NeMa Insider 2016 by KNect365GlobalFinance

Featuring: THE COMING WORLD OF BLOCKCHAIN TECHNOLOGY

LIVE AND LEARN: THE T2S FEEDBACK LOOP

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GLOBAL SNAPSHOT A look at some of the key trends and issues playing out in the network management sector around the globe right now. UCITS V

Brexit Referendum AFME Due Diligence Update

CSDR & CSD Consolidation ISSAâ&#x20AC;&#x2122;s Principals On Financial Crime

FX Liquidity and Controls Panama Leaks

Brazil Slowdown

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Russian Sanctions

1. Bond Market Reforms 2. New Tax Issues 3. RMB Internationalisation CyberCrime and Central Bank Attack

FATCA/CRS

UCITS

New CSD (Granite) and Exchange (Zarx)

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CONTENTS PAGE TITLE

AUTHOR

Welcome

Andrew Barman, NeMa

The Coming World of Blockchain Technology

Ron Quaranta, Wall Street BlockChain Alliance

SEE Link: The future of regional capital markets

Ivana Gažić, Zagreb Stock Exchange

Live and Learn: The T2S Feedback loop

Ugo Bonaugurio, BNP Paribas Securities Services Italy

Utilising Questionnaires to Streamline the Due Dilligence Process

Stephen Burton, AFME

T2S and Beyond

Scott Coey, BNY Mellon

The Changing Paradigm for Network Managers

Charles Gubert

The Need for Strong, Integrated Technology

MYRIAD

EU Refugee Crisis Failures are a mark of its Absolute Decline

John Hulsman, Geopolitical Expert

Blockchain - a Matter of Thrive or Survive

Tanya Knowles, Strate

Looking Back at MESF 2016: A Snapshot of the Middle East Securities Landscape

Charles Gubert

NeMa Interviews

PAGE

SPECIAL THANKS & CREDITS NeMa Editor-in-Chief – Andrew Barman NeMa Insider Editor – Lucy Eldred Sponsorship – Holly Baldwin Contributors - Ron Quranta, Wall Street BlockChain Alliance; Ivana Gažić, Zagreb Stock Exchange; Stephen Burton, AFME; Charles Gubert; John Hulsman Sponsor Contributors – Ugo Bonaugurio, BNP Paribas Securities Services; Scott Coey, BNY Mellon; Tanya Knowles, Strate Advertisers – BCS Consulting; SEB; MYRIAD; Rumolo Café; Thomas Murray Data Services Design – Amigo

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WELCOME We hope you will enjoy this third edition of NeMa Insider which is published to accompany NeMa Europe being held this year in the beautiful environs of Dubrovnik – a perennial favourite with the NeMa family. It seems only yesterday that we were in Athens for NeMa 2015. With the recent news that Greece has agreed a deal to unlock a further 10.3bn euros in loans from its international creditors, memories are brought back about the possible meltdown of the Greek economy as we prepared for the conference.… This year we will be holding NeMa on the eve of the Brexit Referendum in the UK which once again poses unknown challenges and huge debate. We seem to have hit a bittersweet

spot at this event in being in the middle of huge economic and political events: never a dull moment! At this year’s event the discussions have moved on apace, and now that the first wave of T2S will be hitting a one year anniversary, it is time to reflect on what lessons we have learned, and what we can expect next. Emerging markets are having a tough time with the liquidity squeeze (as we all are), but we are seeing interesting developments in the China Bond Market, launching of the new ZAR X exchange in South Africa, and Fitch have now returned Hungary’s credit rating to investment grade with a stable outlook. Bright lights are hopefully emerging amongst all the bearish news.

But the big story is undoubtedly the march of FinTech and the perceived impact to the securities markets. Is it a solution in search of a problem? What are the hurdles and what is the industry consensus now? No other topic has divided industry views as much as this (with the exception of Brexit of course). We are delighted to have a number of panels at NeMa this year with key players discussing their thoughts – no doubt we will have some heated discussions. Again, never a dull moment at NeMa.

ANDREW BARMAN EDITOR-IN-CHIEF, NEMA 5

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The Coming World of Blockchain Technology Much has been written, and even more said, over the past twelve months or so across all sectors of the financial markets about the coming disruptive power of blockchain or distributed ledger technology. From trade execution to clearing & settlement to new asset classes and beyond, the dialogue has reached epic, and some would say overhyped, proportions. With a fundamental focus on post-trade, this article is meant to cut through the noise and help the reader understand what has truly developed, what innovations and uses we can expect and ultimately what this all means for financial markets and beyond.

A Utilizing distributed ledger technology to simultaneously confirm and settle trades, we can quickly see a future of reduced settlement times as well as minimized counterparty risk and collateral management costs. versus publicly-listed comparables

s many readers may already be aware, the term Blockchain first became public not long after the launch of the digital cryptocurrency known as bitcoin, and is essentially the underlying data management and record keeping technology associated with bitcoin. Alternate, independent blockchain implementations are associated with the vast majority of other digital currencies as well. Bitcoin was launched as open-source software in early 2009, by the pseudonymous Satoshi Nakamoto, based upon Nakamoto’s published 2008 whitepaper “Bitcoin: A Peer-toPeer Electronic Cash System”. (As of the date of this writing, we are in the midst of the latest round of speculation about the identity of Nakamoto, with an Australian entrepreneur claiming to have proof of his identity as Nakamoto. The issue is subject for another article, with this author’s perspective that Nakamoto’s true identity is, in fact, ultimately irrelevant). Without delving too deeply into the peer-to-peer online payments aspects of the system, nor the more technical aspects of its

operation, it is the ability for all transactions to be securely, cryptographically recorded in a sequential chain of blocks (hence, “blockchain”) that is of real focus. By having all members of a particular blockchain network verify or affirm transactions, and every block of data irrevocably time stamped and linked to the block before it, we ultimately derive an immutable record of transactions that are hardened against any forbidden or illicit changes, with all “participants” or nodes in the network holding in essence a full copy of the data set or “ledger”. This is essentially the definition of a public blockchain, such as that of bitcoin; a “trustless” system of data exchange that requires no central repository and no single administrator. Of late there has been ongoing debate and analysis of “private” blockchains, which maintain much of the foundational structure of a public blockchain, but with either a closed community of network participants and/or a central administrator, thus obviating some of the fundamental aspects of the bitcoin blockchain such as public transparency and anonymity. Given the data

