th bürgenstock - icda · opportunities and challenges are presented to exchanges, banks, clearing...

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Bürgenstock37th

The international forum for commodities and derivatives

GENEVA, 14/15/16 November 2016

Meeting

Sponsored by:

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Eurex Clearing Image, Bürgenstock Meeting Catalogue 2016_Eurex Clearing 01.11.1

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CONTENTS

Agenda at-a-glance..........................................5Speakers..........................................................6Welcome to Geneva..........................................8Agenda.......................................................9-14Supporters.....................................................15About ICDA.....................................................22Board of Directors...........................................22

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SDCO (JSC)SETTLEMENT DEPOSITORY COMPANY

CENTRAL COUNTERPARTYFOR EXPORT OIL FUTURES CONTRACTS

OBLIGATIONS FULFILLMENT

COUNTERPARTY RISK REDUCTION

ADVANTAGES OF NETTING

RISK MANAGEMENT SYSTEMMEETS INTERNATIONAL STANDARDS

SDCO is the leading clearing organization specialized in the Russian commodity market.

The major areas of the company’s business include:

CLEARING IN THE SPOT MARKET

CLEARING IN THE DERIVATIVES MARKET

OPERATION OF THE CERTIFICATION CENTRE

DEPOSITORY SERVICES

CME SPAN® METHODOLOGY

FINANCIAL ANALYSIS OF COUNTERPARTIES

PRE-ORDER VALIDATION

GUARANTEE FUNDS

DEFAULT MANAGEMENT

SDCO.RU


AGENDA AT-A-GLANCE

Day 1: 14 November 201618.00 OPENING COCKTAIL

Day 2: 15 November 201608.15 Welcome refreshments & registration09.00: Keynote: Eurex Clearing, Deutsche Börse Group 09.40 - 11.30: Crossfire panel 11.30 - 12.00: BREAK sponsored by:12.00 - 13.00: Commodities trends and emerging markets: focus on new products, new platforms13.00 - 14.30: LUNCH14.30 - 15.30: Risk management panel 15.30 - 16.00: Equity options panel16.00 - 16.30: BREAK sponsored by TAIFEX16.30 - 18.00: Regulation panel Ied by FECIF18.00 - 20.00: COCKTAIL

Day 3: 16 November 201608.15: Welcome refreshments & registration09.00: Welcome speech 09.00 - 10.00: Indexing/ benchmarking/ exchange-traded funding and ETPs panel. sponsored by Thomson Reuters10.00 - 11.00: Equivalence 11.00 - 11.30: BREAK sponsored by TAIFEX11.30 - 12.30: Best execution panel12.30 - 13.30: Fintech presentation13.30 - 14.30: LUNCH14.30 - 15.30: Commodity regulation panel 15.30 - 16.45: CCP panel17.00: Conference closes

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SPEAKERS

• Veronica Augustsson, CEO, Cinnober• Phil Bird, CEO, Perfect Channel• Andrew Broughton, Head of Regulatory Policy and Rule

Implementation, Société Générale• Rodrigo Buenaventura, Head of Markets Department, ESMA• Breon Byrne, Head of Options Trading, Susquehanna• Robert Cranston, Head, Equity Product Management,

SIX Swiss Exchange• Gary Delany, Director, Options Industry Council• Daniel Day-Robinson, Chairman, ICDA• Vincent Derudder, Honorary Chairman, FECIF• Ian Dudden, Global Director Agriculture, Pricing & Analytics,

S&P Global Platts• Fredrik Ekstrom, President, Nasdaq Clearing• Alp Eroglu, Senior Policy Advisor, IOSCO• Wang Fenghai, CEO, Dalian Commodity Exchange• Martin Fraenkel, President, S&P Global Platts• Matthias Graulich, Member of the Executive Board, Eurex

Clearing, Deutsche Börse Group• Aviv Handler, Managing Director, ETR Advisory• Jonathan Herbst, Global Head of Financial Services, Norton

