securities Register

Barrier 10:Real-time trade processing


18 September 2007

8 Final workshop to agree documented outputs

To agree and accept the document detailing all barriers and action points to overcome the barriers

25 September 2007

9 Final Document

To the Clearing & Settlement Advisory Committee for approval to table at the JSE Exco

02 October 2007


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9. Controlling and Monitoring the Plan

This plan will be used to create the Project Plan using MS Project. Activities will be sequenced and resources allocated. The schedule will be baselined. Each update to the schedule will result in a new version number.

Weekly progress will be indicated on the schedule. Weekly Project and team meetings will highlight any slippages and the Project Manager will escalate them to the correct forum. Weekly progress reports will reflect the planned and actual percentage complete.

10. Project Organization

10.1 Internal/External Communication

Organisation Liaison/Interface EmailJSE Brett Kotze [email protected] Des Davidson [email protected] Meera Sunker [email protected] JSE Shaun Davies [email protected] Chris Grove [email protected] - CSDP Angela Hardwick [email protected] - CSDP Tertius Vermeulen [email protected] - CSDP Freedom Cindi [email protected] - CSDP William Alexander [email protected] Societe Generale - CSDP Ernest Roodt [email protected] - Transfer Secretary Bill Botha [email protected] Strate Brian Balkind [email protected] Iann Seymour-Smith [email protected] Computershare - Transfer Secretary Charles Lourens [email protected] Broker Dave Wilks [email protected] Broker Erica Bruce [email protected] Broker Janine McCann [email protected] Neil Acres [email protected] – CSDP Duncan Smith [email protected] ABSA – CSDP Frik Botha [email protected] – SASLA Tania Riviere [email protected] UBS Amanda Adler [email protected] – IMASA Perry Mermigas [email protected]

10.2 Internal Structure

The Executive Project Sponsor of the project is Des Davidson. The Project Owner is Brett Kotze. The Business Analysis and Project Manager roles are assigned to Meera Sunker.


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mailto:[email protected]




















10.3 Roles and Responsibilities

The following table describes various roles and the responsibilities of each member of the project team. This will give clear direction as to what is expected from each resource on this project.

Responsibilities are defined as per the table below for each major role on the Project.

Role Responsibilities PersonProject Sponsor

JSE Executive Committee Member Accountable for the overall delivery of the

project Ensures project has clear direction and support Provides guidance to ensure project

completion Makes final decisions relating to the project Commits finances for the project Ensures that resources are available as agreed

and resolves resourcing issues Resolves project related conflicts and issues

escalated by Business Owner, Programme Manager and/or Project Manager

Authorises and accepts the project in order that the project can commence. Signs off all relevant documentation (Business Case, Scope of Work, Budget, Project Plan etc.)

Authorises and/or declines scope/date change requests together with the relevant justification. If approved, the necessary budget and plan changes also need to be approved

Signs off and accepts the deliverables of the project, as well as the ultimate sign off of the project

Monitors overall progress of the project and communicates progress and issues to executive management and stakeholders (in addition to the reporting function performed by the EPO)

Project Owner

Business resource and ultimate user/owner of the product

Drives the project from a business perspective Participates actively in defining exact

requirements and specifications for the project Monitors project progress and accuracy

throughout project lifecycle and reports progress to sponsor

Accepts deliverables of the project for the ongoing usage, maintenance and support of these deliverables

Is responsible for the achievement of business related tasks

Fulfils sponsor responsibilities as delegated. Evaluates the application for overall operability

and ease of user interface at acceptance


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Role Responsibilities Person Co-ordinates Acceptance testing Verifies developers' understanding of the

application purpose and design Has overall responsibility and accountability for

system and data Helps resolve conflict

Business Analyst

Identifies and documents current business processes

Compile relevant documentation – Business Case, Business Requirements, Functional Requirements, RFT/I/P, Test Pack (including test cases and results), User Manuals etc.

Re-engineers business processes Conducts software and vendor evaluations Recommends solutions Maintains scope of work Provides the results of research and

transfers/shares knowledge and experience

Project Manager

Is responsible for the overall delivery of the project

Participates in project scoping sessions, including planning and budgeting. Signs acceptance of all relevant documentation (Business Case, Scope of Work, Budget, Project Plan etc.)

Monitors, tracks and controls the project Maintains project plan Delivers project deliverables within agreed

time, cost and quality Meets project milestones Adheres to the EPO Project Management

Methodology Issue resolution Risk management Quality management Reviews and approves project deliverables

from QA perspective. Reviews plans and deliverables for compliance with applicable standards. Provides guidance and assistance on process matters

Scope/Date change control Management and co-ordination of deliverables

and resources Scheduled and implemented project team

builds and training, as applicable Project progress communication Acts as a catalyst to resolve project problems

and conflicts, escalating when necessary Integration management – ensures that

impacted project teams are involved and informed as early as possible in the project management process

Assesses strengths and weaknesses at project completion and records knowledge gained.

