Securities Lending Tutorial

Designed for professionals new to the securities lending industry; this session will provide attendees with a basic conceptual understanding of securities lending functions and how to distinguish among the various forms of securities lending transactions. The instructors will address common industry misperceptions about securities lending with an emphasis on regional and marketplace issues. The tutorial will provide attendees with an understanding of the regulatory and taxation issues affecting securities lending for lenders and their custodian bank lending agents and borrowers. Participants will learn how to identify the risks of securities lending and how to control them.

Instructors: Martin Corrall, Director, Citi, Hong Kong

Jason Kendall, Director, Bank of America Merrill Lynch, Hong Kong

Serge Micallef, Director, BNY Mellon, Hong Kong

Lunch (Tutorial Attendees ONLY)

Courtesy of: 
J.P. Morgan

PASLA Regional Markets Initiatives: What Have You Been Missing?  

In March of 2017, the PASLA Board initiated working groups responsible for identifying key market challenges faced by industry participants across regional jurisdictions, with a mandate to engage regulators, exchanges, and other organizations in an effort to address these in a manner which supports the onward development of securities lending in Asia-Pacific. Working group leaders will provide conference attendees with an update of the main issues being worked on across the Asia markets. ASEAN, Hong Kong, India, Japan, South Korea and Taiwan.

Facilitator: Paul Solway, Chairman, PASLA, Hong Kong

PASLA Executive Committee Members:  

ASEAN:

Zubair Nizami, Head of Securities Lending Trading - Asia, Brown Brothers Harriman, Hong Kong 

Hong Kong: 

Matthew Ketley, Executive Director, JP Morgan, Hong Kong

India:

Martin Corrall, Director, Citi, Hong Kong

Japan:

David Egliskis, Head of Securities Lending, Asia Pacific, BNP Paribas, Tokyo   

South Korea:

Tim Butcher, Executive Director, Goldman Sachs, Hong Kong

Taiwan:

Adam Smith, Head of Equity Finance Trading, Asia Pacific, HSBC, Hong Kong

Legal and Regulatory Discussion

Both PASLA and RMA have been providing members with updates and guidance as well as responding to various proposed rulemaking initiatives on both a global and regional basis. Tuesday’s sessions will give participants an update on proposed rules, where they stand and what the potential business implications are for securities lending and borrowing affecting beneficial owners, agent lenders, broker dealers, and hedge funds in the Asia/Pacific region.

1430 to 1515

Global Legal and Regulatory Issues and Business Implications

Learn about the latest updates from a global regulatory perspective including SFTR, MIFID II, FSB's Shadow Banking Work Stream updates, Basel III Capital, Leverage and Liquidity Rules, Single Counterparty Credit Limits, and other global rule making news.

1515 to 1600

Regional Legal and Regulatory Issues and Business Implications

This session will address regional issues including business leaders from the region discussing possible impacts on your business based on potential new regulations that are specific to the Asia/Pacific region.

Moderators: Paul Landless, Partner, Clifford Chance, Singapore

Greg Lyons, Partner, Debevoise & Plimpton, New York

Panelists: Jenny Cosco, Managing Director and Co-Head, Government Affairs Asia Pacific, Goldman Sachs, Hong Kong

Glenn Horner, Managing Director & Chief Regulatory Officer, State Street, Boston

Gary Plummer, Executive Director, J.P. Morgan, United Kingdom 

Matthieu Sachot, Director, Chappuis Halder & Co., Hong Kong

Rebecca Terner Lentchner, Head of Government Relations, APAC, BNY Mellon, Hong Kong

Welcome Reception: Meet and Greet the PASLA Executive Committee

Courtesy of:
BNP Paribas
Morgan Stanley
Nomura
RBC Royal Bank
Societe Generale
UBS

Welcome to the Conference

A welcome to the conference and an update on PASLA’s and RMA’s joint activities during the past year will be given by the conference co-chairs.

Welcoming Remarks

Presenter: Calvin Tai, Joint Chief Operating Officer, Managing Director and Head of Clearing, Hong Kong Exchanges and Clearing Limited, Hong Kong

PASLA: Dane Fannin, Senior Vice President, Head of Capital Markets, Asia Pacific, Northern Trust, Hong Kong

RMA: Thomas Poppey, Senior Vice President, Global Securities Lending, Brown Brothers Harriman, Boston                            

Future of Securities Finance in China: Where Does That Leave Hong Kong?

