Chairman’s Opening Address

Richard Evans,
Managing Director, Global Head of Electronic Execution and Program Trading,
CITI

INTERNATIONAL ADDRESS:

Emerging Trends in the Global Trading Landscape and What South Africa can Learn from Them

Advances in technology and in the global market structure have transformed buy-side trading globally, most notably in the kinds of trading options available and the strategies that deliver alpha. This opening session gives a wide picture of the latest international advances in the market as well as an overview of how the latest technological developments can used by the buy-side.

• Developments in global market structures and the impact on investors
• Exploring the latest advances in trading technology and how they are empowering the buy-side
• Benchmarking the sell-side offerings

Richard Evans,
Managing Director, Global Head of Electronic Execution and Program Trading,
CITI

KEYNOTE CASE STUDY: FOCUS ON ASIA

The Evolution of Algorithmic Trading in Asia and Possible Parallels to South Africa

Asia is home to the world’s fastest-growing emerging economies and its equity markets are in continuous evolution. Macquarie is one of the leading providers of electronic execution tools and their presentation will provide invaluable insight into delivering fast, dependable and secure algorithmic trading in Asia. This presentation will draw some conclusions on how this experience might be learned and applied in South Africa.

• Overview of trends seen in Asian markets
• Discussion on how this impacts the buy-side, broker and exchange
• Highlighting benefits, outlining problems and projecting solutions
• Comparing and contrasting the situation in South Africa

Patrick Lawlor,
Executive Director and the Head of Electronic Trading,
MACQUARIE SECURITIES

An Update on Electronic and Algorithmic Trading and DMA in South Africa

There is no doubt that algorithmic trading has been one of the most talked about developments in recent times in South Africa, but what are the real experiences the buy-side has of using this new technology and is it truly driving down costs and enhancing performance as promised? TradeTech South Africa brings together a panel of international and local experts from buy and sellside organisations to debate how to overcome the obstacles of implementing efficient electronic and algorithm trading and to seize the inherent opportunities.

• What types of algorithms are available to improve trading capabilities
• Exploring the benefits and dangers of using algorithms in an illiquid market
• Learning which trading platforms to use for electronic trading
• System implementation: should you buy, build or customise a system? Assessing the relative merits of in house v broker algorithms
• Overcoming the liquidity burden in the South African market to support algorithmic trading
• Exploring unfolding trends

Panellists:

Jan Lamme,
Former Head of Equity Dealing,
ABN AMRO ASSET MANAGEMENT

Alphonso Raats,
Head of Equities and Derivatives Trading,
STANLIB

Juan Carlos Nieto,
Founding Partner,
INDEX INTELLIGENCE HEDGE FUND

TCA: A Buyside Perspective

Both buy and sellside have invested heavily into Transaction Cost Analysis in recent years with the ongoing drive to improve efficiencies and reduce execution costs. But how do you select the model which is best suited to your investment process and how do you select peer group data for comparison? Richard Coulstock will draw on his recent experience of moving from a VWAP to an IS dealing benchmark and will describe the challenges he has encountered and how he has successfully reduced transaction costs for his firm.

• Why analyse trading costs?
• Choosing a benchmark and subsequent implications
• Understanding how to use TCA data - selecting what is relevant
• The dangers of TCA: what to watch out for

Richard Coulstock, Director,
Head of Equity Dealing,
PRUDENTIAL ASSET MANAGEMENT (SINGAPORE)

MiFID and the Road to Best Execution

MiFID has transformed the way in which Europe’s financial markets operate and it is believed its impact will be felt by financial organisations worldwide, including those in South Africa. This session will explore the consequences MiFID could have for all market players in South Africa.

• MiFID objectives and best execution obligation
• The path to best execution
• The intelligent fabric of best execution
• Best execution and trading: DMA/ block trading and VWAP/ basket and portfolio trading/ execution parameters/ algorithmic hierarchical logic tree/ dynamic implementation shortfall and the efficient market frontier

Juan Carlos Nieto,
Founding Partner,
INDEX INTELLIGENCE HEDGE FUND

SPECIAL GUEST PRESENTATION

JAKE WHITE
2007 World Cup Winning Rugby Coach

Smart Order Routing, Market Fragmentation and Liquidity Pockets in Global Markets

Regulation in both the US and Europe is impacting smart order routing in relation to best execution and venue selection significantly. An important part of the routing process revolves around the sensing of hidden liquidity. This session will explore the international trading landscape post RegNMS/MiFID and the challenges for liquidity sensing and smart order routing.

Tim Wildenberg,
Head of Direct Execution, Europe,
UBS

Alternative Liquidity Sources: Exploring the Benefits and Accessibility of MTFs and Dark Pools of Liquidity in South Africa

Given the relative illiquid conditions of the South African equity market, the emergence of dark pools of liquidity might cause a dramatic change to the mechanics of the entire market. Jan Lamme, one of Europe’s leading buyside traders, will quantify the advantages of dark liquidity and explore how South Africa should prepare for the liquidity revolution.

