ISF South Africa Masterclass


Table Bay Hotel, Cape Town, South Africa

23 May 2019

 

South Africa’s securities finance market continues to grow and attract international attention. The 2019 ISF South Africa Masterclass will explore how the areas of stock loan,
repo and collateral can act as an alpha generator for the buy-side when managed correctly.

Join 200 delegates and speakers for a full day conference, to discuss the opportunities and challenges faced in the South Africa Securities finance market.

Agenda


08:00 Registration

09:00 Welcome Address
Will Browne,
Commercial Director, Global Investor Group 

09:05 Opening Remarks
Jean Turner,
Chairperson, SASLA

09:10 Keynote: Geopolitics, national elections & implications for markets
Goolam Ballim, Chief Economist, Standard Bank

 

09:45 Key Regulation and Market Developments Impacting Securities Finance

Local
o Benefits v costs of short sale disclosures in South Africa
o Conduct Standards for SFT participants – what is the significance?
o Who regulates? – Self regulation vs Twin Peaks

Global
o SFTR – how will it affect the global industry and South Africa specifically?
o Importance of securities finance data and how to use is properly
o Impact of margin requirements for non-centrally cleared derivatives
o Pledge vs outright transfer – the associated benefits and risks.

Moderator: Chandler de Kock, Head of Institutional Client Group, Global Markets, HSBC South Africa

Speakers: 

James Day, 
Managing Director & Business Executive for Securities Finance in EMEA, BNY Mellon
Ash Sadie, 
Partner, Financial Services Advisory, Deloitte
Brett Kotze, 
Head Post Trade Services,
 A2X Markets
Michael Kabai, 
Senior Manager: Market Infrastructures and SROs, FSCA
Bridget King, 
Director - Finance & Banking, CDH 

10:35 Collateral Management - How Efficient is the Market?

o What changes are occurring to the status quo in collateral management in South Africa and globally?
o Are South African margin requirement punitive by global standards?
o Operational challenges in managing collateral and technology to help
o The development of South Africa’s CCP
o G20 regs pushing for CCP structure and ability for market to respond
o The status of tri-party collateral arrangements in South Africa
o Launch and impact of Integrated Trading and Clearing (ITAC)
o The future of collateral and collateral agents

 Moderator: Llewellyn Ford, Head of Market Services, Standard Bank

Speakers:
Philip Thuthuka Dube, Head of Equity Finance, Investec
Steve Everett, 
General Manager, Strate
Alex Comninos, 
Head: Post-trade Operations, JSE
Staffan Ahlner,
Managing Director, Head of Collateral ManagementBNY Mellon
Jamie Anderson, 
Global Head Financing and Collateral Trading,
 HSBC PLC 



11:25 Coffee break

 

12:00 Demand-Side Perspective: Evolving Market Dynamics
o What are the drivers of stock loan demand and how are they changing? International vs South Africa
o What is the current state of South Africa's Hedge Fund industry? How is the trend towards more passive management effecting the market? 
o What are we seeing internationally?
o What type of inventory do borrowers prefer and why?
o Viceroy: irresponsible research or essential whistleblowing?

Moderator: Matthew Arnott, Head of Equities, Deutsche Bank

Speakers:
Rajesh Chhana,
 Head Securities Lending, Investec
Lebo Moropa, 
Vice President, Prime Finance, J.P. Morgan
Alastair Sellick, 
Joint Head Fixed Interest, Cadiz Asset Management
Garreth Montano, 
Director
Corion Capital



12:45 Networking lunch

 

14:00 Responsible Securities Lending: Balancing Good Governance with Revenue-Generation

o Who are the active participants?
o What have been the notable lending trends of late? International v’s South African
o Are revenues healthy? Do the benefits of lending outweigh the costs and risks?
o Is securities lending a scale game?
o What more can be done to make funds comfortable with lending securities?
o Negative media, misinformation and its reputational damage to the market
o Agency vs principle and where the risk sits
o Are providers investing to support best governance and capabilities?