Hong Kong and China’s stock markets have had a collaborative relationship ever since China’s economic reforms of the 1980s. Many Chinese companies have since listed in Hong Kong with H-shares taking the stage back in 1993 with the listing of Tsingtao breweries. The securities markets trading links between Hong Kong and Mainland have become even more prominent since 2014 with the introduction of stock (Shanghai-Hong Kong and Shenzhen-Hong Kong) and Bond connect platforms and more recently with the proposed ETF connect between Hong Kong and the mainland. What does the future hold for both bourses and this convenient relationship? Will they continue to act in mutually beneficial ways or will one bourse finally reign supreme? Importantly, what do future outcomes mean for the development of the securities finance industry?

Moderator: Christopher Antonelli, Global Co-Head of Prime Services, Nomura, Hong Kong 

Panelists: Melody He, Managing Director, CSOP Asset Management Ltd., Hong Kong  

Jessica Morrison, Executive Director, Morgan Stanley, Hong Kong

Daniel Tse, Executive Director, Haitong International Securities Company Limited, Hong Kong

Tae Yoo, Managing Director, Hong Kong Exchanges and Clearing Limited, Hong Kong

Coffee Break with Exhibitors 

Courtesy of:
ABN AMRO Clearing Bank

Eurex Clearing

Euroclear
Goldman Sachs

Keynote Speaker

Frederic Neumann, Co-Head of Asian Economic Research, Managing Director, HSBC Limited 

Asia’s Macroeconomic Horizon: Where Are the Opportunities and Challenges?
Mr. Neumann will present a strategic overview of the forces reshaping the global economy, contributing to the drag on advanced economies, and spurring growth among the emerging market economies. The central focus will be on Asia (especially China) where shifts to the traditional growth model demand changes to future investment themes. Also, as investment opportunities have accelerated capital flows into the emerging market economies, coping strategies will be required to manage new risks rising from a policy backlash in reaction to these inflows.

APAC Developing Markets: What Is the Formula for a Successful Securities Lending Model?  

Participants from regional markets at various stages of development will discuss the ongoing expansion of their off-shore securities lending markets from their own perspectives, discussing elements that have been successful in contrast to those that have been a challenge in supporting the growth profile of the product. Panelists will debate various approaches to regulatory, tax and legal reform to draw out a discussion on best practices in aiding the further development of emerging markets in the Asia-Pacific region. 

Moderator: Ed Oliver, Managing Director, Product Development, eSecLending, United Kingdom

Panelists: Jacob Boeding, Executive Director, Asia-Ex Head SBL and Swaps Trading, UBS, Hong Kong

Wenyi Chang, Manager, Securities Lending Trading Dept., Taiwan Stock Exchange, Taiwan

Rana Usman, Head-Clearing & Settlement, NSCCL - National Stock Exchange of India Ltd, Mumbai

Jason Yanagihara, Vice President, BlackRock Inc., Hong Kong 

Lunch

Courtesy of: 
ABN AMRO Clearing Bank

Eurex Clearing

Euroclear
​Goldman Sachs

Regional Fixed Income and Repo Trading: What Is the Opportunity? 

Panelists will discuss the growth and development of fixed income and repo trading across Asia-Pacific, debating the key players and drivers for this trend whilst identifying key opportunities for participants. The discussion will also focus on the development of these markets in Asia relative to other major trading hubs, outlining some of the key issues likely to challenge future growth.

Moderator: Edward Bond, Executive Director, J.P. Morgan Investor Services, Singapore

Panelists: Iain Colquhoun, Short Term Fixed Income Sales, TD Securities, London

Richard Howson, Director, HSBC, Hong Kong

Marije Verhelst, Director, Euroclear, Belgium

Steve Wang, MD, Deputy Head of Securities Research, BOCI Securities Ltd., Hong Kong

Risk and Reward in Securities Lending: Is It Really Worth It?

