This years Sibos presents a packed schedule for securities industry practitioners, with several key sessions that will shape discussions, mindsets and businesses for the years ahead. Here, Global Custodian looks at the must-attend sessions for the securities services industry on day four.
CCPs for OTC Derivatives: The Right Answer or a Nightmare in the Making? (11 a.m. 12 p.m.)
With regulations around the globe mandating the use of central counterparty clearing houses (CCPs) for over-the-counter (OTC) derivatives transactions, a natural debate arises regarding the ideal model for these CCPs, as well as whether the proliferation in CCPs actually creates additional counterparty risk for financial institutions, rather than reducing it. Central clearing changes the business models of all the institutions involved in derivatives transactions, including service providers, so a discussion on how these firms will adapt and how ready they are for the new model will be telling.
Questions to ask:
– Do CCPs for derivatives reduce risk or increase it?
– Is there an ideal model for CCPs or does it change by market or region?
Asset Servicing Recent Trends in Corporate Actions Automation and New Business Tools to Support Your STP Quest (1 1:45 p.m.)
SWIFT and CityIQ recently released their report on the current state of the corporate actions industry, an update on earlier reports published in 2003 and 2008. For the securities services industry, the most crucial finding, perhaps, was that data vendors had replaced custodians as the No. 1 sources of corporate actions data, with custodians falling to the second place for the first time. However, custodians were cited as the best sources of corporate actions data. How the two facts are reconciled will be the point to watch out for on this panel.
Questions to ask:
– How do financial institutions reconcile the survey finding that data vendors are the top source of corporate actions information yet custodians are the best source?
– Much work is being done around engaging issuers in the corporate actions process. How do you envision the next corporate actions study incorporating improvements made following the implementation of these initiatives?
Securities Growth in Asia Where Will It Come From? (2 3 p.m.)
Service providers are optimistic about growth in the Asia-Pacific region. Japan itself, as the host country for this years Sibos, offers prospects in inbound, outbound and cross-border custody, securities lending and other services as the markets continue to grow and adapt to an increasingly global economy. By the number of custodians that have expanded their presences in the region, the growth trend seems set to continue. Panelists from BNP Paribas, Celent, Kookmin Bank, Frontier Management and Standard Chartered Bank will offer a truly diverse set of viewpoints from a geographical perspective as well as from their various service provider roles.
Questions to ask:
– What are some of the untapped opportunities in the Asian markets?
– How will regulations in Asia impact local and foreign financial institutions? How will regulations outside the region impact domestic financial institutions?
(CG)