• Introduction by KS - Welcomed attendees to the Regulatory launch meeting
• Thanks to SNR Denton for hosting event

Agenda:

• MP restated key messages from CAS WG February launch meeting
• MP stated that the market faced unprecedented scale of change resulting from legacy regulation and the raft of new legislation as a consequence of the global financial crisis.
• Change no longer confined to ‘tinkering’ around the edges of the operating environment but wholesale impact on how markets operate and more importantly on how firms conduct their business.
• MP referenced work of the MiFID JWG and how it was a successful vehicle for assisting the market to understand the practical challenges and issues arising from a large scale regulatory initiative..
• MP stated that regulation is a principal catalyst for fundamentally reshaping the post-trade landscape of the next 3-5 years. The industry via the CAS WG has an opportunity to have a collective voice at the table with proper representation
• MP provided overview of proposed governance structure and invited attendees to indicate their interest in leading the subject group

MP opened the floor for questions

• Q: The regulatory scope is vast. How will the group ensure that it addresses the real regulatory issues?
• A: The group will need to understand and define the scope of the regulatory landscape and the associated timelines before deciding on an action plan
  
• Q: Will there be interaction with the other groups?
• A: It is anticipated that there will be cross fertilisation across the subjects groups and collaboration with other industry forums

All attendees believed that in principle such a forum can add value going forward, provided it is managed correctly with clear objectives and expected outcomes.

Background:

The Regulation Subject Group is focused upon:

• Understanding new regulation, the impacts and cross-border inconsistencies
• Basel III and the treatment of collateral
• The European Markets Infrastructure Regulation (EMIR) and how it impacts both Over-the-Counter (OTC) Central Counterparty (CCP) clearing and Central Securities Depositories (CSD) regulation
• The Markets in Financial Instruments Directive revision (MiFID II) and its impact on internal infrastructures and the market at large
• The Financial Services Authority (FSA) break-up and how the new Bank of England regulator will change the City
• Dodd-Frank’s impact upon OTC derivatives CCP clearing
• Trade Repositories

The Group has Kiri Self of the Realisation Group as Acting Chair, and is open to nomination for this position.