NetOTC, provider of innovative risk solutions, today announced that Roger Liddell has been appointed CEO with immediate effect.
Founded in July 2011 as an independent company, NetOTC employs more than 50 staff based in London and New York. Since its inception, NetOTC’s sole focus has been the development of a new generation of risk management and mitigation solutions for the non-cleared OTC derivatives market.
Roger’s previous experience as CEO of LCH Clearnet, the largest global interest rate swaps and leading multi-asset clearing house, brings a pedigree renowned for the provision of a robust and rigorous risk management framework. Roger Liddell was appointed non-executive board member to NetOTC in 2013 and has been closely involved with the firm since 2011.
This strategic appointment has been timed with the launch of the NetOTC bilateral platform designed and built under the direction of Neeraj Sharma and Matthew Durkin, NetOTC's co-founders. Roger's responsibility will be to now bring the platform to market.
Roger Liddell served on the board of LCH Clearnet Group Limited from 2005 and was Group CEO for five years until 2011. Roger was a director of Euroclear from 2000 to 2005 and prior to that date, worked at Goldman Sachs.
Commenting on his appointment, Roger Liddell, CEO, NetOTC, said, “Having spent more than fifteen years in the clearing and post-trade world, I believe that there has never been a more exciting time for the industry, particularly given the G20 appetite for regulatory reform and greater transparency in the non-cleared OTC derivatives market. I am very much looking forward to bringing NetOTC Bilateral to market building on Matt and Neeraj's sterling work in developing the platform and market model."
The NetOTC leadership team is comprised of Bob Wigley, Chairman, Neeraj Sharma, Group CEO and Roger Liddell, CEO. The platform now built, Matthew Durkin has left the company, and Alberto Giovannini and Robert Barnes serve as non-executive board members.
Bob Wigley, Chairman, NetOTC, added, “I am delighted that Roger has accepted the role of CEO which further strengthens our executive management team. His experience and contacts will be invaluable to our ongoing discussions with regulatory and industry bodies, and in ensuring that the banks have everything they need to benefit from the efficiencies that NetOTC’s market infrastructure proposition can offer.”
Commenting further, Neeraj Sharma, Group CEO, Co-Founder, NetOTC, said, “It has been my pleasure to work alongside Matthew Durkin and develop the NetOTC Bilateral market model and platform, and we wish him every possible success in his new ventures. Roger has been a key advisor for many years and we are delighted that he has taken this full time executive post at a time when the industry addresses some of the most pressing regulatory requirements that offer opportunity for collateral management improvement and capital exposure reduction."
Separately, the company announced the launch of NetOTC Bilateral, the end-to-end bilateral market infrastructure for the margining of non-cleared OTC derivatives.
NetOTC Bilateral is connecting to Euroclear’s Collateral Highway in an effort to answer the market demand for greater transparency, resilience and addressing the market need for funding, capital and operational cost efficiencies.
From September 2016, the mandatory exchange of Initial Margin (IM) comes into effect. NetOTC Bilateral is a sophisticated IM solution that goes beyond the calculation and calling of standard two-way margining.
NetOTC Bilateral is offered as a dedicated service that works with existing service providers. Robust collateral segregation, optimised calculation and simplified implementation features are enabled by an innovative NetOTC Bilateral legal structure that results in unique funding, capital and operational cost benefits.
NetOTC Bilateral uniquely strengthens IM exchange as it eliminates IM disputes, enables a single daily IM delivery to cover all counterparties, and on default, when collateral is needed most, NetOTC Bilateral provides enhanced claims coverage and ensures that all IM is delivered on the next settlement cycle.
Commenting on the launch of NetOTC Bilateral, Neeraj Sharma, Group CEO and Co-Founder, NetOTC said, “We are delighted to launch NetOTC Bilateral. NetOTC Bilateral is not just responding to the principles and policies required by the regulators and the G20, it delivers a complete, integrated and independent market infrastructure that tackles the real implementation challenges presented to us by the market.”
NetOTC Bilateral is available for clients ahead of schedule, with user on-boarding commencing in 2015. It is regulatory compliant, adaptable for future amendments, and aligned to industry principles and initiatives. Specifically suited to existing portfolios and counterparties, NetOTC Bilateral is available for early adoption and coverage in advance of the IM timeline.
Roger Liddell, CEO, NetOTC commented further, “From an operational perspective, banks must find ways to process the multiple margin calculations and transactions that the new rules entail, without rendering the whole process uneconomical. The complexity cannot be underestimated and not tackling the IM and post-default processing is likely to have considerable impact on banks’ already constrained capital requirements.”
Incorporating the exchange and clearing expertise of the TMX Group and the UnaVista matching and monitoring platform of London Stock Exchange Group, the service is further strengthened with key industry partners and leaders.
Olivier Grimonpont, Global Head of Collateral Management and Securities Lending, Euroclear said, “We continue to develop our core business activities, looking for new ways to deliver client value in the areas in which we traditionally operate. Through the Collateral Highway, Euroclear welcomes all collateral givers, takers, intermediaries and infrastructure providers - thanks to a truly open architecture. NetOTC Billateral’s connection into our global collateral management platform is a testimony to the Euroclear innovation agenda.”
This connection will help create a robust, single point of market access for the unclearable OTC derivative market, designed to enable full compliance in a transparent, predictable and cost effective way.
Bob Wigley, Chairman, NetOTC added, “Throughout the process, we have been impressed by the banks’ appetite to engage with our working groups and the priority that senior banking executives are placing on regulatory readiness for the new margin rules. The addition of the Collateral Highway to our infrastructure partners further illustrates the market appetite for a comprehensive approach.”