Executives from The Depository Trust & Clearing Corporation (DTCC) will participate in panel discussions on topics related to global regulation, repo clearing and margin requirements for cleared and non-cleared transactions at the FIA-SIFMA Asset Management Derivatives Conference in Laguna Beach, Calif., February 3-5.
The conference brings together business and legal experts for a comprehensive review of the most critical derivatives issues facing the buyside and a look ahead at developments to come.
During the “Repo Clearing” session, Murray Pozmanter, DTCC Managing Director and General Manager, DTCC SIFMUs, will join a panel of experts for a discussion on how repo clearing is evolving and what issues need to be addressed. Joining Pozmanter on the panel will be Thomas Callahan, Managing Director, Co-Head of Global Cash Management, BlackRock, and Suzanne Sprague, Managing Director, Credit Risk, Banking & Solutions, CME Group.
“Central clearing of institutional repo transactions would play a key role in providing stronger participant and systemic safeguards for the tri-party repo market,” Pozmanter said. “It would also increase operational efficiencies, guarantee completion of eligible trades, and lower the risk of a liquidity drain in the event of a dealer failure by extending its netting services.”
Global Regulatory Landscape: Execution, Clearing and Reporting
Marisol Collazo, DTCC Managing Director and CEO, DTCC Data Repository U.S., and fellow panelists will discuss swap execution and clearing rules in jurisdictions around the world during the session: “Global Regulatory Landscape: Execution, Clearing, and Reporting.”
“There continues to be much fragmentation and disharmony among jurisdictions, which is impeding the ability of trade repositories to provide usable data to regulators,” Collazo said. “Each jurisdiction mandates a different set of data fields to be reported and none are harmonized. The key to providing regulators with usable data is to focus on a subset of data elements that are globally important from a systemic risk perspective and to harmonize those fields across all jurisdictions.”
The panel will be moderated by Joel Telpner, Partner, Jones Day. Joining DTCC’s Collazo on the panel will be Stephen Berger, Director, Government and Regulatory Policy, Citadel, Predrag Rogic, Vice President and Senior Legal Counsel, T. Rowe Price, and Gregory Todd, Managing Director and Associate General Counsel, Bank of America Merrill Lynch.
Global Regulatory Landscape: Margin
The third session that includes a DTCC speaker is entitled: “Global Regulatory Landscape: Margin.” Moderated by Nevis Bregasi, Senior Counsel, MFS Investment Management, the session will compare and contrast margin requirements for cleared and non-cleared transactions in jurisdictions around the world. This will include differences in the U.S. and EU for margin protection, challenges for single-name CDS margin and challenges for clients without master agreements in place.
Amy Caruso, DTCC-Euroclear Global Collateral Limited Director of Strategy and North America Business Development, joins fellow panelists Dan Budofsky, Partner, Morgan Lewis and Bockius, Annette Nazareth, Partner, Davis Polk, and Deborah North, Partner, Allen and Overy for the discussion.
“Managing the complex and jurisdictional-varying margin requirements for both cleared and uncleared derivative transactions is challenging and resource-intensive for sellside and buyside firms and collateral outsourcers,” said Caruso. “The industry is implementing efficient processes to manage counterparty documentation, pre-trade and post-trade liquidity analysis, and margin call communication and collateral settlement.”
For more information about the FIA-SIFMA Asset Management Derivatives Conference go to: https://fia-sifmaforum2016.fia.org/.