Operational and Legal Risks, Settlement Cycles and Financial Stability

Published in 
de Warande Club - Brussels

The global financial crisis has brought to light important weaknesses in the functioning of market infrastructures. Historically the middle and back-office segments were addressed purely from an efficiency perspective – but they actually play a major role in mitigating risk and promoting financial stability. A wide-range of legislative proposals will impact the post-trade segment, while Target2 Securities could in the short term prompt a Europe-wide move to a shorter settlement cycle of T+2 and drive higher levels of harmonised market discipline. Regulators want more automation, better reporting and higher levels of pre and post-trade transparency. Is the buy-side ready for new regulations and new infrastructures? Is there a trade-off between efficiency and safety? Can new technological developments mitigate operational risks and increase the efficiency of the infrastructure?


  • 10.30- 10.45h Registrations
  • 10.45 – 11.00h Welcome by Karel Lannoo – CEO, CEPS/ECMI
  • Introductory remarks by - Marianne Brown: President and CEO, Omgeo and David Hiscock Senior Adviser, Financial Regulatory and Market Practices Department, ICMA
  • 11.00 – 11.45h Panel 1 – Mitigating Operational Risks
  • Moderator – Tony Freeman, Omgeo
  • Participants
  • Paul Bodart BNY Mellon - Custodian/Outsourcer and Chair of HSWG
  • Patrice Brault, Tradition - Broker/Dealer and Chair of the Electronic Trade Confirmation Working Group of ICMA AMTE
  • Yannic Weber, CEO of Euroclear UK and Ireland and CEO of Xtrakter
  • Questions to the panel:
  • What progress has been made since the publication of the Giovannini Barriers 10 years ago?
  • Are the barriers still appropriate and should new barriers addressing operational risk be defined?
  • How can the market prepare for T+2?
  • How can operational risk be mitigated?
  • How does a robust operational infrastructure contribute to financial stability?
  • Can better management of operational risks promote competition between financial markets infrastructures?
  • 11.45 – 12.00h Coffee Break
  • 12.00 – 12.45h Panel 2 – Policy Options
  • Moderator – Prof. Eddy Wymeersch, former Chairman of CESR
  • Participants
  • Christophe Schieble, European Commission
  • Gábor Butor, First Secretary, Financial services attaché – Permanent Representation of Hungary
  • Helmut Wacket, Head of the External Stakeholder Management Section T2S Programme- ECB
  • Diego Valiante – European Capital Markets Institute
  • Questions to the panel:
  • How well does the regulatory & policy community understand operational and legal risks?
  • Where is operational risk and middle-office in the regulatory agenda?
  • Future Regulation on CSDs
  • What are the policy options open to the market?
  • 12.45h- 13.00pm Wrap-up and agreement on action points by Marianne Brown
  • 13.00 – 14.00pm Lunch

The event - sponsored by ICMA and Omgeo - aims at representing a forum for policy makers, industry and stakeholders. The European Capital Markets Institute (ECMI) has endorsed the event. Media participants will operate under “Chatham House” rules.