Asset Manager49%

Bank16%

Regulators5%

Solutions Providers

24%

Consulting4%

Asset Owner2%

DERIVOPS 2017 ATTENDEES BY SECTORWHO SHOULD ATTEND:

Titles: C-level, SVP, EVP, Global Heads, Managing Directors, Department Heads and Managers, Senior-level Associates, Specialists, Technology Managers

Expertise: Operations, OTC and Listed Derivative Operations, Collateral Management, Liquidity Management, Clearing, Compliance, Regulatory Change, Derivatives Technology, Dodd-Frank and EMIR, Operational Risk

“It’s a great time to hear from both buy side

peers in my case, vendors that offer solutions to some

derivatives challenges that you may be facing

and also meet with clearing house

representatives and FCMs and it’s just a

great place to network with peers and to hear

what’s going on in derivatives operations.”

– Nuveen Attendee

• Abrams Capital• AEGON Asset Management• Artisan Partners• Babson Capital

Management• BNP Paribas• Brandywine Global

Investment Management• Calamos Advisors• Chatham Financial• Calypso Technology• Columbia Investments• ClearArc Capital, Inc• Columbia Investments• Federal Home Loan Bank of

Atlanta• FHLBank Topeka• Harvard Management

Company• HBK Capital Management

Services• HighVista Strategies

• Janus Capital Group• Mackenzie Investments• Maverick Capital• McKinley Capital

Management LLC• Morgan Stanley• Murex• NISA Investment

Advisors• Northwestern Mutual• Pine River Capital

Management• PSP Investments• RBC Capital Markets• SimCorp• State of WI Investment

Board• TransAct Futures• The World Bank• The Carlyle Group • William Blair• Wilmington Trust

PAST ATTENDING COMPANIES

“The event is essential for anyone who has a portfolio of derivatives or supports clients

who have exposure to derivatives.” – DTCC Attendee

9:00am

Day 1 Monday, April 16Breakfast and Check-in Start at 8:15am

Chairperson Welcome & Opening Keynote

9:20am An Overview of What is New & Coming for Derivatives U.S. and overseas regulators have been moving at different rates to revamp the derivatives industry and harmony among them has been elusive. This session will feature in-depth updates on the new and forthcoming regulations of the CFTC, ESMA, the SEC and FINRA, among others. In addition, change is coming to the Asian derivatives markets as Brexit promises to shake up the balance of power across global financial markets. The good news is that technology solutions are emerging to help with this growing regulatory burden.This session will focus on several issues: • What have been the initial impacts of the onset of the MiFID II compliance changes?• What technology tools are available, and/or have been deployed to help these efforts?• What more do firms have to do to implement the MiFID II/MiFIR reforms? • What new derivatives regulation is proving to be the most challenging?• What has been the reaction to the CFTC’S KISS initiative?• How has Brexit changed the landscape for derivatives trading and operations?

10:10am Is Derivatives Processing Moving Closer to STP? For nearly a generation, major banks and other financial services firms have been exploring a variety of efforts to support the major goal of straight through processing (STP) for all instruments including derivatives. But there have been several barriers for derivatives processing such as the lack of standardization for the identification of derivatives products. In fact, bilateral OTC transactions have traditionally been slow to embrace automation. Yet there are signs of hope as the Legal Entity Identifier (LEI) push has been steadily gaining ground and the greater usage of the Financial Information Exchange (FIX) and FIXML protocols have laid the groundwork for key links in the STP chainThis session will explore the following: • How really straight-through is straight through

processing (STP)?• Will certain derivatives markets get to STP sooner

than others? • What are the benefits of greater STP for derivatives?• Are manual processes becoming too expensive to

maintain?

11:00am Networking Break with Exhibitors

Derivative Lessons Learned Since the Global Financial Crisis

The new era of sweeping regulatory reform has forever changed derivatives operations at financial services firms, which have been reeling with each wave of change. As the onslaught continues, are there any lessons to be learned from the overhauls of the last decade? This session will be a chance to step back and review what the industry has learned since the Great Recession:• What are some operational best practices that

firms have learned from the regulatory changes?

