Collateral Management Webinar - 12 October 2012
The COOConnect Webinar on Collateral Management: What Collateral Managers can do for Hedge Fund Managers
- Ross Whitehill, Collateral Management, BNY Mellon,
- Ben Broadley, Senior Business Analyst, Advent Syncova
- Hélène Virello, Head of Collateral Management, BNP Paribas Securities Services,
- Fergus Pery, Director, Citi and Global Head of OpenCollateral, Citi Transaction Services
See below for full panel profiles.
- Dominic Hobson, Founding Partner, COOConnect
Collateral is scarcer and more valuable than ever. It has long been a condition of access to borrowed stock. Increasingly, it controls access to liquidity, from commercial as well as central banks. Possession of the right sort of collateral – or the ability to gain access to it quickly – already governs the ability to trade futures and options and, now that OTC derivatives are switching to centralised clearing, will soon govern the ability to trade swaps as well.
Even where collateral is not being used, investors expect their fund managers to ensure it is kept safely, and can be mobilised quickly whenever it is needed. Although they are active across a range of markets that use collateral – repo, stock loan, Reg T futures and options and swaps- fund managers have not, unlike the prime brokers they use, sought to manage their collateral aggressively to ensure it is always being put its to its optimum use.
Now, with predictions of collateral shortages running into trillions of dollars, efficient collateral management is not a luxury but a necessity – because the cost of collateral is likely to have a direct impact on investment performance.
The discussion includes the following topics:
Fund managers have plenty of collateral they can profit from by making it available to the market (safely) Fund managers are uneasy about investment bank credit, and want to appoint third parties to (a) segregate, safekeep, asset-service, value and report on the whereabouts of their collateral (b) post it on their behalf to clearing brokers, cash or stock counterparties and CCPs (c) ensure it is always being put to its optimum use (d) mobilise it within and across borders when it is trapped in domestic markets (e) transform/upgrade it to eligible collateral when necessary and (f) understand and mitigate the particular risks of cash collateral posted to clearing brokers and/or CCPs, especially in an event of default What will third party collateral management actually cost (both fees and opportunity costs) by comparison with traditional prime brokerage with full re-hypothecation? What scope will independent management create to economise on the use of collateral? Why are so few banks offering third party collateral management services to the buy-side?
Ben Broadley, Senior Business Analyst, Advent Software
Ben Broadley is a Senior Business Analyst for Advent Software helping to evolve and innovate Advent’s Syncova product into new business areas as well as design solutions that meet clients’ needs as the market and their business requirements change. Ben has been with Advent Syncova for two years, and, prior to that, helped drive change at Cheyne Capital throughout the middle office before working on the risk management desk.
Ross Whitehill, Head of D360 EMEA
Ross Whitehill’s role at BNY Mellon is Head of D360 EMEA/APAC. He is responsible for the development of the group’s business in the region focusing on strategy, structure, impact of market regulation and determining how best to implement product/service solutions for clients. His previous role was Business Manager & Head of UK & Ireland, Nordics, Offshore Funds, Africa and Middle East for the Asset Servicing business. In the 13 years prior to joining BNY Mellon, Ross assisted develop the international consulting practice at Thomas Murray advising clients such as The World Bank, Washington; Shell Asset Management Company, Netherlands; Future Fund, Australia, the New Zealand Superannuation Fund; Skandia, Sweden; Ilmarinen, Finland; AXA Insurance, Europe. Ross had previously managed Morgan Stanley’s European Sales Group for Prime Brokerage, Securities Lending, MSCI and the Trust Company.
Hélène Virello, Head of Collateral Management and Independent Valuation Services for OTC Derivatives
BNP Paribas Securities Services Since July 2010, Hélène Virello is Head of Collateral Management and Independent Valuation Services for OTC Derivatives. She is also responsible for the Securities Services OTC Roadmap. Helene joined BNP Paribas in 1997 as Head of Product Development for Fund Services. She has been appointed Head of Corporate Development in 1999 and conducted several strategic initiatives for Securities Services. She started her career with 10 years in the Financial Industry as a Treasury Corporate and a Consultant. Helene is a graduate from HEC Business School.
Fergus Pery, Director at Citi and Global Head of OpenCollateralSM, Citi Transaction Services
OpenCollateralSM provides collateral management services for asset managers, insurance companies, regional banks and public sector clients. Fergus leads the product's strategy, development and management globally and is responsible for ensuring the OpenCollateral solution meets clients current and future requirements for counterparty risk mitigation, transparency and efficiency. In this role he works closely with Citi's OTC Clearing and Derivatives Middle Office functions to deliver an end-to-end derivatives capability for investor clients. Fergus joined Citi from J.P. Morgan where he was responsible for collateral management sales in Europe. Prior to this, Fergus spent two years with Fitch Ratings leading business development of derivatives services, having previously held a variety of sales and product management roles in the financial software industry. Fergus began his career in the technology sector, has a degree in Engineering from Oxford University and is a Chartered Engineer.
For more information call:
Tel: +44 (0) 7769 277 927