CEO Letter - April 2018

By: The WFE Team Apr 2018

Dear Colleagues

Welcome to the April issue of Focus.

This month we look back at the recent 35th IOMA: WFE’s Clearing & Derivatives Conference, hosted in Chicago by the Options Clearing Corporation (OCC). We would like to thank our very kind hosts, who put on a truly memorable event in one of the greatest cities in the world.

The theme of IOMA this year focused on the important role of exchanges and CCPs in maintaining market integrity, and this topic formed the basis of a joint report between the WFE and Oliver Wyman, which was launched at the event. The report looked at three key areas: how exchanges and CCPs have evolved since the 2008 global financial crisis in response to regulatory reform; trends in financial markets; and a vision for the future role and capabilities of exchanges and CCPs in ensuring market integrity.

The WFE also tackled the topic in its latest video which was showcased at IOMA, featuring Murray Pozmanter, Managing Director & Head of Clearing Agency Services & Global Operations, DTCC; Eric Tim Müller, CEO, Eurex Clearing AG; Scott Hill, CFO, Intercontinental Exchange; and Daniela Peterhoff, Head of Market Infrastructure, Oliver Wyman. We would like to thank the contributors to the video for their insightful and thought-provoking views.

In the Executive Interview section, we are very pleased to welcome IOMA conference host Craig Donohue, Executive Chairman & CEO, OCC who talks to us about the importance of a post-trade conference in the home of not only OCC, the world’s largest equity derivatives clearing organisation, but also two of the world’s largest derivatives exchanges, CME Group and Cboe.

We also feature an article by Ryan Ingram, Group Regulatory Analytics, Risk Policy & FMI Strategy, Hong Kong Exchanges & Clearing Ltd. who moderated a panel at IOMA focused on the interconnected nature of CCPs and banks within the clearing system. Here he looks at some of the key themes to come out of the discussion.

The WFE’s Research Team followed up the conference with its annual IOMA Derivatives Market Report, which showed the total volume of derivatives traded in 2017 declined by 0.2%. The team also published the third volume of its Annual Statistics Guide, a compendium of 2016/17 annual data for cash, bond and derivative markets.

April marked the 25th anniversary of the Cboe Volatility Index® (VIX® Index), and we welcome a contribution from Ed Tilly, Chairman & CEO, Cboe Global Markets, who outlines the importance of the index to today’s markets. And interestingly, April also marked the 45th anniversary of Cboe Global Markets! Congratulations.

Earlier this month, B3 and Bolsas y Mercados Argentinos (BYMA) announced that they had signed a joint agreement for B3 to provide technology services to BYMA. Roberto Belchior, Managing Director, Latin America Market Development, B3 writes about the agreement in more detail this month, and what it means for the future of Latin American capital markets.

The WFE was proud to join over 100 African exchange CEOs, regulators, and market participants for the Building African Financial Markets (BAFM) capacity building seminar. This annual event, now in its seventh year, focuses on the key issues impacting the continent’s capital markets, with the theme for this year’s event being ‘Adaptive Innovation as a Level for the Growth and Sustainable Development of African Financial Markets’.

Finally, we are pleased to confirm details of the next WFE Working Committee (WoCo) Meeting, which will be taking place on Thursday 31 May in London. Once again, we are grateful to Nasdaq for hosting the event, which will run for the whole day, and focus on topics such as Brexit.

We will be following the WoCo with a roundtable event discussing further themes from our market integrity report, and look forward to a lively debate with members, stakeholders and the press, after which there will be a drinks reception. Please look out for an invitation to the roundtable in due course. We look forward to seeing you in May.

Thank you for your continuing support.