• Are there buy-side firms and sell-side firms running best-in-class Ops teams?

• What differentiates these best-in-class Ops teams from the rest of the industry?

• Has keeping up with all of the changes stifled innovation from buy- and sell-side firms?

• Has there been innovation because of the regulatory push?

Panelists: Jaclyn Tholl, EVP & CCO, Straits Financial

11:30am Sponsored Presentation

12:00pm Passing Time

12:05pm Are Derivatives and Blockchain/DLT a Good Match? Major banks and other firms are knee deep in exploratory proof-of-concept efforts and other tests to learn more about the potential of blockchain/distributed ledger technology (DLT) systems and applications. In particular, firms are hoping to apply the emerging technology to “smart contracts” and supportive operations. Much of what these firms will learn is likely to impact derivatives processing with cutting-edge implementations. This session will include a round-up of the major derivatives-related DLT efforts.This panel will delve into the key issues that this technology is uprooting: • What are the biggest potential impacts of

blockchain/DLT? • How beneficial are “smart contracts” for

derivative transactions? • Will some of the blockchain/DLT explorations

have the potential of becoming proprietary? Panelists: Young Lee, CFA, General Counsel, Mackay

Shields

Regulatory Reporting & Repositories Gets a Reboot or Two Regulatory reporting to multiple authorities across the globe has become almost overwhelming for many firms as they have to maintain data integrity, privacy protections and proper storage of records. Vendors, service providers and other industry participants are exploring models for solutions that include a hub for services, utility approaches to products and services, and ways to let firms re-use the data gathered from their regulatory reporting environments. The guiding principle is to focus on ways to mutualize the costs of regulatory reporting while still being compliant. Overseas, to help with these issues, the European Securities and Markets Authority (ESMA) has been establishing E.U. trade repositories (TRs) and has registered eight of them as of November 2017. (ESMA also recognizes non-E.U. TR providers.) The TRs cover multiple derivative asset classes and help firms meet their E.U. trade reporting obligations. This session will focus on what may be ahead for the market: • What are the best ways to streamline the costs of

regulatory reporting?• Will complete solutions include a mix of products,

services, consulting and delegation?• What should firms keep in mind as they refine their

regulatory reporting strategies?• How will global firms adjust to the fragmentation of

data across repositories?• How will non-E.U. repositories fare amid the shifts of

power in Europe?• Is the derivatives data scattered among repositories

more vulnerable to cyber-attacks? Panelists: Shuna Awong, OTC Derivatives Director –

Compliance and Examinations, National Futures Association (tentative)

12:50pm Lunch

1:50pm Constraints Among Global Clearing RegimesRegulators across the globe have been grappling with how to reform clearing for derivative transactions to the benefit of investors. However, revamping the clearing processes for over-the-counter (OTC) and listed derivatives has been an ongoing challenge. This session will focus on what has been going well for clearing regimes across the planet. It will also focus on some areas in need of dire repair and the lack of true harmony among global regulators on this issue.This session will dive into many areas: • What is the current state of clearing services providers?

Are any of them “too big to fail” and/or under great pressure?

• What are the latest clearing deadlines in the U.S. and beyond that firms must be on top of?

• How are the different clearing relationships (agency vs. principal) impacting clients and firms?

• Does it ever make sense to exit a market if the clearing issues become too much of a hassle?

• How viable are some emerging alternatives such as the Direct Funding Participant (DFP) type of membership for individual segregation in the U.S. offered by CME Clearing?

• What role will indirect clearing play?• How useful is the practice of “porting” positions?

Cross-Border HarmonizationIt’s not news that the promised unified approach among industry regulators across the globe has yet to materialize in a meaningful way. Efforts to rectify the situation have met with failure and major events such as Brexit are making matters worse. European authorities may want to rein in U.S. market participants involved in cross-border financial services. For firms with major global businesses, this will cause confusion over which regulatory regimes they need to report to and when.This session will spotlight the issues preventing harmony among regulators: • Why has it been nearly impossible for regulators

across the globe to harmonize their actions for a global market?

• How are global political trends impacting the policies of regulators?

