Agenda - Risk Workflow Solutions - AcadiaSoft · 2019. 9. 26. · Prabhat Singh Head of Industry & Strategy, AcadiaSoft(Moderator) Senior Director, Risk Management, Royal Bank of

Agenda

3:00pm – 3:15pm

3:15pm – 4:00pm

4:00pm - 4:45pm

4:45pm – 5:00pm

5:00pm - 7:00pm

Registration

Opening Remarks, Chris Walsh, CEO, AcadiaSoft

Welcome, Liz Lindsay, Director, BMO Capital Markets Collateral Management Group

Panel Discussions:

Initial Margin (IM) State of Play

Strategies for Approaching Your Own Firm's IM Compliance

BREAKOUT

Break

Panel Discussions:

Accelerating IM CSA and Tri-Party Negotiation and/or Amendment and Agreement Activation ahead of the IM Big Bang

The Road to Zero: No Touch Collateral Processing

Closing Remarks, Chris Walsh

Showcase & Reception –Cocktails & Hors d’Oeuvres

12:30pm - 1:00pm

1:00pm - 1:05pm

1:05pm - 1:15pm

1:15pm - 2:00pm

2:00pm – 3:00pm

Panel Discussion #1Initial Margin (IM) State of Play

Mark Demo

Anastasia Kogan

Allen Lewis

Brandon McPherson

Andrew Shen

Prabhat Singh

Head of Industry & Strategy, AcadiaSoft (Moderator)

Senior Director, Risk Management, Royal Bank of Canada

Managing Director Collateral Management and Segregation, BNY MellonVice President, Market Solutions, Goldman Sachs

Associate, Resource Management Group, CIBC

Managing Director Advisory Services, AcadiaSoft

Panel Discussion #2Strategies for Approaching Your Own Firm’s IM Compliance

Laura Craft

Kristoffer Nordlund

George Karahotzitis

Liz Lindsay

Prabhat Singh

Marketing Director, AcadiaSoft (Moderator)

Product Manager, TriOptima

Associate Vice President, Collateral Management, Toronto Dominion

Director, Capital Markets Collateral Management Group, Bank of MontrealManaging Director, Advisory Services, AcadiaSoft

BREAKOUT

Break – When We Resume

3:00pm – 3:15pm

3:15pm – 4:00pm

4:00pm - 4:45pm

4:45pm – 5:00pm

5:00pm - 7:00pm

Break

Panel Discussions:

Accelerating IM CSA and Tri-Party Negotiation and/or Amendment and Agreement Activation ahead of the IM Big Bang

The Road to Zero: No Touch Collateral Processing

Closing Remarks, Chris Walsh

Showcase & Reception – Cocktails & Hors d’Oeuvres

Panel Discussion #3Accelerating IM CSA and Tri-Party Negotiation and/or Amendment and Agreement Activation ahead of the IM Big Bang

Mark Demo

Richard Barton

Doug Donahue

Darren Thomas

Andrew Shen

Joceline Zheng


Director Agreement Segment and Product, AcadiaSoft

Partner, Linklaters LLP

Managing Director, Managed Services, IHSMarkit


Head of Product, Droit Financial Technologies

The Documentation Revolution

Doug Donahue, Partner, Linklaters LLPOctober 4, 2018

Toronto

ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc. 8





May 8 - 10, 2018 ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc. 13


ISDA Create – IM


The Documentation Revolution

Doug Donahue, Partner, Linklaters LLPOctober 4, 2018

Toronto


Mark Demo

Richard Barton

Doug Donahue

Darren Thomas

Andrew Shen

Joceline Zheng

Director, Industry & Marketing, AcadiaSoft (Moderator)






Confidential. © 2018 IHS MarkitTM. All Rights Reserved.Confidential. © 2018 IHS Markit®. All Rights Reserved.

Confidential. © 2018 IHS MarkitTM. All Rights Reserved.

19

Key growth of Initial Margin in-scope entities

Scope‒Six further dealer

groupswith affiliates

‒Phase 2 groups faced 50+ negotiations each

‒Phase 1 groups faced 40+ negotiations each

Phase 2Sept 2017

Scope‒Phase 4 = groups with

$750 bn (USD) derivativeaggregate notional

‒Phase 5 = groups with $8 bn (USD) derivative aggregate notional

‒Many hundreds of new groups in scope

‒ Includes asset managers with multiple funds

Phase 1Sept 2016

Scope‒Approx. 25 dealer

groups‒Each dealer has

multiple counterparties

‒Some dealer faced 120+ negotiations each

2016 2017

Scope‒Expected 10-15

furtherdealer groups

‒Phase 3 dealer groups facing 70+ negotiations each

‒Phase 1 and 2dealer groups facing 50+ negotiations each

Phase 3Sept 2018

2018

Phases 4 and 5Sept 2019 and 2020

2019/20

Confidential. © 2018 IHS MarkitTM. All Rights Reserved.

