DOCSLIB.ORG

SLT Nordic Handbook 2018/19

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
SLT Nordic Handbook 2018/19 Nordics2018/19 Exclusive data sponsor Lead sponsor We See Opportunities. You Get to Take Them. Explore new ways to optimize your cash and collateral with BNY Mellon Markets. FINANCING | LIQUIDITY | COLLATERAL Products/services are provided in various countries by subsidiaries or joint ventures of The Bank of New York Mellon Corporation (and in some instances by third parties) that are authorised and/or regulated within each jurisdiction, under various brand names, including BNY Mellon. Not all products and services are offered in all locations. The terms of any product or service, including without limitation any administrative, valuation, trade execution or other service, shall be determined by the definitive agreement relating to such product or service and subject to the relevant disclaimer for such product or service. This information is for general reference purposes only and does not constitute legal, tax, accounting or other professional advice nor is it an offer or solicitation of securities or services or an endorsement thereof in any jurisdiction or in any circumstance that is otherwise unlawful or not authorised. Your ability to use these services is subject to a wide variety of applicable regulations and to the oversight of relevant regulators in different territories and/or jurisdictions. You should obtain your own independent professional advice (including financial, tax and legal advice) before agreeing to use the various services referenced herein. ©2016 The Bank of New York Mellon Corporation. All rights reserved. We See Opportunities. You Get to Take Them. Explore new ways to optimize your cash and collateral with BNY Mellon Markets. Publisher: Justin Lawson [email protected] +44 (0)203 750 6028 Editor: Becky Butcher Troubled digestion [email protected] +44 (0)203 750 6019 Securities lending markets have reached their busiest point globally since the financial crisis, however, the Nordics are still having some trouble Junior Reporter: Jenna Lomax digesting an oversupply of lendable stock and bonds. [email protected] +44 (0)203 750 6018 Although the Nordic region is still grappling with declining equity lending revenue and fees, lenders are becoming more flexible on terms and trade Junior Reporter: Maddie Saghir types. In this year’s Nordics Annual, BNY Mellon explores how securities [email protected] finance participants are adjusting to the competitive landscape. +44 (0)203 750 6019 Elsewhere, Northern Trust’s Fiona Mitchell explains how the return of Contributors: Barney Dixon and Ned Holmes volatility to global markets and regulations governing the use of securities data is playing out in the Nordic region. Creative Director: Steven Lafferty [email protected] Data from IHS Markit highlights the key securities finance statistics of +44 (0)7843 811240 FINANCING | LIQUIDITY | COLLATERAL Denmark, Finland, Norway and Sweden, while Lago Kapital and SEB provide an update on the securities lending market in Sweden, Finland, www.securitieslendingtimes.com Products/services are provided in various countries by subsidiaries or joint ventures of The Bank of New York Mellon Corporation (and in and Norway. Twitter: @SLTimes_ some instances by third parties) that are authorised and/or regulated within each jurisdiction, under various brand names, including BNY Mellon. Not all products and services are offered in all locations. The terms of any product or service, including without limitation any administrative, valuation, trade execution or other service, shall be determined by the definitive agreement relating to such product or As ever, if you have any feedback, don’t hesitate to get in touch with us. Office fax: +44 (0)20 8711 5985 service and subject to the relevant disclaimer for such product or service. This information is for general reference purposes only and does Published by Black Knight Media Ltd not constitute legal, tax, accounting or other professional advice nor is it an offer or solicitation of securities or services or an endorsement thereof in any jurisdiction or in any circumstance that is otherwise unlawful or not authorised. Your ability to use these services is subject Becky Butcher Copyright © 2018 All rights reserved to a wide variety of applicable regulations and to the oversight of relevant regulators in different territories and/or jurisdictions. You should Editor obtain your own independent professional advice (including financial, tax and legal advice) before agreeing to use the various services referenced herein. ©2016 The Bank of New York Mellon Corporation. All rights reserved. Contents Market Update Nordics Special Fiona Mitchell of Northern Trust explains how the return of BNY Mellon explores how securities finance participants volatility to global markets and regulations governing the are adjusting to the competitive landscape use of securities data are playing out in the Nordics page 6 page 10 SFTR Insight Data Snapshots Ed Oliver of eSecLending explains what the Securities IHS Markit highlights the key securities finance statistics Financing Transaction Regulation is and what is expected of Denmark, Finland, Norway and Sweden from firms page 16 page 22 Finland Outlook Sweden Insight Jarkko Järvitalo, CEO of Lago Kapital, discusses Finland’s Christoffer Danielsson of SEB explores how Sweden is securities lending market as well as the future growth of leading Scandinavia’s growth outlook for this year the company page 30 page 34 4 Nordics Annual 2018 www.securitieslendingtimes.com The Nordics: focused, flexible and distinctive This year has seen the return of volatility to