• Is there enough liquidity in the South African market to support dark pools of liquidity?
• Creating a standardised and automated access to alternative crossing networks in South Africa
• Understanding how alternative liquidity venues operate in Europe and the possible impact they could have on the dynamics of the South African market
• Discovering the benefits of incorporating dark liquidity into your trading strategy
• Exploring how to use algorithms to source hidden pools of liquidity

Jan Lamme,
Former Head of Equity Dealing,
ABN AMRO ASSET MANAGEMENT

Addressing Liquidity Challenges in South African Securities

Although liquidity in South African equities has improved in recent years, by world standards South Africa is still a 'small' economy with a relatively illiquid and volatile stock market. With this presentation, Leanne Parsons will explore liquidity trends in South Africa and reveal the initiatives undertaken by the JSE to increase liquidity and improve market performance.

• Analysing liquidity trends
• Investigating the exchange’s initiatives to increase liquidity
• Drawing international comparison

Leanne Parsons,
COO,
JSE

Innovations in Using Derivatives in the South African Institutional Market

The volumes and sophistications of derivatives trades are increasing in South Africa. Dr Daniel Polakow is indisputably one of the leading derivatives experts in South Africa. His technical knowledge and expertise will ensure this session will be of immense value to all participants at TradeTech South Africa who wish to get an insight into the latest product innovations and alpha strategies.

• An introduction to the peculiarities of the South African market
• A recap of institutional objectives when using derivatives
• The right mix for the right product – uncommon solutions to common problems
• Advancements in term-structuring and momentum triggering
• Some new tricks for old dog strategies

Dr Daniel Polakow,
Head of Research,
PEREGRINE SECURITIES

Investigating Trends and Dynamics of Hedge Fund Trading in South Africa

The hedge fund industry in South Africa has been going from strength to strength in recent years. A steady flow of new investments migrating into hedge funds, an increasing ability to go short, great performance and well developed equity and derivatives markets are positioning the industry for further expansion. This panel debates the techniques, the products and the strategies used by some of best performing hedge funds to generate alpha regardless of the progress of the markets.

• Exploring the execution techniques and technology infrastructure used by hedge funds
• Understanding how local hedge fund managers use algorithms to achieve alpha
• The use of derivatives in the South African hedge fund universe and how these are executed, priced and traded
• Tackling liquidity issues and the need for alternative sources of alpha though diversification
• The reality behind execution-only trading fees

Moderator: Ian Hamilton,
Chairman,
AIMA SA

Panellists:

Andrew Gillespie,
Hedge Fund Manager,
PEREGRINE ASSET MANAGERS

Jean-Pierre Matthews,
CEO,
PSG ABSOLUTE INVESTMENTS

Michael Eidne,
Fund Manager,
EDGE CAPITAL

Warren Chapman,
Director,
PEREGRINE SECURITIES

Champagne Round Table Discussion Groups

After the main presentations are finished, you’re bound to be brimming with questions and ideas about the cutting edge strategies that have been presented to you. TradeTech South Africa gives you the opportunity to discuss the burning issues with small groups of your peers, and throws in champagne to get the debate flowing! TradeTech South Africa will feature champagne roundtables on the following top issues:

What does the South African market players need to do to remain internationally relevant?
Led by: Leanne Parsons, COO, JSE

Assessing dark liquidity and dark pools
Led by: Jan Lamme, Former Head of Equity Dealing, ABN AMRO ASSET MANAGEMENT

Algorithmic trading
Led by: Patrick Lawlor, Executive Director and the Head of Electronic Trading, MACQUARIE SECURITIES

Derivatives and their complexity
Led by: Dr Daniel Polakow, Head of Research, PEREGRINE SECURITIES

Trading and settlement costs
Led by: Monica Singer, CEO, STRATE

MiFID in South Africa?
Led by: Juan Carlos Nieto, Founding Partner, INDEX INTELLIGENCE

The Macquarie Drinks Reception

Following the close of the conference, delegates are invited to unwind and relax with their conference colleagues at the Macquarie Drinks Reception sponsored by: Macquarie

Chairman’s Opening Address

Leanne Parsons,
COO,
JSE

KEYNOTE ADDRESS:

Exploring the Sustained Strong Growth in the Emerging Economies: What Lessons for South Africa?

This session puts South Africa in the context of the global emerging economies and it responds to the need of the South African securities trading market to understand how emerging economies like Russia, India, Brazil and China have developed so fast in recent years and what South Africa can learn from their experience.

• The sub prime crisis, liquidity squeezes and the global credit crunch: exploring South Africa in the context of the global economic downturn
• Investigating how South Africa failed to fully take advantage of the commodities boom: explaining the mix of rising export prices and high external deficits in an international perspective
• Lessons from the BRICs: addressing issues of labor and product market flexibility, education systems, institutional governance and exchange rate competitiveness in a SA context
• A look into the future: will the policy responses deliver a more appropriate environment for growth in the next decade?

