TradeTech FX USA 2016 (past event)
February 22 - 23, 2016
Array
Keeping Abreast Of An Evolving FX Landscape
08:00 - 08:45 Registration and Breakfast
08:45 - 08:50 Welcome Address
Oliver Kirkbright, Editorial Director, Worldwide Business Research
08:50 - 09:00 Chairpersons Opening Remarks
09:00 - 09:20 Buy Side Keynote: 3 major trends driving FX markets- Top tips on how the buy side can survive and thrive in a new market structure
Interviewed by: Kevin McPartland
Viewed as an industry pioneer, Michael oversees a global trading team operating 24 hours per day responsible for the execution of long and short trades in over seventy-five markets. They also gathering intelligence on new instruments including hard currency and local currency debt. Having successfully steered Eaton Vance’s FX trading desk trough choppy waters in 2015, Michael will share his expertise on:
- Assessing the impact of the developing regulatory environment- What makes a compliant trading desk in 2016?
- What strategies can you exploit to ensure you are tapping into the best liquidity pools at the right times?
- In an increasingly electronic market, what are the latest technology trends you should be monitoring to improve your overall trading performance?
- Minimizing risk- How can you protect your desk when major tectonic shifts occur such as the SNB incident last January?
09:20 - 10:00 Oxford Style Debate: The liquidity mirage: Is the FX market suitably equipped to address the shortages of liquidity faced in stressed market conditions?
Speakers:
Andrew Maack Head of FX Vanguard
Collin Crownover Senior Managing Director, Head of Currency Management State Street Global Advisors
Paul Shahied Senior Foreign Exchange Trader Fidelity Investments
Dmitri Galinov CEO Fastmatch
Susan Gammage Head of FX Transactions Sales, Americas, Financial & Risk Thomson Reuters
Moderator:
Kevin McPartland Head of Market Structure Research Greenwich Associates
Andrew Maack Head of FX Vanguard
Collin Crownover Senior Managing Director, Head of Currency Management State Street Global Advisors
Paul Shahied Senior Foreign Exchange Trader Fidelity Investments
Dmitri Galinov CEO Fastmatch
Susan Gammage Head of FX Transactions Sales, Americas, Financial & Risk Thomson Reuters
Moderator:
Kevin McPartland Head of Market Structure Research Greenwich Associates
FX is the most liquid asset class in the world, and traditionally sourcing liquidity has not been a major issue for market participants. However, on-going regulatory reform, market structure changes, and fragmented trading platforms has led to increased difficulty in sourcing liquidity, particularly in times of market stress. Attend this opening session where you will learn:
- Liquidity post SNB- Has the SNB debacle had a negative effect on liquidity provision in FX markets?
- Can the FX market be consolidated without eliminating competition and stifling innovation?
- SDP vs MDP- Have trading platforms adequately adapted to market structure and technology changes?
- With banks dis-intermediating from FX, does this increase the likelihood of FX trading becoming more exchange like?
Collin Crownover
Senior Managing Director, Head of Currency ManagementState Street Global Advisors
10:00 - 10:20 Economic Keynote: Global Macro Outlook- How to capitalize on the new opportunities facing the FX industry in 2016 and beyond
Throughout Paul’s career, which includes roles at the Bank of England, and International Monetary Fund, his interests include monetary policy and its interrelationship with markets and the economy. This has also been a key focus in his current role at BNP Paribas. During his keynote presentation, Paul will provide an analysis on the key macro-economic opportunities you should focus on in 2016 and beyond. Attend this session to learn:
- Global outlook: What is the medium-long term outlook for mature economies and how can you best take advantage of this view?
- What themes will dominate the FX agenda over the next 12 months and how can you steer your desk through these new changes?
- What will be the political implications should Greece, and potentially the UK, leave the Eurozone?
- What is the outlook for the FED, ECB and BoE policies as central banks operate at different stages of Quantative Easing?
- Do diverging interest rate policies and currency prospects across different regions offer an opportunity to FX investors?
