Agenda

March 27, 2020 - Philadelphia, PA

8:30 - 9:30

Registration & continental breakfast

9:30 - 9:35

Welcome

9:35 - 10:00

Session 1:  Challenges facing ISO trading entities and CCRO response

10:00 - 10:30

  • The challenges highlighted by Green Hat default and what this means for ISO trading entities

  • Introduction to the CCRO working group leadership team and how they have been working together as an industry group.

  • CCRO draft white paper – high level overview to include:

    • Paper scope, organization and intended audience

    • Concept of “appropriate practices”

    • Timeline

Break

10:30 - 12:00

Session 2 (Part 1):  In-depth review of CCRO white paper

A discussion to provide insights into the working group’s key messages here while also gathering suggestions from attendees. 

Governance:

  • Acknowledgement and delegation of responsibility

  • Accountability, authorizations, independent oversight, governance structure

Risk assements:

  • Participant volumetric exposures - key risk indicators

  • Market price risks of participant – aka non-payment Exposure

  • Participant creditworthiness

  • Quantify potential future exposure

  • Determine trading limits for participant

12:00 - 1:15

Lunch

1:15 - 2:30

Session 2 (Part 2):  In-depth review of CCRO white paper

A discussion to provide insights into the working group’s key messages here while also gathering suggestions from attendees. 

Controls: terms of participation:

  • Authorization as a market participant:  Background checks, cause for refusal, appeal of refusal base Capital minimum requirement – default fund

  • Collateral: Initial margin, variation margin

  • Enforce limits:  Monitor positions and take action, response escalation schedule, suspensions, position transfers

  • The process for participant appeals

Communicatons:

  • Internal communication of risks

  • External reporting

  • Board communication

  • Incoming information from outside parties

2:30 - 3:00

Break

3:00 - 3:45

Session 3:  Other topics under consideration

There remain a few topics that the group is still discussing fit within the paper’s objectives.  We would like to discuss these with attendees as well to get their opinion on the suitability and potential value of addressing these topics.  For example:

  • Aftermath of a default; Unwinding positions

  • Information technology systems; market data repository, sharing KYC data across ISOs

3:00 - 3:45

Session 4:  Next steps and how to get involved

The working group will outline our current plans and next steps:

  • Welcome to new members to join the group and gain access to the draft

  • Current milestones towards publication

In addition, we would like to discuss with the audience their inputs on any next steps we should take

  • before publication…

  • after publication…

4:30 - 4:35

Closing comments

5:00 - 7:00

Networking event at offsite location

PO Box 940652

Houston, TX 77094

info@a-insight.com

©2019 Alpha Insight LLC. All Rights Reserved