SMARTS Surveillance Conference 2011

8.00am -
8.50am

Registration

8.50am -
9.00am

Introduction

9.00am -
9.15am

Official Welcome

Phillip Scanlan - Australian Consul-General, New York

9.15am -
9.50am

Opening Keynote - Market Transparency, Integrity, Surveillance 

Bob Greifeld - Chief Executive Officer, NASDAQ OMX Group

Topics: 

• The importance of market integrity for a market operator
• The importance of technology for market integrity
• A cooperative approach to market integrity – the roles of operators and market participants in supporting market integrity
• NASDAQ OMX plans for SMARTS

9.50am -
10.40am

Panel Session - Themes of the Conference

Topic: Market surveillance in a changing securities markets landscape – focus points from the perspective of key stakeholder groups.

Chair: Miranda Mizen - Principal and Director of Equities Research, TABB Group.

Panel members:

• Tom Gira, FINRA
• Tami Schademann, BATS
• Matthew Fallon, JP Morgan 
• Edward Knight, NASDAQ OMX

Topics:

• The views of the three key stakeholder groups on the latest issues dealing with the integrity of the marketplace
• The impact of competition on the pace of change in the marketplace
  • Market fragmentation and cross market surveillance
  • High Frequency Trading
  • Dark Pools
  • Co - location
  • New instruments – the OTC challenge
  • International consolidation and cross border surveillance

11.00am -
11.40am

Keynote Presentation

Maureen Jensen - Executive Director and Chief Adminstrative Officer, Ontario Securities Commission

Topic: A Regulatory Case Study – experiences with implementing and running a national cross-market surveillance system

• The importance of uniform market integrity rules
• The creation of a national audit trail system
• Best execution

11.40am -
12.10pm

Case Study

Vanessa M. Gardiner - Director, Trade Floor Supervision, Institutional Equity and Global Fixed Income, Scotia Capital

Topic: Canadian Cross Market Trading - how has it changed and what are the challenges.

2.00pm -
2.40pm

Keynote Address 

John Polise - Associate Director, Market Oversight

US Securities and Exchange Commission

Topic: The need for a consolidated audit trail (CAT) and new regulatory developments

• The importance of the CAT in domestic and international markets and opportunities it provides for the market surveillance community
• Mutual obligation - the role of the broker in market surveillance
• Lessons learnt from the SRO regulatory structure
• A regulatory perspective on US market surveillance challenges - market fragmentation and high frequency trading in the largest securities market in the world
• Forecast - increased international market fragmentation and implications for international cooperation

2.40pm -
3.10pm

Keynote Presentation 

Peter Andrews - Head of Economics of Financial Regulation, Financial Services Authority, UK

• The mandate of the Consumer Protection and Markets Authority
• Implications for market monitoring and market surveillance for market operators and participants
• The role of the CPMA within the European regulatory landscape

3.30pm -
4.10pm

Expert Presentation

Prof Mike Aitken - Chief Scientist, Capital Markets CRC

Topic: Measuring Market Quality

• The framework for defining and operationalizing market integrity
• Benchmarking markets on integrity and efficiency levels – a comparative study over 10 years of historical trading
• Enumerating the cost of insider trading and market manipulation
• Providing a framework to measure the effectiveness of market design changes

4.10pm -
4.40pm

Case Study

Avneesh Pandey - General Manager, Securities and Exchange Board of India

Topic: Cross-market surveillance in the largest emerging markets

• The Indian marketplace – the markets with the highest ratio of matched trades with the lowest average order volume, in a fragmented market
• The impact of technology changes to this marketplace  - will India become the highest traffic marketplace worldwide?
• Operating and maintaining effective cross market surveillance in this environment

4.40pm -
5.00pm

Case Study

Case Study from the Middle Eastern Markets

Maryam Buti Al Suwaidi - Deputy CEO for Licensing, Supervision & Enforcement,
Emirates Securities & Commodities Authority

Topic:

• Market design for maximum surveillance capabilities
• Surveillance with beneficial ownership information in real time
• A case study from securities markets 

5.00pm -

5.10pm

Conclusion

9.00am -
9.10am

Introduction

9.10am -
9.40am

Expert Presentation

Frederick H.deB. Harris - John B. McKinnon Professor of Economics and Finance at the Schools of Business, Wake Forest University