global markets and regulations governing the use of securities data. Fiona Mitchell of Northern Trust explains how these are playing out in the Nordic region Becky Butcher reports What distinctive activity has 2018 seen in the We see Nordic fixed-income inventory as typically Nordic equity securities lending markets? being best suited to an exclusive or sole-borrower type arrangement. Otherwise, pockets of demand are evident Firstly, we have observed a distinctive shift in activity for general collateral bonds, but ‘special’ activity is muted. around equity ‘specials’. The oil sector and related supply chain companies have seen a reduction in short In terms of collateral, whilst the acceptance of highly- demand as global oil prices recovered and hedge funds rated Nordic sovereign bonds continues to increase, the therefore looked to other opportunities to deploy capital. market is more open to the concept of accepting high Directional demand has moved to the retail sector, quality non-sovereign bonds, for example agency debt particularly for those companies burdened by large and covered bonds. This was highlighted in the release rental costs and less established online capabilities. of the latest International Capital Market Association (ICMA) European Repo Market Survey, published in There continues to be a noticeable shift to move March 2018, with the share of Danish and Swedish- investment away from the high street and into denominated assets used as collateral jumping to 6.3 e-commerce, to meet consumer demand for more percent at the end of 2017, from 2.5 percent during the convenient internet-based retailing. In the financial previous year. sector, increased short interest has developed across debt collecting companies, given concerns regarding overly complex balance sheets and cash flow accounting, coupled with a very crowded market place. In terms of Nordic lending In terms of Nordic lending volumes, an increase in equity market volatility in 2018 has made it more challenging volumes, an increase in for traditional equity long/short hedge funds to find the equity market volatility investment conviction to deploy more capital to the in 2018 has made it short side. In contrast, an increase in trading activity from quantitative strategy funds, which thrive in more more challenging for volatile conditions, has helped support a growth in traditional equity long/ lending volumes across the region relative to 2017. short hedge funds to find The focus on corporate governance is a well-known the investment conviction characteristic of the Nordic markets, and our clients to deploy more capital to often choose to structure their programmes in ways that ensure they retain the exercise of voting rights in their the short side domestic market to some extent. What trends are you seeing in terms of fixed income demand? Financing trades remain a dominant global theme as Going forward, the recently announced tapering and borrower demand for high-quality liquid assets (HQLA) eventual termination of the European Central Bank’s remains strong. Borrowers continue to request greater asset purchase programme is expected to have little collateral flexibility and term trade structures given impact on Nordic fixed income lending markets. Any the focus on operational efficiencies and satisfying subsequent rise in interest rates across the broader regulatory requirements, so those clients who are region may fuel some interest, though at this stage it is comfortable with these parameters will enjoy stronger hard to determine if the motives of demand for Nordic utilisation and returns. assets will alter. Market Update The regulatory environment continues and broker-dealers with underlying principle level detail to evolve. What are the key impacts for for each loan executed, can be operationally challenging securities lending and the Nordics? for
Load more

Recommended publications
  • 2014/2015 (Formerly Paris Orléans)
    Annual Report 2014/2015 (Formerly Paris Orléans) Annual Report 2014/2015 02 Paris Orléans – Annual Report 2014 / 2015 Contents Message from the Company’s Managing Partner 06 Message from the Chairman of the Supervisory Board 11 1. Overview 13 Overview of businesses 14 World presence 16 Governance 18 Group economical organisation chart 21 Corporate social responsibility 22 Shareholder information 23 2. Business review 27 Global Financial Advisory 28 Wealth & Asset Management 34 Merchant Banking 42 3. Management report 51 Results as at 31 March 2015 52 Information on the Company and share capital 54 Corporate governance 67 Corporate social responsibility 107 Other information 120 4. Financial statements 123 Consolidated financial statements 124 Parent company financial statements 186 Annual Report 2014/2015 – Paris Orléans 03 Paris Orléans over time 1838 Creation of Paris Orléans, a French railway company. 1937 Paris Orléans discontinues its railway business. Relaunch of Rothschild’s French activities through Paris Orléans following 1982 the nationalisation of the Rothschild family’s French bank in 1981. Move to unify and optimise the worldwide Group structures with the creation of a new lead entity, Concordia BV, held equally by Paris Orléans and 2003 the English branch of the Rothschild family. Acquired control of the banking activities at a global level and completed 2008 reorganisation of family shareholdings. Paris Orléans’ reorganisation to streamline its organisation, optimise its regulatory capital and preserve family control, with its conversion into 2012 a partnership limited by shares. 2015 Paris Orléans will change its name to Rothschild & Co. Today’s integrated Group offers full-scale financial advice Today and services around the world.