In a world of compressed yields and lackluster investment returns, securities lending has been an obvious solution for asset owners seeking alternative avenues of alpha generation at relatively low risk. Despite continued momentum in beneficial owner program participation, there remains a perception that inherent risks within a program do not warrant the associated revenue potential. Are these perceptions justified? How has securities lending evolved since the global financial crises in helping participants manage risks appropriately? Are beneficial owners using a different lens today to assess the value proposition of securities lending? How have participants been successful in striking the right balance between risk, reward and governance?

Moderator: Sean Greaves, Managing Director, Securities Finance-Asia, State Street Securities, Hong Kong

Panelists: Tim Butcher, Executive Director, Goldman Sachs, Hong Kong 
Matthew Brunette, Global Head of Financing, Norges Bank, Norway

Natalie Floate, Head of Market & Financing Services, Asia-Pacific, BNP Paribas, Australia

Darren Measures, Director, APAC Head Agency Securities Sales, Citi, Hong Kong

David Mitchell, CFA, Senior Portfolio, Manager, Canada Pension Plan Investment Board, Toronto

Business Program Adjourns for the Day

Cocktail Reception 

Courtesy of:
BNP Paribas
Morgan Stanley
Nomura
RBC Royal Bank
Societe Generale
UBS

Chairpersons’ Remarks and Housekeeping 

Balance Sheet Management: The Future Path to Optimisation

The burden of regulatory capital remains an ongoing headwind for market participants to navigate, and firms continue to adapt their business models in pursuit of capital optimisation across the balance sheet. Panelists will debate how efficiently the market has evolved in this regard, addressing some of the key areas where changes and opportunities have and will continue to manifest. In addition, the panel will explore the next phase of capital efficient solutions such as CCP’s, pledge collateral and smart bucketing, debating how these are progressing and in particular the extent to which agent lenders and beneficial owners need to optimize the use of varying conduits across their programs.

Moderator: Natalie Wallder, Managing Director, BNY Mellon, Hong Kong

Panelists: Sam Edwards, Head of APAC Central Collateral Desk, Credit Suisse, Hong Kong

Nicolas Roc, Director, BlackRock, Hong Kong

Nehal Mehra, Executive Director, Goldman Sachs, Hong Kong

Ariel Winiger, Head of Securities Finance Services Asia Pacific, Societe Generale, Hong Kong

Keynote Speaker

Mike Walsh, CEO, Tomorrow

Reimagining Financial Services For the Age Of Machine Intelligence

Why will the digital ecosystem of tomorrow be different from the one we use today? Every company in the future, whether it knows it or not, will be a software company and tomorrow’s leaders will make better decisions through their ability to integrate real-time data into their thinking. The greatest challenge for any company is keeping its current customers happy while anticipating the needs of its future consumer base. Mr. Walsh will give insight to:

1. Why machine learning, artificial intelligence, algorithms, robotics, and the internet of things will disrupt and transform traditional markets.

2. Future technology:  why now is the time to re-imagine, re-design and re-invent everything you and your firm does.

3. How do you navigate the unique skills and potential challenges of your next generation of employees?

4. The secret of scaling up by designing work for small, empowered teams.

5. Aligning IT and lines of business to deliver continuous innovation, creating new products and services.

Coffee Break with Exhibitors

Courtesy of:
ABN AMRO Clearing Bank

Eurex Clearing

Euroclear
​Goldman Sachs

The Disruptive Path of Fintech: Are Securities Finance Jobs at Risk? 

The industry continues to evolve at an increasing pace; panelists will debate the early effects of many agents and broker dealers investing millions of dollars into fintech solutions. The panel will explore becoming completely electronically connected, new proprietary trading platforms, creating artificial intelligence code, and how the shrinking need for 'middlemen businesses' has the potential to radically change staffing over the next five years. Every change makes the future for industry professionals more uncertain; what does the inevitable path forward look like for firms and professionals in the SBL industry? Finally, the panel will discuss methods for managers to embrace the change and remain valuable in re-engineering their own and their company's future. 