Topic: The impact of high frequency traders on market efficiency

• Identifying different types of HFT – liquidity suppliers and liquidity demanders
• The impact of HFT traders on volatility and liquidity of marketplaces
• Case studies from a number of major international markets

9.40am -
10.20am

Case Study

Mike Prior - Vice President Surveillance, IIROC

Topic: The impact of high frequency trading on market integrity

• Observed issues with high frequency traders in the Canadian markets
• Showcasing several incidents related to HFT in Canada
• The regulatory response by IIROC to the observed incidents
• The use of ETFs to manipulate the marketplace

Lorne Chambers - Head of Sales, SMARTS Market Surveillance

• Layering as a manipulative trading activity in HFT
• Showcasing layering incidents in several markets

10.40am -
11.20am

Case Study

Ted Myerson - Chief Executive Officer, FTEN 

Topic: Real time risk management in HFT

• How HFT works: the infrastructure used in HFT connectivity to the market
• The true extent of fragmentation – the US equities marketplace beyond just NBBO
• Controlling risk and exposure in HFT, in real time
• Trends and latest developments in the race for speed

11.20am -
12.00pm

Panel Session 

Topic: Dark pools and their impact on market efficiency and integrity

Chair: Prof Mike Aitken - Chief Scientist, Capital Markets CRC

Panel Members:

• Mike Prior, IIROC
• Frank Hatheway, NASDAQ OMX Group
• Vanessa Gardiner, Scotia Capital

12.00pm -
12.40pm

Case Study 

2.00pm -
2.40pm

Case Study

Mark Fabian - Vice President Market Regulation, ICE Futures U.S

Topic: The surveillance program for the market operated by ICE

2.40pm -
3.10pm

Expert Presentation

Bill Nosal - Senior Managing Director, NASDAQ OMX

Topic: Energy and fixed income surveillance

• Regulatory and market drivers for automating surveillance of these asset classes
• Primary behaviors of interest that firms need to monitor
• Getting the best results from on-exchange and OTC surveillance initiatives

Expert Presentation

Allen Trainer - Former Regional Head of Monitoring and Surveillance APAC, UBS

4.10pm -
4.40pm

Case Study 

Michael O'Brien - Director Client Services, SMARTS and Wayne Groom - Client Service Manager Canada, SMARTS

4.40pm -
5.10pm

Case Study 

Matthew Fallon - Executive Director, JP Morgan

• Interaction between the in-business supervision function and the Compliance team 
• Actual examples that come up on the front desk and how they are dealt with between these two separate teams.

5.10pm -
5.20pm

Conclusion 

8.55am -
9.00am

Introduction

9.00am -
9.40am

Expert Presentation

Graham Jordi - Vice President and Head of SMARTS

Topic: SMARTS product roadmap in response to changing marketplaces

9.40am -
10.20am

Case Study

Magnus Billing - Chief Counsel, NASDAQ OMX European markets

• How to operationally and technically deal with surveillance involving several regulators as a market operator
• ESMA – the European Security Markets Authority and its new mandate
• Providing market surveillance as an outsourced service for other market operators

10.40am -
11.20am

Expert Presentation - 

Greg Yanco - Regional Commissioner NSW and Senior Executive, Market and Participant Supervision, Australian Securities and Investments Commission

Topic: Becoming the first national securities commission to perform real-time market surveillance

• The challenges of building market surveillance capability as a Securities Commission
• Altering the structure of the marketplace to introduce competition
• Stakeholder relationships – the role of market operators and market participants in this new regulatory model

11.20am -
12.00pm

Broker Presentation

Andy Harris -  Head of Compliance Monitoring EMEA, Deutsche Bank

• Life after Mifid – cross market surveillance in operation on European markets
• Reporting obligations as a member on several European markets
• The operational structure of European market surveillance within
• Example cases detected

12.00pm -
12.30pm

Expert Presentation

Prof. Peter Gomber - Frankfurt University

Topic: The impact of international cross-market regulation – life after MiFID

• Liquidity and cost of Capital before and after MiFID
• OTC trading in Europe as a means of ‘avoiding’ MiFID?