Jean-Francois Mercier,
Chief Economist,
CITI SA

Addressing the Challenges Faced by the Buy-Side in South Africa to Keep up with Market Developments

Possibly one of the most significant sessions of this event, this panel gives the South African buyside the space to voice their opinion on the latest market developments, to explain their needs and their aims and how they see the fund management industry evolving in this rapidly changing trading landscape.

• Coping with changes in technology, derivatives and electronic trading
• Understanding how the buy-side in South Africa can benefit by the new products and tools available in the market
• Defining the future of the buy-side: what needs to change, why and where will we be in 5 years’ time?

Moderator:

Leanne Parsons,
COO,
JSE

Panellists:

Alphonso Raats,
Head of Equities and Derivatives Trading,
STANLIB

Doug Blatch,
Head of Equity Trading,
INVESTEC ASSET MANAGEMENT

Philip van der Merwe,
Head of Trading, Fixed Interest and Equities,
CORONATION FUND MANAGERS

The Operational Challenges of Migrating from T+5 To T+3 Settlement Cycle

With the G30 recommendations stating that “final settlement for all trades should occur no later than T+3” and as other global markets have embraced T+3 and some are now looking to move to T+1, it is crucial for South Africa to align with global best practice. It is anticipated the move to T+3 will take place within the next two years and this will require a higher degree of STP by all players. The JSE has been the driver behind the “Moving to T+3” project. Brett, who is directing this project will give an update of where the JSE has got to so far and the action plans.

• Where we are in the process of a T+3 Cycle?
• Exploring the challenges and the pros and cons of T+3
• How does the market need to collaborate to achieve T+3?

Brett Kotze,
General Manager, Clearing & Settlement,
JSE

Unwrapping the Costs of Trading and Settlement in South Africa

It is argued whether costs of trading and settlements in South Africa are too high compared to other markets. TradeTech South Africa is honoured to host this illustrious panel of leading figureheads within the South African financial industry to debate a crucial issue for the market.

• Exploring what service offerings are behind the costs of trading and settlement
• Are prices in South Africa for trading and settlement high in comparison to other markets?
• Is there room for change?

Moderator:

Andile Mazwai,
Group CEO,
BARNARD JACOBS MELLET HOLDINGS

Panellists:

Monica Singer,
CEO,
STRATE

Leanne Parsons,
COO,
JSE

Pan-African Trading and Investments: Discovering Opportunities in Africa

The African continent offers a wealth of opportunities for investors who continue to seek diversification and new opportunities. This session will explore those opportunities and discuss recent developments that will make accessing these markets considerably easier.

• Africa as the next investment opportunity. Why?
• Exploring how to trade markets from Egypt and Morocco in the North to Nigeria and Kenya in East and West to South Africa and Botswana in the South electronically.
• Product developments from Futures and Options to ETF’s. How these will create interest and opportunity.

Charles Walker,
CEO,
MARCO POLO AFRICA

The Future of Trading in Africa: Mapping out the Route for Progress

The global trading landscape is evolving and new products, strategies and techniques have arrived to South Africa. How will the South African market react to these rapid changes? What are the opportunities for South Africa? How will these changes affecting the relationship between buy and sell-side mutate? This panel brings together both sides of the fence to debate the future of trading in South Africa. This is an interactive session where the audience is expected to participate with their views and questions.

• Understanding what the buy-side needs from the sell-side in South Africa
• What value does the sell-side offer the buy-side?
• How is the buy-side/sell-side relationship evolving in the wake of unbundling?
• Trading outside South Africa: exploring the value in other African Countries
• The future of trading in Africa: where do we want to go and how are we going to get there?

Moderator:

Leanne Parsons,
COO,
JSE

Panellists:

Alphonso Raats,
Head of Equities and Derivatives Trading,
STANLIB

Jan Lamme,
Former Head of Equity Dealing,
ABN AMRO ASSET MANAGEMENT

Charles Walker,
CEO,
MARCO POLO AFRICA

FOCUS AFTERNOON: Getting the Most out of FIX 5.0

This focus afternoon will give you a basic understanding on the usage of FIX for multi-asset class trading and leveraging technology for automation to increase ROI. The introduction of automated trading technology and a transport independent framework reduces bandwidth usage, thus reducing expenditure in an organisation.

• Understanding the market pressures which FIX 5.0 is designed to address: - Increased automation - Growing market data volumes
• Lifting the lid on 5.0’s enhanced functionality: - Improved support for multi-asset class trading and derivatives, fiand equities - Enriched order routing features - Support for post-trade and clearing - Algo trading
• Assessing the significance of FIX 5.0’s “transport independence framework”: What does this mean for users of earlier FIX releases?
• Examining the benefits of the latest release: What can you do that you could not do before, and how can you incorporate these features into your day-to-day trading strategy?
• Advances is securities lending and borrowing and collateral management

Richard Bell,
Co-Chair, FIX Protocol Southern Africa Subcommittee
and Director, Peresys

Richard joined Peresys after spending three years at Coronation Fund Manager as Head of Technology where he was responsible for all technology including the management and implementation of both unit trust and investment management systems, designing and implementing new technologies within the group. Richard played a key role in the implementation of the Fin-switch system in the unit trust industry.