Insider security, privacy and anti-money laundering/Know-Your-Customer (AML/KYC) requirements throughout much of financial services, it is no wonder that private blockchain solutions are the majority of focus for banks, broker dealers and fintech solutions providers operating in the blockchain space. To examine some of the use cases and proof-of-concepts that have been launched using blockchain technology, it is worth pausing for a brief moment to restate what I would consider the three most important characteristics of this technology for financial markets, namely that blockchains are designed to be: a) data stores for sequential or chronologically ordered data; b) immutable, or tamper resistant, and c) cryptographically secured records of ownership or “provenance” of whatever data is stored or written to a block within the blockchain. So what might the benefits of blockchain technology be for post-trade processing in financial markets? There are several possibilities. As many in the post trade space know, it can be an area of error prone data sets and burdensome administrative functions. In a world of multiple databases and reconciliation procedures that need to align across industry stakeholders, one can easily see the use of blockchain technology as a way to streamline these processes, minimize the risk of data errors and lower processing costs. In addition, by utilizing distributed ledger technology to simultaneously confirm and settle trades (since a particular blockchain’s participants will all be sharing the same data set), we can quickly see a future of

reduced settlement times as well as minimized (or eliminated) counterparty risk and collateral management costs. Continuing the thought exercise leads us to the obvious potential conclusion that these minimized risks and costs might expand and accelerate trading and processing, with clear economic benefit across the universe of participants. Lest we think this to be simply a series of interesting thought exercises, there have been several high profile proof-of-concepts and organizations launched by major industry participants. For example, the Depository Trust and Clearing Corporation (DTCC), which oversees the clearing and settlement of over $1.6 quadrillion in US securities annually, recently announced that it was leveraging blockchain based technology to manage repurchase (repo) agreements, in a test partnership with Digital Asset Holdings, one of the premier industry startups in the blockchain space. DTCC explained that “the effort is designed to both ‘validate the technology’ and ensure it can integrate with existing company processes.” In addition, the PostTrade Distributed Ledger (PTDL) Group, based in the UK and launched late in 2015, is actively working to explore distributed ledgers capabilities across the entire trade lifecycle, and currently has global membership across several dozen major banks, clearing houses and exchanges, including CME Group, State Street, UniCredit, Euroclear and the London Stock Exchange Group. There is clear momentum growing for the adoption of blockchain technology in

financial markets. This article merely examines the tip of the proverbial iceberg when it comes to blockchain technology and its growing impact and importance in financial services and beyond. The importance of blockchain is also rapidly spreading to other sectors of the economy, including healthcare, digital rights management and more. It also features prominently in current discussions about the “Internet of Things”, the proposed, growing technological network of physical objects that permeate our lives, such as portable devices, vehicles, buildings and more, all network connected in a way that enables these objects to collect and exchange data, and potentially exchange value, using blockchain technology. For financial markets colleagues, I would suggest that now is the time to begin to learn more about this technology and how it will impact your industry, business and role. If current discourse is any indicator, it will certainly impact all of these in the future.

RON QUARANTA CHAIRMAN OF THE WALL STREET BLOCKCHAIN ALLIANCE

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SEE Link

the future of regional capital markets Consolidation is an inevitable trend in the stock exchange industry. In recent years we have witnessed a number of consolidation activities of stock exchanges trying to improve the efficiency, simplicity, sustainability and cost-effectiveness of trading.

egional stock exchanges as representatives of small markets in global terms, many years ago realized that only through cooperation can reach greater liquidity, exchange of know-how and generally enhance the visibility of their markets among investors worldwide. Working together to reach those goals for many years, the idea of some kind of consolidation gradually crystallized. However, reaching mutual goals was often difficult and sometimes impossible due to various regulatory frame, currency and clearing and settlement issues, technical and even political reasons, and soon enough it was clear that the overall process had to take alternative routes. As usual, capital always finds a way. Sometime in 2013, we began discussions on regional integration that would be primarily technical, allowing realization of above mentioned objectives without capital integration. Finding partners in the Macedonian and Bulgarian Stock Exchange, the three stock exchanges set up SEE Link as a joint company in May 2014, located in Skopje, Macedonia, in order to formalize its cooperation. Things began to

SEE Link order-routing system supports trading for Bulgarian, Croatian and Macedonian market, with a combined equity market capitalisation of US$ 30 billion and almost 400 stocks listed on the three exchanges. rapidly develop when SEE Link approached the European Bank for Reconstruction and Development for help. As many times before, the Bank, offered generous assistance in the development of this project through its Local Currency and Capital Markets Development Initiative, created to support efforts that will contribute to improving the options for raising funding through capital markets. The EBRD provided a €540,000 grant to introduce an electronic system for order-routing and funding for the project was provided by EBRD donors through the EBRD Shareholder Special Fund. In parallel, participating stock exchanges extended €80,000 to SEE Link. Strengthening local capital markets and encouraging the use of local currencies is one of the EBRD’s priorities in the Western Balkans and the Bank is aiming to reduce dependence on external sources of financing and to promote the development of domestic sources of finance. Also, the support that the Bank has given through their knowledge, expertise, extensive experience, as well as efforts their team has put into making SEE Link recognizable internationally was invaluable. The order routing system has become operational at the end of the March this year, and the interest from new exchanges and brokers in joining SEE Link is immense in less than two months four new exchanges have applied for SEE Link membership: Belgrade, Ljubljana, Banja Luka and Athens Stock Exchange so SEE Link now comprises of 7 markets, and there are indications that several other exchanges will join as well by the year-end.

Currently SEE Link order-routing system supports trading for Bulgarian, Croatian and Macedonian market, with a combined equity market capitalisation of US$ 30 billion and almost 400 stocks listed on the three exchanges. A total of 25 investment companies (brokerage houses) are eligible to trade via SEE Link and there is a continuously growing interest from new investment companies to join. The two SEE Link indices - SEE LinX and SEE LinX EWI - were launched in the beginning of April, composed of the 10 most actively traded regional companies listed on three participating exchanges. SEE Link indices also create more visibility for regional capital markets as well as more transparency, enabling investors to monitor equity price movements accurately to make investment decisions easier. Already in its first year the project has surpassed all expectations and we are confident that SEE Link will very soon become a generator of the investment development of the region.

IVANA GAŽIĆ PRESIDENT OF THE MANAGEMENT BOARD ZAGREB STOCK EXCHANGE

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Live and learn:

The T2S feedback loop

Considering the size and complexity of the T2S project, a phased implementation in distinct waves is proving to be the right way to go. There may be drawbacks, such as overall cost and longer implementation time, but this way the Eurosystem is able to monitor a select number of CSDs as they prepare for the migration rather than having to oversee every participating CSD. Better still, carrying out the project in waves means that already-migrated markets have the time to overcome any issues that arise, paving the way for successive markets and allowing them to anticipate problems before going live.

n the basis of our experience with the preparation and T2S roll-out in Italy and the wave 1 markets, BNP Paribas Securities Services performed internal analysis and research into how the overall market handled the migration and what improvements can be made for future waves. Even prior to wave 1, we participated in a number of industry initiatives to establish best practices.