Moderator: Michael Wright, Senior Manager, Securities Lending, Nedbank

Speakers:
Taona Munzvandi, 
CEO, GMB Pension Fund
August Sander, 
Head of Securities Lending, Sanlam
Ben Meyer, 
Index Solutions Specialist, Ashburton Investments
James Day, 
Managing Director & Business Executive for Securities Finance in EMEA, BNY Mellon
Kelle Gagné, Director, Banking and Finance, ENSafrica

14:45 What’s driving liquidity in repo markets?

o What are the fundamental characteristics of the South Africa repo market?
o Uses and users – are things changing? Major trends at play.
o What could regulators do to expand the repo market?
o Are there new ways of accessing the repo market?
o Efficiency of the repo market


Moderator: 
Lynden Reabow, 
Head of Fixed Income, AG Capital

Speakers:
Naomi Sekgobela, 
Bond Repo Trader, RMB
Gill Raine, 
Senior Policy Advisor, ASISA
Ena Hewitt,
 Senior Trader, Capital & Derivative Markets, ABSA
Gregg Bayly,
Portfolio Manager, Southchester Investment Managers


15:30 Technology, Automation & Market Themes

· How is automation changing day to day processes within the SA market?
· What technology enhancements are used on desks and the subsequent impacts to clients?
· With trade execution automation, what is the view on books & records software which for some firm dates back 20+ years?
· Collateral basket trading (upgrades/downgrades) remains largely manual, what is the view re automation?
· How are larger bank projects and priorities impacting Securities Lending desks?
· Importance of securities finance data and how to use is properly 
· When do banks plan to move to API?
· How, if at all can AI benefit the industry?

Moderator: Juanita Taylor, Head of Securities Lending, Standard Bank

Speakers: 
Emily Hollyoake, 
Client Relationship Manager, EquiLend
Belinda Kasch, 
Business Owner SLB, IRESS Financial Markets
Natasha Williams, 
Equities Finance Trader, ABSA
Tania Riviere, 
Head of Securities Lending, Navigare
Kelly Robinson, 
Collateral Management Services Manager, Strate


16:15 Closing remarks

16:20 Drinks reception

18:00 SASLA drinks
Two Oceans Aquarium, Dock Rd. V & A Waterfront, Cape Town 8002

 

 

 

Speakers


 

Staffan Ahlner, Managing Director, Head of Collateral Management, BNY Mellon 
Jamie Anderson, Managing Director, Head of Collateral Treasury Trading, HSBC PLC
Matthew Arnott, 
Head of Equities, Deutsche Bank
Goolam Ballim, Chief Economist, Standard Bank 
Gregg Bayly, 
Portfolio Manager, SouthChester
Will Browne, Commercial Director, Global Investor Group
Alex Comninos, Head: Post-trade Operations, JSE
Rajesh Chhana,
Head Securities Lending, Investec
James Day, Managing Director & Business Executive for Securities Finance in EMEA, BNY Mellon
Phillip Thuthuka Dube, Head of Equity Finance, Investec
Steve Everett, General Manager, Strate
Llewellyn Ford, Head of Market Services, Standard Bank
Ena Hewitt, Senior Trader, Capital & Derivative Markets, ABSA
Emily Hollyoake, Client Relationship Manager, EquiLend
Belinda Kasch, Business Owner SLB, IRESS Financial Markets
Chandler de Kock, Head of Institutional Client Group, Global Markets, HSBC South Africa
Brett Kotze, Head Post Trade Services, A2X Markets 
Ben Meyer,
Index Solutions Specialist, Ashburton Investments
Garreth Montano, Director, Corion
Lebo Moropa, Vice President, Prime Finance, J.P. Morgan
Taona Munzvandi, CEO, GMB Pension Fund 
Andrew Neil, Securities Finance Editor, Global Investor Group
Tania Riviere, Head of Securities Lending, Navigare
Gill Raine, Senior Policy Advisor, ASISA
Lynden Reabow, Head of Fixed Income, AG Capital
Kelly Robinson,
Collateral Management Services Manager, Strate
Ash Sadie, Partner, Financial Services Advisory, Deloitte
August Sander, Head of Securities Lending, Sanlam
Naomi Sekgobela, Bond Repo Trader, RMB
Alastair Sellick, Joint Head Fixed Interest, Cadiz Asset Management
Juanita Taylor, Head of Securities Lending, Standard Bank
Jean Turner, Chairperson, SASLA
Natasha Williams, Equity Finance Trader, ABSA
Michael Wright, Senior Manager, Securities Lending, Nedbank
Kelle Gagné, 
Director, Banking and Finance, ENSafrica
Michael Kabai, 
Senior Manager: Market Infrastructures and SROs, FSCA
Bridget King, 
Director - Finance & Banking, CDH

