CCP Clearing, Risk Management, Recovery and Resolution (EU) Frankfurt 2018

CCP CLEARING RISK MANAGEMENT RECOVERY AND RESOLUTION (EU)

FRANKFURT 2018

THE COURSE PROGRAMME 1

This new and unique course will provide delegates with a comprehensive understanding of central counterparty (CCP) clearing models and operational frameworks in the European Union (EU). Delegates will receive in depth instruction on the EU CCP regulatory framework governed by the European Securities and Markets Authority (ESMA) and the European Market Infrastructure Regulation (EMIR).

Delegates will be able to practically compare a range of key issues affecting CCP offerings in the EU. The event will also provide deep coverage of margining practices, clearing models and agreements, operational risks, and risk management frameworks affecting CCPs. Finally, delegates will be guided through the intricacies of effective CCP Recovery and Resolution Plans, and CCP Default Management, Recovery and Continuity Frameworks.

KEY BENEFITS • Advanced knowledge and understanding of key CCP operational areas (EU regulatory framework, clearing models, agreements, margining practices,operational risks, recovery and resolution plans).

• Extensive pre-course Questionnaire to identify delegate’s key course objectives.

• Highly comprehensive course documentations and presentations.

• Post-course Expert Trainer follow-up to guarantee all key event objectives have been met.

• Download access to a highly comprehensive CCP clearing document library.

EVENT SUITABLE FOR • ANALYSTS • CENTRAL BANK PERSONNEL • COLLATERAL MANAGEMENT FUNCTION • 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

COURSE EXPERT TRAINER 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?”.

SESSION 1: CENTRAL COUNTERPARTIES AND THE EU CCP REGULATORY FRAMEWORK

SESSION 5: CCP INTEROPERABILITY ARRANGEMENTS

SESSION 2: CCP OPERATIONAL RISKS AND RISK MANAGEMENT FRAMEWORKS

SESSION 6: DESIGNING EFFECTIVE CCP DEFAULT MANAGEMENT, RECOVERY AND CONTINUITY FRAMEWORKS

• An Overview of the CCP Clearing Model (Definition, Ownership, Advantages, Disadvantages, Novation, Cleared Products, Margining, Multilateral Netting).

• ESMA and CCP Authorisation, Recognition, Supervision, and CCP Operational, Clearing and Reporting Obligations under the EMIR Framework.

• CCP Cleared Products, Reporting, Interoperability, Third Country CCPs, Basel III Capital Risk Weightings for Qualifying and Non-Qualifying CCPs. • CCP Regulation v. ‘Too Big to Fail’ Debates.

• EMIR Interoperability Arrangements (Risk Management, Provision of Margin Among CCPs, Approval of Interoperability Arrangements).

• CPMI-IOSCO (2012) Principles for Financial Market Infrastructures (PFMIs) Interoperability Types, CCP Interoperability Key Considerations and Risks.

• ESMA Guidelines and Recommendations on Interoperability Arrangements (2013), ESMA Final Report possible systemic risk and cost implications of interoperability arrangements (2016), Bank of England Interoperability Implementation (2014).

• Costs, Benefits, Risks, Challenges of Interoperability Arrangements, and Practical Case Studies.

• Default Risks (Member Default, Distress, Resignations, Failed Auctions, Reputational).

• Non-Default Risks (Fraud and Cyber, Operational, Investment, Legal, Model, Liquidity).

• Membership Requirements, Transparency, Margin Methodology, Stress Testing).

• Recovery Tools, Mutualised Default Funds, Default Waterfall, Default Fund Margin, Skin-in-the-game (SITG), Assessment Rights, Tear-Ups (Voluntary, Partial, Full).

• 2012 CPMI-IOSCO Principles for Financial Market Infrastructure, 2014 CPMI-IOSCO Recovery of Financial Market Infrastructures, 2017 CPMI-IOSCO Resilience of central counterparties.

• The ISDA CCP Default Management, Recovery and Continuity Framework.

• Developing new Total Loss Absorbing Capacity (TLAC) or Bail-inable Debt Standards for CCPs. • Developing Standardised Regulatory Stress Testing and Disclosure Frameworks.

SESSION 3: CCP MARGINING PRACTICES

SESSION 7: CCP RECOVERY AND RESOLUTION PLANS

• CCP Margining Risks, Initial and Variation Margin, Interest Rates, Haircuts, Cross-Margining Practices.

• CCP Margin Methodologies, Calculating Margin Period of Risk (MPOR).

• Margin Segregation Practices (Omnibus, Individual, Legal Segregation with Operational Commingling (LSOC) and Re-hypothecation).

• EU Two-day net margin v. US One-day Gross Margin Debates.

• Resilience Incentives, Initial and Variation Margin Haircuts.

• CCP Points of Non-Viability, Emergency Liquidity Arrangements, Continuity of Services, Auction Design.

• CCP Resolution Powers, Loss Allocation Arrangements, and CCP Default Management Process.

• Implementing Effective Cross-Border Cooperation and Coordination with Regulatory Authorities.

SESSION 4: CCP CLEARING AGREEMENTS (DIRECT AND INDIRECT)

SESSION 8: THE CCP RECOVERY AND RESOLUTION REGULATION

• CCP and Client Clearing Documentation and Common Negotiated Provisions (Margin, Termination Events, Pre-Default Porting, Additional Provisions).

• Customer Clearing under Modified Master Agreements.

• An Overview of ISD Clearing Agreements and Addendums (EU ISDA/FOA Cleared Derivatives Execution Agreement and Addendum).

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

• European Systemic Risk Board (ESRB) Opinion on a central counterparty recovery and resolution framework (July 2017).

• ESMA Resolution Committee, Resolution Authorities, Resolution Colleges, European Supervisory Authorities and Cooperation Agreements, Decision Making, Information Exchange.

• Recovery Planning (Recovery Plans, Assessment of Recovery Plans, Coordination Procedure), Resolution Planning (Plans, Coordination Procedure, Resolution Objectives, Tools, Powers).

• Resolvability (Assessment of Resolvability, Addressing or Removing Impediments to Resolvability), Early Intervention Measures (Removal of Senior Management and Board).

2

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

© COPYRIGHT 2017-2018 | STORM-7 CONSULTING Level 24/25 The Shard | 32 London Bridge Street | London SE1 9SG www.storm-7.com