    [Show full text]
  • Insurance Technology – Q3 2019 Market Update
    INSURANCE TECHNOLOGY MARKET UPDATE | Q3 2019 0 Houlihan Lokey Insurance Technology Market Update Dear Clients and Friends, Houlihan Lokey is pleased to present its Insurance Technology Market Update for Q3 2019. • Insurance technology (insurtech) continues to be a highly active category, with approximately $1.2 billion in financing volume and approximately $7.4 billion in M&A volume during Q3 2019 – 62 financings in Q3 2019 is 13% higher than the same period in 2018, and annualized financing volume is significantly outpacing 2018 levels – 22 M&A transactions in Q3 2019 are slightly outpacing 20 deals completed during the same period in 2018 – Q3 M&A volume was bolstered by Prudential’s $3.5 billion acquisition of Assurance. Adjusting for that deal and adjusting Q3 2018 for Carlyle’s $6.7 billion acquisition of Sedgwick, Q3 2019 volume is still way ahead of year-ago levels— $3.9 billion in Q3 2019 M&A volume versus $689 million in Q3 2018 • Increase in larger financings as category leaders begin to differentiate themselves and investors look to back established players – Lots of Q3 financing activity for companies utilizing data and analytics to maximize the consumer experience obtaining home, renters, and auto insurance (including Root, Hippo, and Kin) as well as health/life insurance (including Ethos and Singlife) • Data and analytics and benefits administration/payroll companies lead the public company pack, trading at 5.5x and 4.0x EV/2020E revenue, respectively We hope you enjoy this report, and please reach out if you have any questions. We look forward to staying in touch.
    [Show full text]
  • Taking Stock
    The primary source of global securities finance news and analysis Issue 273 16 March 2021 TAKING STOCK Norges Bank Investment Management’s global head of financing Matthew Brunette discusses its long history of lending, its new ESG policy, and why it never got behind central clearing Automating Swaps Work Flow © 2020 EquiLend Holdings LLC. Swaptimization_ad_SLT_final.indd 1 1/10/20 10:29 AM Accelerating Collateral Mobility Frictionless ownership transfers of assets At precise moments in time Without cross custodian settlement movements Delivery vs. Delivery (“DvD”) Capital cost savings MARKETPLACE DIGITAL COLLATERAL REGISTRY TRUSTED THIRD PARTY - (BNY Mellon Triparty, BNP Paribas Securities Services, Citi - Custodian connecting in 2021) www.hqla-x.com Lead Story 3 Accelerating Collateral Mobility Frictionless ownership transfers of assets At precise moments in time Without cross custodian settlement movements Delivery vs. Delivery (“DvD”) Capital cost savings MARKETPLACE DIGITAL COLLATERAL REGISTRY Where are all the ETF champions? The securities lending market must do as State Street, Bank of New York, Brown hampered by known “impediments” including TRUSTED THIRD PARTY more to fully leverage the “ideal” collateral Brothers Harriman, Northern Trust, BlackRock “nomenclature challenges, multiple sedols instrument of exchange-traded funds (ETFs) and J.P. Morgan — to name but half a dozen (due to cross-listings), classification confusion as allocations into passive vehicles continue — are also the top names in the ETF industry, (is it an equity, is it fixed income?)”. to soar, according to Citi’s global head of ETF either as issuers or custodians, and often both. products Andrew Jamieson. It cannot surely be too long before their clients He also argues ETFs have a perception and their colleagues become more vocal to the problem among European institutional Writing in the latest International Securities missed opportunities?” he writes.
