OTC Derivatives Operations in Fund Management
OTC Derivatives Operations in Fund Management
Tuesday 23rd November 2010 to Wednesday 24th November 2010
London, 09:00 - 18:00
Ł1,298.00/person
The Agenda
Tuesday 24th November 2009
08:30 Registration and coffee
09:00 Welcome address from the chair
Sean Sprackling, Partner, Investment Solutions Consultants LLP
09:10 Evolution of collateral management
§ Interaction with different departments in order to cover exposure
§ Links between collateral management and other departments to enhance responses if disputes arise
§ Building efficiency in-house to deal with different market circumstances or counterparty defaults
§ Handling a broad range of eligible collateral
Danny Peeters, Head of Collateral Management, Fortis Investments
09:40 Panel discussion: Outsourcing collateral management- what benefits could this bring to the buy-side?
Increased focus on risk management and compliance means that outsourcing is now back on many company’s agendas however, this could be cyclical. In other areas, and other industries – outsourcing, and whether the benefits outweigh in-house capabilities, has long been debated yet many previously outsourced projects or functions have since been brought back in-house, so how is it different this time and , how does a company decide:
§ What are the justifications for keeping collateral management in-house?
§ Whether or not outsourcing is appropriate; weigh up the balance between in-house capability, workload and training needs
§ What functions should be outsourced?
§ Whether outsourcing should be a long term or a short term solution?
§ What the benefits could be in terms of reduced workload, reduced cost and enhanced risk-mitigation?
Panellists include:
Chris Sims, Head of Investment Operations, Gartmore
Mark Higgins, Vice President and Head of Business Development for EMEA Collateral Management, The Bank of New York Mellon
Dr. Jez Bezant, RFQ-hub. Formerly Head of Business Management, Aviva Investors
10:20 Bilateral Exposure Management and Operational Risk Management through Effective Portfolio Reconciliation
§ Benefits from a collaborative approach, both internally and externally
§ The value of effective reporting
§ Analytical approach to dispute resolution
§ Benefits to the wider organisation outside of collateral management
Mireille Dyrberg, Chief Executive Officer EMEA, Trioptima UK Ltd.
10:50 Morning coffee
11:20 Managing over-collateralisation risk
Following the Lehman collapse and with the prospect of a major broker-dealer default still not passed, many asset managers are no longer comfortable with the risks associated with over-collateralisation under the English law Credit Support Annex. Some managers are now doing something about it. This session will address the nature of the problem, the different solutions and the operational issues associated with each of them.
§ How over-collateralisation arises
§ The "Independent Amount" White Paper
§ The pros and cons of the alternative solutions - for both the buy and sell-side
§ Operational issues
Guy Usher, Head of Derivatives & Structured Finance, Field Fisher Waterhouse LLP
11:50 OTC Derivatives and the Buy Side: some musings about the big picture
§ What problems or issues has the buy side encountered in trying to unwind its derivatives positions in illiquid markets?
§ How does illiquidity in the markets influence the debate on exchanges and CCP’s?
§ How might the current crisis affect the trading and perception of derivatives as risk management tools in the future?
§ Why are things not even worse than they already are, given the enormous notional amount of OTC derivatives and the threat of further corporate and bank defaults?
Peter Laurens, Associate Director, FH International Asset Management
12:20 Panel Discussion: Attaining compliance within a new regulatory regime
How will regulatory changes affect buy-side operations and are proposals the panacea governments want or will they do more harm than good? This session will address:
§ The Over-the-Counter Derivatives Markets Act of 2009: what impact will European fund managers see?
§ How /if to deal with central clearing houses
§ How to manage margins and OTC processes in tandem
§ How to attain and prove compliance
§ The impact of regulatory changes upon buy-side costs
§ The migration of OTC derivatives to cleared/exchange traded
Panellists include:
Jamie Brigstock, Vice President, Citigroup, and Chairman, Operations Interest Rates Products Working Group, ISDA
Peter Laurens, Associate Director, FH International Asset Management
James Wallin, Senior Vice President, AllianceBernstein
Simon Lillystone, Director, Business Development, Collateral and Margin Management, Omgeo
13:00 Networking Lunch
14:00 Counterparty risk: caging the beast
§ Understanding both operational and counterparty risk in the OTC derivative lifecycle
§ How to operationally limit counterparty risk both before and after a deal is executed
§ Understanding the critical reporting requirements for understanding and controlling counterparty risk
Stephen J. Ingle, Derivatives Product Manager, BNY Mellon
14:30 Panel Discussion: Clearing and exchanges how will the buy-side deal with regulatory changes?
§ Do exchanges have the necessary scalability for the OTC market?
§ What should the buy-side consider to make a decision about future partners?
§ What could the impact of the creation of centralised clearing houses be for the buy-side?
§ How will CCPs deal with pricing complexity?
§ How will the buy-side get direct access to the clearing houses?
Panellists include:
Bill Hodgson, Director, Sapient Process Solutions
Roger Barton, Managing Director, Tradeweb
Byron Baldwin, Senior Vice President, OTC Clearing, Eurex
15:10 Afternoon tea
15:40 Roundtable discussions
16:20 Overcoming the impediments to STP
OTC derivative straight through processing has remained at the top of the buy- and sell-side operations agenda for as long as we can remember. Yet the STP objective has remained stubbornly elusive. Increasing volume and complexity of the instruments themselves, changing regulations and the development of vendor and utility offerings continue to make this a complex and confusing domain. This session will look at real operational issues throughout the entire OTC life cycle process-flow in the context of market developments. What are the operational issues with the key activities in the functional process, and how are these being affected by:
§ Technology issues concerning the lack of golden sources, common protocols and multi asset trade management systems?
§ The metamorphosing of industry utilities like DTCC, Mark-it, LCH etc?
§ The regulatory drive towards the use of exchanges and central counterparties for OTC derivatives?
Mike Mathias, Director, MarketWorks Consulting Ltd.
16:50 Q&A From the floor and close of summit
C D - R O M
Can't make it to the conference?
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CD-ROM Package will include: • Audio recordings of the presentations* • PowerPoint presentations*
• Question & answer sessions
(*subject to speaker approval)
This will serve as an invaluable reference tool. Order your copy of the CD-ROM today. Email mariame_lindell@osneymedia.co.uk or complete the booking form and fax back to +44(0)20 7336 4601.
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