NO 229 – MARCH 2012
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WFE Focus January 2012
29th IOMA, THE WFE DERIVATIVES CONFERENCE

London
16-17 April 2012

Draft program

All sessions will be open to press and guests except Tuesday morning. The Chatham House Rule can be invoked at a speaker’s request.

Monday, 16 April 2012

08:00 - 09:00 Board of Directors meeting
Reserved for the IOMA Board of Directors

09:15-09:45 Keynote address speaker 
Mark Hoban MP, Financial Secretary, Her Majesty’s Treasury

09:45-10:00 Photo session

10:00-10:45 IOMA / IOCA Annual Conference opening and survey presentation

Trends in the exchange-traded futures and options markets.

  • Jorge Alegria, Chief Executive Officer, Mexican Derivatives Exchange (MexDer), and IOMA Chairman
  • Andreas Preuss, Eurex CEO and Deutsche Boerse Deputy CEO, and IOMA Vice Chairman
  • Romain Devai, WFE Research & Projects Manager

10:45 - 11:15 Coffee

11:15 - 12:30 “The Global Risk Transfer Market, 2012”

WFE has commissioned for IOMA an update of the 2010 TABB Group report on OTC and on-exchange derivatives developments. The mandate includes a more global perspective than two years ago. Are developed and developing derivatives marketplaces going down separate paths? Should OTC be brought into the exchange and clearinghouse space? Is this happening by itself? How expensive is adding security to the marketplace? Is the plus needed only repository services, and is this enough to reduce risk?”

Presentation:
E. Paul Rowady, Jr., Senior Analyst, TABB Group

Comments:

Garry Jones, Group EVP & Head of Global Derivatives, NYSE Liffe, NYSE Euronext
London School of Economics Capital Markets Group, tbc

12:30 - 14:00 Luncheon

14:00 - 15:00 Mergers and acquisitions versus product and service alliances.

Nationalistic overtones have entered the business conversation as cross-border bids have been stopped. What is the logic in exchanges being so special as to have mergers blocked, yet not so special that the authorities fragment the marketplace by imposing unfair competition? Whether this is the result of the financial crisis and government’s desire to keep a grip on markets, or from competitive and commercial pressures, what external business development opportunities remain for exchanges?

In Europe and elsewhere, parties with vested interest in the OTC markets were vocal in opposing mergers. If OTC markets and exchanges do not compete as the Commission maintained, were these objections pertinent? If they do compete, were these objections fair?

Moderator:

Gary Offner, Managing Director, Morgan Stanley

Speakers:

  • Ravi Narain, Managing Director and Chief Executive Officer, National Stock Exchange of India Limited, and IOMA Outgoing Chairman
  • Meyer S. Frucher, Vice Chairman, NASDAQ OMX
  • Nicolas Bertrand, Head of Equities and Derivatives Markets, London Stock Exchange Group

15:00 - 15:30 Tea

15:30 - 17:00 Speed and HFTs, market stability and the market liquidity problem

Trading conditions continue to change: the Volker Rule, bank capital requirements … where will we find trading customers? What do the authorities think about today’s regulated trading environment as they address the need to restore confidence in more liquid markets grounded in a more stable environment?

Moderator:

Shunzo Kayanuma, Director Corporate Communications, Tokyo Stock Exchange

Speakers:

  • Anne Wetherilt, Senior Manager, Payments & Infrastructure Division, Bank of England
  • David Bailey, Head of Department, Markets Infrastructure and Policy, Financial Services Authority
  • Juan Manuel Valle, Head of the Banking, Securities and Savings Unit, Ministry of Finance of Mexico
  • Remco Lenterman, Chairman Futures Industry Association’s European Principal Traders Association

17:00-17:30 Transaction taxes

An empirical study on impact they might have. How might this affect the quality of price discovery?

Speaker:

  • Anthony Belchambers, Chief Executive, Futures and Options Association

Tuesday, 17 April 2012

First morning session closed for WFE members only

08:30 - 10:00 SEFs and OTFs

Exchanges and others are creating their own SEFs and OTFs. What does this mean for our industry’s business development? What might happen to price discovery / fragmentation? Is this likely to play out differently if such entities spread beyond developed markets, and if so would that be due to regulation and / or other factors? How differently might this play out in derivatives markets rather than the cash markets when similar structures were introduced there?

Moderator:  

Jorge Alegria, Chief Executive Officer, Mexican Derivatives Exchange (MexDer), and IOMA Chairman

Speakers:

  • Robert Barnes, CEO, UBS MTF, Managing Director Equities at UBS
  • Eric Böss, Global Head of Derivatives, Allianz Global Investors
  • Donald McClumpha, Managing Director and Head of iSwap, ICAP

This session will combine short presentations with around-the-room, off-the-record questions and answers.

10:00 - 10:30 Coffee  

10:30 - 12:00 Commodities

Hard and soft raw materials segments have been major drivers of the futures business, and they were indeed at the very origin of what we now do. With the markets’ change in scale and volatility, questions arise about “speculation” and the role it might be playing together with underlying global economic growth pushing up demand. The prices of many basic goods are at new highs.

To counter this often negative public image, what can exchanges say that they have contributed to stabilizing the markets through the transparency and liquidity they provide? How do we determine when it is necessary to affect market price movements by changing margin or price trading limits? Why is what exchanges do better for business and society than if regulated marketplaces for these goods did not exist? And where does the commodities futures business go from here?

Moderator:

  • Will Acworth, Editor, Futures Industry

Speakers:

  • CME Group, tbc
  • Zhengzhou Commodities Exchange, tbc
  • Commodity Markets Council, tbc

12:00 - 13:30 Luncheon

13:30-14:30 Clearinghouse competitive landscape

Questions about vertical and horizontal structures seem to be fading, but what in fact is the competitive landscape for clearers as post-trade’s infrastructure and commercial significance come ever more to the foreground of business planning and public policy questions?  How does this differ across the world?

Moderator:

Michael Walinskas, Executive Vice President and Chief Risk Officer, The Options Clearing Corporation

Speakers:

  • Siddharta Roy, Chief Risk Officer, The Clearing Corporation of India Ltd. 
  • Dale Michaels, Managing Director, Credit & Risk Management, CME Group

14:30 - 15:30 Clearinghouses: too big to fail?

How “bullet-proof” do clearinghouses need to be in order to avoid “too big to fail” labeling? How much will bullet-proofing raise the cost of clearing? To what extent should a clearinghouse’s book be opened, in particular when operating CCP services, and who should decide and manage? What if a clearinghouse fails - how would losses be allocated in such an extreme event? What about contagion?

Moderator:

Marcus Zickwolff, EACH Chairman and Executive Director, Eurex Group, Head of Trading and Clearing System Design Department.

Speakers:  

  • Rory Cunningham, Director Strategy and Development, LCH.Clearnet
  • Luis Jorge Pelayo, Chair CCP12, Vice President Risk Management Bolsa Mexicana de Valores Group

15:30 - 15:45 Tea

15:45- 16:45  MF Global

What did happen, and do we need to know about the resolution of this question to avoid further such incidents?

  • Kim Taylor, President CME Clearing House Division
  • Thomas Laux, Head of Risk Design, Eurex Clearing
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