Chaired by Melissa Sexton, Executive Director, Products and Investment risk, Morgan Stanley Wealth Management, the conference covered a number of key areas impacting the OTC markets, including regulatory reforms and the implications for clearing, buy-side risk management, big data in financial services and counterparty risk and regulation.
Udesh emphasised a number of key themes including the regulatory impact on margining, how CCPs are reacting to the development of new margin methodology and how some EMIR and CFTC rules and processes are yet to be defined. He stressed how the monitoring of risk has undergone major change in terms of adoption of new technology.
Moderated by Gonzalo Garcia-Kenny, Head of US Portfolio Optimization, Citigroup, the panel discussed the implication of new regulations, the implementation of central clearing and Collateral rules, the changing role of CVA desks post the financial crisis, and how banks have moved to pricing FVA into transactions. Speakers also highlighted products becoming less bespoke as a direct result of the complexity of the credit crisis and how pricing behaviours are very different now to what they were pre-crisis.
The buy-side panel moderated by Lev Brodovsky, Chief Risk & Compliance Officer, Star Mountain Capital debated the concept of shadow banking and its impact on different market participants. The panel also discussed the driving forces behind the growth in shadow banking including tighter regulation, increase in cost of capital and also recognition that the scale of bank deleveraging require economies to look outside banks to secure the finance required for growth.
Terry Benzschawel, Managing Director, Institutional Clients Group, Citigroup, delivered the keynote address in which he explored the role of big data models in finance and the contribution it can make to risk management within financial markets. He considered the role of big data models in finance, using the problem of default modelling as an example, and also more general aspects of big data applications.
“There are a lot of people here who are experts in their industry. The panel
sessions were outstanding, I liked the balance with the buy-side and sell-side perspectives. I think Quantifi did a great job”
- Melissa Sexton, Executive Director, Product & Investment Risk, Morgan Stanley Wealth Management
- Gonzalo Garcia-Kenny, Head of US Portfolio Optimization, Citigroup
- Jason Hickey, Managing Director, Global Markets Risk, Bank of America
- Milton J. Brown, Executive Director, Risk Exposure Management, UBS AG
- Udesh Jha, Executive Director, Head of CVA Trading, UniCredit
- Sanjay Sharma, Chief Risk Officer, RBC Capital
- Lev Borodovsky, Chief Risk & Compliance Officer, Star Mountain Capital
- Josh Smith, Portfolio Risk Officer, GSO Capital/Blackstone
- Michael Fox-Rabinovitz, Partner & Portfolio Manager, Strategic Streams
- Terry Benzschawel, Managing Director, Institutional Clients Group, Citigroup