Q4 2013 Carl James of BNP Paribas Dealing Services on buy-side outsourcing Turning Crisis Into Opportunity Saheed Awan, Global Head of Collateral Services at Euroclear J. Joseph Conway, Senior Vice President of Brown Brothers Harriman Gary Probert, Managing Director at Citi, board member of ISITC Post-trade made easy MA2936-A-collateral highway FIN IT.indd 1 12/11/13 10:25 EDITORIAL Q4 2013 Welcome to the Q4 2013 issue of ISS which also doubles up as the event brochure for our 3rd Annual Post-trade Technology Summit. May I offer st ISS Magazine those of you reading this at the BT centre on 21 November, 2013 a very Managing Editor warm welcome. I’m sure you will both enjoy and benefit greatly from the Eddie Heaton various panel discussions and presentations that we have in store for you. [email protected] The full event agenda, with biographies of all our speakers can be found on page 10. Those of you who were unable to attend the event in person will Chief Operating Officer be able to view selected highlights in the video section of www.iss-mag. Farzana Hakim [email protected] com. Head of Strategy and Development The theme of our Q4 issue is ‘Turning Crisis into Opportunity’ and we Anthony Heaton have an exceptional line-up of contributors and interviewees to develop [email protected] it for us; Saheed Awan, Global Head of Collateral Services at Euroclear assesses the rise to prominence of collateral in today’s financial markets, Reporter: Dan Barnes interviews Carl James of BNP Paribas Dealing Services on buy- Dan Barnes side outsourcing, J. Joseph Conway, Senior Vice President of Brown Brothers Harriman discusses how to keep up in the race for innovation and Gary Probert, who is a Managing Director at Citi and a board member of ISITC writes for us about post-trade processing. We have two articles on T2S, one from Deutsche Bank’s Audrey Favel who discusses how sub-custodians Contributors: will need to re-define themselves in a Post T2S world and an interview Saheed Awan (Euroclear), Alan with BNP Paribas’s Alan Cameron to follow up on the excellent piece he Cameron (BNP Paribas), Gary Probert penned for us in our Sibos issue. Demi Derem of BNY Mellon discusses (Citi and ISITC, Carl James (BNP future trends of distribution in Asia and we also include interviews with the Paribas), J.Joseph Conway (BBH), Andrew White (ASX), Audrey Fauvel Australian Securities Exchange’s General Manager, Andy White who gives (Deutsche Bank), N.G. Subramaniam us a view from down under and NG Subranamiam, President and CEO (TCS), Demi Derem (BNY Mellon). of Tata Consultancy Services who provides us with a vendor’s insight into how technology is helping firms to cope with those perennial regulatory pressures. Post-trade made easy For the first time this quarter we present our 2013 Global Directory and Survey of Service Providers and Technology Vendors. This comprehensive factsheet will provide vital information including contact details on over 700 providers and vendors in 93 markets. The ISS team has worked extremely hard to make sure that this information is correct at the time of press but we will be relying on market participants, service providers and vendors to keep us updated on any future changes. We intend to include updated versions of the survey in all future print issues from now on and all the information will also be viewable at www.iss-mag.com. As this is our final print offering of the year may I take this opportunity to Published by: wish all our readers a very happy Christmas and a prosperous and joyful Capital Markets Media Ltd. 33 Taybridge Road 2014. London SW11 5PR The information published here represents the views of the individual authors and does not Eddie Heaton represent the views of ISS or any of the institutions contributing to ISS. Managing Editor International Securities Services INTERNATIONAL SECURITIES SERVICES 3 MA2936-A-collateral highway FIN IT.indd 1 12/11/13 10:25 CONTENTS ISS MAG Q4 2013 Editorial 3 Q4 2013 The ISS MAG 3rd Annual Post-trade Technology Summit Carl James of BNP Paribas Dealing Services on buy-side outsourcing 8 Your full guide to the 2013 Summit, with the agenda, speaker biogs and information about our sponsors. Agenda for The ISS MAG 3rd Annual Post-trade Technology Summit 10 Turning Crisis Into Opportunity Speakers’ Biographies Saheed Awan, Global Head of Collateral Services at Euroclear 12 J. Joseph Conway, Senior Vice President of Brown Brothers Harriman Gary Probert, Managing Director at Citi, board member of ISITC About our sponsors 18 A Collateral Evolution 21 Saheed Awan, Global Head of Collateral Services, Euroclear SA/NV assesses the rise to prominence of collateral in today’s financial markets. The Dealer’s Dealer 23 Dan Barnes talks to Carl James, Head of Fixed Income and FX dealing, BNP Paribas Dealing Services. Post-Trade Processing: Reflecting Broader Industry Changes & Challenges 24 Gary Probert, Managing Director at Citi and Board Member of ISITC looks at developments in the industry over the past 5 years. 20 21 23 24 4 INTERNATIONAL SECURITIES SERVICES AUTOMATE VALIDATE RECONCILE your post-trade expenses Trade execution costs are the 2nd largest expense in the capital markets industry. We can help. bonairesoft.com +44 20 7763 6102 © 2013 Broadridge Financial Solutions, Inc., Broadridge and the Broadridge logo are registered trademarks of Broadridge Financial Solutions, Inc. CONTENTS Versioning Forward 26 J. Joseph Conway, Senior Vice President, Head of Foreign Exchange Business Development, BBH discusses how to keep up in the race for innovation. Developments Down Under 28 ISS talks to the Australian Securities Exchange’s General Manager of Settlement 26 Services, Andrew White. Can Technology Help To Reduce Costs? 30 The thoughts of N.G. Subramaniam, President and CEO of Tata Consultancy Services. T2S: The Need For Long-Term Thinking 32 Audrey Fauvel, Deutsche Bank’s Head of EMEA Sales, Global Transaction Banking, Direct Securities Services argues that the first 32 33 wave of T2S implementation will unlock the real benefits. Opportunities In T2S 33 ISS MAG Editor, Eddie Heaton talks to Alan Cameron, Head of Global Strategic UK Broker-Dealers and Banks Relationship Management team, Member of the Client Development Management Committee, BNP Paribas. The Current State of Play in Asia 34 Demi Derem, Head of Distribution Services, Asset Servicing at BNY Mellon discusses future trends of distribution in Asia. 34 30 28 The 2013 ISS MAG Global Survey 35 The International Securities Services Q4 2013 Global Directory and Survey of Service Providers and Technology Vendors. 6 INTERNATIONAL SECURITIES SERVICES smartstream-stp.com Someday all your operational processes will work together. Someday is today. The need for fi nancial institutions to re-engineer their global operations has become very real. Only SmartStream off ers a new industry standard for a cross-enterprise solution where middle and back-offi ce processes share the same platform. Talk to us today and discover this new approach for yourself. Post-Trade Technology Summit The 3rd Annual Post-trade Technology Summit 21st, November 2013, BT Auditorium, Newgate St, City of London Turning the Challenges of Regulation into Action Trade Life Cycle Data Management Developments Collateral Management in Messaging An analytical discussion of the What are the technical challenges as With multiple protocols for financial As new regulations are implemented technical challenges of making firms develop and deploy new, more messaging, does the industry have a around the globe it is now essential all Post-trade technical functions sophisticated cross-asset investment global standard for communication, that financial institutions and their (confirmation and affirmation, strategies. and indeed in todays landscape, what counterparties are able to source and matching and reconciliation, clearing are the benefits? instantly move collateral to the right and settlement) both interoperable place across borders, time zones and and compatible. systems. 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