Carrying out the [T2S implementation] in waves means that already-migrated markets have the time to overcome any issues that arise. 10

These collaborative efforts resulted in the publication of two documents: “T2S Wave 1 – Review and Request for Action Following Migration of Italian Market to T2S”, incorporating feedback from the International Capital Market Association (ICMA); and “AFME Recommendations for Target2-Securities Settlement”. These texts helped identify clear action points, in order to define recommendations for the uses of the new settlement system. Both documents highlight that the Italian migration to T2S was well managed, but also flag certain areas of improvement. We fully share this position and believe that, going forward, there are three key areas that require particular attention. 1. Preparation For any major infrastructure project, preparation is crucial; T2S is no exception. Successful Migration

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Weekend Dress Rehearsals (MWDR), as well as a complete front-to-back testing of the T2S functionalities, is key to ensuring a safe and smooth transition. Furthermore, detailed testing of the market-specific processes with the local CSD is important, since any issues or delays after migration can have a domino effect on the overall settlement results. 2. Timely distribution of the Standard Settlement Instructions (SSIs) In keeping with the issue of preparation, market participants experienced matching issues in the first few days of operations on the new platform due to the poor management of SSIs. Although the problem was quickly resolved, we believe that the issue can be prevented in future waves. The relevant information, in particular Party 1 and Party 2 BIC codes, should be provided in a timely manner and communicated to all parties involved, including the buy side community. 3. Market liquidity There were delays in settling fixed income trades in the Italian market after migration. Firstly, the auto-collateralisation process did not function properly for the CCP and they had to pump liquidity into the system in order to settle transactions. Secondly, because of lack of partial settlement on the morning of settlement date, a large number of fixed income trades required an extra period of time in order to settle, thereby causing a

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shortage of settlement liquidity. A possible way of preventing this from occurring in the future would be to maintain the partial settlement windows introduced in T2S to ensure that as many trades as possible are eligible for partial settlement. Maintaining the newly introduced partial settlement windows would require an agreement among all CSDs and a harmonised structure across all participating markets. Although this harmonisation may be difficult to achieve, it is in line with the wider objectives of the T2S project. With Wave 2 successfully integrated at the end of March 2016, the project continues to go ahead smoothly, while allowing for participants to observe, reflect, and improve on past mistakes. BNP Paribas will continue to work closely with clients and market participants across all markets to prepare for each of the coming migration waves and ensure that they benefit as much as possible from T2S. For more information on the next wave, try our new T2S online tutorial.

UGO BONAUGURIO HEAD OF CLIENT STRATEGY BANKS & BROKERS BNP PARIBAS SECURITIES SERVICES ITALY

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Utilising questionnaires to streamline the due diligence process

As legislation moves to an implementation phase it is time for AFME to return to one of its core principles: to harmonise and make the post trade environment more efficient.

As you know only too well, the due diligence process is one of the more complicated and perhaps exasperating aspects of your role. The receipt of multiple questionnaires from different institutions asking for similar, but not necessarily the same, information in no predetermined order consumes time and resources. The recipients of the information also find themselves comparing and contrasting data which is often provided in a variety of formats.

ollowing NeMa 2015, Alan Cameron at BNP Paribas Securities Services suggested at an AFME Post Trade Board meeting that something should be done to resolve this issue. AFME is a trade association that represents many European based banks. For the past few years the AFME Post Trade division has concentrated largely on regulatory initiatives. As this legislation moves to an implementation phase it is time for AFME to return to one of its core principles: to harmonise and make the post trade environment more efficient.

So where to start? Rather than re-invent the wheel, AFME invited Thomas Murray to share their existing questionnaire with an AFME task force consisting of twenty member firms. The task force was able to refine the original questions and Thomas Murray assisted in explaining the rationale behind certain questions. The most important challenge the group faced was to separate due diligence questions from those considered to be RFP type questions. Next, wherever possible, a positive or negative answer was sought rather than request a full policy. Whilst the group was unlikely to agree on the wording to every question after much discussion a final set of questions was delivered. Each question is numbered and therefore the recipient can be certain that question 1 from Bank A will be the same as question 1 from broker B. Arguably, once a recipient has completed the questionnaire for the first time, the vast majority of information can be copied across in the same format.

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The questionnaire is now at the stage of being road-tested which some friendly “volunteers”. This will enable the task force to gauge feedback and refine the questions accordingly. Inevitably, there will be an element of non-standardisation. As an annex, senders will be able to add questions which they may deem to be commercially sensitive. However, the group worked on the 80-20 rule and the expectation is that the vast majority of questions will be numbered in a standard way. A further topic that will be decided outside of AFME is the delivery of the questionnaire as AFME is vendor neutral. The questionnaire will be posted on our website and will be free to use. Member firms will decide if they want to send it themselves or use the services of a vendor who may provide added value services. The AFME task force only asks that any vendor retains the integrity of the questionnaire by using the questions and language as defined in the online document. What more needs to be done? This questionnaire is aimed

firmly at agent banks; however, consciously the task force did not include the ICSDs in this process. Their product is broader and deserves a review of, and possible addition to, the current questions. Financial Market Infrastructure questionnaires have also been mentioned as requiring standardisation. AFME would like to take this opportunity to thank the group for the fabulous support received throughout the process and for its continued questioning of the norm. From a personal perspective, Alan Cameron, Sara Baker of UBS and Jim Micklethwaite at Thomas Murray have assisted me greatly in an area where my learning curve has been close to vertical. In the space of six months, the task force has largely harmonised a document which has been time consuming for both senders and recipients in the past. AFME members are optimistic that the harmonisation of questions will assist recipients and senders alike and enable network managers to concentrate on the most important issues raised in any due diligence questionnaire.

Our members’ expectation is that the questionnaire will be available for the 2017 season. As noted, when finalised, the questionnaire will be free to download from the AFME website. The most important ingredient will then be you, the network managers, whose support will be required in 2017 if this is to become a truly standard industry questionnaire.

STEPHEN BURTON DIRECTOR, POST-TRADE AFME

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T2S and Beyond T2S will create a single collateral pool, which in turn will make investorsâ&#x20AC;&#x2122; portfolios much more efficient. As a global custodian and a tri-party agent, BNY Mellon can combine the settlement process with collateral optimisation, therefore enabling our clients to optimise their liquidity whilst simultaneously reducing their exposure. 14

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he T2S platform has finally gone ‘live’, not without some delays. The highly anticipated Wave 2 turned out to be an anticlimactic event, as Euroclear markets go-live date has been pushed back to September 2016. While volumes are still low on the platform, some market participants are questioning the medium-term benefits associated with T2S. It is important for them to review their strategies and assess how to make the most of the infrastructure change. The Market Access Challenge T2S gives access to 23 CSDs in 21 European markets while removing some technical barriers to cross-border clearing and settlement, making the process more efficient, simple, safe and ultimately less expensive. Therefore, the choice of one’s gateway to the platform is key. To be in the best position to provide our clients with all improvements offered by T2S, BNY Mellon - as a global custodian - has decided to be a Directly Connected Participant, allowing us to open accounts directly at the local CSDs in Italy, France, Belgium and Spain, in addition to our existing direct connection in Germany and the Netherlands. The Collateral Optimisation Challenge T2S will abolish the need for market participants to hold multiple buffers of collateral when settling in several European markets, thereby creating efficiencies in the collateral market to better mitigate settlement risk. Today, global collateral can often be in the wrong place at the wrong time thus making for inefficient

Insider use by market participants. As demand for collateral grows with the broader application of margin requirements and the collateral pool is tightening due to stricter eligibility criteria, this will put an even greater emphasis on efficient collateral management. Anything that makes collateral more mobile is therefore welcome.

structures are exponentially costly and require continual upkeep; technological and or resource.