IM structure – custody documentation

20

Account in Party A’s

name

BNYM

Accountin Party B’s

name

State Street

Account Control Agreement 1

Account Control Agreement 2

ELIGIBLE COLLATERA

L SCHEDULE

ELIGIBLE COLLATERA

L SCHEDULE

Bilateral IM Documents Party BParty A

1

23

Credit Support Annex (CSA)Account Control Agreement (ACA) -BNYEligible Collateral Schedule (ECS)

4

56

Credit Support Annex (CSA)Account Control Agreement (ACA) - SSEligible Collateral Schedule (ECS)


21

• Unique collaboration between Allen & Overy, IHS Markit and SmartDX encompassing industry-leading• Legal knowledge and experience in Initial Margin documentation and negotiation

• Derivatives data capture and management

• Online documentation management and negotiation platform

• Margin Xchange is built on Counterparty Manager by IHS Markit, used and trusted by• 150 of largest dealer groups

• 100% of all G-SIB banks

• 10,000+ buyside and corporate accounts

• 165,000+ legal entities and 40,000+ active users

• SmartDX integrated platform for online document negotiation with versions and audit trail

Margin Xchange at a glance


22

Legal costs reduced by up to 70-80% compared to standard negotiations

Accurate tracking of status and processes allowing prioritization of important relationships and reporting to regulators

Automatically export accurate data containing all commercial terms directly to collateral management systems, custodians, and other downstream systems using APIs

Flexible and configurable platform for use on any negotiation where data export to downstream platforms is required

Counterparty Manager and data transfer APIs are established and already used by hundreds of banks, meeting all information security and inherent risk requirements

Margin Xchange: transforming case management


23

Transforming your Initial Margin negotiations through


24

Transforming your Initial Margin negotiations through


25

Lifecycle of Initial Margin negotiations with Margin Xchange

Upload counterparty

and commercial

data

Send term sheet

Negotiate key terms

Generate documents

Find negotiations

and electronic sign-off

Automaticallyextract data

to downstream

systems• Multi-jurisdictional

approach and template support

• Covers all industry IM documents

• CSA/ACA (custodial agreements)

• Collateral schedules• Updated as new IM and

custody documents emerge

• Cloud Margin / • IHSM Collateral Manager• Acadiasoft• Other Collateral Vendors


26

• This is a free service for the buyside

• Benefits for IM and beyond:

> Manage the negotiation process with clear dashboards and reporting

> Maintain a document repository of digitised contract data

> Export and search contract data with ease

> Store documents related to the negotiation but executed off-platform (side letters, amendments, etc)

> Buyside functionality for umbrella funds with integration to Request for Amendment (RFA) and Request for Onboarding (RFO) to manage the ongoing documentation onboarding process (Tax, KYC, etc)

> Full support from IHS Markit 24-hour client service

Margin XchangeTM for the Buyside


27

For more information:

[email protected]

www.ihsmarkit.com/marginxchange

[email protected] [email protected] [email protected]

+65 6805 [email protected]

mailto:[email protected]

http://www.ihsmarkit.com/marginxchange






Mark Demo

Richard Barton

Doug Donahue

Darren Thomas

Andrew Shen

Joceline Zheng







A unique, pioneeringplatform, consisting of independent, value-generative components.

In live production since 2014. Processing tens of millions of transactions every day for the world’s most complexbanks.

ACROSS ALLASSET CLASSES AND

16 GLOBALREGULATORS

Private and Confidential - Not for further distribution

Digitized regulatory texts in Akoma

Ntoso XML format

Structured models of regulatory mandates/ data models

Industrial process of monitoring

regulatory change

Super-performant software

implementing regulatory models

Efficient meta data configurable APIs for smooth

integration

Versioned regulatory

models linkedtodigitized, versioned

regulatory texts

Human readable attribution of all

decisions


Mark Demo

Richard Barton

Doug Donahue

Darren Thomas

Andrew Shen

Joceline Zheng







Interoperability

Legacy AgreementsBackloading Agreements via digitisation can establish an

agreement record, be used as validation against firms internal

agreement representation, or be used for dispute resolution when reconciling with counterparties

New AgreementsConsolidated from Negotiation

Service Providers and made available to interested parties

through the Standard Agreement API. Standard adaptors to Industry Service Providers

Single APIA single standard API streamlines the integration effort for firms to

set up new Agreements and establish a golden record for

legacy Agreements. Notifications are available to all interested

parties of an Agreement

Efficiency


Mark Demo

Richard Barton

Doug Donahue

Darren Thomas

Andrew Shen

Joceline Zheng







Panel Discussion #4The Road to Zero: No Touch Collateral Processing

Jack Dixon

Amy Caruso

Scott Fitzpatrick

George Karahotzitis

Scott Linden

Brandon McPherson

Head of Margin Automation, AcadiaSoft (Moderator)

Chief Commercial Officer, DTCC-Euroclear GlobalCollateral Ltd

Director of Collateral Business & Client Operations, AcadiaSoft

Associate Vice President, Collateral Management, Toronto Dominion

VP and Managing Director, Wilmington Trust

Vice President, Market Solutions Team, Goldman Sachs

Historical Context - Growth in Electronic Margin Call Processing

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Margin Call Volume

ISDA Repo TBA Cleared Other

Average Margin Call Submitted at 8:15am GMT

Earliest Banks Submit Between 3 – 4 am

Pledges Accepted in average of 90mins – and for some firms less than 60 mins

Fastest bank avg <1hr / Slowest bank avg >2 hrs

33% of Called Value is Disputed !

Lowest bank avg 28% / Highest bank avg > 40%

Thank you for attending

We look forward to welcoming you to our next event

acadiasoft.com