IFR - 07.07.2018

Who’s moving where...

h4RADINGûEMPLOYMENTûOPPORTUNITIESûFORûLESS
THAN
QUALIlEDûINDIVIDUALSû

INûEXCHANGEûFORûLUCRATIVEûBUSINESSûDEALSûISûxûNEPOTISMûATûITSûlNESTv

FBI’S WILLIAM SWEENEY, P

Nicolo Salsano has

joined HSBC as head

of corporate and

institutional banking

for Germany. Salsano

will join in October. He

will be based in

Duesseldorf and report

to Matthew Wallace,

head of global banking

for Europe, and Carola

von Schmettow, CEO

of HSBC Germany.

Salsano has worked in

investment banking for

23 years, mostly at

Credit Suisse, where he

was head of

investment banking for

Germany and Austria

from 2013 to 2017.

Salsano last year

joined Chinese insurer

Anbang Group as chief

investment officer.

DANSKE BANK has

hired Luke Oram from

HSBC for its financial

institutions group

origination team in

Copenhagen. Oram

has spent more than

10 years at HSBC

covering public sector

issuers in its debt

capital markets team.

Danske said Karin

Heydorn also joined its

FIG origination team

last month. Heydorn

previously worked at

Commerzbank and

Landesbank Baden-

Wuerttemberg.

Bond issuance fintech innovators get FCA leg-up

A handful of companies planning to shake
up debt issuance by using blockchain to cut
COSTSûANDûHELPûSMALLERûlRMSûRAISEûCAPITALû
HAVEûBEENûCHOSENûBYû"RITAINSûlNANCIALû
regulator to test new ideas and products in a
live market environment.
4HEûlRMSûINCLUDEûBLOCKEX, which aims to
use blockchain to reduce costs and slash
the time it takes for issuers to come to
market. It said it expects to issue up to
£250m of bonds under the regulator’s
programme.
/THERûCHOSENûlRMSûINCLUDEûGLOBACAP,
which has launched a platform that issues
equity or debt securities as a token on a
public blockchain to provide a more cost
EFlCIENTûWAYûTOûMANAGEûTHEûSECURITYûANDû
improve transparency in the process.
The Financial Conduct Authority has
chosen 29 companies for its latest “sandbox”
programme, which allows the start-ups to
test their products on live customers. It
should accelerate the speed that some arrive
in the market.
%IGHTûOFûTHEûûlRMSûOPERATEûINûWHOLESALEû
banking - compared with just three in the last
selection round - and 40% are using distributed

LEDGERûTECHNOLOGYûORû$,4û4HEûlRMSûAREûTHEû

fourth group chosen since the FCA launched

the regulatory sandbox process in 2014.

“Cohort 4 has seen a large increase in the

NUMBERûOFûlRMSûTESTINGûWHOLESALEû

PROPOSITIONSûINCLUDINGûlRMSûTHATûAREûAIMINGûTOû

INCREASEûTHEûEFlCIENCYûOFûTHEûCAPITAL

RAISINGû

process,” said Christopher Woolard, executive

director of strategy and competition at the FCA.

h!LONGSIDEûTHESEûWEûCANûSEEûSIGNIlCANTû

use of distributed ledger technology, some

experimentation with cryptoassets which

will help inform our policy work and

propositions aimed at helping lower income

consumers,” he said.

Tests will be conducted on a short-term and

small-scale basis, under FCA supervision.

“The FCA are embracing this new technology



ûTHEYûAREûENCOURAGINGûITûANDûCANûSEEûTHEûBENElTû

it can ultimately bring to participants in the

industry,” said Myles Milston, CEO of Globacap.

“There’s no doubt that blockchain makes

THEûSECURITIESûINDUSTRYûMOREûEFlCIENTûANDû

more robust and accessible, so there are a

few companies tackling it in slightly

different ways and with slightly different

nuances,” Milston told IFR.

The start-ups say blockchain can help the

issuance of debt and equity in a number of

ways, including by improving transparency.

There has been criticism companies raising

capital and investors buying securities are

often clients of the same bank, which can

CREATEûAûCONmICTûOFûINTEREST

TEMPLATED COMPLIANCE

Blockchain has a distributed record of

transactions maintained by a decentralised

network of computers.

The new platforms offer templated

compliance and legal documents that can cut

the time and costs of new issuance, and can

specify coupons, payment dates and maturities,

and automate clearing, settlement, dividend

and coupon payments and voting rights.

-ANYûOFûTHEûlRMSûAREûTARGETINGûSMALLERûANDû

medium-sized companies, who often don’t have

the scale to make a capital fundraising work.

Globacap was formed in November and is

setting up a platform for SMEs to raise between

£1m and £20m in either debt or equity.

Milston said applying blockchain can also

widen the investor pool and make

administration of securities easier, and also

MUMSS dropped from bond deals

MITSUBISHI UFJ MORGAN STANLEY SECURITIES has
been dropped from several bond deals in
Japan, days after regulators recommended
THATûITûBEûlNEDûFORûALLEGEDûMANIPULATIONûOFû
government bond futures.
Japan’s Securities and Exchange Surveillance
Commission said on June 29 that MUMSS
SHOULDûBEûlNEDûcMû53M ûFORû
manipulating JGB futures. According to the
SESC’s press release, a MUMSS employee
placed large orders for JGB futures in August

2017 without intending to execute them.

!ûlNALûDECISIONûONûWHETHERûTOûlNEûTHEû

company will be taken by the Financial

Services Agency, but the damage to

MUMSS’s reputation has apparently already

had an impact with issuers.

Toray Industries last Monday unveiled a

changed line-up for a forthcoming bond issue.

-5-33ûWHICHûWASûONEûOFûlVEûLEADSûWHENû

Toray made the mandate announcement on

June 22, was no longer included in the

updated syndicate. Toray declined to comment

on the reason for the change.

On the same day Tokyo Gas also changed

the lead managers for the 30 and 40-year

tranches of an upcoming triple-tranche

offering. MUMSS had been hired as one of

the leads for the two tranches on June 29,

but was excluded. A Tokyo Gas spokesperson

said the decision was made based on the

company’s rules, but did not give further

details.

The headwinds continued as MUMSS was

dropped from several more offerings of