T2S will create a single collateral pool, which in turn will make investors’ portfolios much more efficient. As a global custodian and a tri-party agent, BNY Mellon can combine the settlement process with collateral optimisation, therefore enabling our clients to optimise their liquidity whilst simultaneously reducing their exposure.

BNY Mellon is the best placed to bring together settlement efficiency and collateral optimisation while keeping your assets safe. The outsourcing solutions provided by Pershing, whether it is a simple “lift and shift” or a smart-sourcing approach, will future-proof the technology spent and allow financial institutions to focus on their growth areas.

Taking up on the Challenges When reviewing their T2S strategies, banks and brokerdealers need to review the above challenges and choose the right partner to help overcome them.

The IT Challenge Success in T2S will require significant ongoing investment in technology and not everyone will be prepared to meet that cost. Market participants are likely to come under pressure to support greater connectivity across markets, potentially to include expanded operating hours that span jurisdictions or to consider new cross-border access arrangement. But connectivity shouldn’t be the only focus. Firms need to address their systems scalability issues. How can they do that while operating on a multitude of legacy systems that have been updated in a piecemeal approach?

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The Middle and Back-office Challenge With greater access to markets, increased cross-border transactions, more pressure will be put on the middle and back-office functions. These

SCOTT COEY HEAD OF BROKER-DEALER SERVICES EMEA, BNY MELLON

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Exploring Northern European cash & custody opportunities. Together. At SEB, we have a proven track record of working closely with our clients. We like to build long-term relationships and will stand by you in good times and bad. As the leading Nordic corporate bank with a complete portfolio of financial services, we can help you grow and expand the scope of your business. Together, we can explore a wider world of opportunities. To find out more, please contact: Gรถran Fors, goran.fors@seb.se sebgroup.com/corporatesandinstitutions

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The Changing Paradigm for Network Managers

The role of a depositary under UCITS V is similar to that of AIFMD but strict liability will be more rigorously enforced. A number of roles in financial services have evolved over the last few years, taking in enhanced responsibility and liability for error or wrongdoing. Nowhere is this more evident than in network management. Traditionally, network managers would conduct operational due diligence on sub-custodian entities with a check-list verifying they had SWIFT messaging in place, and that vaults holding physical securities were secure. Move forward two decades and regulations such as UCITS V and the Alternative Investment Fund Managers Directive (AIFMD) have ramped up the role of network managers.

IFMD and UCITS V both put investor protection at their core. AIFMD applies to the majority of non-UCITS fund managers in Europe and imposes a number of requirements on them. Perhaps the most significant is the requirement that full-scope AIFMs appoint a depositary bank to oversee assets are held safely; monitor the fundsâ&#x20AC;&#x2122; cash-flows and ensure fund compliance. That same depositary is also subject to strict liability for loss of assets, including those held by sub-custodians. In other words, the depositary must provide restitution to AIFMs and their end investors if assets are lost or misappropriated in the custody chain. Lawyers acknowledge indemnifications and discharges of liability are permissible, but this is under extreme circumstances or events that were

impossible for the depositary to predict. It is only a matter of time before strict liability is tested in the courtrooms. UCITS V goes further. This is to be expected as UCITS is predominantly a retail orientated product. UCITS V harmonises a number of rules with AIFMD around remuneration but also depositary. The role of a depositary under UCITS V is similar to that of AIFMD but strict liability will be more rigorously enforced. A depositary looking after UCITSâ&#x20AC;&#x2122; assets is not allowed to discharge liability or indemnify itself against any loss of assets at the sub-custodian. The scope of what is classified as a subcustodian is broader under UCITS and includes CSDs and CCPs. The financial hit of making right UCITS investors on lost or misappropriated assets could be severe depending on the scale of the loss. Cue the network managers. Network managers have a regulatory responsibility to ensure assets held in sub-custody are done so in line with industry best practice and international regulatory requirements. Deficiencies in account segregation or co-mingling of client and bank assets cannot be tolerated, while the scope of what network managers must do is also far broader. Many are delving deep and looking at sub-custodiansâ&#x20AC;&#x2122; balance sheets, cyber-security policies, anti-money laundering provisions, sanctions compliance, business continuity planning and regulatory oversight.

This comes at a time when banks are facing balance sheet and cost pressures. Network managers have less budget and enhanced workloads, and are often required to cover more markets than before. Efforts are being made by the industry to standardise operational due diligence. The Association for Financial Markets in Europe (AFME) is at the forefront of this and is producing an operational due diligence template for network managers. This ought to help streamline the business somewhat, but it should not distract from the fact that network managers must still conduct through due diligence on their network. The heightened accountability regime under UCITS V and AIFMD has elevated the role of the network manager. A failure to adhere to the highest standards could have awful regulatory consequences. as more transparency, enabling investors to monitor equity price movements accurately to make investment decisions easier.

CHARLES GUBERT

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360 Degree View. Total Control. Complete Conf idence.

Supporting your governance, risk and compliance functions at all levels, both Embus and MYRIAD deliver single, integrated systems that will improve your processes and increase transparency. Our solutions span initial client engagement and the delivery of provider services via the network and vendor management teams. From client onboarding and lifecycle management through to network and cost management, we bring you technology that will improve command and control, mitigate risk, extend your compliance capability and help you reduce costs.

CLIENT ONBOARDING & LIFECYCLE MANAGEMENT

Peter Hall, Bea Nagy Peter Hall, Rupert Booth info@myriadembus.com info@myriadembus.com +44 (0)20 3470 0327 +44 (0)20 3470 0327

VENDOR GOVERNANCE & NETWORK MANAGEMENT

Simon Shepherd, Rupert Booth Simon Shepherd, Bea Nagy info@myriadgt.com info@myriadgt.com +44 (0)20 3470 0320 +44 (0)20 3470 0320

MYRIAD Group Technologies Limited Innovation Insight Intelligence myriadgt.com

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THE NEED FOR STRONG, INTEGRATED TECHNOLOGY The key features and functions in MYRIAD have never been more relevant than today for the Network Management community; the platform provides • • • • • •

A comprehensive account database Document repository Invoice reconciliation and re-charging All your due diligence Highly configurable risk and regulatory reporting All in one place