    [Show full text]
  • Securities Finance Americas Guide 2020 Summer 2020 Securities Finance Americas Guide 2020
    Securities Finance Americas Guide 2020 Summer 2020 Securities Finance Americas Guide 2020 Securities Finance www.globalinvestorgroup.com RESILIENCE ESG WHAT DOES THE RISE Experts consider how OF ESG MEAN FOR SECURITIES FINANCE? the pandemic affected securities finance PEER pressure THE LATEST ON THE EMERGENCE OF PEER-TO- DIVERSITY PEER LENDING IN THE US COUNTRY Women in Securities PROFILES Finance discuss The latest securities finance developments promoting diversity in the region’s key markets Flexibility. Reliability. Durability. There’s No Substitute for Certainty. certainty-bnymellon.com Americas_170x224_V2_NV.indd 1 7/7/20 1:28 PM CONTENTS Contents General manager Will Browne 4 Experts discuss how the Covid-19 Tel: +44 (0) 20 7779 8309 [email protected] pandemic has affected the securities Managing editor Luke Jeffs finance market, both in terms of demand Tel: +44 (0) 20 7779 8728 [email protected] and relationships, and what practices will be Securities finance editor Oliver Wade carried into a post-pandemic world Tel: +44 (0) 207 779 8430 [email protected] 9 BNP Paribas explains how the bank’s Senior reporter Perle Battistella Tel: +44 (0) 207 779 8028 investment in its securities finance 4 [email protected] business has expanded its offering in Design and production Antony Parselle [email protected] preparation for gaining market share in the Head of events operations and marketing Americas Velida Cajdin Tel: +44 (0) 20 7779 8188 13 Members of the
    [Show full text]
  • View Issue in Original Adobe PDF Viewer
    The primary source of global securities finance news and analysis Issue 262 29 September 2020 Building a strategy around transparency, control, and optimisation Malik’s Memo Lending Newcomer Data Analysis Seb Malik of Market FinReg says the The Asset Management Exchange is now Risk is a central theme of the year and opportunities for firms’ expansion are huge offering securities lending services to its REITs bearing the brunt of the COVID-19 and will result from five trends buy-side clients market restructuring Automating Swaps Work Flow © 2020 EquiLend Holdings LLC. Swaptimization_ad_SLT_final.indd 1 1/10/20 10:29 AM Flexibility. Reliability. Durability. There’s No Substitute for Certainty. certainty-bnymellon.com SLT_203x267_V2_NV.indd 1 7/7/20 1:37 PM Lead Story 3 MarketAxess snaps up Deutsche Boerse’s Regulatory Reporting Hub MarketAxess is set to acquire Deutsche The Regulatory Reporting Hub, services via REGIS-TR, its separate trade Boerse’s Regulatory Reporting Hub via meanwhile, is a pan-European reporting repository, which is unaffected by the sale. Trax, its wholly-owned subsidiary in and compliance platform that enables the Netherlands. buy- and sell-side clients to meet their Within Deutsche Boerse, the long-term regulatory obligations and transparency viability of the hub is understood to have MarketAxess operates an electronic requirements across multiple regulations, been uncertain for some time, as exemplified trading platform for fixed-income such as the second Markets in Financial by the last-minute scrapping of its SFTR securities and provides market data and Instruments Directive and the European offering, and the exchange has quietly been post-trade services for the global fixed- Markets Infrastructure Regulation.
