CCP Clearing Hong Kong by Storm-7 Consulting

CCP CLEARING RISK MANAGEMENT

RECOVERY AND RESOLUTION (HONG KONG)

2019

THE EVENT PROGRAMME

This new and highly unique event will provide delegates with a comprehensive understanding of central counterparty (CCP) clearing models and operational frameworks in Hong Kong.

Delegates will be able to practically compare a range of key issues affecting CCP offerings in Hong Kong. The event will also provide deep coverage of margining practices, clearing models and agreements, operational risks, and risk management frameworks affecting CCPs.

Delegates will receive in depth instruction on the Hong Kong CCP regulatory framework governed by the Hong Kong Monetary Authority.

Delegates will also be guided through the intricacies of effective CCP Recovery and Resolution Plans, and CCP Default Management, Recovery and Continuity Frameworks.

KEY BENEFITS:

KEY TAKEAWAYS:

• Comprehensive event documentation (200+ page training course manual, training course materials, eight PowerPoint presentations). • Extensive pre-event Questionnaire to identify delegate’s key course objectives. • Post-course Expert Trainer follow-up to guarantee all key event objectives have been met. • Storm-7 Consulting have trained some of the world’s top CCPs and Clearing Houses such as Eurex Clearing AG and Dubai Financial Market. • This is one of the most comprehensive and advanced CCP clearing, regulatory and risk training courses in the world.

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You will be trained in a broad range of cutting edge areas governing CCP regulatory and risk frameworks. You will gain advanced knowledge and understanding of key CCP operational areas (Hong Kong regulatory framework, clearing models, agreements, margining practices, operational risks, recovery and resolution plans). You will be granted access to one of the most comprehensive CCP materials libraries in the world. You will be provided with a Certificate of Attendance which confirms two days of Continuing Professional Development (CPD) hours.

EVENT SUITABLE FOR: • • • • • • • • • • • • • • • • • •

ANALYSTS CENTRAL BANK PERSONNEL COLLATERAL MANAGERS COMPLIANCE OFFICERS COMPLIANCE MANAGERS CREDIT AND LEGAL PROFESSIONALS DEALERS FUND MANAGERS HEADS OF COMPLIANCE HEADS OF OPERATIONS HEADS OF RISK IN-HOUSE LEGAL COUNSEL ISDA NEGOTIATORS OTC DERIVATIVES DOCUMENTATION MANAGERS OTC DERIVATIVES END-USERS RISK OFFICERS AND MANAGERS TREASURY FUNCTION

BOOK NOW: CONTACT: TELEPHONE: EMAIL: ONLINE:

Client Services UK +44(0)20 7846 0076 client.services@storm-7.com www.storm-7.com

DAY 1

SESSION 1: THE CENTRAL COUNTERPARTY (CCP) CLEARING MODEL

• An Overview of the CCP Clearing Model (Functional Definition; CCP Ownership; CCP Advantages and Disadvantages; Novation; Cleared Products; Margining; Multilateral Netting; Risk and Default; Loss Mutualisation; Auctions; Portability). • CCP Regulation v. ‘Too Big To Fail’. • Case Study: Asia Pacific Clear PTE. LTD.

SESSION 2: THE HONG KONG CCP REGULATORY FRAMEWORK

• Differentiating CCPs in Hong Kong. • HKMA and HKSFC CCP authorisation, recognition and supervision. • CCP operating, clearing and reporting obligations under the Hong Kong regulatory framework. • CCPs and cleared products (swaps, securities-based swaps, mixed swaps).

SESSION 3: CCP CLEARING MODELS AND AGREEMENTS (DIRECT AND INDIRECT) • CCP and Client Clearing Documentation and common negotiated provisions (Margin, Termination Events,Pre-Default Porting). • Customer clearing under modified Master Agreements. • An Overview of ISDA® Clearing Agreements and Addendums (US ISDA/FIA Cleared Derivatives Execution Agreement + Addendum).

SESSION 4: DESIGNING EFFECTIVE CCP DEFAULT MANAGEMENT, RECOVERY AND CONTINUITY FRAMEWORKS

• The 2012 CPMI-IOSCO Principles for Financial Market Infrastructure. • The ISDA® Principles for CCP Recovery and CCP Default Management, Recovery and Continuity. • Developing new Total Loss Absorbing Capacity (TLAC) or bailinable debt standards for CCPs. • Developing Standardised Regulatory Stress Testing and Disclosure.

DAY 2

WORKSHOP 1: CCP OPERATIONAL RISKS • Default risks (CCP Member default, Distress, or Resignations; Failed Auctions, Reputational). • Non-default loss events (Fraud, Operational risk, Investment Risk, Legal risk, Model risk, Liquidity risk).