 

 

Lead Sponsor


 HSBC South Africa

 

 

 

The HSBC Group established a presence in sub-Saharan Africa in 1981 and entered the South African market in 1995. It expanded its regional operations by
opening a corporate and institutional bank in Johannesburg in 2003. Initially a branch of HSBC Bank plc (incorporated in the United Kingdom), in 2007, the
Johannesburg office became a branch of The Hongkong and Shanghai Banking Corporation Limited (incorporated in Hong Kong). Today, HSBC Africa’s principal
activity is global banking and markets, which is managed out of the regional hub in Johannesburg. HSBC Africa’s commercial banking business offers services to
large local and international corporates. 

Strategic global presence and local expertise 

HSBC Africa is able to provide global reach and connectivity as well as in-depth local knowledge to its clients with international advisory, financing and trading needs. 
Our clients are able to access proprietary research on economics, currencies, fixed income and climate change. HSBC’s analysts draw from considerable industry and
market knowledge to offer thoughts on specific investments and asset classes.

 

 

Sponsors 


 

ABSA Bank

Absa Bank Limited (‘Absa Bank’) is a wholly-owned subsidiary of Barclays Africa Group Limited, which is listed on the Johannesburg Stock Exchange and
is one of Africa’s largest financial services groups. Absa offers a range of retail, business, corporate and investment banking and wealth management and
insurance products and services primarily in South Africa and Namibia.

Barclays Africa Group is represented in 12 countries, with approximately 40 000 employees. As of June 2017, Barclays PLC is a minority shareholder in
Barclays Africa Group. For further information about Absa, please visit our website www.absa.co.za

 

 

AG Capital

AG Capital is a South African based business, with global reach, providing intermediary financial services to institutions, funds and professional investors.
Our offering includes trading and execution solutions, hedge fund incubation services as well as prime services to our clients. Founded in 2010, AG Capital
is a licensed financial services provider (FSP No. 43325) with our head office in Cape Town.  Our approved licenses include category 1, 2 and 2A, enabling
us to provide intermediary services and advice together with discretionary hedge fund services.  

OUR SERVICES
BROKING AG Capital provides intermediary services across various asset classes, including equities, derivatives and bonds.

PRIME SERVICES AG Capital’s prime services division is headed up by Ryan Aufrichtig. Ryan has over 20 years’ experience in the financial services
and prime finance industry. 

HEDGE FUND PLATFORM Incubation AG Capital provides incubation services, which includes middle and back office assistance, risk management and
compliance monitoring. Our platforms are available to established external managers to ensure the successful hedge fund incubation as well as prime
broking facilitation. 

 

 

 

Axon Xchange

ABOUT AXON XCHANGE
Axon Xchange (Pty) Ltd was founded in 2001. The following year, we entered into a joint venture (JV) with the Johannesburg branch of Société Générale.
This 18-year partnership came to an end at the start of 2019 when Société Générale withdrew from South Africa. This provided Axon Xchange with the
opportunity to offer a securities lending and borrowing function under our own brand.

Drawing on the success achieved during the joint venture, and the knowledge base built up over almost two decades, the managing members of Axon Xchange
are confident that they can continue to deliver exceptional client service and expertise.

These are exciting times in financial markets world, and securities lending is more necessary than ever.

WHAT WE DO
Securities lending supports domestic and international financial stability by enabling enhanced liquidity and pricing efficiency. This vital function permits greater
flexibility in securities, cash and derivatives markets.

For a fee, securities (or stocks) are transferred temporarily from the lender to the borrower, with the borrower being obliged to return them on demand or at the end
of an agreed fixed term (which cannot exceed 1 year). In return, the borrower must provide the lender with collateral in the form of cash or non-cash securities of
greater value than the securities being lent. This protects the lender against counterparty credit risk.

As a highly specialised securities lending and borrowing agency, Axon Xchange is a market leader in the agency model and acts on behalf of a wide range of local
and international lenders and borrowers.

 

 

Deutsche Bank 

Deutsche Securities (Pty) Ltd is a wholly owned subsidiary of Deutsche Bank AG, a company listed on the Xetra Stock Exchange operated by the Deutsche Borse.
Deutsche Bank AG is global financial service provider offering a full suite of financial  products including equity, debt, foreign exchange, derivatives, commodities,
money markets, securitisation, cash equities, research, prime services, private wealth and asset management and corporate finance and advisory services.
The bank  has over 90 000 employees and operates in some 60 countries covering 5 continents.

