Project Management
Approach for
Moving to T+3
Created by:
Reviewed by:
Quality Assured:
Approved by:
Date:
Version:
Meera Sunker
Brett Kotze: Des Davidson
Enterprise Project Office (EPO)
Clearing & Settlement Advisory Committee (CSAC)
Wednesday, 20 June 2007
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
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1.
References
Document
The “Non-Trivial” move from T+5 to
T+3
FSB Licence Approval
Setting Course for T+3
(Presentation to EXCO)
Workshop Report: T+3
Group of Thirty and International
Securities Services Association
Recommendations (Annex B)
2.
Author
Bobby Johnston
Version
1.1
Date
24/10/2001
Registrar of Securities
Brett Kotze
22/11/2006
19/03/2007
Mandi van der Heever
Group of Thirty
29/04/2004
Version Control
Version
0.1
0.2
Author
Meera Sunker
Meera Sunker
Date
05/06/2007
12/06/2007
0.3
1.0
Meera Sunker
Meera Sunker
14/06/2007
14/06/2007
1.1
Meera Sunker
20/06/2007
2.0
Meera Sunker
20/06/2007
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Reason for Changes
Document creation.
Update with Comments from Brett
and Des
Format editing
Move to 1.0 Final for distribution to
CSAC
Update with comments from
CSAC
Moved to final for circulation to
JSE Exco
20/06/2007
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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
All Workshop Delegates agree to timelines
and deliver timeously
Impact to Plan if not True
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.
1.1
1.2
1.3
1.4
1.5
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15 Oct 07
02 Oct 07
Deliver Approach Document
to Clearing & Settlement
Advisory Committee (CSAC)
Nominations of participants to
form Workshop Delegates
Kick-off workshop & scope
presentation to Workshop
Delegates
Identify & propose solutions
to barriers
JSE Exco review & sign-off
Deliver signed-off document
to FSB
Sep 07
Project Initiation
Aug 07
1
July 07
Deliverable
20 June 07
Project Phase
03 July 07
Timeframe
Item
No
8.2
Workshop Deliverables
Item
No
Project Phase
Deliverable
1
Kick off workshop
Agree all barriers to be
investigated
03 July 2007
Agree action points to
overcome barriers
including
measurements
10 July 2007
Agree action points to
overcome barriers
including
measurements
24 July 2007
Agree action points to
overcome barriers
including
measurements
7 August 2007
Agree action points to
overcome barriers
including
measurements
21 August 2007
Agree action points to
overcome barriers
including
measurements
04 September 2007
Agree action points to
overcome barriers
including
measurements
18 September 2007
Barrier 1:
Dematerialisation
2
3
Barrier 3:
Securities Lending &
Borrowing (SLB)
Barrier 2:
Straight-through
Processing (STP)
Barrier 5:
Systems availability
4
5
Barrier 4:
Corporate Actions
Barrier 6:
Moving shares between
registers
Barrier 9:
Off-market transactions
6
Barrier 7:
Providing Settlement
Assurance
Barrier 8:
Central Securities
Register
7
Barrier 10:
Real-time trade
processing
8
Final workshop to agree
documented outputs
9
Final Document
81897927
To agree and accept
the document detailing
all barriers and action
points to overcome the
barriers
To the Clearing &
Settlement Advisory
Committee for approval
to table at the JSE Exco
20/06/2007
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Workshop
Dates
25 September 2007
02 October 2007
Page 7
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
JSE
JSE
JSE
JSE
JSE
FNB - CSDP
Computershare - CSDP
SCMB - CSDP
Nedbank - CSDP
Societe Generale - CSDP
Link - Transfer Secretary
Strate
Strate
Computershare - Transfer Secretary
Foreign Broker
Institutional Broker
Retail Broker
FSB
ABSA – CSDP
ABSA – CSDP
Investec – SASLA
UBS
RMBAM – IMASA
Liaison/Interface
Brett Kotze
Des Davidson
Meera Sunker
Shaun Davies
Chris Grove
Angela Hardwick
Tertius Vermeulen
Freedom Cindi
William Alexander
Ernest Roodt
Bill Botha
Brian Balkind
Iann Seymour-Smith
Charles Lourens
Dave Wilks
Erica Bruce
Janine McCann
Neil Acres
Duncan Smith
Frik Botha
Tania Riviere
Amanda Adler
Perry Mermigas
Email
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[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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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
Project
Sponsor
Project
Owner
Responsibilities
 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)







Person
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.
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Role
Business
Analyst
Project
Manager
Responsibilities
 Evaluates the application for overall operability
and ease of user interface at acceptance
 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
 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

















Person
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
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Role
Workshop
Delegates
Responsibilities
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
the 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 progress
 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 PlanMoving to T+3 Document
Person
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
CSAC
CSDP
EPO
FSB
IMASA
JSE
SASLA
Definition
Clearing & Settlement Advisory Committee
Central Securities Depository Participant
Enterprise Projects Office
Financial Services Board
Investment Managers Association of South Africa
JSE Limited
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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