Roy Zimmerhansl of HSBC discusses what to expect from the 27th Annual ISLA conference in Lisbon
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What can delegates expect from this year’s ISLA conference?
This year’s conference is happening at a time when all firms are focused on 2019 as a year of potentially significant change for the industry. There are two specific items to note that will make some change a certainty—Brexit and Securities Financing Transactions Regulation (SFTR)—as well as new paradigms that may emerge from technology advancement and evolving investor attitudes.
This year’s conference has some great speakers and panels lined up. What are you looking forward to most?
The moderators, panellists and keynote speakers are absolutely outstanding this year and perfectly suited to the challenging times ahead. With political, technological and business changes ahead of us, it’s hard to pick only one item of particular interest. I have been in this business a long time and I can’t recall seeing so many business-impacting events coming together within a single year.
By definition we are drawing the map for the first time in dealing with many of these issues so there are no right answers, just firms’ views. I am simply interested in hearing the discussion and debates surrounding how different firms are approaching these issues. I am hoping that delegates will be able to walk away with a few new points of view to consider.
What have been the biggest challenges for the securities lending industry so far this year?
In addition to dealing with the return of volatility in the market, Brexit and SFTR have captured the lion’s share of management focus, and rightly so.
Everyone is, and will continue to be focused on having flexible operating models that can adapt to the eventual requirements resulting from the Brexit negotiations. SFTR will place reporting requirements on securities lending market participants that may affect how some firms conduct their business.
What trends do you expect to see in the industry over the next 12 months?
Twelve months is a short period of time, especially when you take into account the regulatory-driven changes next year. Nevertheless, there are three key trends I would highlight. First, from a business perspective, we continue to see new investors making their securities available for loan. Second, essentially every developed and most developing markets now allow or even encourage securities lending. Those few that haven’t yet, have it on their radar. Finally, increasing automation from trade execution through to reconciliation and reporting will continue. My view is that the people in this business need to focus on being client-driven problem-solvers and trading engineers.
I have chaired many conferences, but I have never been more excited than I am by the topics and speakers at this year’s event.
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