South Africa Securities Finance Masterclass


Radisson Blu Hotel Waterfront, Cape Town, South Africa

17 May 2018

Now in its fourth year, the South Africa Securities Finance Masterclass operated by ISF, brings together all the participants in the securities lending chain. The key focus for the day is education both of the buyside and regional industry practitioners.
The event connects international delegates with local asset managers, pension funds and hedge funds.

 

For speaking and delegate enquiries please contact Valerija Slavina on valerija.slavina@globalinvestorgroup.com.

To discuss sponsorship options please contact Will Browne on will.browne@globalinvestorgroup.com

 

 

Agenda


 

08:00 Registration opens


08:40 Welcome address
Will Browne, Commercial Director, Global Investor/ISF


08.45 Chairperson’s opening remarks
Jean Turner,
Chairperson, SASLA


08:50 Keynote: Economy and politics
•An overview of South Africa’s political and economic environment
•To what extent has the ratings downgrade impacted the SFT industry (local and foreign flow), and what can we expect should there be a further downgrade (or double downgrade) in the coming months?

Speaker: Goolam Ballim, Chief Economist, Standard Bank


09:10  Regulation
• Twin Peaks - one year later has there been any further development?
• MiFID II - what has been the global impact and what about for South Africa?
• SFTR represents a significant change to the securities financing world – are SA market participants prepared?
• OTC derivatives reforms

Moderator: Henry Otley, EMEA Market Access Trading, HSBC

Speakers:
Marius de Jongh, Senior Specialist, Collective Investment Schemes, FSCA 
Thomas Pikett, Head of SFTR Business Development, TRAX
Lyle Horsley, Policy Specialist, SARB
Bridget King,
Director - Finance & Banking, CDH



09:50 Presentation: South Africa’s new exchanges - A2X

Speaker: Brett Kotze, Head of Post Trade Services, A2X

 


10:30 Coffee break


11:10 Collateral management in 2018
• Acceptable vs accepted collateral
• Operational challenges for the buy-side
• How to maximize your collateral 
• In-house vs. outsourcing collateral management
•The growth of peer-to-peer collateral platforms

Moderator: Natasha Williams, Equity Finance Trader, ABSA Capital

Speakers:
Staffan Alhner, Head of Collateral Management, BNY Mellon
Grant Davies, Head of Business Development, Matchbox
Karl Wyborn, MD, Global Head of Sales, CloudMargin
Steve Everett,
General Manager, Strate Collateral Management Services


12:00 Prime Brokers – servicing the demand side

• Domestic market update from a broker perspective
• Key legal and operational points for fund managers to focus on when negotiating prime brokerage agreements
• New and innovative financing solutions, routes to market
• Have primes and hedge funds reached a steady state in terms of managing balance sheet and client returns?

Moderator: Kobus Esterhuysen, Director, Peregrine Fund Platform

Speakers:
Ryan Proudfoot,
Head of Prime Services, RMB
Hamish James, Head of Prime Services, Investec
Lebo Moropa, VP - Equity Finance, JP Morgan

 
12:40 Lunch


14:00 Hedge funds – a response

• Domestic markets: a hedge fund perspective
• Service provision from prime brokers – did the previous panel give a fair assessment?
• TRS/Swaps, SBL, what are the routes to market?
• How can South African hedge funds finance their book?

Moderator: Andrew Cairns, Co-Head of Prime Services, Standard Bank

Speakers:
Hayden Reinders,
Head of Alternative Administration, Prescient Fund Services
Rob Coombe, COO,  Matrix Fund Managers
Heinrich Jansen Van Rensburg, COO, Fairtree Capital 


14.40 Principal vs Agency Lending
• What are the different models? A summary
• What are the pros and cons, and how do these differ for market participants?
• How is this viewed in other markets?
• What are the key considerations for beneficial owners when running a securities lending programme, and where does Agency vs Principal fit into these?

Moderator:  Michael Wright, Senior Manager, Securities Lending, NED Bank

Speakers:
Lloyd Keys, Head Trader, Securities Lending, Societe Generale
Dan Rudd,  Executive Director, JP Morgan
Andy Stuart, Senior Legal Advisor, RMB
Kelle Gagne, Executive, Banking and Finance, ENS Africa
August Sander,
Head of Securities Lending, Sanlam

 


15:20 Technology Update
• Has the securities finance market evolved to reflect the efficiency and transparency that can be afforded by modern technology?
• What areas are in need of an upgrade?
• What role will blockchain play in the market and when?
• How can firms use AI/machine learning to enhance efficiency?