Your ability to collaborate with Compliance, Audit, Risk and Legal teams is boosted by virtue of the integrated nature of the platform. The relevance of MYRIAD’s functionality and the persistence of data on the platform address all sorts of demands for transparency and accessibility of data, business continuity and the operational needs of Living Wills. Without a coherent, single platform context, the value of even the most granular data is eroded. This erosion of value is best represented by in-house systems. MYRIAD’s toughest competition is the Banks themselves, yet it is rarely the Network Management teams who are satisfied with in-house solutions. It is generally in-house I.T. teams

who push the value of proprietary technology, which is no surprise. The harsh reality is that these solutions generally represent poor shareholder value and frequently build in risk rather than remove it. Banks are consumers of technology, they are not, per se, Technology Companies. Ask any Investor; if they want to invest in technology they will invest in Technology Companies. If they want to invest in a Bank they will invest in a Bank that defines its technology needs properly and executes well, not one that elects to build the technology themselves. A bank’s foremost priority is to focus upon business requirements, integration and execution of its business plan, not upon writing code. Network Management teams should enjoy a much stronger and more prominent voice within their own organisations, allowing them to reject internal solutions they do not want. The reputational risk of having a system that cannot handle segregated accounts, or accounts that are properly documented, or that cannot demonstrate a due diligence audit trail is very real. This is now a commercial imperative. The accuracy of disclosure is failing under increased scrutiny and the

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EU refugee crisis failures are a mark of its absolute decline

Once lost, respect in the international affairs arena is almost impossible to regain. An extroadinary exchange which took place last year highlights the EU’s absolute decline, and the contempt with which it is increasingly held. At the G20 summit, held in November 2015 in the lovely Turkish resort city of Anatalya, an exasperated President Erdogan of Turkey turned on EU Commission President JeanClaude Juncker over Brussels’ miserable policy failure regarding the refugee crisis. In essence, the EU and Germany’s refugee policy—such as it is—seems to wholly consist of subsidising the Turks to serve as Europe’s gatekeeper, keeping the crisis as far away from them as the Turkish President can manage. It amounts to less of a policy than a bribe.

ut even this feeble effort to stave off the inevitable necessity of actually dealing with the refugee crisis has been bungled. Turkey, a country whose on economy is increasingly wobbly, has already spent an unplanned 8 billion euros on the crisis and is hosting 3 million refugees already, and it views with alarm the tens of thousands more on the way, as a result of the fighting in Aleppo in Syria. At Antalya, Erdogan was asking Juncker to pony up 6 billion euros over two years to help defray expenses. The penny-wise and pound-foolish Juncker demurred, saying the EU was prepared to part with only three billion. Enraged, Erdogan threatened to flood the continent with refugees. He thundered, ‘We can open the doors to Greece and Bulgaria anytime and put the refugees on buses,’ making it clear that he was the organ-grinder, and the EU the monkey, in the crisis. Pressed this past week on whether this reported threat to the hapless Juncker was accurate, Erdogan proclaimed, ‘I am proud of what I said,’ while grimly noting that the EU had failed to deliver on even the miserly

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3 billion euros it had pledged months ago. This would be farcical, if real people were not suffering and dying as a result of this breathtaking policy incompetence. Since the entirety of the European political establishment seems to have forgotten what constructing a policy looks like, I feel I should remind them. The refugee crisis, if handled properly, amounts to a great opportunity for a continental Europe with a looming demographic crisis. Southern Europe—as well as pivotal Germany---have anaemic birthrates not within shouting distance of the 2.1 rate of replacement needed to keep their economies on an even keel. If this problem is not urgently seen to, there are only three ways out from under the iron laws of demography to fund Europe’s decadent safety cushion: raise taxes, lower benefits, or take in many more migrants or refugees. Given the continent’s allergy to the first two of these, the crisis amounts to a chance to right the listing European ship of state. Technically--and also in order to save the vital Schengen open border system, which nutures what little growth Europe has—the crisis requires a continent-wide response, in theory what the EU is prescisely there for. Common funding for common border crossings at the continent’s periphery, in southern and eastern Europe, must be matched by funding for a large

increase in the number of customs and immigration staff there. And above all this must be done now, quickly, immediately, all words the EU simply does not seem to understand. Bribe Turkey (but for God’s sake do so effectively) to keep a torrent of refugees from spilling over the border, but more importantly put in place a system that quickly and effectively processes the refugees at Europe’s common borders. Far beyond these technical and organisational fixes, however, Europe needs a new social contract, agreed to alike by European elites and the general public, which is both more welcoming and at the same time tougher on the refugees. By all means more refugees ought to be taken in, both for economic and humanitarian reasons. But they must be accepted on clear, agreed terms. They must learn the languages of the countries they intend to live in over time, and they must obey the laws of those countries or instantly be deported. Vitally, they must accept the social mores of the places that are taking them in. If a country is good enough to save your life, you should be good enough to follow (or at a minimum at least fully respect) its social customs.

The refugee crisis, if handled properly, amounts to a great opportunity for a continental Europe with a looming demographic crisis.

Broadly following this yardstick could just about save Europe from the hapless suicide it seem to be drifting towards.

JOHN HULSMAN GEOPOLITICAL EXPERT

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Blockchain Technology A matter of Survive or Thrive This is not the time to just be substituting existing operating models and systems with blockchain technology but rather realising that there is a completely new paradigm of thinking

There is a frenetic and rather exciting energy amongst many financial service institutions. Boardroom debates and conference agendas are quickly morphing from staid conversations on risk management and regulation to fintech, the internet of things and most noteworthy the potential disruption by blockchain technology. As with all new and exciting innovations, there is somewhat of a dichotomy between the technology visionaries and the Luddites of the industry. However, one thing is certain, those operating in the financial markets cannot maintain their current status quo and need to embrace new thinking which is in line with the exciting changes that lie ahead.

o article on blockchain seems complete without describing it as the distributed ledger technology that underpins Bitcoin. Yet industry debates in recent months have matured far beyond this definition to focus on the additional applications of this technology. At a high level, a blockchain is a single distributed ledger that anyone can view, with the option of no single participant or authority in control. It is collectively kept up-to-date and transactions are immutably recorded and cryptographically stored. The technology has the potential to provide credibility and trust to the ecosystem with built-in smart logic and high levels of automation.

SPONSORED ARTICLE

The problem today is that many organisations seem to be trapped in the hype of analysing the intricacies of the technology, conducting due diligences on thousands of fintech startups and generally focusing on how to protect their legacy business. While some of these are necessary evils, there is a lot to be said for taking a step back to look at the principles (see diagram) behind blockchain technology and how those can be applied to optimise, innovate, challenge and grow one’s business for the benefits of the customer. The question that comes to mind is how the financial services industry can apply the principles of blockchain technology to an industry that has become increasingly complex and overly cumbersome. This is not the time to just be substituting existing operating models and systems with blockchain technology but rather realising that there is a completely new paradigm of thinking – one which fundamentally alters the way in which our industry and society hangs together in an entirely

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new, different and better way. As a short-term reprieve, the reality is that regulators are not going to allow blockchain technology and fintech startups to ‘take-over’ the financial markets overnight. This is the most highly regulated industry – the fabric upon which the world’s economy operates. However, they are also not going to sit back and protect legacy businesses when there is real value and benefits to be found. A number of regulators are already showing a strong interest in blockchain technology and the industry is moving at an unprecedented rate that one cannot depend on regulatory protection indefinitely. It is through truly understanding and applying the principles of what blockchain offers that the industry can begin to have a completely different and rewarding conversation around the future of financial services. Without this, regulation will catch up and fintechs will continue to legitimately offer new and better services to customers – profoundly shifting the balance of power away from established business.