Rose Fulbright• Patrice Henault, Head of Futures & Listed Options, Saxo

Bank• Stephen Humenik, Of Counsel, Covington & Burling LLP• Nicolette de Joncaire, Journalist, Rédactrice en chef, l’AGEFI• Barry King, Senior Manager, CCP Policy Team, Bank of

England• Paul Lynch, CEO, itarle• John MacNamara, Global Head of Structured Commodity

Finance, Deutsche Bank• Irene Mermigidis, Managing Director, REGIS-TR• Otto Nägeli, Non-Executive Chairman, CME Clearing Europe• Alexander Neil, Head of Equity & Derivatives Trading, EFG

Bank• Demitri Odeski, Risk Management Officer, Integral

Petroleum• Eric Pan, Director, Office of International Affairs, CFTC• Rafael Plata, Secretary-General, European Association of

CCP Clearing Houses• Colin Platt, CEO, DPactum• Alexey Rybnikov, President, SPIMEX• Nitesh Shah, Director, Commodity Strategist, ETF Securities• Alex Shaw, HEad of Market Development, Precious Metals,

LME• Phil Simons, Global Head of FI & FX Derivatives, Eurex

Clearing• Simon Smith, Head of Government and Regulatory Affairs,

Argus Media• Paul Swann, President & Managing Director, ICE Clear• John Turnbull, Chairman, Banking Committee, ICC UK• Tobias Würgler, Partner, Financial Services, Oliver Wyman• Tobias Sproehnle, Global Head of Benchmark Services,

Thomson Reuters• Patrick Young, CEO, Exchange Invest

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Geneva, 14 November 2016

Dear Colleague,On behalf of the International Commodities and Derivatives Association, I am delighted to welcome you to the 37th Bürgenstock Meeting and to our home here in Geneva!It has been a tumultuous year for both the industry and the Association. The Association announced its change of name just after the last Bürgenstock meeting. Our new name reflects the globalisation of the industry, our growing international membership and our desire to focus on new markets, products and platforms. We are happy to welcome new members to the Association and we also accept individual members, so we encourage you to join us. This year’s Bürgenstock looks at how the exchange, clearing and regulatory landscape is changing. As usual, we have tried to build an agenda this year which reflects what has happened and which ponders what might be coming next. We are extremely grateful to the many speakers who have travelled from all over the planet to come and participate - and to our delegates travelling from far and wide; from Asia, North America, Africa and Europe. The International Regulators’ Meeting, held in private session, has long been a central part of the Bürgenstock phenomenon and this year is no different, with around 40 regulators attending. Our sincere thanks go to the Swiss State Secretariat for International Finance for organising the agenda and chairing the meeting.Finally, ICDA would like to thank our sponsors, exhibitors and partners for their support for the event. We do hope you enjoy the meeting!

Daniel Day-Robinson Chairman, International Commodities and Derivatives Association

WELCOME TO GENEVA


Day 1: 14 November 201618.00 Opening night cocktail party

Day 2: 15 November 201608.15 Welcome refreshments & registration09.00: Keynote: Matthias Graulich, Member of the Executive Board, Eurex Clearing, Deutsche Börse Group The regulatory agenda continues to drive change in the structure of financial markets. Is the process of a disruptive or evolutionary nature? Are incentives within the regulatory framework appropriate to facilitate change in the right direction and make the market safer? What will the future structure of financial markets look like? How will the roles of the buy-side/sell-side change and infrastructure providers evolve? A view from a market infrastructure perspective to facilitate change, and make markets more efficient, while at the same time increasing market safety. 09.45 - 11.30: Crossfire panel Where is the exchange landscape headed? Are there threats to self-regulation? Was Brexit just the start in changing the shape of world market landscape? Will any more mega-mergers succeed? Where will exchange groups large and small find value going forward? Markets and exchanges; what’s the form with OTC derivatives? What are the risks remaining in the age of the exchange? Euroclearing: the role for competing centres. Who are the winners and losers in fast-changing geopolitical landscape? How will the new focus on securing equivalence affect both the global and the European clearing markets? • Patrick Young, CEO, Exchange Invest (Chair)• Paul Swann, President and Managing Director, ICE

Futures Europe• Martin Fraenkel, President, S&P Global Platts• Phil Bird, CEO, Perfect Channel• Fredrik Ekström, President, Nasdaq Clearin• Otto Nägeli, Non-Executive Chairman, CME

Clearing Europe11.00 - 11.30: BREAK sponsored by TAIFEX

AGENDA DAY 1 & 2

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12.30 - 13.30: Commodities trends and emerging markets: focus on new products and new platforms and commodity financing (including short presentation on commodity product innovation & OTC derivatives development in China by Mr Wang Fenghai CEO Dalian Commodity Exchange) In the established and emerging markets, what opportunities and challenges are presented to exchanges, banks, clearing houses and other actors in the commodities ecosystem through the emergence of new technologies and platforms? How is ongoing global market volatility affecting product and platform development in commodity-centric economies? How will new market channels continue to shape the commodity cash market and derivatives landscape? What are the trends in commodity finance supporting global trade flows• Alexey Rybnikov, President, SPIMEX• Mr Wang Fenghai, CEO, Dalian Commodity

Exchange• John Turnbull, Chairman, Banking Committee,

International Chamber of Commerce (ICC) UK• Moderator: John MacNamara, Global Head of

Structured Commodity Trade Finance, Deutsche Bank

13.30 - 14.30: LUNCH14.30 - 15.30: Risk management panel How to keep up with the changing nature of risk in a rapidly evolving financial ecosystem. Looking at the role of technology in commodities and derivatives trading risk management. Are we seeing a convergence of operational risk and other forms of risk? Exploring innovations and best approach for managing risks entailed by market uncertainty. What are the specific risk management challenges faced by commodities and energy traders? • Veronica Augustsson, CEO, Cinnober• Tobias Würgler, Partner, Financial Services, Oliver

Wyman• Demitri Odeski, Risk Management Officer, Integral

Petroleum

AGENDA DAY 2


15.30 - 16.00: Equity options panel How will the equity options markets react to potential mega mergers? Is creating a strong market leader likely to be beneficial? How does the equity options market respond to present volatility and the need to generate returns in a low interest environment? What are the major challenges facing the industry? Is there evidence of fragmentation? What is the threat coming from in terms of competitor products? How might PRIIPs and KIDs regulations prove to be inhibitive? • Moderator: Patrice Henault, Head of Futures &

Listed Options (Director), Saxo Bank• Breon Byrne, Head of Options Trading, Susquehanna• Gary Delany, Director, Options Industry Council16.00 - 16.30: BREAK sponsored by TAIFEX16.30 - 18.00: Increasing scope of regulationThere is an ever-increasing range of reporting requirements and regulations, with MiFIR, EMIR, REMIT, SFTR and MMSR all seeing full implementation by 2020. How can market participants deal with this deluge of regulatory change?Dealing with the iterative approach of regulators: what does the evolution of MiFID I into MiFIR/MiFID II mean for market participants? An iterative process appears to have been adopted by regulators regarding reporting standards for EMIR, and this will likely be mirrored with the other reporting regulations. How should market participants react to this iterative approach, where regulations can no longer be dealt with as fixed term projects? How far-reaching are the operational implications?EU and extra-EU regulatory equivalency: how equivalent are EU regulations with non-EU counterparts (e.g. FinfraG and EMIR)? What can be done to improve equivalence? What does this mean for the relationship with other global players? How might relevant market provision evolve as the lines of access and influence in Europe are redrawn? How can we turn requirements for investor protection, post-trade transparency, organisational set-up and risk control into opportunities? What might the directives of Basel IV entail?