Moderator: Stuart Jones, Jefferies Hong Kong Limited, Hong Kong 

Panelist:  Nickolas Delikaris, Managing Director, State Street, Boston

David Raccat, Founder & CEO, Wematch.SecuritiesFinancing, London

Brian Tang, Managing Director, Asia Capital Markets Institute, Hong Kong

Shirley Xie, China Consultant Leader, PricewaterhouseCoopers Limited, Hong Kong

Industry Leaders Debate: The Future of Securities Finance in the Asia/Pacific Region

Senior business leaders’ summarize the conference and share their insight on how markets continue to evolve globally and in the complex Asia/Pacific region. Where do they see the business in five years’ time? Is technology going to revolutionize the industry? Panelists will also discuss recent market turbulence, such as Brexit, the erosion of the European securities lending markets, and emerging markets growth. 

Moderator: Roy Zimmerhansl, Global Head of Securities Lending, HSBC, Hong Kong   

Panelists:  Ben Challice, Managing Director, J.P. Morgan, United Kingdom

Tejash Patel, Managing Director, Morgan Stanley, New York

Valerie Rossi, Global Head of Securities Finance, ABN AMRO Clearing, Hong Kong

Nick Silver, Managing Director, Deutsche Bank, Hong Kong

Mark Snowdon, Senior Vice President, Northern Trust, Singapore  

Closing Remarks and Announcement of 2019 Conference in Sydney 

Lunch

Courtesy of: 
ABN AMRO Clearing Bank

Eurex Clearing

Euroclear
​Goldman Sachs

Buffet Breakfast

Cosponsored by:
Dexia Credit Local
National Bank of Canada Financial Inc.

Prime Broker Participants and Trade Strategy

Given the complexity of prime broker balance sheets: where they are domiciled, how they are organized, and the message of their hedge fund clients, what are their various trading strategies? Learn how these brokers have incorporated the following approaches: total return swaps, single stock futures, physical securities lending, and the pros and cons of each instrument. Which is most desirable given the current market and regulatory pressure? Where does each one fall short and what dictates the financing outcome?

Moderator: Tejash Patel, Managing Director, Morgan Stanley

Panelists:
John Nicholson, Managing Director, Citi
Nick Rankin, Co-Head of Global Prime Services and Global Head of Securties Finance, Jefferies
Dennis Shikar, Managing Director, Natixis
Robert Zekraus, Director, Scotiabank

Coffee Break with Exhibitors

Cosponsored by:
BNP Paribas
Brown Brothers Harriman & Co
Deutsche Bank Securities Inc
Natixis
OCC
Pleeco
Transcend Street Solutions, Inc.

Changes to the Traditional Value Chain

As markets change, how are business models changing? Learn how the industry is responding to recent trends, including peer-to-peer lending and situations where prime brokers act like agents and where agents act like prime brokers. Do different methods results in the same value proposition for your client? If so, how does it impact borrowers from a capital standpoint? What does this mean for agents with respect to regulatory oversight, their relationships with beneficial owners, and indemnification?

Moderator: John Arnesen, Global Head Agency Lending, BNP Paribas

Panelist: 
Eric MacDonald, Global Head of Enhanced Custody Trading, State Street
Stephen Malekian, Head of Business Development-US, Elixium
Patrick Morrissey, Head of Trading, Vanguard

Current and Future State of Securities Finance

Hear industry leaders summarize topics discussed during the conference and their concerns about future developments affecting your institution every day. Discussion will include the regulatory impact on the industry, hedge fund demand, and how participants justify their fees. How are capital and balance sheets causing institutions to change their strategies? Panelists will also discuss market turbulence, such as Brexit, the erosion of the European securities lending markets, and emerging markets.

Moderator: Keith Haberlin, Senior Vice President, Brown Brothers Harriman

Panelists: 
Indrajit Bardhan, Managing Director, Credit Suisse
David Martocci, Managing Director, Citi
Anthony Schiavo, Managing Director, Morgan Stanley
Mark Whipple, Vice President, Goldman Sachs

Closing Remarks and Thanks

Business Program Adjourns for the Day

Golf Tournament

Sponsored by: BMO Global Asset Management Securities Lending

Reception

Special thanks to our product sponsors:

Bottled Water – EquiLend

Delegate Booklet – BM&F Bovespa

Delegate Lanyards – FIS

Notepads – Trading Apps

Delegate Bags – Stonewain Systems Inc.

Flash Drives – ING Financial Markets

Internet Kiosks and WIFI – Northern Trust

Hotel Keycards – Eurex Clearing

Registration Desk – Debevoise & Plimpton LLP