Moderator: Stephen Linnell, COO of Global Markets, RMB

Speakers:
Steve Everett, General Manager, Strate Collateral Management Services
Mukhtar Yoonas Cassim, Founder, South Africa Blockchain (Pty)
Gavin Marshall,
Founder, Sharebit
Jonathan Hodder, Global Head, Sales and Marketing, EquiLend

 

15:55 Closing remarks


16:00 Drinks reception


17:30 SASLA drinks (Two Oceans Aquarium)

Speakers


 


Staffan Ahlner, Head of Collateral Management, BNY Mellon
Goolam Ballim, Chief Economist, Standard Bank
Will Browne, Commercial Director, Global investor Group
Andrew Cairns, Co-Head of Prime Services, Standard Bank
Mukhtar Yoonas Cassim,
Founder, South Africa Blockchain (Pty)
Rob Coombe, Director and Chief Operating Officer,  Matrix Fund Managers
Grant Davies, Head of Business Development ,Matchbox
Marius De Jongh, Senior Specialist, Collective Investment Schemes, FSCA
Kobus Esterhuysen, 
Director, Peregrine Fund Platform
Steve Everett, 
General Manager, Strate Collateral Management Services
Kelle Gagne, Executive, Banking and Finance, ENS Africa
Jonathan Hodder, Global Head, Sales and Marketing, EquiLend
Lyle Horsley, Policy Specialist, SARB
Hamish James, Head of Prime Services, Investec
Lloyd Keys, Head Trader, Securities Lending, Societe Generale
Bridget King, 
Director - Finance & Banking, CDH
Brett Kotze, Head of Post Trade Services, A2X
Stephen Linnell, COO of Global Markets, RMB
Bryan MacCallum, Trader, RMB Morgan Stanley
Gavin Marshall,
 Founder, Sharebit
Lebo Moropa, VP - Equity Finance, JP Morgan
Henry Otley, 
EMEA Market Access Trading, HSBC
Thomas Pikett,
Head of SFTR Business Development, TRAX
Ryan Proudfoot, Head of Prime Services, RMB
Hayden Reinders, Head of Alternative Fund Administration, Prescient Fund Services
Dan Rudd, Executive Director, JP Morgan
August Sander,
 Head of Securities Lending, Sanlam
Andy Stuart, Senior Legal Advisor, RMB
Jean Turner, Chairperson, SASLA
Heinrich Jansen Van Rensburg, 
COO, Fairtree Capital 
Natasha Williams,
 Equity Finance Trader, ABSA Capital
Michael Wright, Senior Manager: Securities Lending, NED Bank
Karl Wyborn, MD, Global Head of Sales, CloudMargin

 

Event Partner


 

 

SASLA

 

 

 

 

SASLA, the South African Securities Lending Association, is an industry forum designed to represent the common interests of the securities lending industry in South Africa. SASLA assists in the orderly, efficient and competitive development of the South African securities lending market. In this regard, SASLA works closely with regulators and has representation on several market committees. SASLA has been instrumental in a number of major market initiatives, including the development of the SA Securities Lending Code of Guidance and the Schedule to the Global Master Securities Lending Agreement (GMSLA). Today, SASLA has over 30 members comprising banks, insurance companies, pension funds, asset managers and service providers.

 

 

Lead Sponsors


 

 

HSBC South Africa

 

 

 

The HSBC Group established a presence in sub-Saharan Africa in 1981 and entered the South African market in 1995. It expanded its regional operations by opening a corporate and institutional bank in Johannesburg in 2003. Initially a branch of HSBC Bank plc (incorporated in the United Kingdom), in 2007, the Johannesburg office became a branch of The Hongkong and Shanghai Banking Corporation Limited (incorporated in Hong Kong). Today, HSBC Africa’s principal activity is global banking and markets, which is managed out of the regional hub in Johannesburg. HSBC Africa’s commercial banking business offers services to large local and international corporates. 