10:20 - 11:00 Morning Networking Break
Stream A - Trading Desks: Addressing Regulatory Reforms
11:00 - 11:40 360° Perspective: Addressing the intended and unintended consequences of regulation on the FX market structure- How to navigate your desk through the regulatory stormSince the financial crisis of 2008, regulation across jurisdictions has had a profound effect on how both the buy and sell side operate. The knock on effect of this has been to radically change the market structure as e-trading increases in FX and the buy side seek solutions which the sell side can no longer deliver. This market practitioner panel with major players from from across the industry will give you a 360 perspective on:
- What structural changes are direct impacts of regulation, and what are a result of the cyclical changes such as rising interest rates and the geo-political environment?
- What is the impact of the latest set of regulations and how will it affect market participants from the buy and sell side?
- Are we seeing a more transparent FX model or has the impact of regulation fragmented the market further?
- How can regulators clear up cross border rules with overseas regulators to achieve a more coherent global structure?
Stream B - Portfolio Management: Capitalizing On Political Developments
11:00 - 11:40 360° Perspective: What strategies should you put in place now to capitalize on the FED’s interest rate rise?With the FED set to finally raise interest rates in the coming months, and the UK likely to follow, conflicting rates and policy divergence across global jurisdictions has become a major challenge for FX currency managers. This expert panel consisting of leading strategists across the industry, will shed light on:
- What do rising rates and a more attractive USD mean for global currency markets?
- Addressing policy divergence- What strategies should you put in place to navigate your desk through the post QE world?
- What do rising interest rates for the USD mean for risk management against other currencies?
- Clarifying the path and trajectory of rising rates- Is there a terminal rate the FED are looking to?
- Will a rate rise in the US prompt other central banks to do the same?
Stream C - Improving your TCA capabilities (Limited to 25 Participants)
11:00 - 11:40 Leadership Boardroom: Transaction Cost Analysis (TCA)- How to best implement TCA to improve FX execution and reduce costsThis leadership boardroom, limited to a maximum of 12 buy side participants, will discuss and elaborate on the best uses of TCA for both pre and post trade. During this interactive session, you will find out:
- Understanding exactly what TCA is and how it works for FX
- How can the buy side use TCA tools to measure the market and reduce trading costs?
- How can you use TCA to make more informed trading decisions?
- The future of TCA- How will TCA develop to optimise your pre-trade and execution strategies
Stream A
11:40 - 12:00 Case Study: Clarity on clearing- Is a clearing mandate necessary for NDFs and if so how could the CFTC implement it?Bruce has been actively involved in a range of regulatory matters relating to capital markets in recent years, particularly aspects of the Dodd-Frank Act relating to the FX markets. Historically, Bruce has extensive experience in the debt and derivatives capital markets, including representing end-users such as asset managers. During this session, Bruce will be providing a strong focus on clearing, where he will outline:
- What are the current stances of the CFTC and the EU on NDF clearing and what timetables are in place for clearing?
- Is a clearing mandate appropriate- what implications will this have on the market as a whole?
- What are the new rules for NDFs around non-cleared swaps and how will this impact how you trade?
- Margin requirements- What are the final un-cleared margin rules in place by the CFTC and when will they come into play?
Stream B
11:40 - 12:00 Case Study: US dollar drill down- Challenging the US dollar safe haven myth and the United States hedge fundAlessio acts as a senior strategist for the Global Multi-Asset Group at OppenheimerFunds. In this role, he leads the group’s macro research on business cycle dynamics and global macro regimes, assessing their impact on asset class risks and returns. In addition, Alessio oversees and manages active currency strategies in GMAG’s funds. Alessio will provide his expert analysis on the latest USD trends, challenging the ‘norm’ view of this currency as a safe haven. Attend this session where Alessio will provide exert insights on:
- The US Dollar safe haven theory- analyzing global capital flows to challenge this theory
- Is there real evidence of increased appetite for US assets in times of risk aversion?
