29^th IOMA, THE WFE DERIVATIVES CONFERENCE

London 15 – 17 April 2012

  

program

 

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

Speakers: 

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

                          Speakers: 

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
Services Authority

 

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.

                          Speakers: 

                          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.