    [Show full text]
  • Rothschild & Co: Annual Report 2019
    Rothschild & Co Annual Report 2019 Annual Report 2019 Our unique heritage and outstanding record of achievement are driven by a strong values-driven culture, captured in our Guiding Principles: Thoughtful, Principled and Creative Contents Message from the Chairman of the Supervisory Board 2 Message from the Managing Partners 4 1. Overview Overview of businesses 8 Rothschild & Co business model 10 World presence 12 Corporate governance 14 Organisation chart as at 31 December 2019 17 Corporate Responsibility 18 Rothschild & Co and its shareholders 20 2. Business review Global Advisory 26 Wealth and Asset Management 32 Merchant Banking 36 3. Management report Results for the 2019 financial year 46 Information on the Company and share capital 55 Internal control, risk management and accounting procedures 71 Report on corporate governance 80 Corporate Responsibility 118 4. Financial statements Consolidated financial statements 150 Parent company financial statements 218 Rothschild & Co | Annual Report 2019 1 Message from the Chairman of the Supervisory Board Dear Shareholders, Firstly, I would like to thank the Board members for their It is the Supervisory Board’s responsibility to ensure that continued support and engagement with Rothschild & Co. corporate governance standards and recommendations We all benefit hugely from their experience and wisdom are respected. The Supervisory Board exercises both during and outside our Board meetings. permanent oversight of the Company’s management, including in particular its financial reporting system The Managing Partner, represented by Alexandre de and internal control mechanisms. Rothschild, Executive Chairman, and the three Managing Partners, Marc-Olivier Laurent, Robert Leitão and François At the Annual General Meeting held on 16 May 2019, the Pérol, has delivered robust results in a more complex shareholders approved the re-election of Angelika Gifford, market environment than 2018 which was a record year Luisa Todini, Carole Piwnica, Arielle Malard de Rothschild, for the Group.
    [Show full text]
  • Collateral in 2020 Driving Optimisation in an Evolving Ecosystem
    Special Report • Autumn 2019 Collateral in 2020 Driving optimisation in an evolving ecosystem Lead sponsor In association with GetConnected GetCollateralised CollateralConnect & ExposureConnect Enterprise-wide, end-to-end collateral visibility, efficiency and exposure management Control Connect Collaborate Cover Consolidated, real-time Turnkey, web-based Streamlined, automated Tools to ensure visibility across Repo, connectivity to the workflows supporting all best coverage and Stock Loan & OTC collateral ecosystem market participants maximum efficiencies +44 (0)20 7220 0968 (UK & Europe) +1 917 565 8575 (US & Canada) [email protected] Twitter: @PirumSystems LinkedIn: pirum-systems-ltd Pirum216x279-August2019-FINAL.indd 1 19/08/2019 12:55 Buy-side Standardisation & optimisation Mobilisation harmonisation Technology Contents 04 Foreword | Ben Challice, head of trading services at J.P. General manager Will Browne Morgan, introduces this year’s Collateral report. Tel: +44 (0) 20 7779 8309 [email protected] 05 Buy-side optimisation | A closer look at the issues triggering Managing editor Luke Jeffs increasing buy-side engagement with collateral management Tel: +44 (0) 20 7779 8728 and the importance of optimisation in placing firms in good [email protected] stead in the face of change. Special reports editor Louise Fordham 09 J.P. Morgan | Ed Corral and Katie Emerson discuss integrated Tel: +44 (0) 207 779 8983 approaches to managing initial margin requirements under the [email protected] uncleared margin rules. Derivatives editor Sharon Thiruchelvam Tel: +44 (0) 207 779 8248 10 Buy-side perspective | Aberdeen Standard Investments’ [email protected] Matthew Chessum examines some of the key collateral Securities finance editor Andrew Neil management and securities lending issues on beneficial Tel: +44 (0) 207 779 8858 owners’ agendas.
