Mike Bodson, DTCC President and CEO, along with a team of senior leaders from DTCC joined 280 delegates at the 12th International Forum of Central Securities Depositories (CSD12) in St. Petersburg, Russia on May 29 – 31.
The conference focused on risk management for CSDs and provided a setting to share strategic insights about recent market events, current and future global challenges, and new business opportunities for CSDs to collaborate in support of the financial industry’s ongoing recovery. Participating in the final session of the conference, “Global Perspective on the Future of the CSD Industry,” Bodson and his fellow panelists discussed long-term trends for CSDs. Joining Bodson on the panel was Eddie Astanin, Chair of the Executive Board, National Settlement Depository; Monica Singer, CEO of Strate Ltd.; and Yoshinobu Takeuchi, Chairman, Japan Securities Depository Center, Inc. The panel was moderated by Francesca Carnevale from FTSE Global Markets.
The panel discussed a wide range of topics from lessons learned from the financial crisis and the need for a new business model, to the impact of technology, regulations, and market volumes and liquidity on CSDs, especially in high growth markets. Bodson emphasized the need for proactive intraday risk management controls to prevent the next crisis, how margin transit and collateral transformation are changing the nature of the CSD business, and the need to leverage existing technology in innovative ways to drive efficiency and lower post-trade costs. “The focus on market infrastructures - whether they are CSDs, CCPs or trade repositories – is increasing across all markets. They are critical in creating safer, more secure and transparent markets. This renewed focus provides us the opportunity to enhance strategic dialogue on the big issues of tomorrow – how best to create enduring solutions to mitigate risk and create cost efficiencies while meeting new global regulatory mandates,” said Bodson.
DTCC executives participated as speakers and panelists in sessions dedicated to the topical issues related to the market infrastructure business. William Hodash, Managing Director, spoke about DTCC’s Legal Entity Identifier solution in a session entitled “New Business Opportunities for CSDS.”
“The most valuable part of CSD12 came from the networking and side meetings with our counterparts from around the world. Nothing can replace the periodic in-person meetings that give us insight into local market developments, as well the opportunity to compare and contrast market practices and identify potential areas of collaboration,” said Hodash. Mark Jennis, Managing Director, Strategy and Business Development at DTCC moderated a panel entitled “Collateral Management;” and Susan Tysk-Cosgrove, DTCC’s newly appointed Chief Financial Officer, spoke on a panel entitled “Best Practice Standards: What Benefits Can CSDs Draw From Harmonization.”
“This was an excellent opportunity to exchange ideas on opportunities and challenges on the need to adopt global standards, increase transparency, reduce risk and diversify revenue sources,” said Tysk-Cosgrove.
The biennial conference, hosted in a different region each time, is the leading global events for CSDs and brings together prominent financial industry leaders from around the world. Delegates also included regulators, central banks, vendors, international banks, custodians, as well as other capital market stakeholders.
The next CSD conference, the WFC 2015 Global Conference of Central Securities Depositories, is scheduled for April 2015 in Mexico and will be hosted by Americas’ Central Securities Depositories Association (ACSDA). @
Photos and presentations from CSD12 are available at the following sites: