ISF South Africa Securities Finance Masterclass III


Belmond Hotel, Cape Town, South Africa

18 May 2017

Event Overview


Hosted by Global Investor, the third South Africa Securities Finance Masterclass brings together all the participants in the securities lending chain. A key theme will be how the business can be made more efficient and reduce costs. Alternative routes to market will be discussed such as CCPs and peer-to-peer lending as well as measures to reducing pressure on prime broker balance sheets. Hedge funds have the opportunity to discuss prime services with PBs and hear from agent lenders and beneficial owners. Beneficial owners are also, of course, investors in many asset classes – including hedge funds.

The key focus for the day is education both of the buyside and regional industry practitioners - by ensuring we have panellists from the London market.With panellists from across both the local and international markets, the event connects delegates with local asset managers, pension funds and hedge funds to inform and educate about the practicalities and opportunities in the securities finance space.

 

 

 

Agenda Overview


08:00 Registration opens


08:40 Welcome address

Will Browne, Commercial Director, Global Investor ISF


08.45 Chairman opening remarks

Juanita Taylor, Head of Securities Lending, Standard Bank


08:50 Keynote address

Eugene Visagie, Head of Hedge Fund Investments, Novare Investments


09:10 Regulation

A panel will discuss the impact of regulatory change on securities lending in South Africa.

  • Twin Peaks: What will be the impact of creating the Prudential Authority within SARB and transforming the FSB into the Financial Sector Conduct Authority?
  • T+3: How has the JSE’s shift to T+3 played out in terms of international interest, counterparty risk, fails, liquidity and borrower demand? What is the timeline for T+2?
  • STT: 2016 changes went a long way to resolving the collateral constraints for lending participants. Do constraints remain significant?
  • CISCA: CISCA opened up hedge funds to a new universe of investors and demand is expected to surge. Is there already signs of a boom? How else has it effected hedge funds?
  • FTR: The implications of the EU Funds Transfer Regulation for the South African market
  • SFTR/MIFID: The approaching wave of EU trade reporting requirements will have an impact far beyond the continent’s borders. What consequences will there be for South African participants?
  • NFSR

Maria Vermaas, Head: Legal and Regulatory, Strate
Ryan Proudfoort, Prime Services, RMB Custody, RMB
Ashley Sadie, Associate Director, Deloitte


10:00 Presentations: Market infrastructure project landscape

The South African market is undergoing significant structural change. The speakers will consider the impact and timelines of things such as Strate’s revamp of its bond clearing and settlement system (DIS) and the Treasury’s new trading platform for South African sovereign bonds (ETP).

Beverley Furman, Executive Director: CSD Operations, Strate
Brett Kotze,
General Manager, JSE
Warren Chapman,
MD - Equities and Prime Services, Peregrine


10:40 Coffee break


11:20 Collateral Optimisation

Optimising collateral has become important for banks facing tough regulatory rules and it is becoming increasingly important for asset managers and corporate treasuries.

  • What constraints are there on managing collateral? What are the emerging solutions?
  • Will the new DIS platform smooth the use of SA government bonds for use as collateral?

Moderator: Steve Everett, General Manager, Strate's Collateral Management Services

Staffan Ahlner,
Global Head of Collateral Management, BNY Mellon
Niven Mangrey,
Head of Treasury Trading, Standard Bank, Group Treasury


12:05 Physical vs Synthetic

Those seeking short exposure to the South African market have two primary options: TRS and SBL.

