Equity Derivatives: Optimising the Balance Sheet

Balance sheet consumption and liquidity requirements are now at the epicentre of equity derivatives trading. The increased cost of holding inventory, balance sheet consumption and the difficulty of banks to lend out their balance sheet are now all major concerns for the EQD industry. The LCR, NSFR, leverage ratios and capital requirements have brought about these concerns as well as the downturn in the repo market. Moreover, best practiced also needs to be defined in derivatives standardisation under EMIR. Overall, the complexity of regulatory effects needs to be understood in order to improve balance sheet lending as well as EQD product performance.

 

This marcus evans conference underlines the impact of regulation on balance sheet consumption, lending, synthetic exposures and the repo market. Each product line, including delta one and equity finance, will be scrutinised and compared in order to offer valuable clarity on the EQD market as a whole. Tax, legal, risk and compliance issues are brought together in a holistic approach to the new challenges affecting the trading desk- balance sheet relationship. By benchmarking approaches and hearing key case studies, the conference will look to kick start the profitability of EQD trading desks once again.