Strategic global presence and local expertise 

HSBC Africa is able to provide global reach and connectivity as well as in-depth local knowledge to its clients with international advisory, financing and trading needs. Our clients are able to access proprietary research on economics, currencies, fixed income and climate change. HSBC’s analysts draw from considerable industry and market knowledge to offer thoughts on specific investments and asset classes.

 

Standard Bank

 

 

 

Standard Bank South Africa is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group reported total assets of R1,95 trillion (about USD143 billion) at 31 December 2016, while its market capitalisation was R246 billion (USD18 billion).

In South Africa, Standard Bank provides the full spectrum of financial services. Its Corporate & Investment Banking (CIB) division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. CIB delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.

Standard Bank’s CIB’s expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.

Standard Bank’s Personal & Business Banking (PBB) offers banking and other financial services to individuals and small-to-medium enterprises. PBB’s product offering includes transactional services, lending products, mortgage lending, card products, vehicle and asset finance and wealth.

 

RMB

 

 

 

Rand Merchant Bank (RMB) is a leading African Corporate and Investment Bank and part of the largest financial services groups (by market capitalisation) in Africa – FirstRand Bank Limited. We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal investing solutions.

At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities. We call ourselves Solutionist Thinkers who deliver on Traditional values. Innovative ideas.

As the Corporate and Investment arm of FirstRand Bank Limited (which is wholly-owned by FirstRand Limited), we have access to a network of retail banks in 25 African countries, including Representative Offices and Branches in the UK, India, China and the Middle East.

For more information please visit: www.rmb.co.za

 

 

Sponsors


  

A2X

 

A2X competes directly with the JSE in the secondary share market and provides an alternative platform for companies to secondary list and trade their shares. It uses the latest low-latency exchange technology, supplied by Aquis Exchange in the UK, and offers large fee savings on the end to end cost of transacting. A2X began trading in October last year and now has 8 brokers and 7 companies listed on its platform with a combined market cap upward of R230 billion. A2X’s aim is to empower the market with choice.

 

ABSA

 

Absa Bank Limited (‘Absa Bank’) is a wholly-owned subsidiary of Barclays Africa Group Limited, which is listed on the Johannesburg Stock Exchange and is one of Africa’s largest financial services groups. Absa offers a range of retail, business, corporate and investment banking and wealth management and insurance products and services primarily in South Africa and Namibia.

Barclays Africa Group is represented in 12 countries, with approximately 40 000 employees. As of June 2017, Barclays PLC is a minority shareholder in Barclays Africa Group.

For further information about Absa, please visit our website www.absa.co.za

 

 

CloudMargin

 

 

 

 

Headquartered in London, CloudMargin created the world's first cloud-based collateral management workflow tool, which has earned more than a dozen different industry awards since 2015 for innovation and best-in-class technology. The firm's Software-as-a-Service (SaaS) model is helping many of the leading financial institutions globally – including exchanges, brokerage firms, banks, asset management firms and insurance companies – meet time-critical regulatory deadlines and reduce costs associated with collateral requirements that are growing dramatically. CloudMargin bypasses many of the shortfalls of legacy, on-premise software, enabling clients to experience rapid implementation and access to robust and secure collateral management workflow software. For more information, visit www.cloudmargin.com. To access the firm's FlightPlan microsite designed to help financial institutions globally navigate the uncleared margin rules and other regulations impacting their collateral management function, please visit flightplan.cloudmargin.com.

 

 

 

Deutsche Bank

 

 

 

Deutsche Bank is a leading client-centric global universal bank serving 28 million clients worldwide. Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific. 

Markets Prime Finance business is a multi-asset class business unit focused on leveraging the strengths of various market-leading businesses (Securities Lending, Global Prime Finance, Listed Derivatives and FX) to provide critical solutions for clients navigating the changing environment. Client service is the foundation of our model – providing seamless coverage, multi-asset financing solutions and access to markets worldwide. 

Our  extensive  local footprint  and  reach  enable  Deutsche Bank  to be well  positioned to serve our clients’ needs.  Our local and offshore  relationships provide our clients with unique financing and securities lending capabilities to allow them to maximise opportunities.

 

 

EquiLend

 

 

 

EquiLend is a leading provider of trading and post-trade services for the securities finance industry with offices in New York, London, Hong Kong and Toronto. EquiLend is owned by BlackRock, Credit Suisse, Goldman Sachs, J.P. Morgan, J.P. Morgan Chase, Bank of America Merrill Lynch, Morgan Stanley, Northern Trust, State Street and UBS.