Responsible for daily planning and control of


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Role Responsibilities Personthe project

Coordinates resolution of issues. Manages and coordinates technical effort. Performs adequate and timely staffing

Provides regular and timely communications Prepares and administers project plans.

Tracks and reports progressWorkshop Delegates

Participates actively in defining exact requirements and specifications for the project

Participates in project scoping sessions, including planning

Must be present during the workshops to assist in producing accurate functional information.

Ensures that issues/actions logged against delegates name is resolved within the specified time

Signs off Approach Document and Action Plan- Moving to T+3 Document

Note: Due to staffing fluctuations, if a particular person is unable to fulfil his/her responsibilities, it will be the responsibility of the manager overseeing that area to ensure a replacement, with appropriate skills and experience, on a timely basis.


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11. Managerial Process Plans

11.1 Start-up Plan

Market workshops will be held every 2 weeks. The purpose of these workshops will be to discuss the barriers and come up with actions point to overcome the barriers which will form the document to be submitted to the FSB.

The Project Owner will manage the “Moving to T+3” project.

Acceptance of this Management Approach will result in the Schedule being baselined. All progress will be indicated against this baseline.

11.2 Resource Plan

Due to the nature of the discussions and the potential impact to the market it is believed that all market constituents should be represented at the workshops.

Therefore nominations will be requested from the following market participants:-

1 Delegate per CSDP (total 6 CSDPs); 1 Delegate from SASLA; 2 Delegates from Strate; 1 Delegate from a Retail Broker; 1 Delegate from a Institutional Broker; 2 Delegates from Foreign Brokers; 2 Delegates from IMASA; 2 Delegates from Transfer Secretaries (Computershare and Link) 1 Delegate from the FSB; and 4 Delegates from the JSE

Total of 22 Workshop Delegates


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11.3 Reporting and Communication Plan

11.3.1 Workshops

3 hour workshops will kick-off on 03 July 2007 and will then occur every 2 weeks. The purpose of the workshops will be to discuss the barriers and agree the actions points to overcome the barriers.

Minutes will be taken at this meeting and distributed within 2 working days to all Workshop Delegates. The frequency of the meetings may be changed should the timing prove too many or too few. The typical items to be discussed at these meetings are:

Progress during the last workshop and accepting the minutes Introduction to next barriers to be discussed, risk of barrier, plan to overcome Activities for the next period Issues / Risks

It will be the responsibility of the Business Analyst to assist with the running of the workshops, take minutes, updating progress report and working document and circulate to all.

11.4 Status Reporting

11.4.1 As required

Should the need arise, informal meetings may be convened to discuss or co-ordinate any activity related to the Project.

11.4.2 Weekly

The Project Manager will update the weekly progress report and circulate to the JSE EPO Division, Clearing & Settlement Advisory Committee (CSAC) and Workshop Delegates. This status report will provide information about recent completions, accomplishments, and effort expended

In addition to these weekly means of reporting status, the Business Analyst will be available to answer questions about the progress of the application at any point in the development cycle.

All of the above information will be summarised in the Weekly Consolidated Progress Report that will be sent to the Project Sponsor.

11.5 Escalation Plan

If the Workshop Delegates are unable to reach consensus on any point, the details of same will be documented and referred to the Clearing & Settlement Advisory Committee for guidance and resolution of same.


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11.6 Phase Closeout Plan

Each phase of the project will conclude with a formal checkpoint called a ‘’close out’’. However due to the fact that this document covers only the Initiation Phase, a ‘’close out’’ will refer to the end of this phase, signalled by the completion of the Action Plan - Moving to T+3 Document.

The project's designated approvers (sign-off authorities) must provide a written position of concur/non-concur at phase closeout.

Each phase “closeout” will be a formal meeting including all stakeholders. The Project Manager will facilitate this session. Items discussed will be:

Deliverables produced and signed off? Objectives met? Lessons Learnt?


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12. Distribution

This document has been distributed parties mentioned under section 10.1

13. Glossary

The following terms, abbreviations and acronyms have been used in this document:

Term DefinitionCSAC Clearing & Settlement Advisory Committee CSDP Central Securities Depository ParticipantEPO Enterprise Projects OfficeFSB Financial Services BoardIMASA Investment Managers Association of South AfricaJSE JSE LimitedSASLA South African Securities Lending Association


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14. Sign-Off

All parties signing this document acknowledge that they have read, understood and are committed to this document, including all attached schedules and diagrams.

Name: Des Davidson Name: Meera Sunker

Project Role: Project Sponsor Project Role: Project Manager

Signature: Signature:

Date: Date:

Name: Brett Kotze

Project Role: Project Owner

Signature:

Date:


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Documents

20070620-Project Management Approach to moving · Web viewTitle 20070620-Project Management Approach to moving to T 3 Subject EPO Author Arlette Macfarlane Last modified by meeras