A local presence  with global expertise

Deutsche Bank has a long and proud history in South Africa. Having established a representative office in 1979, Deutsche Bank expanded its presence through the
acquisition of leading local stockbroker Ivor Jones, Roy & Co in 1995 and subsequently opened a branch of Deutsche Bank AG in 1998.   Headquartered in Johannesburg,
Deutsche Bank in South Africa offers equity and  debt trading,  derivatives, corporate finance and advisory services, prime finance  and securities lending activities.
The integration of the South African  office with the global network allows  the local office to leverage international expertise and global best practice.
Our deep reach in the securities lending market makes DB a partner of choice for securities lending and prime services.

For more information please visit https://www.db.com/southafrica/index.htm

 

EquiLend

 

 

 

EquiLend is a leading provider of trading and post-trade services for the securities finance industry with offices in New York, London, Hong Kong and Toronto.
EquiLend is owned by BlackRock, Credit Suisse, Goldman Sachs, J.P. Morgan, J.P. Morgan Chase, Bank of America Merrill Lynch, Morgan Stanley,
Northern Trust, State Street and UBS.

Used by securities borrowers and lenders globally, the EquiLend platform (for equities) and BondLend platform (for fixed income) automate formerly manual trading
and post-trade processes in the securities finance industry. DataLend provides performance reporting and aggregated, anonymized, cleansed and standardized securities
finance data covering all asset classes, regions and markets globally. EquiLend Clearing Services operates the ECS Middle Office and the ECS Gateway, which offer CCP
services and connectivity http://www.equilend.com/ 

 

 

 

Investec Specialist Bank

 Investec Equities is an integrated Securities, Prime Services and Product Trading business which forms part of our Corporate and Institutional Banking division (ICIB). 
Our Prime Services team understands the importance of supporting our clients across a wide range of investment strategies and products, ensuring that we continue
to deliver a core suite of market leading services to the Global marketplace. These include, but are not limited to, research, execution, reporting, securities lending,
clearing, structured financing, alternative investment products & solutions. Our high quality service is driven by an experienced, dedicated and specialist team of
professionals who act as a single point of contact for clients. We are committed to building a partnership to create customised solutions to suit your unique risk appetite,
strategic and growth objectives.

 

 

Iress

We design, develop and implement unified software solutions for the financial services industry. Whether you’re trading on global financial markets,
managing investments, providing mortgages or helping your clients plan their financial future; you can rely on our software, and our team, to deliver
real outcomes for your business and your clients. Our complete end-to-end solutions enable you to engage and service your clients across all channels,
achieve operational efficiencies, make considered decisions, in addition to monitoring and managing risk. What’s more, we don’t believe in a one-size-fits-all
approach. Our solutions flex to your business and commercial objectives – from standardised outof-the-box implementations to fully tailored solutions.
Our proven technology, expertise and implementation track record means that businesses of all sizes choose to partner with us – from the world’s most
iconic financial services brands to small business entrepreneurs. Above all else, we have an unwavering focus on what’s most important: deliver outcomes
today, develop for tomorrow and design for the future.

 

 

 J.P. Morgan

 

 

We are committed to our business in South Africa, and we are one of the most prominent financial services firms in the country. From Johannesburg and Cape Town,
we provide clients with products and services from across our asset management and corporate and investment bank lines of business. Our branch in South Africa is
an authorised financial services provider. J.P. Morgan has operated in Europe for nearly 200 years and has a sophisticated local market presence across Europe,
the Middle East and Africa (EMEA). Within the region, J.P. Morgan has an unparalleled client base and leadership across the spectrum of financial services products.
The regional head office in London is complemented by a strong regional footprint, with offices in all major financial centers. Globally, through the JPMorgan Chase
Foundation, we make philanthropic investments in cities where we have major operations, assisting those at a disadvantage by helping them build better lives for
themselves, their families and their communities. Across EMEA, the firm focuses its investment and attention on three pillars: Economic Development, Financial
Empowerment and Workforce Readiness. J.P. Morgan is a global leader in financial services, offering solutions to the world's most important corporations, governments
and institutions in more than 100 countries. The Firm and its Foundation give approximately US$200 million annually to nonprofit organizations around the world.
We also lead volunteer service activities for employees in local communities by utilizing our many resources, including those that stem from access to capital, economies
of scale, global reach and expertise.

