2020 Programme

2019 Programme

Collateral Management Japan Forum | Programme 2020



08:00 - 08:55


Chairpersons’ opening remarks

08:55 - 09:00


Keynote address: Addressing regulatory fragmentation to strengthen and harmonize the OTC Derivatives market

09:00 - 09:20


Panel: A look at Japan’s current collateral management regulatory and reporting landscape

09:20 - 10:00

  • How prepared are the local banks and buy side firms to implement Phase 5 and 6 of the Initial Margin big bang? 
  • Securities Financing Transactions and its impact on the market participants
  • Japan’s new financial accounting rule for 2021, what are the implications for local industry? How will this affect CVA and XVA practices?   
  • Basel III and its effect on collateral management 


Morning break

10:00 - 10:30


Panel: The LIBOR transition – what you need to know

10:30 - 11:10

  • With LIBOR scheduled to be officially phased out by the end of 2021, what does this mean for Japan’s collateral management sector? 
  • How will LIBOR reform impact margining? (delete / need more points) 
  • Moving towards alternative reference rates, how can Japan and the rest of the Asian market ensure a smooth transition? 
  • Buy side and local bank readiness - what internal company measures are being taken?


Panel: Resolving operational and IM challenges faced by buy-side and local banks

11:10 - 11:50

  • Insourcing versus outsourcing, which option should local banks and buy side banks consider?
  • Onboarding before or by the September 2020 deadline, how can local banks and the buy side banks ‘beat the clock’?
  • IM exposure – a number of local banks do not have a quants team and are utilizing standard models, which leaves them vulnerable to IM exposure, how can they overcome this issue? 


Presentation: Understanding IM Documentation techniques for Phase 5 onboarding and beyond

11:50 - 12:10

  • Segregating margins 
  • New collateral agreement with Global Custodians 
  • Smart contracts and distributed ledgers 
  • ISDA’s new digital platform



12:10 - 13:10


Presentations: Operations techniques for collateral management

13:10 - 13:30

  • Initial Margin (IM) and Variation margin (VM)  
  • CCP margin management support   
  • Utilizing electronic platforms to rationalize margin calls 
  • Triparty collateral management 


Presentation: Embracing SIMM and MVA Models

13:30 - 13:50

  • Preparing for the governance model before utilizing SIMM, how can buy side firms and local banks best prepare for this crucial step? 
  • Internal Model vs Standard Model vs standard schedule (grid), which model should local banks, buy side firms, and commercial users choose? 
  • Exploring potential solutions to overcome IM exposure, calculative, and technical burden. 
  • Utilizing MVA to quantify the cost of IM posting over the lifetime of a portfolio 


Panel: How Japan can take advantage of digitization and automation to keep up with the global market

13:50 - 14:30

  • Utilizing RPA and AI technologies to reduce operational costs
  • Standardizing documents - how can Global Custodians utilize STP and digital methods to assist the local and buy-side banks? 
  • Margin transit utility (MTU) for payment order and messaging automation purposes 
  • Blockchain technology and creating ledgers for collateral management purposes and IM documentation – how can Japanese players learn from abroad?


Afternoon break

14:30 - 15:00


Presentation: Collateral optimization – best practices and methods

15:00 - 15:20

  • Rising costs of collateral, how to post efficiently? 
  • Making the best use of cash and non-cash assets
  • Real time collateral exchange  
  • The application of Collateral Apportioning


Presentation: XVAs and the next level – a deeper dive

15:20 - 15:40

  • Comparing the advantages and disadvantages of a centralized XVA desk 
  • Key challenges relating to XVA use 
  • Changes to XVAs in the future 
  • Different ways the XVA desk can be set up


Panel: Establishing capital requirements for CVA’s

15:40 - 16:20

  • Addressing the lack of divergence between regulatory CVA and market practice
  • The poor recognition of CVA hedges – what are the consequences? 
  • Changes to the current CVA framework – what are the available options? 


Panel: The Future Outlook of Japan’s Collateral Management Industry

16:20 - 17:00

  • Phase 6 Margin Regulation for 2021 – What can market participants expect? 
  • As more banks begin the onboard process for Phase 5 and 6, how can Global Custodians best manage the increased workload?  
  • What role can the local custodians play?
  • Market trends and forecasts for the next 12 – 24 months


Closing remarks

17:00 - 17:05


End of forum

17:05 - 17:06