- An examination of cross-country international investment positions
- What are the key fundamentals and drivers of the US dollar in 2016?
Stream C
11:40 - 12:00 Stream C CONTINUEDStream A
12:00 - 12:40 Fireside Chat: The global regulation game- What are the practical implications of MiFID II on your cross-border FX trading activities?
MiFID II enforcement is coming, and its going to have direct impacts on US based firms when working with European clients, institutions and business partners. The degree of impact on your US FX trading will vary depending on your business model. For those US firms that plan on participating in European Markets must of course comply with MiFID, and this discussion will provide you with clarity on:
- How is MiFID II going to markedly change the regulatory landscape globally and how will this impact your cross-border trading?
- What impact will MiFID II have on global buy and sell side firms?
- How can the sell side, platforms and technology providers assist you to achieve global regulatory compliance?
- How can regulators clear up cross border rules with overseas regulators to create a more coherent global structure?
- Is global standardized regulation across the globe beyond the realms of possibility, and if not who would oversee this?
Stream B
12:00 - 12:40 Case Study Revolution: From bull to bear- How to best manage risks and opportunities facing your portfolio as a result of China’s slow economic growth?
The global sell off of Asian stocks in light of slowing economic growth in China has left many investors and traders alike asking if now is the time to leave China. This case study delivered by a specialist in Chinese currencies and macro analysis, will share his expertise on:
- Chinese macro indicators- With the economy on a slowing trend can it still provide a profitable haven for currency investing in the near future?
- The rise of the RMB- What will the internationalization of the RMB mean for global currency trading?
- How would China’s participation in the SDR affect other major G10 currencies?
- After the devaluation of the Yuan, is the Chinese sell off set to continue- What impact will this have on EM currencies?
- Can China realistically retain its currency peg with the USD or is this likely to end in the next 12 months?
Stream C
12:00 - 12:40 Stream C CONTINUEDStream A
12:40 - 14:00 Networking LunchStream B
12:40 - 14:00 Networking LunchStream A - Trading Desks: Re-thinking Traditional Relationships
14:00 - 14:40 Oxford Style Debate: Agency vs. Principal: Will there always be the need for a principal broker in FX or are they a dying breed?
Both regulation and e-trading has changed the buy side perception of the sell side value proposition. As banks become more restricted on the risk they can take in FX markets, more agency like models have come to the fore. This contentious debate will provide both sides of the argument on what model is best suited for your trading operations. Attend this debate and decide for yourself:
- Is it now much more efficient for banks to act as agency and execute trades for clients, or is the principal model still the most reliable form of trading?
- Does increasingly electronic markets mean agency like models are inevitable in FX, or will principal based models remain the dominant form of trading?
- Will there always be the need for a principal broker in FX or are they a dying breed?
- Do the advantages of e-trading such as improved reliability outweigh the disadvantages such as the loss of the human touch in FX trading?
Stream B - Portfolio Management: Capitalising On New Currency Trends
14:00 - 14:40 360° Perspective: Currency turmoil in Emerging Markets (EM) - As EM and carry strategies falter, what are the alternative methods for generating EM alpha?
Speakers:
Peter Lundgreen CEO Lundgreens Capital
Jon Vollemaere Founder and CEO R5FX
John P. Espinosa Head of Global Sovereign and Emerging Markets Research TIAA-CREF
Camilo Amezquita Portfolio Officer International Finance Corporation
Moderator:
Richard Levich Professor of Finance New York University
Peter Lundgreen CEO Lundgreens Capital
Jon Vollemaere Founder and CEO R5FX
John P. Espinosa Head of Global Sovereign and Emerging Markets Research TIAA-CREF
Camilo Amezquita Portfolio Officer International Finance Corporation
Moderator:
Richard Levich Professor of Finance New York University
Over recent months, emerging market currencies have felt the strain of FX markets, battling against a strong USD, as well as feeling the full force of China’s devaluation of the RMB. This has led to multi year lows and many investors reversing the long standing flow of money going into EM currencies. This interactive discussion with a global EM expert will shed light on:
- Where will the major EM opportunities lie in 2016, and which strategies will prove successful in generating alpha?
