OT-Online Securities Japan Trading 2000
Online Securities Japan Trading 2000
22~23 March 2000 Palace Hotel. Tokyo. Japan
onlinesectrading.com
p r o g r a m m e
Day One - 22 March 2000
8.00 Registration, Refreshments & View of Exhibits
9.00 Chairman?s Opening Address
Yuji Takei
Executive Vice President, Reuters Japan
9.10 Far Reaching Effects of On-Line Trading Technology
This session will examine the current and future trends in the world?s financial markets. Issues will include:
? Changing landscape for online markets
? Opening markets abroad to boost liquidity
? Exchanges operating as for-profit organisations
? Is 24-hour trading inevitable?
? Global competitiveness
Ulrik Bagge-Hansen
Manager, Securities Transactions Systems, Reuters Japan
9.45 On-Line Trading is Transforming Securities Markets Throughout the World. A View of the Situation in Japan
Last October, further advancements in the deregulation of the Japanese financial industry were revealed. (i.e. the liberalisation of trading commissions and the elimination of restrictions on the range of business allowed to securities subsidiaries and trust banking subsidiaries.) How is Japan dealing with the global trend in electronic trading whilst continuing its Big Bang reforms? What steps will be taken to remain competitive with other financial markets? This session will discuss these questions as well as the following issues:
? Since October 1st 1999, how has on-line trading revolutionised the Japanese securities market?
? Assessing the shift towards greater connectivity among investment managers, broker-dealers and global custodians
? Amalgamation of the exchanges in Japan to enhance competitiveness
? Demutualising exchanges and operating as for-profit enterprises
Takeo Omura
Deputy General Manager, Corporate Planning, Daiwa Institute of Research Ltd.
10.20 Morning Refreshments & View of Exhibits
10.40 Regulating On-Line Trading: The Latest Policies and Directives
The rise of electronic trading coupled with the ubiquitous nature of the internet poses numerous challenges to securities commissions and regulatory bodies. What are the implications in Japan? Discussion will include:
? Stock markets in the on-line environment
? Protection for on-line investors
? Disclosure via on-line
Yuichiro Tamaki
Deputy Director of Market Division, Financial System Planning Bureau
Ministry of Finance, Japan
Kaname Seki
Vice Chairman, Japan Securities Dealers Association
11.15 Legal Implications of On-Line Trading
In Asia, and indeed Japan, existing laws are archaic for controlling the global electronic marketplace. This session will examine the legal implications and considerations associated with on-line trading. Naoki Kinami
Partner, Freshfields Law Office
11.50 Internal Controls: Considerations and Procedures for On-LIne Risk
The international financial industry has been subjected to significant losses due to lapses in internal controls and compliance. With the unknown factors associated with the Internet and its applications for securities trading, there are several additional unique compliance procedures that both brokerages and investors need to be aware of. Delegates will hear about:
? Additional considerations for on-line trading and cross-border transactions
? Discussion on whether further changes in supervisory/ management structures and internal controls are needed
? Mechanics of reviewing the structure, strategy and internal compliance procedures of companies involved in, or considering, on-line trading Alan Schaub Partner, Deloitte Touche Tohmatsu Joe Guastella Partner, Deloitte Tohmatsu Consulting
12.25 Luncheon hosted by:
1.35 Nasdaq-Japan: The New Electronic Stock Exchange in Japan
The National Association of Securities Dealers Inc (NASD) has teamed up with Japan?s Softbank Corporation to form a joint venture called Nasdaq - Japan, a sister version of U.S. Nasdaq stock market and one of the three nodes of Nasdaq?s global network. The electronic stock market will open by the end of year 2000, if not earlier. What steps will Nasdaq Japan take in order to mimic NASDAQ?s high-tech, high-growth focus? This session will tackle the following key issues:
? Listing standards and increased disclosure
? Cross market trading
? Market structure to promote liquidity John DeSaix International Managing Director, Nasdaq Japan Planning Company
2.10 Electronic Communication Networks
In the past year, the proliferation of ECNs, where trades are matched instantly on an electronic network, has forced the traditional exchanges to rethink how they do business. ECNs can interfere with the traditional investors-broker relationship, by cutting out the ?middlemen? inherent in the market structure. What are the implications to the Japanese financial market if ECNs enter the market? This session will also examine the following questions:
? Can on-line technology and traditional intermediaries exist side by side?
? Can you eliminate the middleman, without eliminating its functions?
? Increased transparency in the market?
? America?s on-line rivals scramble for the ECN pie - will this happen in Japan or will leading exchanges in Asia form a pan-Asia ECN?
? Disintermediation: the result of electronic communication networks?
? ECN: just a US phenomenon?
