Recent and Future Trends in the Financial Industry - Institutions, Infrastructure and Regulation

Day One

09.00 - 09.15 Welcome and Introduction

09.15 - 12.00 The Global Financial Crisis – Causes and Implications

• Macro Trends and Global Imbalances
• Financial Innovation
• The “Shadow Banking System”
• Excessive Leverage
• Increased Procyclicality
  • Ratings and Rating Triggers
  • Margins and haircuts
  • Capital adequacy rules
• Policy Mistakes
  • Irresponsible deregulation of financial markets?
  • Did the abandonment of the “Taylor Rule” cause the crisis?
• The Failure of Market Discipline
• Implications for Financial Markets
  • Liquidity and credit crunch
  • Quasi-nationalization of banking sector
  • Stock market crash
  • Collapse of securitization markets
  • Widening of credit spreads

12.00 - 13.00 Lunch

13.00 - 16.30 Political and Regulatory Responses to the Crisis

• The Need for a Systemic Approach
• Need for a Global Coordination of Regulation
• Bretton Woods II?
• Capital Adequacy Rules
  • Increasing the quantity and quality of bank capital
  • Increases in trading book
  • Avoiding procyclicality in Basel 2 implementation
  • Creating counter cyclical capital buffers
• Accounting Principles
  • Offsetting procyclicality in published accounts
  • A gross leverage ratio backstop
  • The future of “fair value” accounting
• Containing Liquidity Risks: in individual banks and at the systemic level
• Implications for the Regulatory Framework
  • The post-crisis financial architecture
  • Revisions to Basel II/CRD and Solvency II
  • MiFID
  • Glass-Steagall II?
• Regulation of Rating Institutions
• Regulation of Remuneration

Day Two

09.00 - 09.15 Brief recap

09.15 - 12.00 Developments in Trading, Documentation, Clearing and Settlement

• Why We Need a Stronger and More Integrated Infrastructure
• Consolidation and Integration of Exchanges
• Developments in Clearing and Settlement Systems
• Netting, clearing and central counterparty in derivatives trading
• The ISDA “Big Bang” Protocol for CDS Documentation
• The Move to Centralized Clearing of CDS and other OTC Derivatives
  • How clearing works
  • How the ISDA “Big Bang” will facilitate the migration of trades to a central clearing counterparty (CCP)
  • Case study: Important CCP’s and how they operate

The Changing Financial Landscape: Hedge Funds, Private Equity Funds and Sovereign Wealth Funds

• A Closer Look at Recent Years’ Hedge Fund Performance
• The Impact of Hedge Funds on Financial Markets
• Private Equity Funds and their Impact on Equity and Credit Markets
• Sovereign Wealth Funds and their Increasing Importance as Capital Providers
• The Move Towards Stronger Regulation of Hedge Funds etc.

12.00 - 13.00 Lunch

13.00 - 16.30 Recent Developments in Securitization and Hybrid Financing Techniques

• Developments in “Traditional” and “Synthetic” Securitization
• Securitization and the “Shadow Banking System”
• Leveraged Loans and Bonds and Hybrid Debt Structures
• The Future of Securitization and Hybrid Financing

Rating Agencies – a Revised Framework

• Existing Framework
• Proposed EU Regulation
• Regaining Trust in Ratings

New Investment Products and Risk Management Tools

• Developments in Equity, Bond and Derivative Markets
• Recent Innovations in “Structured Products”
• New Tools for Integrated Risk Management and Capital Allocation

Outlook, Summary, Evaluation and Termination of the Seminar