Financial Market Infrastructures in the Digital Age: A Focus on CCPs
Should you wish to request a late admittance to the course, contact firstname.lastname@example.org
Over the past decade, clearinghouses have subsumed the management of counterparty risk for many financial transactions. Regulators and supervisors thus face a new nexus for risk in financial markets, where these institutions have become too important too fail. At the same time, new technologies – in particular blockchain or distributed ledgers – have emerged that promise potentially large efficiency gains for settling financial transactions.
The course will expose participants to current trends in the institutions that control counterparty risk in financial markets and will discuss the challenges that these developments bring along with them for regulating and supervising such institutions.
The following questions will be addressed in the course:
- How do central clearing, collateral and margin policies affect risk across financial markets?
- What are the key challenges faced by regulators when critical infrastructure operates in a cross-border environment?
- What is the impact of Fintech on collateral demand and collateral management? How can blockchain technology be harnessed for making settlement of financial transactions more efficient?
- What should regulators do to control the aggregate risk that critical infrastructure is taking on and how should they react if such infrastructure is at the risk of failing?
The course will present empirical and theoretical insights to answer these questions.
- Introduction to Clearing and Settlement
- Blockchain in Payments Systems
- Blockchain for Securities Settlement Systems
- Fintech, Clearing Services and Collateral
- Design of Margin and Collateral Policies for Central Counterparties
- Central Counterparties and System(at)ic Risk
- Resolution vs. Recovery of Critical Financial Infrastructure
- Supervisory Challenges of Cross-border Infrastructure
What you will learn
- You will learn about the critical role Financial Markets Infrastructure (FMI) plays in containing and reducing counterparty risk
- You will be exposed to challenges regulators face when designing and monitoring FMI
- You will learn about how new technology (blockchain, distributed ledger and fintech) could influence the future design of FMI
- You will get first-hand accounts about current projects that modernize existing infrastructure or introduce new solutions for clearing and settlement
- You will get an understanding of the issues policy makers face when confronted with the need of recovering or resolving critical infrastructure
How the course will work
Total course length: 12 hours.
The course is organized on a three day schedule.
First day: Introduction to clearing and settlement
- Centralised risk management policies
- Supervisory regime for FMI in a cross-border setting
- Case studies/group work on challenges for FMI (example of Nordic Exchange Default)
Second day: CCPS and system(at)ic Risk
- Systemic issues of central clearing
- Resolution vs. recovery of CCPs
- Cross-border clearing within the EU and third countries
- Cyber-risk to FMIs
Third day: Fintech and blockchain for FMI
- Blockchain for settlement in financial markets
- Discussion of blockchain application
- Cross-border payments and digital currencies
Meet the instructors
Thorsten V. Koeppl is a Professor and RBC Fellow in the Department of Economics at Queen’s University. He is currently also the Scholar in Financial Services and Monetary Policy at the CD Howe Institute one of Canada’s most influential policy think tanks. Prof. Koeppl advises the Bank of Canada on Central Bank Digital Currency and in the past has served as an adviser to several other policy institutions in matters of financial market organization, regulation and intervention in the past. Prof. Koeppl has degrees in management and in economics from the Universities of Eichstaett/Ingolstadt and Basle, and received his Ph.D. in economics from the University of Minnesota in 2002. His main research interests are in the areas of macroeconomics (in particular monetary economics), financial market infrastructure and blockchain economics. He has published on these topics in top economics journals such as Review of Economic Studies, Journal of Economic Theory, Review of Financial Studies and the Journal of Financial Economics among several others.
Luca Arciero is a Director at the Market and Payment System Oversight Directorate where he is Deputy Head of the Payment Systems and Infrastructures Division, addressing several topics including payment system regulation, oversight and cyber resilience. He is currently member of the ECB Payment and Securities Oversight Working Group and the Analytical Working Group. He was a member of the BCBS-CPSS Joint Group on Intraday Liquidity Risk. He has published research papers and book contributions on payment system economics, publishing on these topics in economics journals such as International Journal of Central Banking and Journal of Artificial Societies and Social Simulation. He has delivered several presentations at international conferences and workshops in Europe, Canada and Mexico. In the academic field he has held lectures at the Universities of Tor Vergata, Torino and Siena. He graduated in Statistics and Economics from the University of Rome “La Sapienza” and obtained a M.Sc in Economics from the University College of London.
