On February 21st, the Business of Collateral Trading conference will be held in Frankfurt. Frankfurt Main Finance talked to Josh Galper, Managing Principal of the organizing institution Finadium, a the global specialist consultancy on securities finance, collateral and derivatives, about the idea of the conference and why he decided to hold it in Frankfurt.
What is so special about collateral trading that a specialized conference is needed?
Galper: Collateral is an unusual asset class, and not something that investors typically buy for its own sake. Rather, the value of collateral is based on the demand and utility of assets held for other purposes that can be posted for Initial Margin in OTC derivatives, as margin on a CCP, or in a repo or securities lending transaction. Collateral is critical to how financial markets work, and can add substantial value to long-only and long-short portfolios when used effectively.
Why is Frankfurt the location of choice for the conference?
Galper: Finadium has chosen Frankfurt as the home for this conference in recognition of the growing community of collateral and liquidity traders in the region. Building a robust collateral and liquidity market will be important for Frankfurt and Germany’s development as a financial centre. More than simply responding to the evolution of the regional market however, this conference is also spearheading a new conversation about the role of Frankfurt in financial markets regionally and globally.
What is the aim of the conference?
Galper: This conference brings together buy-side, sell-side, market infrastructure, technology firms, regulators and industry associations for an afternoon of education and networking. Delegates can expect to upgrade their understanding of the collateral and liquidity space on the business side. Our two panels, the first from the sell-side perspective and the second from the buy-side, will highlight two facets of the market, how market participants need to prepare for success, and emerging challenges to trading collateral. Buy-side participants will also benefit from a discussion of how their firms should be ready for collateral across the front and back office, including SFTR reporting. Our keynote speaker, Jochen Metzger, Director General, Payments and Settlement Systems at the Bundesbank, will present on collateral management, new infrastructure, new rules and Brexit.
For more information on this event and to register, please visit the Finadium website. Frankfurt Main Finance members should be sure to use their discount code FMF2019FDM for 50% off the ticket cost.