Used by securities borrowers and lenders globally, the EquiLend platform (for equities) and BondLend platform (for fixed income) automate formerly manual trading and post-trade processes in the securities finance industry. DataLend provides performance reporting and aggregated, anonymized, cleansed and standardized securities finance data covering all asset classes, regions and markets globally. EquiLend Clearing Services operates the ECS Middle Office and the ECS Gateway, which offer CCP services and connectivity http://www.equilend.com/ 

 

 

 

Investec Specialist Bank

 

 

Investec Equities is an integrated Securities, Prime Services and Product Trading business which forms part of our Corporate and Institutional Banking division (ICIB).
Our Prime Services team understands the importance of supporting our clients across a wide range of investment strategies and products, ensuring that we continue to deliver a core suite of market leading services to the Global marketplace. These include, but are not limited to, research, execution, reporting, securities lending, clearing, structured financing, alternative investment products & solutions. Our high quality service is driven by an experienced, dedicated and specialist team of professionals who act as a single point of contact for clients. We are committed to building a partnership to create customised solutions to suit your unique risk appetite, strategic and growth objectives.

 

 

IRESS

 

 

 

We design, develop and implement unified software solutions for the financial services industry. Whether you’re trading on global financial markets, managing investments, providing mortgages or helping your clients plan their financial future; you can rely on our software, and our team, to deliver real outcomes for your business and your clients. Our complete end-to-end solutions enable you to engage and service your clients across all channels, achieve operational efficiencies, make considered decisions, in addition to monitoring and managing risk. What’s more, we don’t believe in a one-size-fits-all approach. Our solutions flex to your business and commercial objectives – from standardised outof-the-box implementations to fully tailored solutions. Our proven technology, expertise and implementation track record means that businesses of all sizes choose to partner with us – from the world’s most iconic financial services brands to small business entrepreneurs. Above all else, we have an unwavering focus on what’s most important: deliver outcomes today, develop for tomorrow and design for the future.

 

 

 J.P. Morgan

 

 

 We are committed to our business in South Africa, and we are one of the most prominent financial services firms in the country. From Johannesburg and Cape Town, we provide clients with products and services from across our asset management and corporate and investment bank lines of business. Our branch in South Africa is an authorised financial services provider.
J.P. Morgan has operated in Europe for nearly 200 years and has a sophisticated local market presence across Europe, the Middle East and Africa (EMEA). Within the region, J.P. Morgan has an unparalleled client base and leadership across the spectrum of financial services products. The regional head office in London is complemented by a strong regional footprint, with offices in all major financial centers.
Globally, through the JPMorgan Chase Foundation, we make philanthropic investments in cities where we have major operations, assisting those at a disadvantage by helping them build better lives for themselves, their families and their communities. Across EMEA, the firm focuses its investment and attention on three pillars: Economic Development, Financial Empowerment and Workforce Readiness.
J.P. Morgan is a global leader in financial services, offering solutions to the world's most important corporations, governments and institutions in more than 100 countries. The Firm and its Foundation give approximately US$200 million annually to nonprofit organizations around the world. We also lead volunteer service activities for employees in local communities by utilizing our many resources, including those that stem from access to capital, economies of scale, global reach and expertise.

 

 

 

Macquarie

 

 

Macquarie is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. The diversity of our operations, combined with a strong capital position and robust risk management framework, has contributed to our 48-year record of unbroken profitability.
 
Commodities and Global Markets is one of Macquarie’s five global business groups. It has over 1,900 staff in Australia, Brazil, Canada, China, Germany, Hong Kong, India, Indonesia, Japan, Malaysia, Mexico, New Zealand, Philippines, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, the UAE, the UK and the US. Commodities and Global Markets provides clients with an integrated, end-to-end offering across global markets including equities, fixed income, foreign exchange and commodities. The platform covers more than 25 markets and over 160 products, and has evolved over more than three decades to provide clients with access to markets, financing, financial hedging and physical execution

 

 

 

Matchbox

 

About Matchbox:

Sunrise Brokers launched ‘Matchbox’ the electronic platform for ‘Naturals’ TRS in August 2015 which was designed to enable efficient trading for Equity Long and Short positions providing balance sheet optimisation whilst preserving key capital resource.