Innovative thinking around blockchain’s principles needs to be harnessed for an organisation to thrive and not just survive.

ARTICLE SPONSORED BY:

TANYA KNOWLES HEAD OF INNOVATION AND PROJECTS STRATE

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Dear NEMA Par+cipants, I hope you are all enjoying this year’s NEMA conference in Dubrovnik. Try my new restaurant when you are in London. Bring this with you or take a photo and you will get 10% oﬀ your food bill! Hope to see you soon! Warm regards,

Rowena!

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Looking back at MESF 2016: A snapshot of the Middle East securities landscape The Middle Eastern Securities Forum took place in Doha on 15-16 March 2016. Here are some of the key discussions that took place on the ground. The Macroeconomics: The precipitous decline and partial recovery in oil and commodities prices has forced Gulf Corporation Council (GCC) countries to reassess their economic fundamentals. Many are looking towards diversifying their economies away from oil following the recent rout. The re-emergence of Iran as an oil exporter due to the withdrawal of some sanctions could yet result in further price falls. A number of countries are being forced to act. Saudi Arabia is consulting with investment banks about a partial or full listing of ARAMCO. ARAMCO has a market capitalisation larger than Apple and Google, and any listing would result in a cash wind-fall for the Saudi government. The decision by Saudi Arabia to explore raising cash through international debt markets is also a first. As such, GCC countries are likely to move away from commodities as a means to fund themselves. Liberalisation: Saudi Arabia is home to a number of untapped treasures. Its stock market capitalisation is bigger than Russia’s yet it has been a notoriously tough market to access for foreign investors. This is changing following reforms by the Capital Market Authority (CMA), Saudi Arabia’s financial services regulator. New rules introduced in 2015 permit

large foreign investors to gain limited exposure to securities listed on the Tadawul. This liberalisation is a first step, and it is likely future reforms will be forthcoming. The rules only apply to large institutions with assets in excess of $5 billion and five years track record. It is hoped this will be eased to permit nimbler market participants to invest. Trading volumes since the rules’ inception have increased although there has not been a flood of net new capital. Most MESF delegates are confident trading volumes will only go north, particularly if the country is upgraded by MSCI to its Emerging Market Index from Frontier Market Index. The Infrastructure: GCC economies including Saudi Arabia, Oman, Kuwait and Bahrain are building market infrastructures such as central securities depositories (CSDs) as a means to attract foreign investors. Issues do, however, remain around highly manual corporate actions processes, pre-funding of trades and dual account structures in certain markets which is a continual headache for global custodians. The creation of an independent custody model in some markets negating the requirement for investors to use local brokers (whose balance sheet and risk management controls may be

spurious) is a welcome boost, particularly for 40’ Act mutual funds in the United States and UCITS. There is a dilemma about building central counterparty clearing houses (CCPs) in GCC markets as there is minimal OTC derivatives trading activity. Proponents of building CCPs are adopting “The Field of Dreams” approach in that if you build it, they will come. As such, an OTC market will not be created in GCC markets without a CCP propping it up. Fund Managers: Domestic fund managers in the GCC have struggled to grow assets despite the sheer wealth in the region. Investors – such as high net worth individuals, sovereign wealth funds and family offices – are in abundance in the GCC. The lack of harmonised regulation in GCC markets makes distribution a challenging proposition for all fund managers. Different markets have wildly conflicting or confusing rules making panGCC distribution difficult. Some have called for more uniformity or even a fund passport similar to UCITS or the Alternative Investment Fund Managers Directive (AIFMD). The creation of a passport is, however, a longdistant prospect. CHARLES GUBERT

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ANDREW BARMAN EDITOR-IN-CHIEF, NEMA

1.Which living person do you most admire, and why? Rory Stewart (OBE) – for his incredible travelling experiences and writings, and his amazing achievements at such a young age 2. Property aside, what’s the most expensive thing you’ve bought? Artwork.

NEMA INTERVIEWS We touched base with some of our NeMa regulars and hit them up with the hard questions about life in an attempt to get to know them better.

3. What is your most treasured possession? A pocketwatch given to my greatgrandfather by Woodrow Wilson (President of the USA). 4. What would your super power be? To fly – I would save a fortune in airplane tickets and wouldn’t need to care anymore about collecting air miles! 5. What is your favourite city? Impossible to say. But Mumbai, Hong Kong, London and Madrid would feature high up on the list 6. what is your favourite type of cuisine? I generally prefer street food to fine dining, but if pushed to choose one then Malaysian. Penang is food heaven 7. What did you want to be when you were growing up? An archaeologist. 8. Which words or phrases do you most overuse? Gimme a break 9. What is top of your bucket list? To drive from New York to Los Angeles via the National Parks.

10. Who would you invite to your dream dinner party? My father, my grandfathers, and my great grandfathers. I’d like to spend a long evening getting to know more about them (I already know all about the grandmothers!). 11. If you could go back in time, where would you go? 1930s Shanghai, or 1960s Cambodia (pre-Khmer Rouge obviously). 12. How do you relax? In summer a cold beer on a beachfront café is difficult to beat. In the winter you may well find me on the sofa watching box-sets. 13. What is the closest you’ve come to death? Being caught in a riptide in southern Sri Lanka. After a momentous struggle to get back to shore, I found out that an average of 5 people a year had drowned on that section of coast 14. What’s been your NeMa highlight of the last 16 years? Every single year has been a highlight – like watching a child grow. Having spent 16 years running NeMa there are far too many to mention – but that there wasn’t a major default in Athens last year was a huge relief and meant the rest of the event was incredibly satisfying. (And the closing party was pretty immense too!)

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MILES TRUEMAN VICE PRESIDENT, EMEA NETWORK MANAGEMENT, CREDIT SUISSE

ROSS MCGILL MANAGING DIRECTOR, GLOBETAX 1.Which living person do you most admire, and why? My wife. She’s managed to put up with me for 38 years. 2. Property aside, what’s the most expensive thing you’ve bought? Not counting cars, I’m an eclectic art collector so that would have to be an obsidian terrapin inlaid with fire opals I bought last year in Mexico. We call him ‘Sid’ and he goes with two custom carved animal pieces called ‘Aristurtle’ and ‘Art Gecko’. 3.What is your most treasured possession? My health. 4. What would your super power be? Teleportation. I’d like to be able to get from point A to point B instantaneously (with or without cape). I travelled around 150,000 miles last year, so I see the inside of too many airports, hotels and cabs. 5. What is your favourite city? Sydney, Australia. 6. What is your favourite type of cuisine? Anything really spicy, typically Asian food or fusion. 7. What did you want to be when you were growing up? I’ll tell you when I’ve finished growing up. 8. Which words or phrases do you most overuse? ‘It depends’. It’s the most common answer to most questions I get in the tax world.