• Is there hope that going forward there will be a more consistent global approach?

2:35pm Passing Time

3:30pm Networking Break with Exhibitors

4:00pm The High Costs of Collateral Many industry observers are expecting the level of margin calls to increase as the new regulatory rules take full effect. Firms are digging deep into their pockets as they face the next chapters after the “Big Wave” of new initial and variation margin rules, which are transforming collateral management and margining.At the same time, the pressure to find and oversee the right collateral is increasing. Firms also need global solutions and workflows that help them efficiently source and shift financial assets to comply with new regulation. They are facing growing demands for tri-party collateral management tools, new liquidity pools, and overhauls of the collateralization process. Firms are also re-evaluating their counterparty relationships to optimize the use of collateral inherent to these situations. The panel will review the options and strategies that firms may need to explore:• What are clients and fund managers posting as collateral now? Is it all cash? Is it a combination of cash and other

collateral?• Are firms changing collateral providers more frequently than before? • Should ETFs be used for collateral management? • How straight-through is collateral processing? • How should firms prepare for the onset of FINRA Rule 4210 (Margin Requirements for Covered Agency Transactions)? • What additional collateral and margining regulation is on the horizon in other countries for the industry?• What is driving the need for more tri-party collateral management tools?

Panelists: Scott Linden, Managing Director, Collateral Management, Wilmington Trust

4:45pm Cocktail Reception

2:40pm Shorter Settlement Meets Equity Derivatives In the fall of 2017, the securities industry successfully moved from T+3 settlement to T+2. To help firms working in equity derivatives, the International Swaps and Derivatives Association, Inc. (ISDA) released the ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol. The new protocol was an effort to help firms make certain that they conform to the settlement cycle for transactions in shares that trade via exchanges in North America and Peru.This panel will focus on how the shorter settlement cycle impact derivatives operations.• What were the impacts of mandated shorter

settlement upon contracts and other documentation?

• Overall, how did firms adjust to the shorter settlement cycle for underlying instruments?

• What are the benefits of following the new ISDA protocol?

• Do firms have to comply with the new ISDA protocol?

Is There Life after LIBOR? Scandal, the changing needs of the markets, and regulatory shifts are conspiring to put an end to the London Interbank Offered Rate (LIBOR) benchmark. In fact, the Financial Conduct Authority (FCA) wants the industry to phase it out by 2021. Until then, the ICE LIBOR benchmark via the Intercontinental Exchange (ICE) will be overseeing the reference rates effort as it has done since 2014 when scandal forced the British Bankers Association (BBA) to relinquish control. However, replacing LIBOR is going to be a struggle for derivatives markets participants because of the infrastructure and inertia that have grown up around LIBOR. This session will dive into many key areas:• In the U.K., how likely is it that the replacement for LIBOR

will be the updated version of the 20-year-old Sterling Overnight Index Average (SONIA) benchmark, which the Bank of England (BoE) would manage?

• What are the viable alternatives to SONIA? • In the U.S., the U.S. dollar ICE LIBOR serves as a reference

for $110 trillion in derivative instruments. Authorities are leaning toward the Secured Overnight Financing Rate (SOFR) as the alternative rate to be overseen by the Federal Reserve Bank of New York. But how viable is this option?

• What market developments will influence the final replacements?

• How do operations staffs prepare for the transition?

9:00am Are You Ready for Bitcoin-Based Instruments? In December 2017, the CFTC gave its initial blessings to the Chicago Mercantile Exchange Inc. (CME) and the CBOE Futures Exchange (CFE) for their self-certified new contracts for bitcoin futures products. The regulator also initially blessed the Cantor Exchange’s new contract for bitcoin binary options. The CFTC reports that it will be monitoring price volatility and trading practices and in conjunction with futures exchanges will review the ripple effects of these new instruments. These high risk, volatile new derivatives could spur market manipulation and market dislocations especially if there are flash rallies, crashes and trading outages.This session will focus on the compelling changes that these controversial instruments may cause.• What are the impacts of Bitcoin and other crypto-currency-based derivative instruments upon securities