Mark Howarth
Marketing Director, Instinet Japan
2.45 Panel Discussion:
The Electronic Stock Exchange Phenomenon
Some experts argue that open outcry trading must survive and run hand in hand with electronic ordering systems for maximum flexibility. Others say that the Electronic Communication Networks and Automated Trading Systems stand better alone. Over the past two years, stock exchanges worldwide have either closed their traditional trading floors completely or combined with varying electronic systems. How do these traditional exchanges compare with the electronic exchanges that were created as such from the start? What are the benefits of electronic exchanges? This session will examine these questions in addition to:
? Order book trading & order-driven systems
? Effect on liquidity and volume of trading
? Greater efficiency for trade execution & settlement
? Greater transparency in the marketplace & anonymity of investors
? Comparative entry fees and trading costs
? Amalgamation of trades: Impact on settlement costs Frederick J. Grede, Executive Vice-President, Chicago Board of Trade Robert Aber, Senior Vice President, Nasdaq-Amex Stock Market Hironaga Miyama, Director, Office of Stock Market Administration, Stock Market Department, Tokyo Stock Exchange
3.20 Afternoon Refreshments & View of Exhibits
3.40 Case Study:
How To Overcome the Reliability Issue of Scalable
Transactions Over the Internet?
One of the major hurdles facing the acceptance of on-line trading
systems is the assurance of reliability and scalability of transactions from the moment an order is taken through to clearing and settlement. This session will deal with this issue as well as other key challenges such as:
? Risks and opportunities with on-line transaction processing
? Achieving efficiency, productivity and cost effectiveness in on-line transactions
? Infrastructure requirements and considerations
? Integrating enterprise solutions with legacy systems
? Packaged solutions for datawarehousing - Reliability, scalability, portability and extensibility - High performance messaging
? Success stories in the financial market
(Speaker to be confirmed.)
4.15 Managing The Complexity Of The Virtual Firm This session will examine issues related to selecting solutions for on-line brokerage. It will also consider the larger technological, organizational and managerial implications of adopting ?best of breed? package and/or outsourcing solutions in the E-Business environment. It will offer a view of the changing skill-sets required of management, and the key role of systems integrators as firms radically re-examine what functions they should, and should not, perform.
William G. Salter
Partner, Financial Services, PricewaterhouseCoopers
4.50 Panel Discussion:
On-line Broking Services
The Japanese equity market was deregulated last October 1st. This action removed fixed-rate commissions on share trades thus allowing a wave of new e-brokers to enter the Japanese market. This panel will examine:
? The phenomenon of on-line brokerage community- a new threat?
? How will traditional local brokerage houses compete with domestic and foreign entrants offering electronic broking services?
? Deep discounting and the battle for market share
? What are the implications of around-the-clock trading?
? Will institutional investors start trading on the net?
? The concerns and expectations of institutional investors
? Speed, stability and security of their trading systems
Pierre Rousseau
COO and Head of Operations Electronic Broking,
Indosuez W. I. Carr Securities (Japan)
Yoshi Tanaka
Managing Director, TIBCO Finance Technology (other panellists to be confirmed)
5.25 Chairman?s Closing Remarks
THE SECOND DAY
8.00 Morning Refreshments & View of Exhibits
9.00 Chairman?s Opening Address
Deutsche B”rse Group/Eurex
9.10 The Alliance Between Eurex AG and CBoT
?On October 1, 1999, the world?s two leading derivatives exchanges, Eurex AG and the Chicago Board of Trade, signed final agreements to create an alliance and joint venture company that will operate a single global electronic trading system.? CBoT-Eurex Alliance Fact Sheet
? To what extent is this alliance a threat to competitors in the marketplace?
? An update on the progress of the strategic alliance-synergies created?
? Will there be an Asian player?
Andreas Preuss
Member of the Executive Board, Eurex AG
9.45 Xetra - Nucleus of a European Trading Platform
for the Cash Market In 1999, over 130 new members joined Xetra, raising the number of members throughout Europe to over 400. This session will discuss the reasons why so many banks and financial institutions have chosen to gain direct access to the European blue chips and the most dynamic growing market for start-ups. The following topics will also be discussed:
? Current facts regarding Xetra and the German Cash Market
? Xetra Market Model
? Future perspectives
Michael Peters
Head of Market Development Xetra, Deutsche B”rse AG
10.20 Morning Refreshments & View of Exhibits
10.40 Domestic & Global Distribution & Connectivity -
On-Line Systems
Imagine this situation... You have taken the step to create an on-line trading capability, you are connected to the relevant liquidity pool(s) and you have the ability to achieve STP. How do you get anyone to use your new on-line system? Key issues /questions:
? How is your business positioned; Institutional, Retail, Wholesale, all of these?
