ISF South Africa Masterclass


Table Bay Hotel, Cape Town, South Africa

23 May 2019

Agenda


08:00 Registration

09.15: Keynote: Geopolitics, national elections & implications for markets

9.45: Panel: 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.

10.35: Panel: 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

11:25 Coffee break


12.00: Panel: Responsible Securities Lending: Balancing Good Governance with Revenue-Generating Activities

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?


12:45: Networking lunch

14:00: Panel: 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 How is a declining South African hedge fund industry impacting demand? How is the trend to more passive management affecting the market locally?
o What are we seeing internationally?
o What type of inventory do borrowers prefer and why?
o Viceroy: irresponsible research or essential whistleblowing?

14.50
• 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


15.40
• Tax update

 

16:10 Closing remarks

 

16:00 Drinks reception

 

18:00 SASLA drinks (TBC)

 

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.

 

 

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/ 

 

 

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.

 

 

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.

 

 

 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.

 

 

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.

 

 

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

 

 

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.

 

 

Venue


Table Bay Hotel

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