CLEARING PANELS 2009 – Chicago EDITION
We would like to thank all of you who attended the Chicago clearing panel, and hope your time with us was useful and informative. For those of you that may not have made it this time around, we hope to see you next year!
The panel, entitled “What Happens Next: Dealing with the Aftermath of the Global Financial Crisis,” was comprised of industry experts from leading financial institutions to discuss how to implement better risk management strategies, improve the post-trade process in the wake of last year’s global economic crisis, and best position yourself for the eventual economic turnaround. Numerous thought-provoking issues facing the listed derivatives industry were addressed, including:
- Integrating OTC/CDS/interest rate swaps with traditional clearing
- Improving real-time risk management strategies
- Obtaining control over costs while increasing customer service
- Achieving STP while decreasing operational risk
- Adhering to regulatory changes in listed derivatives and understanding their potential impact on your firm
- Increasing operational efficiency in an environment that’s confronted with new asset classes, increased workload, and the need for better cost containment
The panel provided an interactive exchange of ideas on the post trade management sphere. Some of the questions posed to the panel included:
What impact do you think anticipated or proposed regulatory changes will have on your firm?
What are you doing to overcome any negative consequences of these changes?
How are you planning to keep up, and how far do you think the regulators will go?
How can we facilitate cooperation between U.S. Regulators and European regulators?
The subject on everyone’s minds lately is “What will the OTC derivatives markets look like in the future?”
What are the key factors that will drive the transformation of OTC products over the next five years?
How are you going to integrate with trading and OTC?
How can we handle management of collateral and margin requirements in a hybrid OTC/clearing world?
What measures have you taken in the middle and back office to mitigate the effects of any future credit crisis or economic downturn?
How have you improved your real-time risk strategies?
What role do the exchanges have in inter-day pricing?
Who sets the pricing?
There seems to be renewed interest in STP. What has been learned since the last time STP was a hot topic, and is true STP really achievable?
What are the obstacles standing in the way?
What are the biggest pain points related to the coordination between the buy and sell sides?
In what areas is there still much progress to be made?
What are the different roles of the exchanges, the clearing members, the buy side firms and the vendors?
The panel members included:
Sunil Cutinho, Director, Clearing Solutions Group at CME Group, Clearing House
Alun Green (Moderator) , General Manager, GMI/Octagon, SunGard
Olivier Hemon, Director, Head of Operations, BNP Paribas Securities Corp, Correspondent Clearing Services
Gerard “Roddy” Kopera, Managing Director, Institutional Integration, International Derivatives Clearing Group (IDCG)
Michael Macchiaverna, Director, Global Head of Business/IT Integration, Barclays Capital
Mike Meager, Chief Information Officer at Penson GHCO, the futures clearing and execution division of Penson Worldwide.
Sheila O’Shea, Director of Operations, Mizuho Securities USA, Inc.
Vassilis Vergotis, Executive Vice President, Eurex