 

 

 

Nedbank

Nedbank CIB is the wholesale banking arm of the Nedbank Group, and manages the Group’s structuring, lending, underwriting, custodial and
trading businesses. The full-spectrum offering includes vanilla and specialised funding, such as for mining and resources, aircraft finance,
export credit finance, sector-specific solutions encompassing energy, infrastructure, oil and gas, and telecommunications.

Nedbank has a presence across SADC and representative offices in Angola and Kenya. In West and Central Africa, Nedbank CIB has a 20%
shareholding in Ecobank Transnational Incorporated (ETI), enabling a one-bank experience across the largest banking network in Africa,
comprising more than 2 000 branches in 39 countries.

Nedbank CIB is also in key global financial centres to provide international banking services in London, Isle of Man, Guernsey, Jersey, Toronto,
Dubai and Mauritius.

A diverse client base across Africa is catered for including leading corporations, financial institutions, state-owned entities and governments.
www.nedbank.co.za/cib

 

 

RMB

 

Rand Merchant Bank (RMB) is a leading African Corporate and Investment Bank and part of the largest financial services groups (by market capitalisation)
in Africa – FirstRand Bank Limited. We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal investing solutions.

At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted thinking. We analyse and seek
solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities. We call ourselves Solutionist Thinkers who deliver
on Traditional values.Innovative ideas.

As the Corporate and Investment arm of FirstRand Bank Limited (which is wholly-owned by FirstRand Limited), we have access to a network of retail banks
in 25 African countries, including Representative Offices and Branches in the UK, India, China and the Middle East.

For more information please visit: www.rmb.co.za

 

 

 

Sanlam

 

 

Sanlam Investments is one of South Africa’s largest investment management companies. We offer a comprehensive range of local and offshore investment
products to end-investors, financial planners and institutions. Our investment options include passively and actively managed unit trusts, hedge funds and
segregated and pooled retirement fund.
Sanlam Structured Solutions (“SSS”) is a division of Sanlam Investment, developing and providing structured investment and retirement solutions for the
institutional and retirement fund industry. Our specialised team has the systems, and ability to research, analyse, implement and administer various investment
strategies for clients in order to enhance returns, and/or provide protection.

 

 

 

Standard Bank

 

Standard Bank South Africa is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group reported total assets
of R1,95 trillion (about USD143 billion) at 31 December 2016, while its market capitalisation was R246 billion (USD18 billion).

In South Africa, Standard Bank provides the full spectrum of financial services. Its Corporate & Investment Banking (CIB) division serves a wide range of requirements
for banking, finance, trading, investment, risk management and advisory services. CIB delivers this comprehensive range of products and services relating to:
investment banking; global markets; and global transactional products and services.

Standard Bank’s CIB’s expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and
renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.

Standard Bank’s Personal & Business Banking (PBB) offers banking and other financial services to individuals and small-to-medium enterprises. PBB’s product offering
includes transactional services, lending products, mortgage lending, card products, vehicle and asset finance and wealth.

 

 

 

Strate

 

Strate is a South African Central Securities Depository. It is a licensed financial market infrastructure that owns technology to electronically settle securities
within South Africa, allowing it to securely hold equities, bonds and money market securities in electronic form so that buyers and sellers can exchange ownership
of these securities once they are successfully traded.

Strate is an independent company, serving multiple stock exchanges in South Africa as well as their respective issuer clients. It also facilitates corporate action
(such as dividends) payments for those issuers, as well as other services in terms of South African legislation. In addition, value-adding services are available,
such as collateral management, IT services and training.

 

Sygnia 

Sygnia is an innovative FinTech company based in South Africa and listed on the main board of the JSE. The company provides asset management,
stockbroking and administration services, as well as a wide range of savings products, to institutional and retail clients. All that we do is supported by
leading-edge technology platforms.

Sygnia manages and administers assets on behalf of over 600 domestic and international institutional clients, and over 6 000 individual clients.
The integrity of these relationships is the core of our business.

 

Venue


Table Bay Hotel

Quay, 6 W Quay Rd
V & A Waterfront, 
Cape Town, 8001
South Africa