- Is now the time to invest in EM currencies while the cycle is low so you can make higher returns in the future?
- Analyzing the key macro trends in emerging market currencies to identify the most profitable currency pairs
- Is the EM currencies multi year low a cyclical trend, or does it represent a true and permanent shift?
Stream C - Workshop: Exploiting Advances In Algo Trading (Limited to 25 Participants)
14:00 - 14:40 Synergy Workshop: How can you exploit next generation algos to sharpen your trading edge?
FX algorithms have come late to the game if you compare them to the equity side. Due to increased volatility in FX, algos have to adapt quickly to suit the needs of buy side FX trading firms. This senior level workshop on algorithmic trading will provide an excellent opportunity for you to drill down on how to best use algorithms in FX. This workshop will be limited to 25 buy side participants for maximum interaction and will be led by a leading expert on algorithmic trading. Join this interactive workshop to learn:
- What methods of algo trading are important for you to prosper in today’s electronic FX world?
- How can sell side expert shops use algorithms to offer a more cost effective service to the buy side?
- Next generation algos- how can algos be moved from currency pairs to multi currency basket trades to offer more effective execution of a large number of instruments?
- How is the FX algorithmic market organized as far as where the trading stations fit?
Stream A
14:40 - 15:00 One on One Interview: Mapping out the FX Prime Broker landscape (FXPBs) - How can FXPBs better service the buy side amidst the back drop of increased capital requirements?
Moderator:
Javier Paz Senior Analyst Aite Group
Speaker:
Fred Allatt FX Prime Brokerage Intl FC Stone
Javier Paz Senior Analyst Aite Group
Speaker:
Fred Allatt FX Prime Brokerage Intl FC Stone
Over recent years, (FXPBs) have vastly dropped in numbers, leaving the few who are left to dominate the landscape. Also, after the SNB debacle and ‘Black Thursday’ as it is now famously known as, Prime Broker’s perspectives on FX and what risk they are taking has drastically changed. This session, led by a leading Prime broker, will provide expertise on:
- How are the roles of FXPBs changing amidst the back drop of regulation and increased capital requirements?
- How can prime brokers offer a more open relationship to the buy side to provide direct market access and new liquidity?
- What do ‘Prime of Prime’ brokers mean for liquidity- Are they a threat to liquidity or are they able to offer a more tailored service to buy side clients?
- The PB evolution post SNB: What services can FXPBs be expected to offer to the buy side after the SNB debacle?
- How will the FXPB landscape develop over the next 5 years and what will the suite of services look like?
Stream B
14:40 - 15:00 Drill Down Roundtables: Spotlight on new currency trends- All you need to know to meet your short term and long term investment objectives
Join these informal currency and portfolio specific roundtables hosted by an expert. One roundtable is limited to 10 people for maximum interaction. This is your chance to quiz an expert on where the opportunities lie in your currencies and portfolio of choice and learn from the experiences of your buy side peers.
Roundtable 1: Europe- What does the potential Grexit and Brexit mean for currency trading across Europe?
Roundtable 2: Asia- Is now the time to leave China after the recent sell off or is the outlook better in 2016?
Hosted by Peter Lundgreen, CEO, Lundgreens Capital
Roundtable 3: EM- What impact does a strong USD and the changes in Chinese currencies mean for emerging markets?
Hosted by Camilo Amazquita, Portfolio Officer, International Finance Corporation
Roundtable 4: G3- Examining the US Dollar, Euro and Japanese Yen
Hosted by Ken Chee, Portfolio Manager, STRS Ohio
Roundtable 1: Europe- What does the potential Grexit and Brexit mean for currency trading across Europe?
Roundtable 2: Asia- Is now the time to leave China after the recent sell off or is the outlook better in 2016?