    [Show full text]
  • Technology Annual 2021 CONSOLIDATION a SOLID FOUNDATION for GAINING EFFICIENCIES in SECURITIES FINANCE
    Technology Annual 2021 CONSOLIDATION A SOLID FOUNDATION FOR GAINING EFFICIENCIES IN SECURITIES FINANCE Platform as a single source of truth Accurate and real time holistic view of cash and securities inventory Achieve the optimal inventory usage leading to inventory optimization Integrated with your trade processing and collateral systems Increased visibility into your collateral positions and risk Mitigating risk across a variety of product types Eliminate the most manual interventions in processing margin calls Faster transaction processing times, eliminating errors and timely reporting Reduce overall funding costs for the enterprise Improves your ROI Simplification of the whole trade and process lifecycle PIONEERING INNOVATIVE TECHNOLOGY TO REIMAGINE CAPITAL MARKETS www.calypso.com [email protected] Editor’s letter 3 Along came COVID In 2019, the industry was unanimous in the belief that embracing new technology was the best route to remaining competitive and relevant in an increasingly global and heavily regulated market — and then along came COVID-19. The pandemic disrupted everything from where and how trades were executed to client engagement and even the weekly team meeting. Almost overnight cloud systems were put to the ultimate test, while VPN networks and video conferencing accounts were hastily created to accommodate the latest ‘new normal’. More than a year since the western world began the great social experiment of remote working en masse, many readers will still be ensconced at make-shift desks, with many not due to be reunited with colleagues for several more months, at least. Much like at the onset of previous market-shaking events, modern technology built the digital ark that allowed the securities finance industry to rise above much of the melee of trading volume spikes, margin calls, and managing a global financing programme from the dining room table.
    [Show full text]
  • Canada Weathers the Storm RBC I&TS’ Don D’Eramo and Kyle Kolasingh Discuss the Effects of the Pandemic, ESG and Automation on the Canadian Securities Finance Market
    The primary source of global securities finance news and analysis Issue 278 25 May 2021 Canada weathers the storm RBC I&TS’ Don D’Eramo and Kyle Kolasingh discuss the effects of the pandemic, ESG and automation on the Canadian securities finance market Automating Swaps Work Flow © 2020 EquiLend Holdings LLC. Swaptimization_ad_SLT_final.indd 1 1/10/20 10:29 AM Securities Finance and Collateral Management Solutions for Every Firm Optimize lending, funding and collateral decisions Reduce counterparty and operational risks Enable efficient and high-growth operations Flexible to firms of all sizes in any location Communications Meet regulatory and market requirement Technology Data and Analytics Broadridge.com © 2020 Broadridge Financial Solutions, Inc., Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. Lead Story 3 Securities Finance and Collateral Management Solutions for Every Firm ISLA adds securities finance code to CDM The International Securities Lending onboarding, contract negotiation, execution, CDM with our wider community. The addition Association (ISLA) has contributed code to the processing and ultimately termination. of our pilot work from last year within the core core Common Domain Model (CDM) database CDM is a clear statement of intent from ISLA — a single digital representation of securities ISLA’s contribution allows the recording and our friends at ISDA. trade events and life cycles. of securities loan product and transaction definitions, as well as a settlement and “As we progressively develop the combined The contribution marks the first time allocation event for cash settled ‘delivery open source cross product CDM, market Optimize lending, funding and collateral decisions components of a non-derivative product versus payment’ loan.
    [Show full text]
  • Worldwide Securities Services Background Information Notes
    Project Code: MXC-W061 DML to SLX Integration at JPMorgan Chase A Major Qualifying Project Report Submitted to the faculty of Worcester Polytechnic Institute In partial fulfillment of the requirements for the Degree of Bachelor of Science Submitted By: _______________________ _______________________ Michael J. Kristan Megan R. Slonski Project Center: Wall St. New York, NY B Term 2006 Sponsoring Agency: JPMorgan Chase & Co. Submitted To: Project Advisors: ________________________ _________________________ Michael Ciaraldi Arthur Gerstenfeld On-Site Liaisons: Marisa Giliberti Danielle Rumore Brian Kenney Abstract This MQP aimed to assist JPMorgan Chase with the successful completion of the high priority DML to SLX Integration project. In the pre-design phase, work was carried out to map data fields between the two systems and to analyze the anticipated effect of this project on server performance. Concurrently, a thorough project plan was created to be used in a critical path analysis. Struggles in creating this led to the recommendation of a process for better managing projects. This document is not intended for public distribution. i Permission must be obtained from JPMorgan Chase & Co. to disclose this document. Authorship This Major Qualifying Project is a collaborative effort of both team members. In compiling research and writing this paper each of us dedicated a significant amount of time and effort. There was an overall equal contribution to the executive summary, introduction, and background section made by both team members. Megan Slonski was mainly responsible to the sections pertaining to the critical path analysis and project management process improvements. Michael Kristan was primarily responsible for the sections regarding capacity planning and data mapping.
    [Show full text]