The changing role of sovereign institutions, the opportunities for innovation presented by emerging technologies, alternative investments and the growing importance of collateral management are key areas of focus at BNY Mellon’s 7th annual Investment Services Sovereign Academy, taking place in London
Pulling together a broad range of current themes and topics under the banner of ‘Navigating Through Change: Perspectives on Risk, Regulation and Return,’ the Academy features both BNY Mellon experts and external speakers from organizations including the International Monetary Fund (IMF), Prime Collateralised Services (PCS), the Official Monetary & Financial Institutions Forum (OMFIF) and EY.
The event is hosted by Hani Kablawi, CEO of EMEA Asset Servicing at BNY Mellon. "After six years of relentless change as our industry adapts to the ‘new normal,’ you might be excused for thinking that perhaps we might be close to a period of relative stability," he says.
“However, while we may well be edging closer towards that point, it is clear that collectively we still have some way to go. The way we all govern, manage and run our businesses has changed, and products and relationships have likewise evolved. But I remain confident that the long-term impacts of market infrastructure, regulatory and tax changes will create new opportunities.”
Francesco Papadia, chairman of PCS, non-resident fellow of Bruegel Institute and former director general for Market Operations at the European Central Bank, will examine how the part played by sovereign institutions in the world’s capital markets is evolving.
The pledged collateral market, how it has shrunk since the Lehman crisis and key concepts such as the velocity of collateral is the focus of a presentation by Manmohan Singh, Senior Financial Economist at the IMF.
Pooma Kimis, Director of Markets and Institutions at OMFIF, will discuss the findings of the recent BNY Mellon/OMFIF report ‘Crossing the Collateral Rubicon: A new territory of challenge and opportunity,’ which highlights the emerging role of sovereigns in supplying the high-quality collateral that will offset liquidity shortages in international capital markets and supporting the development of securities markets in the wake of new regulations.
Kimis will also a chair a panel discussion on collateral management. “Collateral is viewed as both a solution to and a trigger of substantial financial losses that occurred during the financial crisis of 2008,” says Mark Higgins, managing director, EMEA Business Development, BNY Mellon Markets Group, who will be one of the panelists for the session.
“In response, policymakers around the world have enacted new rules and legislation, such as the Dodd-Frank Act (DFA) in the United States, European Market Infrastructure Regulation (EMIR) and Basel III regulations, with the primary objective of increasing market stability and resiliency, enhancing transparency and reducing counterparty, operational and liquidity risk.”
BNY Mellon’s Leda Glyptis, director and head of Innovation Center, and Nigel Colgan, senior group manager, product management, will look at how newly evolving technology can be harnessed to drive efficiency and meet the needs of our industry for the future, including an examination of disruptive technology and how it is shaping the new business landscape.
The latest developments and functionality in BNY Mellon’s own Workbench online client portal are on display, and delegates will be offered an insight into new data analysis techniques and demonstrations of the company’s next generation technology offerings, including Digital Pulse and Nexen.
Other topics during the two-day event include the drivers, trends, returns and servicing solutions for sovereigns in the alternative space; asset protection, recovery and resolution; the importance of books and records; and how tax considerations on investments can be moved to the next level.