Continuing the dialogue of the 2017 Euroclear Collateral Conference
Following the successful conclusion of the 16th edition of the Euroclear Collateral Conference we thought it might be a good idea to share some key takeaways from the event.
The Collateral Conference took place in Brussels, on 13-14 November, and was attended by almost 800 industry delegates – our largest attendance ever!
We had a rich and diverse agenda which included interactive panels and keynote speeches.
Our keynote speaker on the Monday was Olivier Guersent, the Director General of the Directorate-General for Financial Stability, Financial Services and Capital Markets Union.
Mr Guersent delivered an interesting and engaging speech looking at the efforts being made by the Commission to ensure the safety and resilience of our capital markets - while still considering the impact of change on its participants.
We were also delighted to welcome over 40 leading industry speakers who shared their expertise and offered insight across 7 diverse panels over the course of the conference. The resulting debate was both lively and informative!
The below is a small selection from the extensive list of topical issues that were discussed.
- The challenges and opportunities associated with implementing the non-cleared OTC drivatives margining regulation
- The drive for enterprise-wide collateral management
- And the increasing momentum to attract new participants – such as corporates – and asset classes – such as ETFs, HQLA funds and emerging market securities – to the collateral management industry.
Some of the key elements
Panelists and delegates agreed that one of the key challenges facing the industry is regulatory change, in particular for the buy-side and their trading counterparts.
There was also accord that there is a need for an industry-wide solution that can be used to overcome this sustained period of regulatory change.
The idyllic end-game that the market is striving to achieve revolves around an infrastructure-led holistic ecosystem that moves away from manual processes, and delivers full harmonisation, transparency and visibility.
Smaller sell-side firms and most of the buy-side were identified as the market participants most likely to need greater third-party support from custodians and market infrastructures to handle the new environment – in particular through new technologies, platforms and models.
Indeed, a recurring theme throughout the panels was that infrastructure needs to continue to play a leading role in the development of solutions.
This was particularly true in the context of the enforced changes in the OTC derivatives space where infrastructure is seen, by the market, as the answer to the challenge of exponential growth in margin call volumes and the need to cater to the buy-side.
Panelists also considered the advent of T2S and agreed that, although T2S marks a major step in the quest to achieve a single collateral market in Europe, it is still just one step. Far more private-sector innovation is required to capitalise on the opportunities it presents our industry.
The growing importance of dialogue
The diversity of subject matter addressed during the collateral conference was even broader than it has been in previous years, demonstrating the increasing importance of collateral management, but also the increasing need for true industry events to stimulate dialogue and bring to light opportunities for collaboration.
Next year promises to be even more interesting.