If you asked me in the spring of 2009 as ICE was launching the first CDS clearinghouse whether OTC derivatives clearing would be in full swing by 2011, my likely response would have been “absolutely.” But here we are – 2011 – and despite a number of clearinghouse launches (and a few failures), volumes are still small and mostly ceremonial waiting for that fateful day when central clearing is officially mandated.
And then there is trading. The technology has existed to trade most swaps electronically for years and regulators have been yelling for transparency of market prices at least since the Bear Stearns sign was abruptly removed from the building on Madison Ave. Nevertheless, here we are and true liquidity can’t seem to find its way to trading platforms that are ready, willing and able to facilitate everything from execution to price dissemination. The wait for an official mandate again rears its ugly head.
But alas, it seems we are getting somewhere. The CFTC has been diligently – if not manically – putting out the rule sets that define the above mandates for the industry to stew on, comment on and plan for.
Only a three hour Acela ride north from CFTC HQ (not to mention a few other notable financial hubs), exchanges, dealers, buy side firms, newly deemed SEFs, service providers and a whole host of others have been busy preparing, defining, lobbying for, building, marketing and selling (not necessarily in that order) their new business models in hopes of capitalizing on the Dodd-Frank-inspired changes.
This frantic pace of change coupled with some long-awaited clarity into the rules sets the stage for the upcoming TabbFORUM OTC Derivatives event on Jan. 25 in New York.
Speaker participation covers every category of OTC derivatives firm listed above, and our agenda sets them up to debate the issues and potentially answer some questions that have long needed answering.
Highlights include a one-on-one conversation with Peter Fisher, head of BlackRock's Fixed Income Portfolio Management, and a keynote presentation by CFTC Commissioner Scott O’Malia.
The event will also highlight several SEFs – both the incumbents and the challengers – as well as most of the contending clearinghouses. And we of course can’t forget the dealers who are prepared to talk about both their aspirations for electronic trading of swaps and client clearing.
Our tentative agenda is below. Click here to register – seating is limited. Hope to see you there.
Derivatives Reform: Preparing for Change
Welcome: Comments/State of Things
Panel 1: The SEF Definition is Finally Set - Now What?
Lee Olesky, CEO, Tradeweb
Jamie Cawley, CEO, Javelin
Chris Ferreri, Managing Director, ICAP
Brad Levy, Managing Director, Goldman Sachs
Richie Prager, Managing Director, BlackRock
Adam Sussman, Research Director, TABB Group (Moderator)
Panel 2: Central Clearing: The Best Model for Reducing Risk
Peter Barsoom, COO, ICE Trust
Roger Liddell, CEO, LCH.Clearnet
Laurant Paulhac, Managing Director, CME
Ray Kahn, Managing Director, Barclays
James Parascandola, Head of Credit Trading, MF Global
Larry Tabb, CEO, TABB Group (Moderator)
Armchair Interview: The View from the Top
Financial Times' Jeremy Grant interviews Peter Fisher, Vice Chairman, Blackrock
Peter R. Fisher is head of BlackRock's Fixed Income Portfolio Management globally and is a member of BlackRock's Global Operating Committee. He served as Under Secretary of the U.S. Treasury for Domestic Finance and spent 15 years at the Federal Reserve Bank of New York.
Panel 3: RFQs and CLOBs: What's the Future for Swaps Trading?
Grant Biggar, President, CreditEx
Neal Brady, CEO, Eris
Sam Cole, Head of eExchange, State Street
Andrew Downes, Managing Director, UBS
Elizabeth K. King, GETCO
Kevin McPartland, Senior Analyst, TABB Group (Moderator)
Panel 4: Client Clearing Differentiation: How to Choose?
Athanassios Diplas, Managing Director, Deutsche Bank
Paul Hamill, Executive Director, UBS
Jeff Aooch, CEO, MarketServ
Jack McCabe, Managing Director, Goldman Sachs
Ted MacDonald, DE Shaw
Paul Rowady, Senior Analyst, TABB Group (Moderator)
Keynote: Scott D. O'Malia, Commissioner
Commodity Futures Trading Commission
In his time at the CFTC, Commissioner O'Malia has advanced the use of technology to more effectively meet the agency's oversight responsibilities and has established the long dormant CFTC Technology Advisory Committee (C-TAC).