9. What is top of your bucket list? Having as many birthdays as possible. I’ve heard that the more birthdays you have, the longer you live. 10. Who would you invite to your dream dinner party? Richard Branson, Brian May, Isaac Asimov, Carol Kirkwood, Malala Yousafzai and Hillary Clinton 11. If you could go back in time, where would you go? September 14th 1945 in Queens, New York – with a condom (prize if you can figure out why) 12. How do you relax? I like reading science fiction books, writing, entertaining, cooking and people watching 13. What is the closest you’ve come to death? I was booked on a plane from Boston to New York that was due to arrive at JFK early morning on 9/11, but had to change my plans at the last minute 14. What’s been your NeMa highlight of the last 16 years? Making new friends

1.Which living person do you most admire, and why? Right now, I would say 17 year old Sri Lankan cricketer called Kamindu Mendis who played in the recent Under 19 world cup in Bangladesh who astonishingly bowled both left and right handed. Having been involved in cricket all my life, I have never seen this before. 2. Property aside, what’s the most expensive thing you’ve bought? A second hand Audi A6 some years ago, sadly the engine blew up

3.What is your most treasured possession? My children

4. What would your super power be? Invisibility, to go anywhere undetected would be pretty awesome.

5. What is your favourite city? London or Sydney. I lived in Sydney for 6 months and thought it was a wonderful place.

6. What is your favourite type of cuisine? Italian food but especially when in Italy, it tastes so much better.

7. What did you want to be when you were growing up? A professional cricketer

Insider 9. What is top of your bucket list? Fly fishing in New Zealand

8. Which words or phrases do you most overuse? ‘You’ve got to love that’, ‘Cheers’ , ‘Splendid’

10. Who would you invite to your dream dinner party? Jack Nicholson

9. What is top of your bucket list? To bat at Lords and preferably score a 100 ! 10. Who would you invite to your dream dinner party? Sir Clement Freud, David Gower, Oliver Reed, Steven Frayne (Dynamo) and Michel Roux to help with the cooking! 11. If you could go back in time, where would you go? 30th July 1966, to a seat on the half way line at Wembley Stadium 12. How do you relax? Cooking or watching cricket – both with the occasional glass of wine 13. What is the closest you’ve come to death? The morning after the first night of my stag do 14. What’s been your NeMa highlight of the last 16 years? This is a really tough one, there have been so many fabulous events and occasions. If I have to pick just one moment though it was probably from NeMa 2013, Vince Melaugh’s impromptu stage rendition of the Blue Brothers ‘Everybody needs somebody’ ! I still have the footage on my phone for anyone who wants to see it!

11. If you could go back in time, where would you go? 1950’s 12. How do you relax? Fly fishing SVEN TRAHAN MANAGING DIRECTOR - HEAD OF GLOBAL SALES & RELATIONSHIP MANAGEMENT - UNICREDIT GLOBAL SECURITIES SERVICES 1.Which living person do you most admire, and why? My wife .. for keeping my path straight and blessing me with two amazing daughters.

14. What’s been your NeMa highlight of the last 16 years? NeMa Malta – having “uninvited” guests crash my room at 4 in the morning

2. Property aside, what’s the most expensive thing you’ve bought? My bed 3.What is your most treasured possession? Collection of cufflinks inherited from my grandfather 4. What would your super power be? To fly 5. What is your favourite city? Gaborone, Botswana 6. what is your favourite type of cuisine? Cajun 7. What did you want to be when you were growing up? Foreign Service Officer 8. Which words or phrases do you most overuse? Anyway

13. What is the closest you’ve come to death? Coup d’état in Ouagadougou, Burkina Faso

RETO FEBER HEAD OF DIRECT CUSTODY & CLEARING, EMEA, CITI

1.Which living person do you most admire, and why? Pope Francis, a man of principles and courage, willing to challenge the established order 2. Property aside, what’s the most expensive thing you’ve bought? More property

Insider 7. What did you want to be when you were growing up? Truck Driver - my parents are very proud of me now.

3. What is your most treasured possession? My family 4. What would your super power be? To be able to fly

8. Which words or phrases do you most overuse? Is it my round? (at the pub)

5. What is your favourite city? Rome 6. what is your favourite type of cuisine? Latin / Mediterranean and Asian fusion 7. What did you want to be when you were growing up? A pilot, then a rock star 8. Which words or phrases do you most overuse? The fat lady hasn’t sung yet 9. What is top of your bucket list? Climbing a prominent peak above 4000 m 10. Who would you invite to your dream dinner party? Sophia Loren 11. If you could go back in time, where would you go? Italy in the Renaissance period 12. How do you relax? Walking, running and reading 13. What is the closest you’ve come to death? Aquaplaning on a slushy highway in the Ardennes 14. What’s been your NeMa highlight of the last 16 years? Sending out taxis and mopeds to restock alcohol supplies at 1am for Citi’s first beach party in Dubrovnik

9. What is top of your bucket list? Cycling up Mont Ventoux in France. BEN PARKER SENIOR VICE PRESIDENT, SALES AND RELATIONSHIP MANAGEMENT, CLEARSTREAM BANKING

10. Who would you invite to your dream dinner party? Sir Mick Jagger, Sir Ian Botham, Sir Winston Churchill, Sir Bradley Wiggins, Beyonce.

1.Which living person do you most admire, and why? Philip Brown. My bosses boss for obvious reasons

11. If you could go back in time, where would you go? Nema Malta. And party less. See below

2. Property aside, what’s the most expensive thing you’ve bought? A round of drinks for Credit Suisse’s Network team

12. How do you relax? Drinking wine and cycling. Rarely at the same time

3. What is your most treasured possession? My kids. They are the only possession I haven’t lost. At least for a substantial amount of time. 4. What would your super power be? Stopping time. Or turning water into wine.

13. What is the closest you’ve come to death? Nema Malta. 14. What’s been your NeMa highlight of the last 16 years? Obviously all of the Clearstream parties. From what I can remember Phil Brown breakdancing was a highlight.

5. What is your favourite city? London, of course. Closely followed by Luxembourg. They are very similar. 6. what is your favourite type of cuisine? Anything when I am really hungry. My kids describe my mood, when I haven’t been fed, as being hangry.

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GEORGIANA ALLEVA-BOBE FVP, HEAD OF NETWORK MANAGEMENT, SUMITOMO MITSUI TRUST BANK (U.S.A.)

1.Which living person do you most admire, and why? Ellen DE Generous. She does a lot of good for charity, especially for teachers and schools and for anyone who is in need. She does not care what race, religion or background you are from. I love her mantra: Be kind to one another. 2. Property aside, what’s the most expensive thing you’ve bought? Besides my car, it would be my phone, Galaxy Note. 3.What is your most treasured possession? My grandchildren and everything and they give me. 4. What would your super power be? The ability to help people and put a smile on their face.