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Subtopic: Trading: Are dark pools and the lack of transparency around HFT creating market biases towards certain kinds of investors? How is trading likely to evolve in the face of the new legislation which has changed the market paradigm? • Eric Pan, Director, Office of International Affairs,

CFTC• Rodrigo Buenaventura, Head of Markets

Department, ESMA • Irene Mermigidis, Managing Director, REGIS-TR• Moderator: Vincent Derudder, Honorary Chairman,

FECIF• Masamichi Kono, Senior Advisor, KPMG18.00 - 20.00 Cocktail in the winter garden by Lake Geneva

Day 3: 16 November 201608.15 Welcome refreshments & registration09.00: Welcome 09.00 - 10.00: Indexing/ benchmarking/ exchange-traded funding and ETPs panel, sponsored by Thomson ReutersAre indexes acting increasingly as catalysts rather than barometers within the marketplace? How has the change of oversight gone within metals, LIBOR and other benchmarks? Are market indexes affecting ETF performance - or is it vice versa? Can the rapid ETF expansionary momentum be sustained and continue? If so, what are the next steps for diversification in the Index & ETF universe given recent developments such as the first product listing of a Bitcoin ETP? Is there an inhibitive trend towards an over-reliance on benchmarks? Is there a greater risk entailed on certain kinds of indexes and should there be a move towards consolidation?• Tobias Sproehnle, Global Head of Benchmark

Services, Thomson Reuters• Simon Smith, Head of Government and Regulatory

Affairs, Argus Media• Nitesh Shah, Director – Commodity Strategist- ETF

Securities• Alex Shaw, HEad of Market Development, Precious Metals,

LME• Alp Eroglu, Senior Policy Advisor, IOSCO• Ian Dudden, Global Director Agriculture, Pricing &

Analytics, S&P Global Platts

AGENDA DAY 2 & 3


10.00 - 11.00: EquivalenceThe negotiation and recognition of equivalence is likely to be a hot topic as players in the rapidly evolving financial landscape look to protect and improve market access. We look at the procedures through which equivalence is determined and consider what the broader implications of this might prove to be. Will geopolitical shocks like Brexit continue to change the equivalence roadmap?• Andrew Broughton, Director, Head of Regulatory

Policy & Rule Implementation, Société Générale• Jonathan Herbst, Global Head of Financial Services,

Norton Rose Fulbright 11.00 - 11.30: BREAK sponsored by TAIFEX11.30 - 12.30: Best execution panelFrom transaction cost analysis, to evolving legacy infrastructure, managing pre-trade and impact costs and looking at innovative ways to enable portfolio optimization. In the absence of a clear Mifid II definition we ask how both buy-side and sell-side players determine and implement best execution practices that keep both client and regulator happy?• Paul Lynch, CEO, Itarle (Moderator)• Alexander Neil, Head of Equity & Derivatives

Trading, EFG Bank• Rob Cranston, Head, Equity Product Management,

SIX Swiss Exchange12.30 - 13.30: Fintech presentation: with so many fintech companies being consumed by big businesses, is fintech losing its edge as a disruptive force? Where is the latest disruption coming from? Are we seeing any real impact of blockchain/distributed ledger technology (DLT) on the financial services industry? Understanding the potential business impacts of emerging technologies. • Colin Platt, CEO, DPactum13.30 - 14.30: LUNCH14.30 - 15.30: Commodity regulation: looking at the impact of market volatility throughout the industry; identifying the regulatory pressures on commodity flows. Examining the unintended consequences of MiFID II, and Basel III/ IV on commodity trading firms. • Nicolette de Joncaire, Journalist, Rédactrice en chef, l’AGEFI• Aviv Handler, Managing Director, ETR Advisory• Philip Goodswen, Senior Lawyer, Cargill

