2012 IOMA Conference
29th IOMA, THE WFE DERIVATIVES CONFERENCE
London 15 – 17 April 2012
Monday, 16 April 2012 –
09:15-09:45 Keynote address speaker
Mark Hoban MP, Financial Secretary, Her Majesty’s Treasury
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
Peter Clifford, Deputy Secretary General, World Federation of Exchanges
Mark Woodward, Director – Corporate Development, IntercontinentalExchange
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 Equity 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
Carlos Serrano, Vice President for Regulatory Policy of the National Banking and Securities Commission of Mexico
Remco Lenterman, Chairman Futures Industry Association’s European Principal Traders Association
19:00 Dinner at Café de Paris, 3-4 Coventry Street, London W1D (walking distance).
Tuesday, 17 April 2012
First morning session closed for WFE members only
09:00 – 10:15 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
Robert Barnes, CEO of UBS MTF
Eric Böss, Global Head of Derivatives, Allianz Global Investors
Donald McClumpha, Managing Director and Head of i-Swap, ICAP
This session will combine short presentations with around-the-room, off-the-record questions and answers.
10:15 - 10:45 Coffee
10:45 – 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: Wu Keli, Vice President, Zhengzhou Commodities Exchange
Sergio Gullo, Chief Representative for EMEA, BM&FBOVESPA
Robert D. Ray, Managing Director International Products and Services, CME Group London
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
Kevin King, Head of Risk Management, Hong Kong Exchanges and Clearing
Ignacio Solloa, Deputy Chief Executive Officer, MEFF / Grupo Bolsas y Mercados Españoles
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, Public Affairs, LCH.Clearnet
Luis Jorge Pelayo, Vice President Risk Management Bolsa Mexicana de Valores Group and Chairman CCP 12
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?
Moderator: Paul Jones, General Manager, Australian Securities Exchange
Speakers: Dale Michaels, Managing Director, Credit & Risk Management, CME Group
Thomas Laux, Head of Risk Design, Eurex Clearing
19:00 Dinner – Trinity House
End of IOMA Conference 2012
Wednesday, 18 April 2012
CCP12 continues at the Sofitel St. James’s, and the morning session will be open to IOMA delegates. They will address the following questions:
08:30 – 08:45 Welcome and opening remarks
Luis Jorge Pelayo, CCP12 Chair, Vice President Risk Management, BMV Group
08:45 – 10:00 Financial Markets Infrastructure (“FMI”) Principles and Assessment criteria
CPSS-IOSCO FMI Principles have been the main subject for CCP12 from the perspective of standards. The final version will be delivered soon, and the assessment criteria will be quite important for compliance purposes, because the Principles should be harmoniously applied around the world in order to promote a fair, secure and level playing field.
Moderator: Paul Jones, General Manager, Clearing Risk Policy, Australian Securities Exchange
Principles - Daniela Russo, Deputy Director General Payments and Market Infrastructure, European Central Bank and CPSS-IOSCO
Barry King, Senior Associate, OTC Derivatives & Post Trade Policy, Financial
10:00 – 10:15 Coffee
10:15 – 11:30 Default procedures and case analysis
The Global Financial Crises brought to the financial community a set of valuable lessons, most of which are being translated into Principles and Regulations. The Lehmann Brothers crash obligated the CCP industry to test (successfully) the risk models, default procedures, and thereafter make some opportune adjustments. The recent MF Global default has allowed the experts, and those who directly managed the default procedures, to renrich their experience.
Moderator: Luis Jorge Pelayo, CCP12 Chair, Vice President of Risk Management, BMV Group.
Peter Norman, author of “The Risk Controllers”
Christopher Jones, Chief Risk Officer, LCH.Clearnet
Dale Michaels, Managing Director for Credit and Market Risk Management, CME Group
Kevin King, Head of Risk Management, Hong Kong Exchanges and Clearing
11:30 – 11:45 Coffee
11:45 – 13:00 Global Agenda and Regulatory Framework Update
The regulatory update is a required topic in every CCP 12 meeting. This time, the group will consider mostly the dynamic normative environment following from G20 initiatives and the establishment of FMI Principles. We expect our expert panelists to contrast and compare current relevant regulations and anticipate their impacts on the CCP industry.
Moderator: Karl Spielmann, Head of Legal and Compliance, Euro CCP
Basel III: Carlos Serrano, Vice President for Regulatory Policy, National Banking and Securities Commission of Mexico
EMIR: Edwin Schooling, Head of Payments & Infrastructure Division Bank of England
Dodd-Frank Act: Tim Reucroft, Director Research, Thomas Murray
13:00 – 14:00 Luncheon
The afternoon sessions are closed to CCP12 members.
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