10. Who would you invite to your dream dinner party? Pope John Paul II, Pope Frances, George Clooney, Ellen DE Generous, Roger Federer, Serena Williams 11. If you could go back in time, where would you go? 1970. I would have made different decisions. 12. How do you relax? Burying myself in a good book 13. What is the closest you’ve come to death? 1995, close brush with cancer. 14. What’s been your NeMa highlight of the last 16 years? Meeting and creating relationships with so many wonderful people. Whenever I attend a NeMa function, I feel as though I’m attending a family reunion. You do not get that at any other function.

6. what is your favourite type of cuisine? I have two, Italian and Spanish

8. Which words or phrases do you most overuse? OMG 9. What is top of your bucket list? To one day retire and travel.

2. Property aside, what’s the most expensive thing you’ve bought? A car 3.What is your most treasured possession? My three rescue dogs (Corky, Dulcie and Odie) and my horse Serendipity. 4. What would your super power be? The ability to be invisible! If I had a nickel for every time I have wanted to be a fly on the wall I would be a millionaire!

5. What is your favourite city? Can’t pick just one so they would be London, Bangkok, Vienna and Lexington Kentucky (it’s a horse thing).

5. What is your favourite city? Budapest

7. What did you want to be when you were growing up? An executive secretary, UN Tour Guide, and a stewardess. In that order.

she told the DA in San Mateo that she would work for free and if they liked her work they could hire her. The rest is history as she became the first women in US history to be appointed to the Supreme Court. I heard her tell that story first-hand at a conference and have been a fan ever since.

6. what is your favourite type of cuisine? Thai or Italian

LISA MARTINEZ ASSISTANT VICE PRESIDENT, NETWORK MANAGEMENT, CAPITAL GROUP 1.Which living person do you most admire, and why? Supreme Court Justice Sandra Day O’Connor. Graduated 3rd in her class from Stanford law and couldn’t get a job as a lawyer because she was a woman. So

7. What did you want to be when you were growing up? A Supreme Court justice or a veterinarian. (I know, how did I wind up in Network Management?) 8. Which words or phrases do you most overuse? OMG 9. What is top of your bucket list?

Insider To see the Pyramids in Egypt, an African Safari and seeing the Kentucky Derby live! 10. Who would you invite to your dream dinner party? Oprah Winfrey, Abraham Lincoln, Bill Clinton and Winston Churchill that would be some party! 11. If you could go back in time, where would you go? I would like to be a fly on the wall in Henry the VIII’s court. 12. How do you relax? Binge watching reality TV, riding my horse, a good glass of red wine and reading a great book (although not all at the same time). 13. What is the closest you’ve come to death? Skydiving, and although it was very safe I am not sure why I jumped out of a perfectly good plane. 14. What’s been your NeMa highlight of the last 16 years? All the NeMa closing night parties! But seriously it’s been the relationships and friends I have made at NeMa that have helped me navigate the investment world for the benefit of our clients and shareholders and for that I am truly thankful.

GÖRAN FORS DEPUTY HEAD OF INVESTOR SERVICES, SEB

1.Which living person do you most admire, and why? Einar, my first boss at SEB now happily retired in Florida. He is smart, committed customer focused and fun to work with. 2. Property aside, what’s the most expensive thing you’ve bought? My BMW 330. 3.What is your most treasured possession? My Weber charcoal grill. 4. What would your super power be? Play the guitar like Carlos Santana and sing like Freddie Mercury.

Jobs, it would be interesting discussion and a lot of good drink and food. 11. If you could go back in time, where would you go? Mid 1800, to be part of the industrial development and establishment of modern society. 12. How do you relax? Go to my house in the archipelago. 13. What is the closest you’ve come to death? Heart attack in February 2000, the doctors made good use of the defibrillator and I was brought back to life. 14. What’s been your NeMa highlight of the last 16 years? I like to talk, so one of all the panels I have been on (for example the one in Dubrovnik in 2011).

5. What is your favourite city? Stockholm, not too big not too small, a lot of water and actually a lot of sun. 6. what is your favourite type of cuisine? Japanese, some Sashimi followed by Teppanyaki makes a perfect dinner. 7. What did you want to be when you were growing up? Farmer, and I still do. 8. Which words or phrases do you most overuse? It will be alright. 9. What is top of your bucket list? Arrive in New York by the ship Queen Mary from Southampton. 10. Who would you invite to your dream dinner party? Winston Churchill and Steve

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ATTILA SZALAYBERZEVICZY HEAD OF GROUP SECURITIES SERVICES, RAIFFEISEN BANK INTERNATIONAL AG

1.Which living person do you most admire, and why? Burma’s Aung San Suu Kyi is for me the living symbol of freedom and patriotism, while Great Britain’s Sebastian Coe means for me non-stop performance and achievement. 2. Property aside, what’s the most expensive thing you’ve bought? My new Nikon D5 camera. 3.What is your most treasured possession? The original letter signed in 1875 by Emperor of Austria-Hungary, Franz Joseph appointing my great-great grandfather, Ágoston Trefort as the Minister of Education, Culture and Religion in his Hungarian government. 4. What would your super power be? Being able to time travel. 5. What is your favourite city? Of course I am in love with Budapest, and adore Vienna, and feel excited when coming to New York, Rio de Janeiro, Berlin, Barcelona and Moscow but there are three smaller cities which hold a special place in my heart and I love to keep going back there: Arromanches, Sarajevo and Ypres. 6. What is your favourite type of cuisine? Most European cuisine I like, but I am always available for a good Japanese restaurant.

7. What did you want to be when you were growing up? Olympian. 8. Which words or phrases do you most overuse? Impossible is not a fact, it is just an opinion. 9. What is top of your bucket list? Reaching the North Pole, going back to Antarctica and do the Trans Siberia Express train ride from Moscow to Vladivostok. 10. Who would you invite to your dream dinner party? Niall Ferguson, Bill Clinton, Richard Branson, Boris Johnson, Bono, Maria Sharapova, Paul McCartney, Warren Buffet, Scarlett Johanson, Steven Spielberg, Reinhold Messner, Leonardo di Caprio, Franz Beckenbauer, Ralph Finnes, Novak Djokovich, Lindsey Vonn and Queen Elisabeth. 11. If you could go back in time, where would you go? Sarajevo 1914. 12. How do you relax? The most efficient way for me to relax is sitting on the business class of a long-haul flight, or being at a castaway island. 13. What is the closest you’ve come to death? It was in the middle of the Namibian desert when I got a flat tyre and there was no spare tyre in the rented car, 35 degrees Celsius, no telephone signal, and very little water. 14. What’s been your NeMa highlight of the last 16 years? As far as I know I am the only person who attended all 16 NeMas.

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UPCOMING DATES:

NEMA ASIA 2016

GLOBAL CUSTODY FORUM 2016

NEMA AFRICA 2016

9-11 NOVEMBER 2016, HONG KONG

29 NOVEMBER â&#x20AC;&#x201C; 2 DECEMBER, LONDON

28 NOVEMBER, LONDON

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