The following timings may be subject to minor changes
Wednesday 14th November – London
08:45- 09:45 Registration and Coffee
09:45 Conference opening
09:50 Keynote address by Mr. Hüseyin Erkan, CEO, World Federation of Exchanges
10:10 Ex or Change?
Global exchange players have viewed the sale of technology services and data as a driver of growth, mitigating the ups and down of trading fees. The leading exchanges at their core are technology companies. In 1898, Eduard Polón founded Finnish Rubber Works, manufacturer of galoshes and other rubber products. That company is now called Nokia, currently a telecommunications company. What business will those companies now known as exchanges be in the year 2050? In January 2012, Deutsche Börse acquired the China Consumer Sentiment Survey, a leading indicator of consumer outlook across 30 major Chinese cities, from Intage Hyperlink Market Consulting (Shanghai) Co., Ltd. Has this transformation begun?
11:10: Dr. Kay Swinburne, a member of the EU’s Economic and Monetary Affairs Committee
11:50 Post-Trade in the OTC Derivatives Space
The 2008 financial crisis highlighted the lack of transparency surrounding the trading of OTC derivative products. OTC derivatives were – rightly or wrongly - blamed for being a major contributor to the financial crisis. Political initiatives resulted in the G20 members' pledge in September 2009 to have all standardised OTC derivative transactions cleared through central counterparties by the end of 2012 at the latest and OTC transactions reported to trade repositories. The Dodd-Frank Act in the US and the EMIR proposal in Europe are the result of these initiatives. This panel will look at the Post-Trade challenges of Dodd-Frank and EMIR with regard to the central clearing of OTC derivatives. Issues which will be looked at include Collateral management and Real-Time Risk Analytics
13:50 IT’s Technology
Technology has always been a key driver of change in financial markets. Rapid improvements in technology led to the introduction of the first ticker machine in 1867
and an automated trading floor in 1957, allowing investors to see up-to-date stock prices. Since then, electronic routing systems and advances in automation have boosted trading volumes and decreased the need for floor traders. The technology arms of global exchanges are critical to their strategies. The growth in revenue from IT services has in recent years offset weaknesses in trading revenue. What used to be floors full of traders are morphing over time into server farms and associated technology architecture. And it is not just exchanges which are key players in this space. Suppliers of infrastructure, software services and hardware suppliers are all part of this critical ecosystem. In this panel key players will be looking at the technological landscape a year ahead and the impact of forthcoming changes, advances and disturbances on financial markets.
14:50 Professor Michael Aitken, Chief Scientist, Capital Markets Cooperative Research Centre (CMCRC)
15:40 The new battleground - Banks, brokers and exchanges in derivatives platform turf war
Banks, brokers and exchanges are preparing for a new world where the traditionally opaque and largely unregulated OTC markets are being forced into the regulated exchange-traded and cleared template. This huge, shadow world of bonds, FX and obscure derivatives which prospered in bilateral markets is going multi-lateral. Regulators have targeted Organised Trading Facilities (in Europe) and Swap Execution Facilities (in the US) as key tools in this reform. In the traditional listed derivatives marketplace, there is increased competition, including increased competition from new entrants, and consolidation of existing entities. What will the new landscape look like one year from now? No one can say for certain. One thing, howeer, is certain: the outcome - the shape of this business in the future – is largely unknown. We discuss what will drive success in these businesses and try to identify the winners.
16:40 Pension Reform, Changing Demographics and Their Impact on Domestic Capital Markets
Pension reform is a hot button topic in countries all over the world. The drivers behind the need to reform may differ between countries and across regions, but a common factor driving reform is the ﬁscal pressure of the demographic time bomb of an ageing population coupled with an unsustainable public pension system. Privatisation of public pension schemes, partial or complete, is on the political agenda in many countries. One by-product of this privatisation of pensions is the creation of deeper local capital markets. In the case of Poland, pension funds have provided a huge boost to the Warsaw Stock Exchange, which has grown to become Central Europe’s leading bourse. Are we replacing one ticking time bomb with another? Are the benefits to local capital markets real and sustainable? What are the lessons from Warsaw for other markets?
18:30 – 22.30 Cocktail Reception and Gala Dinner