AGENDA DAY 3

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15.30 - 16.45: CCPs panelHas the evolution of the CCP set in motion post-crisis run its course, or do the CCPs continue to provide safety and protect the integrity of the financial markets industry? Do they continue to mitigate systemic risk? Is too much risk concentrated in the CCPs? Is the Basel III framework still proving effective on placing limitations on exposures? Are there some inherent weaknesses in the risk management practices of CCPs which would render them vulnerable to another crisis? How far can this be countered by the implementation of the recovery and resolution legislation/ regimes in process for CCPs? Has the de-facto strengthening of the role that CCPs play within the financial ecosystem lead to a situation where they have now become too big to fail? What are the challenges posed by the drive towards increased interoperability? What effect could the relative weakness in compliance terms of certain jurisdictions have on the broader system?• Barry King, Senior Manager, CCP Policy Team, Bank

of England• Phil Simons, Global Head of FI & FX Derivatives,

Eurex Clearing.• Rafael Plata, Secretary General, European

Association of CCP Clearing Houses• Moderator: Stephen Humenik, Of Counsel,

Covington & Burling LLP17.00: Conference closes

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ECONOMIC DEVELOPMENT

COMPANY SET UP

INFO

RMAT

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EMEA

HEADQUARTERS

RELO

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EXPE

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LOCAL NETWORK

FACILITATION

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YOUR BUSINESS PARTNER

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www.whygeneva.ch

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www.whygeneva.ch

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The International Commodities and Derivatives Association (‘ICDA’) is a Swiss-based, professional, non-religious, non-political, not-for-profit association of members interested in and concerned with all aspects of the commodities and derivatives industry globally.

ICDA started life as the Swiss Commodities Industry Association in 1980. The inaugural assembly of the Association was held at the Carlton Elite Hotel in Zurich, on January 18, 1980. The creation of the association was the result of the extensive preparatory work done by an ad hoc committee of the CFTC in 1978 on the suggestion of the US Ambassador in Bern at that time.

Today our membership is international; our members include exchanges, CCPs, FCMs, banks, fund managers, and service providers globally.

Board of DirectorsChairmanMr. Daniel Day-Robinson, CEO, Public Member, Geneva

Vice-ChairmanMr. Gary Delany, Director, Options Industry Council, London

TreasurerMr. Daniel Grossrieder, Executive Director, UBS AG, Zurich

MembersStéphane Graber, Secretary-General, Swiss Trading & Shipping Association, Geneva Paul Lynch, CEO, itarle SA, ZurichMichael Peters, Member of the Executive Board, Eurex AG, Frankfurt Christian Reuss, Member of the Management Committee, SIX Structured Products Exchange AG, Zurich

Legal AdvisorsMr Paolo Bernasconi, Bernasconi Martinelli Alippi & Partners, Lugano Mr Brian Perrott, Partner, Holman Fenwick Willan, London

AuditorMr. Olivier Gauderon, KPMG, Geneva

ABOUT ICDA

Your partner of choice forderivatives business.

For over 150 years clients around the globe haverelied on UBS to assist them meeting their

financial needs.

Best -in-class advisory and execution services,high-quality distribution capabilities and a market-leading trading and clearing franchise have made

us a partner of choice for many.

For more information, please visitwww.ubs.com/investmentbank

© UBS 2015. All rights reserved.

For over 150 years clients around the globe have relied on UBS to assist them meeting their

financial needs.

Best-in-class advisory and execution services, high quality distribution capabilities and a market- leading trading and clearing franchise have made


Your partner of choice for derivatives business.

www.ubs.com/investmentbank

For more information please visitwww.ubs.com/investmentbank

ab




financial needs.






ab

Your partner of choice forderivatives business.

For over 150 years clients around the globe haverelied on UBS to assist them meeting their

financial needs.

Best -in-class advisory and execution services,high-quality distribution capabilities and a market-leading trading and clearing franchise have made


For more information, please visitwww.ubs.com/investmentbank



financial needs.






ab

www.incoda.org

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