  • What are the efficiency, cost and access implications of the TRS and SBL routes?
  • Beyond South Africa, how can participants gain access to new markets in Africa?
  • How do the nuances of each market determine the most efficient way of gaining exposure?
  • Repo
  • ETF’s

Moderator: Joshua Govender, Senior Equity Finance Trader, HSBC

Chris Edwards,
Managing Principal, Head of Prime Services, ABSA
Phillip Thuthuka Dube,
Equity Derivatives Trader, Investec
Paul Furzer,
Executive Director - Equity Finance Trading, Morgan Stanley
Tota Tsotsotso,
Managing Director, Bataung Capital Advisors
Terrence Naidu,
CEO, Envisionit Group of Companies


12:50 Lunch


14:00 Keynote address: Unpacking South Africa's political and macroeconomic landscape in light of the credit ratings downgrade to speculative status, and the ANC's upcoming elective conference

Goolam Ballim, Chief Economist, Standard Bank


14:30 Beneficial Owner Perspective: Adapting to an Evolving Environment

  • How are you protecting your securities lending earning level in a changing industry?
  • How have you changed your lending strategies in responseto regulation?
  • What has been the impact of Money Market Reform on your cash collateral reinvestment strategies?
  • How much are beneficial owners relying on agent lenders to educate them on the impact of regulation?
  • Do you see an increase in costs due to regulation (reporting, transparency, etc…)? How to determine when to keep a lending programme alive?
  • Securities lending CCPs and beneficial owner
  • Indemnification of beneficial owners become an issue for securities lending
  • Transparency in programme performance

Moderator: Mike Wright, Senior Manager, Securities Lending, NEDBank

Joseph Gillingwater,
Senior Vice President, Northern Trust
Rick Martin,
Chief Financial Officer, Satrix


15:20 Blockchain

Distributed ledger technology has the potential to increase the speed of settlement and security while reducing transaction costs.

  • How could blockchain change the structure and dynamics of South Africa’s markets?
  • Progress on projects from Strate’s Fractional Solutions and others.
  • How would blockchain work in a securities lending context?
  • The importance of creating industry standards
  • Artificial intelligence

Moderator: Francois Henrion, Co-Head Equity Financing and Collateral Optimisation, Standard Bank

Steve Everett,
General Manager, Strate's Collateral Management Services
Peter Munnings,
Distributed Engineer, ConsenSys
Adrian Hope-Bailie,
Co-Chair Web Payments Working Group, W3C
Gaving Marshall,
Founder, sharebit.io


15:50 Closing remarks


16:00 Drinks reception


17:30 SASLA drinks (venue to be confirmed)

 

Event Speakers Overview


Eugene Visagie, Head of Hedge Fund Investments, Novare Investments

Brett Koetze, General Manager, JSE Limited

Maria Vermaas, Head: Legal and Regulatory, Strate

Ryan Proudfoot, Prime Services, RMB Custody, RMB

Ashley Sadie, Associate Director, Deloitte

Beverley Furman, Executive Director: CSD Operations, Strate

Brett Kotze, General Manager, JSE

Warren Chapman, MD – Equities and Prime Services, Peregrine

Staffan Ahlner, Global Head of Collateral Management Product, BNY Mellon

Joshua Govender, Senior Equity Finance Trader, HSBC

Chris Edwards, Managing Principal, Head of Prime Services, ABSA

Phillip Thuthuka Dube, Equity Derivatives Trader, Investec

Paul Furzer, Executive Director - Equity Finance Trading, Morgan Stanley

Tota Tsotsotso, Managing Director, Bataung Capital Advisors

Goolam Ballim, Chief Economist, Standard Bank

Mike Wright, Senior Manager, Securities Lending, NEDBank

Sunil Daswani, Senior Vice President, Northern Trust

Francois Henrion, Co-Head Equity Financing and Collateral Optimisation, Standard Bank

Steve Everett, General Manager

Strate’s Collateral Management Services

Peter Munnings, Distributed Engineer, ConsenSys

 

 

Event Speakers Overview


Lead Sponsors

HSBC

Standard Bank


Other Sponsors

Investec

NedBank

Deutsche Bank

RMB

ABSA

 

 

Event Speakers Overview


Belmond Mount Nelson Hotel

76 Orange Street

Gardens Gardens 8001

Cape Town

South Africa