SINGAPORE
PROFIT&LOSS
NOVEMBER 9, 2017
Contents: Chairman’s Introduction: David Clark...................................................4 Keynote: Andrew Ng.............................................................................5 Asia Growth Outlook: Sustaining the Momentum ................................6 Liquidity: The Ultimate Illusion..............................................................8 Is Mainstream Appeal of Cryptocurrencies Inevitable?......................10 Execution: Cause & Effect ..................................................................14 House of Cards ...................................................................................16 FinTech: Promise or Peril? ..................................................................18 The Global Code.................................................................................20
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
Chairman’s Introduction
David Clark, Chairman, The Wholesale Market Brokers’ Association Honorary Past President, ACI – The Financial Markets Association 4
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
PROFIT&LOSS
Keynote
Andrew Ng, Group Executive, Head of Treasury & Markets, DBS; President, ACI Singapore www.profit-loss.com
5
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
Asia Growth Outlook: Sustaining the Momentum
David Clark, Chairman, WMBA Taimur Baig, Chief Economist, DBS Bank Callum Henderson, Head Global Markets Research, Eurasia Group David Mann, Chief Economist, Asia, Standard Chartered
6
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
www.profit-loss.com
PROFIT&LOSS
7
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
Liquidity: The Ultimate Illusion
Moderator: Colin Lambert, Managing Editor, Profit & Loss Martin Watson, Global Head – G10 FX e Trading , Citi Gaurav Malhotra, Executive Director & APAC Head of Principal Electronic Trading FX, Rates & Credit, UBS AG Nick Ferres, CIO, Vantage Point Asset Management KC Lam Head of FX & Rates, SGX Jeff Ward , Global Head of NDFs & Forwards, , Head of FX Asia, NEX Markets
8
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
www.profit-loss.com
PROFIT&LOSS
9
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
Peer2Peer: Is Mainstream Appeal of Cryptocurrencies Inevitable?
Peter Sin, Co-Head of Digital Currency Sub-Committee,ACCESS-Singapore Cryptocurrency and Blockchain Industry Association Galen Stops, Editor, Profit & Loss
10
www.profit-loss.com
Profit & Loss sHANGHAi • 2017
www.profit-loss.com
PROFIT&LOSS
11
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
Coffee Break, Exhibition Hall
12
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
www.profit-loss.com
PROFIT&LOSS
13
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
Execution: Cause & Effect
Moderator: Colin Lambert, Managing Editor, Profit & Loss Kenneth Ho, Head of FX e-Distribution, Asia, Morgan Stanley Ping Tan, Global Head of eFX Liquidity, Head of Asia eFX Trading, Bank of America Merrill Lynch Mark Bruce, Head of FICC, Jump Trading Jay Hurley, Regional Head of eFX, APAC, State Street Jonathan Woodward, Head of Transaction Sales, Asia Pacific, Thomson Reuters
14
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
www.profit-loss.com
PROFIT&LOSS
15
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
House of Cards
Moderator: David Clark, Chairman, WMBA Nick Clark, Director, Head of Hedge Fund & PB FX Sales, NatWest Markets Paul Houston, Global Head of FX Products, CME Group Campbell Cleland, Head of APAC Sales & New Products, FXSpotStream Henry Weindling, Sales and Relationship Manager, LCH
16
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
www.profit-loss.com
PROFIT&LOSS
17
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
FinTech: Promise or Peril?
Moderator: Galen Stops, Editor, Profit & Loss Julian Chesser, MD, Head of Markit-SERV, Asia Pacific, IHS Markit Jacqueline Liau, MD, Head of FX e-Distribution, Asia Pacific, HSBC Justin Slaughter, Consultant, Mercury Strategies
18
www.profit-loss.com
Profit & Loss siNGAPorE • 2017
www.profit-loss.com
PROFIT&LOSS
19
PROFIT&LOSS
Profit & Loss siNGAPorE • 2017
speaking at Profit & Loss’ conference in singapore, central banks emphasised that they plan to lead by example when it comes to the fX Global Code of Conduct.
Leading by Example he full version of the Code was formally launched by the Bank for International Settlements’ (BIS) FX Working Group in May 2017, and contains 55 principles covering areas including ethics, transparency, governance and informationsharing. One of the biggest questions surrounding the Code is how the adherence mechanisms will work, given that it is does not have the status of regulation and therefore signing up to it is optional. This was addressed head on by representatives from the Bank of England (BoE) and the Monetary Authority of Singapore (MAS), who said that to start with the central banks that helped develop the Code plan to sign up to the statement of commitment contained within it. Then, looking more broadly at the firms that participate in the FX market, the central banks said that they thought about how to use their influence to help encourage adoption of the Code.
T
20
One obvious area of influence is that the central banks determine which market participants sit on their local FX committees, and could therefore require any firm wishing to be a member of these committees to sign the Code’s statement of commitment. A second area of influence is that the central banks themselves are, by necessity, part of the FX ecosystem and therefore can chose to only trade with counwww.profit-loss.com
terparties that are adhering to the tenants of the Code. It was pointed out that in Singapore many firms are still doing their internal analysis regarding adherence, but that the expectation is that many will sign up to the Code before the anniversary of its launch. However, it’s worth pointing out that the speakers did note a disparity between different market partici-
Profit & Loss siNGAPorE • 2017
PROFIT&LOSS
The Global Code
Moderator: David Clark, Chairman, WMBA Chee Kin Lam, MD, Head Group Legal, Compliance & Secretariat, DBS Bank Cindy Mok, Head of Monetary & Domestic Markets Management Department, MAS
pants approaches to the Code. “I bucket this into three different categories: the sellside response, the buy-side response and the response from regional centres,” said one speaker. They added that on the sell-side there is a very clear understanding of the Code’s requirements and that they expect very widespread adoption of it. The only complication unique to Singapore, the speaker
noted, is that the Singapore Foreign Exchange Market Committee (SFEMC) already has “The Singapore Guide to Conduct and Market Practices for Treasury Activities”, also commonly referred to as “The Blue Book”, that firms have to adhere to. They said that the sell-side is still looking for clarity about exactly how The Blue Book will interact with the Code. “I don’t think that the sell-side will be a problem www.profit-loss.com
though,” they concluded. “The buy-side is on a different journey, I think there are different levels of understanding but that slowly they’re come on board. Where I think we can probably still do a bit more advocacy is in the regional centres, which weren’t part of the original exercise. I think we could do a bit more outreach there to make sure that we get a certain parity of conduct.” 21