Anne Choné is Senior Risk Analysis Officer at ESMA, where she monitors financial innovation and financial activities across the EU. Among the topics that she has recently addressed are Crowdfunding, FinTech and Regulatory Sandboxes. She has led ESMA’s work on Distributed Ledger Technologies and crypto-assets and authored various publications from the authority on the topic, including the ESMA Advice on Initial Coin Offerings and Crypto-Assets to the EU Institutions that was published in January 2019. Before joining ESMA in 2013, Anne was Principal at Mercer Investments, where she advised institutional clients on the design and implementation of their investment strategies. Prior to that, she worked as a Director in charge of financial institutions and then banks at FitchRatings. Anne holds of master’s degree in Finance from NEOMA Business school and has earned the CFA certification.
Veronica Fucile is Deputy head of the Post Trading Division at Banca d’Italia and is specialized in regulation and policy making on Financial Market Infrastructures, mainly CCPs. Before dealing with post-trading FMIs, Veronica was involved in the regulation and development of retail payments and participated in several negotiations which lead to the set-up of the relevant European legal framework. She also gained international experience in policy making within Standard Setting Bodies such as the Financial Action Task Force and the CPMI. After many years in the retail field, Veronica felt the need for a change and moved to the Banca d’Italia’s Post Trading Division in 2013. In this capacity she is member of the Financial Experts Working Party of the EU Council for the negotiations of EMIR 2.2 (CCP Supervision) and the Regulation on CCP Recovery and Resolution. She contributes to several initiatives of CPMI-IOSCO on post-trade FMIs.
Agnieszka Smoleńska is the acting head of the European Affairs desk at Polityka Insight. She is a graduate of European Social and Political Studies from the University College London and European Interdisciplinary Studies at the College of Europe (Natolin). Between 2010 and 2014 she worked at the European Commission and the European Parliament. Between 2014-2018 she was a PhD Researcher in Law at the European University Institute and a research associate at the Florence School of Banking and Finance, where she focused on the EU banking regulations and the economic reform of the Eurozone. She also cooperated with Transparency International and the World Bank.
To be able to follow the course, participants are required to have:
- a MA degree in economics or finance
- basic knowledge and understanding of risk management, financial institutions, and financial regulation
- familiarity with basic blockchain concepts
Participants are required to bring their own laptops or tablet devices to access resources on the internet.
1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks) and European Institutions
1900€ – Private Sector
1000€ – Academics (Assistant, Associate or Full Professors)
850€ – Students (with certificate of studies)
The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.
EARLY BIRD DISCOUNT
Participants who register before 27 March 2019 will benefit from a 10% reduction of the course fees.
The early bird discount cannot be combined with group deals.
- In case of registration of 3 participants from the same organisation, the course fee is waived for one of them.
To benefit from the deal, the names of the 3 participants have to be communicated to email@example.com before registering. We cannot communicate the names of other registered people from the same institution (it is upon your responsibility to get in touch with your HR division). A single debit note will be issued for the 3 participants followed by one payment.
- Special deals apply for larger groups.
- In case a course is cancelled, registered participants will receive the full refund.
- In case a course is moved to another date, registered participants may request a voucher to attend another FBF course.
- Registered participants who cancel their participation will receive a voucher to attend another FBF course.
For more details, please contact firstname.lastname@example.org
- In case of registration of 3 participants from the same organisation, the course fee is waived for one of them.
Please notice that the course dinner, and most of the social activities, will take place downtown.
Recommended hotels nearby the EUI:
Recommended hotels in downtown Florence:
Suggested restaurants in Florence city centre
- Restaurant Accademia – Ph. +39 055 217343
- Restaurant Cucina Torcicoda – Ph. +39 055 265 4329
- Finisterrae – Ph. +39 0552638675
- Il Vezzo – Ph. +39 055 281096
- Osteria di Giovanni – Ph. + 39 055 284897
On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.
General information on local transport
From Florence airport:
Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.
A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.
The airport is also connected to the main railway station in Florence by a shuttle bus (‘Vola in bus’) that leaves every 30 minutes (on the hour and on the half-hour) and takes 25 minutes. Tickets are available on board for €6.00.
From the central railway station:
Bus tickets are sold outside the railway station, at ATAF ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafes (bar). They must be bought before boarding and stamped using the machine on the bus. A ticket costs €1.50 and it is valid for 90 minutes. Bus tickets can be purchased also on board (€ 2.50), but the driver is not obliged to give change.
From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.
The EUI has several free parking areas available all over the Campus.
Course materialRegistered participants can access the course material using the password provided by the FBF secretariat.