operations?• Will these new instruments hasten the introduction of blockchain/DLT-based solutions?• What exactly are the “significant enhancements” that the CFTC has achieved for the contract design,

settlement and margining of these instruments? • What are the new risk-monitoring activities that the CFTC has instituted for these instruments?• Why does the CFTC need to work closely with the National Futures Association (NFA) on the review of these

instruments? Moderator: Jaclyn Tholl, EVP & CCO, Straits Financial

Panelists: Jeff Malec, CAIA, Managing Director, RCM Alternatives

9:45am Keynote Presentation

10:15am Networking Break with Exhibitors

10:45am Derivatives Processing Outsources to the CloudsThe financial services industry has been slow to embrace cloud computing but over the past two years cloud-based systems have hit their stride as they have earned the trust of the industry. This has led to more vendor solutions and services that rely upon cloud computing technologies. Many firms are moving key parts of their on-site derivatives operations to the cloud, including the key steps of triparty collateral management. Ultimately, though, an embrace of the cloud is reviving the in-sourcing versus outsourcing issue at many firms.This panel will explore the benefits and challenges of embracing the cloud:• How has greater usage of the cloud impacted operations staffing issues?• What are the new responsibilities required for the optimal management of cloud-based systems? • Is cloud computing bringing automation to much-needed manual processes? • What are the remaining barriers to the acceptance of the cloud among firms working in the derivatives

space? • What are the consequences of a bungled transition?

Day 2 Tuesday, April 17Breakfast Start at 8:30am

11:30am A Derivatives Clearing Vacuum Overseas Europe is moving to fill a derivatives clearing vacuum created by the Brexit vote in 2016. As London may be barred from clearing euro-denominated swaps post-Brexit, the situation becomes more complex as banks shift people and resources according to prudent contingency plans. It’s likely the derivatives clearing diaspora may spur many costs and inefficiencies and has set the stage for major power-plays among top European institutions and E.U. authorities and their U.S. counterparties.The move to fill the vacuum will hit home for U.S. firms: • What contingency plans should U.S. firms be developing now to ease the burdens to come? • How are the major, global clearinghouses handling the situation for their clients? • How difficult will it be for U.S. institutions to shift operations to Frankfurt or Paris? • How should future derivatives contracts be written given the uncertainty?

12:15pm Lunch

1:15pm Can Messaging Standards Streamline Derivatives Processing? For many years, a variety of industry efforts have been facilitating standardized messaging for many financial instruments to ease the many phases of a transaction. These messaging pushes have been embracing derivatives processing operations in an effort to have messaging standards across all financial products. The financial messaging cooperative SWIFT supports derivatives transactions, the FIX protocol is reaching out across derivatives, and E.U. authorities and the European Market Infrastructure Regulation (EMIR) legislation are changing the landscape. This panel will focus on the impacts of potentially universal messaging:• How will more universal standard settlement instructions (SSI) help with derivatives processing? • How do major custodian banks view universal messaging standards? • What are the benefits for most firms of applying messaging standards across multiple financial

instruments? • How else are custodians getting involved to affect change?

2:00pm Future Shock: A Heads-Up on Compelling Trends Derivatives markets have a history of being both very risky (sometimes devastating) and extremely lucrative for participants. The only through-line is that the derivatives industry has always been dynamic. This panel will focus on emerging trends that could have major impacts upon operations for derivative transactions.In particular, this panel will explore how some industry phenomena may impact derivatives processing:• How will the application of artificial intelligence (AI) and machine learning technologies to many

transaction processes affect securities operations staffs? Will Robots be looking over your shoulder? Does life get easier?

• Should derivatives operations and compliance personnel have Digital Age Agita, particularly when it comes to social media interactions? Could an Instagram post lead to an Instadisaster for a firm?

• The derivatives industry has been on a wild voyage with regulation for the past decade. But will there be a time when the regulatory reforms run their course? Once the regulatory flow has stabilized will firms return to creating new financial instruments? Did the constraints of regulation actually cause firms to be creative via compliance? Will firms that fled derivatives during the regulatory years return to these markets?

2:45pm Chairperson Closing Remarks

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