Agenda •Introduction •Financial Crisis and Policy Responses •Current Regulations and •Fragmentation •Convergence / Divergence •Summary and conclusions

1. © 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

2. Agenda
• Introduction
• Financial Crisis and Policy Responses
• Current Regulations and
• Fragmentation
• Convergence / Divergence
• Summary and conclusions

3. © 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

4. © Swedbank Author/Administrator
Magnus Olsson
Document name
Vienna Post Trade Conference
Specification
Clearing - Road Ahead
Date
2015-09-11
The latest financial crisis
4

5. © 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

6. © 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…..

7. © Swedbank Author/Administrator
Magnus Olsson
Document name
Vienna Post Trade Conference
Specification
Clearing - Road Ahead
Date
2015-09-11
Global co-ordination?
7

8. © Swedbank Author/Administrator
Magnus Olsson
Document name
Vienna Post Trade Conference
Specification
Clearing - Road Ahead
Date
2015-09-11
Fragmentation?
8

9. © Swedbank Author/Administrator
Magnus Olsson
Document name
Vienna Post Trade Conference
Specification
Clearing - Road Ahead
Date
2015-09-11
Trends
9

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?
10

11. © 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

12. © Swedbank Author/Administrator
Magnus Olsson
Document name
Vienna Post Trade Conference
Specification
Clearing - Road Ahead
Date
2015-09-11
Summary
12
• Fragmentation
• Concentration
• Disruptors

13. © Swedbank Author/Administrator
Magnus Olsson
Document name
Vienna Post Trade Conference
Specification
Clearing - Road Ahead
Date
2015-09-11
Thank you!
13