? Domestic market access - methods and opportunities
? Global reach - in a Global market how do you compete? Distribution channels
? Standards and user acceptance - how important are these?
? Do you use the Internet? Is it an option not to?
Jerry Lees
Director, Head of Electronic Brokerage Services,
Indosuez W. I. Carr Securities (Japan)
11.15 Effectively Addressing Security Concerns and Solutions:
Tools for Protecting the Financial Enterprise on the Public Network
This session will address concerns regarding internet based trading networks and offer security solutions that can be incorporated into electronic trading systems. It will also address verification measures for trading on an open network. Discussion will include how to:
? Develop an appropriate security framework for trading systems
? Laying or adapting the necessary technical infrastructure
? Protecting against penetration and sabotage
? Implementing authentication measures: Digital signatures and standards
? Implementing Network firewalls and other Network Security measures
? Comparison of effectiveness of technologies available
Philip Naybour
Managing Director, Racal Security and Payments - Asia Pacific
RACAL Asia
11.50 Combined Value Trading
A radical, innovative and yet natural solution to enhance liquidity, gain price improvement, and improve trading efficiency.
? Electronic call market
? True cross market, portfolio trading
? Optimises the result of the multiple expressions of willingness to trade
? Bridges the disconnect between investment decision making and transaction execution Janis Alber Vice President, State Street Information Partnerships, Hong Kong
12.25 Luncheon hosted by:
1.35 Achieving Optimal Trading Efficiency via Global Standards and Protocols The rapid globalisation and growth of the investment industry has heightened the need for consistent, globally accepted standards for the real-time electronic exchange of financial messages for securities transactions such as orders, execution reports and allocations. This session will discuss streamlining securities operations by connecting with globally accepted standards and protocols to achieve optimal trading efficiency. James Leman
Co-Chairman, Global Steering Committee, FIX Protocol
Mitsuhiro Kidokoro
Vice Co-Chairman, Japanese Steering Committee, FIX Protocol
2.10 Examining the Key Elements for Straight-Through Processing
Straight-through processing is set to minimise failed trades and narrow the time gap between trade execution and settlement. As trading volumes continue to escalate, a cross- border automated channel is needed for global trading. Issues to be considered:
? Increasing competitiveness through STP
? Critical Flows in STP
? Implementing an STP Strategy Ralph J Horne Director of Operations, ACT Financial Systems (Asia Pacific) Ltd
2.45 Straight Through to Asia
The Asian Markets are rapidly deregulating, becoming order driven and expanding execution points: ECNs and NASDAQs. These factors are leading to a host of new trading opportunities such as crossing rather than market execution, judging price/quantity and market impact based on order book information and automation of trading strategies based on enhanced market data. In this presentation, delegates will hear about IMRglobal?s trading platform FOX and consider the applicability for STP across Asia.
Rajiv Trehan
Vice President, Chief Architect, IMRglobal Corporation
3.20 Afternoon Refreshments & View of Exhibits
3.40 Case Study:
TSE?s Approach to STP and T+1 Settlement
The Tokyo Stock Exchange (TSE) has been operating as a clearinghouse since May 1999, in order to increase security of the safe settlements and reduce counterparty risk for market participants. Under this new settlement structure, TSE is acting as the central counterparty for all trades conducted on the TSE cash and derivatives markets. TSE also plans to implement DVP settlement in its cash market. TSE believes that these reforms of its settlement system will increase confidence in its market and strengthen its position as the central securities market in Japan. This session will examine TSE?s approach to reform its settlement system including STP and T+1 settlement.
Yuji Matsumoto
Director, Clearing & Settlement, Tokyo Stock Exchange
4.15 Panel Discussion:
Clearing & Settlement in the On-Line Environment
New technologies and systems have impacted the way clearing and settlement takes place in the on-line environment. What are the latest developments in electronic settlements? Discussion will include:
? What are the obstacles in preparing for shortening trade settlement cycles to T+1 settlement?
? Switch from traditional batch processing systems to real- time processing network?
? T+1 window: no room for error corrections or down systems?
? What are the implications of T+1 on buy-side and sell-side firms?
? Ensuring smooth and efficient clearing and settlement operations
? Intra-day vs. end-of-day allocation of trades to sub-accounts
? Minimising foreign exchange settlement risk
Philippe Metoudi
Director Sales Asia Pacific, Cedelbank
Kazuhisa Fujimura
General Manager, Custody & Proxy, Fuji Bank
and Chairman, ISITC Japan
Takeharu Okitsu
Managing Director, JASDEC
Peter B. Cherecwich
Chief Operating Officer, State Street Companies
Tetsuji Nishimura
Director, SWIFT Japan
4.50 Chairman?s Closing Remarks
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