Hosted by Peter Lundgreen, CEO, Lundgreens Capital
Roundtable 3: EM- What impact does a strong USD and the changes in Chinese currencies mean for emerging markets?
Hosted by Camilo Amazquita, Portfolio Officer, International Finance Corporation
Roundtable 4: G3- Examining the US Dollar, Euro and Japanese Yen
Hosted by Ken Chee, Portfolio Manager, STRS Ohio
Stream C
14:40 - 15:00 Stream C CONTINUEDStream A
15:00 - 15:20 Industry Perspective: Gaining a Competitive Edge with Next Generation Trading Technology
Operational risk, FX scandals, quest for best execution – they all keep the buy-side traders awake at night. In this session, panelists discuss structural changes in FX trading, identify how electronic trading has evolved for asset managers, and share their experiences leveraging technology for smarter execution. Join this session to find out:
Russell Investments
- How e-trading has evolved to enable smarter currency execution by the buy-side
- How to achieve optimal netting for a multi-currency, multi-tenor portfolio
- How to accurately and meaningfully measure ‘best execution’ for FX trading
Andrew Brown
Head of Execution ServicesRussell Investments
Stream B
15:00 - 15:20 Stream B continued
Stream C
15:00 - 15:20 Stream C continued
15:20 - 16:00 Afternoon Networking Break
16:00 - 16:10 Innovation Spotlight: Minimizing the Effects of ‘De-levering’ and ‘De-risking’ during stressed market conditions - How can you making the most of diverse financial ecosystems during a selling contagion
16:10 - 16:50 360° Perspective: How can you combine your TCA and Algo trading to increase your chances of achieving best execution?
Speakers:
Mike Harris President Campell and Company
Richard Coulstock Director Eastspring Investments
Griffin Frank Vice President, FX Trading T Rowe Price
Petra Wikstrom Global Head of FX Execution and Alpha Solutions BNP Paribas
Andrew Silverman Managing Director & Global Co-Head Morgan Stanley Electronic Trading
Moderator:
Kevin McPartland Head of Market Structure Research Greenwich Associates
Mike Harris President Campell and Company
Richard Coulstock Director Eastspring Investments
Griffin Frank Vice President, FX Trading T Rowe Price
Petra Wikstrom Global Head of FX Execution and Alpha Solutions BNP Paribas
Andrew Silverman Managing Director & Global Co-Head Morgan Stanley Electronic Trading
Moderator:
Kevin McPartland Head of Market Structure Research Greenwich Associates
As electronic trading increases its grasp on FX markets, buy side firms are looking to incorporate their TCA and algorithmic trading to determine the best times to use algorithms and reduce costs. This discussion combines those at the forefront of the technological evolution in FX, to provide expert advice on:
- What inefficiencies should you look out for across the trade lifecycle to increase your chances of increasing transparency and achieving best execution?
- How can you use pre-trade TCA to decide when are the best times of the day to trade across different locations around the world?
- Building a robust FX TCA system- What are the current shortcomings and how can they be overcome?
- How can you use TCA to baseline algos against each other to understand what type of algos to use and when?
16:50 - 17:30 Vegas Style Debate: The aftermath of WMR- What alternative methods can you use to reach a more reliable benchmark?
The market shocks from the FX fixing scandal towards the end of 2016 will be felt across the industry for years to come. At the centre of all this is the WM FIX, the most common benchmark used across the industry. This panel will provide insights on how they have been affected by the fixing allegations, and shed light on alternative benchmarking strategies to achieve transparent and reliable trading. Attend this panel to find out:
- Benchmark fragmentation- How can the industry standardize benchmarks to provide more consistent results and clarity on best execution?
- Widening the FIX- was this a good move or a bad move from the regulators?
- Aftermath of the WMR- How has the industry adapted the structure of their trading desks to adapt to the WM FIX changes?
- New benchmarking strategies- What alternatives are available for the buy side away from the WM FIX?
- Creating a benchmark suite- How can you compare different benchmarks and prove which is the most reliable for your FX trading?