WORKSHOP 2: CCP RISK MANAGEMENT FRAMEWORKS

• Membership Requirements, Transparency, Margin Methodology, Stress Testing, Risk Policy Issues. • Mutualised Default Funds, Default Waterfall, Default Fund Margin, Skin in the Game, and Rights of Assessment. • Recovery Tools (Default and Non-Default Losses).

WORKSHOP 3: CCP MARGINING PRACTICES

• CCP Margining Risks, Initial and Variation Margin, Interest Rates, Haircuts and Cross-Margining. • CCP Margin Methodologies. • Margin Segregation (omnibus, individual, legal segregation with operational commingling (LSOC)) and Re-hypothecation. • Comparison of Hong Kong margin and U.S. one-day gross margin.

WORKSHOP 4: CCP RECOVERY AND RESOLUTIONS PLANS

• Resilience Incentives, Initial and Variation Margin Haircuts. • CCP Points of Non-Viability, Emergency Liquidity Arrangements, Auction Participation, Continuity of Service. • CCP Resolution Powers, Loss Allocation Arrangements, and CCP Default Management Process. • Cross-Border Cooperation and Coordination with Regulatory Authorities.

Disclaimer: ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc., and Storm-7 Consulting Limited is neither sponsored by nor affiliated with the International Swaps and Derivatives Association, Inc. (ISDA), and the public is hereby informed that Storm-7 Consulting Limited holds no commercial, private, or other relationship with ISDA.

ABOUT STORM-7 CONSULTING

Storm-7 Consulting is an international consulting company that provides premier intelligence, insight and support to global financial institutions. We provide cutting-edge conferences, events, public training courses, and in-house training courses to leading firms globally. We provide expert regulatory compliance training covering areas such as GDPR, MiFID II, AEOI (FATCA & CRS), MAD 2 MAR (Market Abuse), CRD IV, PRIIPs, Solvency II, PSD 2, CCP Clearing, AML/CFT, Stress Testing, and the Senior Managers and Certification Regime. We provide unique and highly innovative marketing services to firms operating in the banking, financial services, Regulatory Technology (RegTech), and Financial Technology (FinTech) sectors. We have received enquiries and bookings from leading firms around the world, such as the Abu Dhabi Investment Authority, Rothschild Investment Management (UK) Limited, Dubai Financial Market, CAF the Development Bank of Latin America, the Central Bank of Ireland, the Central Bank of Russia, APG Asset Management, Royal London Asset Management, Brandes Investment Partners, Eversheds, Erste Group, Millenium Information Technologies, Deutsche Bank, Bethmann Bank AG, ICBC Standard Bank, Gulf International Bank, Raiffeisen Bank International AG, and BGC Partners. We have collaborated with firms around the world, such as the United Kingdom Financial Conduct Authority, Thomson Reuters, Sopra Steria, Sungard, Capco, OTC Partners New York, IHS Markit, Eze Castle Integration, ICMBA Centre, Sybenetix, Heriot Watt University, JP Morgan Asset Management, Custom House Global Fund Services, Cass Business School, Rixtrema, Solum Financial, D2 Legal Technology, Eurekahedge, Financial IT, HedgeConnection, Alpha Journal, ATMonitor, HF Alert, and CrowdReviews.

PROFILE TRAINER EXPERT

Rodrigo Zepeda is Co-Founder and Managing Director of Storm-7 Consulting. He is an expert consultant who specialises in derivatives and banking and financial services law, regulation, and compliance. He is an expert in a very broad range of regulatory compliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4, and the GDPR. He holds a LLB degree, a LLM Masters degree in International and Comparative Business Law, and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as ‘FATCA for Latin American Firms’ (Santo Domingo, Dominican Republic, Panama City, Panama), ‘MiFID II: Regulatory, Risk, and Compliance (London), and ‘Market Abuse: Operational Compliance’ (London), ‘AEOI (FATCA & CRS)’ (Manama, Bahrain). He has also delivered numerous In-House Training Courses around the world to major international financial institutions such as The Abu Dhabi Investment Authority (MiFID II: Operational Compliance, Abu Dhabi, the United Arab Emirates), the United Nations Principles of Responsible Investment (MiFID II: Final Review, London), CAF, the Development Bank of Latin America (Swaps and Over-the-counter Derivatives, Lima, Peru), Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS), London) and Bethmann Bank AG (MAD 2 MAR, Frankfurt). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute’s Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include “Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation”; “The ISDA Master Agreement 2012: A Missed Opportunity”; “The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?”; “To EU, or not to EU: that is the AIFMD question”; and “The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?”.

‘‘The rise in the CCP clearing model in Hong Kong has precipitated an urgent need for market participants to comprehensively understand the complexities of CCP regulatory and risk frameworks, margining practices, clearing agreements, and recovery and resolution plans.’’