© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Derivatives – Converging/Diverging The Road Ahead

Agenda • Introduction

• Financial Crisis and Policy Responses

• Current Regulations and • Fragmentation

• Convergence / Divergence

• Summary and conclusions

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

LTCM

Where do we come from?

3

LatAm sovereign

debt crisis

Savings & Loans

Crisis

Black Monday

Junk bond crash

Asia Crisis

Dot Com Bubble

Global Financial

Crisis

1982 1980’s

1987

1989

1998

2000

2008

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

The latest financial crisis

4

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Policy Reponses

5

“All standardised OTC derivative contracts should be traded on exchanges or electronic trading

platforms, where appropriate, and cleared through central counterparties by end-2012 at the

latest. OTC derivative contracts should be reported to trade repositories.”

G20 statement from Pittsburgh; September 2009

“We call on the Basel Committee on Banking Supervision (BCBS), the International Organization

for Securities Commission (IOSCO) together with other relevant organizations to develop for

consultation standards on margining for non-centrally cleared OTC derivatives by June 2012, and

on the FSB to continue to report on progress towards meeting our commitments on OTC

derivatives.”

G20 statement from Cannes; November 2011

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Results in regulation

6

• Timely confirmation

• Trade reporting

• Mandatory clearing

• Risk mitigation techniques – bi-lateral margining

• Transparency and trading

• Etc…..

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Global co-ordination?

7

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Fragmentation?

8

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Trends

9

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

What’s the trend?

OTC or Exchange – Bi-lateral or Cleared?

10

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

What’s the trend?

OTC or Exchange – Bi-lateral or Cleared?

11

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Summary

12

• Fragmentation

• Concentration

• Disruptors

© Swedbank Author/Administrator

Magnus Olsson

Document name

Vienna Post Trade Conference

Specification

Clearing - Road Ahead

Date

2015-09-11

Thank you!

13