The launch of Matchbox ‘Collateral’ further enhances the platform to provide collateral trading capabilities across SBL/REPO & TRS. The pre and post trade algo within matchbox enables logical asset selection driving efficient sourcing and deployment of collateral baskets.

About Sunrise Brokers:

Founded in 1991, Sunrise Brokers offers broking services across equity, credit, FX, hybrid and commodity derivative asset classes. Sunrise Brokers was voted as overall number one Equity Products Broker for the eleventh consecutive year by Risk magazine in 2017. The firm covers its markets globally from its offices in London, New York and Hong Kong. Sunrise Brokers LLP is Authorized and Regulated in the United Kingdom by the Financial Conduct Authority. Sunrise Brokers (Hong Kong) Ltd is licensed in Hong Kong by the Securities and Futures Commission. Sunrise Brokers LLC is a FINRA Member Firm in the USA.

In December 2016 BGC Partners, Inc. (NASDAQ: BGCP) (“BGC Partners,” “BGC,” or “the Company”) a leading global brokerage company servicing the financial and real estate markets, completed  the acquisition of the businesses of Sunrise Brokers Group (“Sunrise Brokers”),Please see www.sunrisebrokers.com for more information. 

 

 

Nedbank

Nedbank CIB is the wholesale banking arm of the Nedbank Group, and manages the Group’s structuring, lending, underwriting, custodial and trading businesses. The full-spectrum offering includes vanilla and specialised funding, such as for mining and resources, aircraft finance, export credit finance, sector-specific solutions encompassing energy, infrastructure, oil and gas, and telecommunications.

Nedbank has a presence across SADC and representative offices in Angola and Kenya. In West and Central Africa, Nedbank CIB has a 20% shareholding in Ecobank Transnational Incorporated (ETI), enabling a one-bank experience across the largest banking network in Africa, comprising more than 2 000 branches in 39 countries.

Nedbank CIB is also in key global financial centres to provide international banking services in London, Isle of Man, Guernsey, Jersey, Toronto, Dubai and Mauritius.

A diverse client base across Africa is catered for including leading corporations, financial institutions, state-owned entities and governments.
www.nedbank.co.za/cib

 

 

Sanlam

 

 

 

Sanlam Investments is one of South Africa’s largest investment management companies. We offer a comprehensive range of local and offshore investment products to end-investors, financial planners and institutions. Our investment options include passively and actively managed unit trusts, hedge funds and segregated and pooled retirement funds.

 

 

 

 

Strate

 

Strate is a South African Central Securities Depository. It is a licensed financial market infrastructure that owns technology to electronically settle securities within South Africa, allowing it to securely hold equities, bonds and money market securities in electronic form so that buyers and sellers can exchange ownership of these securities once they are successfully traded.

Strate is an independent company, serving multiple stock exchanges in South Africa as well as their respective issuer clients. It also facilitates corporate action (such as dividends) payments for those issuers, as well as other services in terms of South African legislation. In addition, value-adding services are available, such as collateral management, IT services and training. It is also identifying new opportunities by exploring disruptive technologies.

 

 

 

 

TRAX

Trax is a leading provider of capital market data, trade matching and regulatory reporting services to the global securities market.  Trax processes on average over 1 billion annual transactions on behalf of its community of over 600 entities including approximately 12 million fixed income transactions. Trax operates an Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) for MiFID II trade and transaction reporting in addition to providing support for other regulatory regimes. Trax additionally provides capital market firms with information to assist them in conducting net asset valuations, mark-to-market calculations, fixed-income portfolio mapping, liquidity and volume modelling, as well as reference data population updates. Trax data products include a universe of over 300,000 fixed income securities with unique pricing and volume information on approximately 60,000 individual bonds.

Trax is based in London and was originally established in 1985. Acquired by MarketAxess in 2013, Trax is a trading name of Xtrakter Ltd. and is a wholly owned subsidiary of MarketAxess Holdings, Inc.  For more information, please visit www.traxmarkets.com.

Venue


 

 

Radisson Blue Hotel

Beach Road, Granger Bay
P.O. Box 50041
V&A Waterfront
8002, South Africa