ISBN 2-907587-09-9

A storm of re-evaluation has taken the world economy by surprise. Gone are the days of e-euphoria: the clouds of recession and e-disenchantment call for intensely disciplined business models. Yet a new frontier of win-win strategies can turn painful adjustment into shared opportunities.

Outline

Introduction by Jaap Kamp, Chairman of the Board, SWIFT
Introductory dialogue with Yawar Shah, Vice Chairman of the Board, SWIFT

Executive summary
The critical dialogue @ the financial frontier
Albert BRESSAND and Catherine DISTLER
with insights from Yasse TABUCHI, Kevin KELLY and John Perry BARLOW.

Part I. NURTURING SUSTAINABLE GROWTH: THE NEW ASIAN FRONTIER
I. Renewing the sap: civil society rejuvenates the Singapore’s public sector Banyan tree
BG George YEO, Minister of Trade and Industry of Singapore.
II. The new Asian financial ecosystem
David ELDON, Chairman, The Hongkong and Shanghai Banking Corporation Ltd.
III.Nurturing Chinese growth in the age of global standards
Liu MINGKANG, Chairman, Bank of China.
IV.Growing a pan-Asian bank: the DBS two-hub strategy
Philippe PAILLART, Vice Chairman and CEO, Development Bank of Singapore.
V.Hong Kong: a global hub with local roots
Joseph YAM, Chief Executive, Hong Kong Monetary Authority.

Part II. TECHNOLOGY REDEFINING MONEY, INTERMEDIATION AND COMPETITIVE ADVANTAGES
I. e-money, banking supervision and the conduct of monetary policy
Jean-Claude TRICHET, Governor of Banque de France and Member of the Governing Council of the European Central Bank.
II. A new business model for IPOs
William R. HAMBRECHT, Chairman, WR Hambrecht+Co.
III. Beyond ECNs: the Instinet approach to value creation
André VILLENEUVE, Chairman, Instinet.
IV. Standard Chartered leverages global technology to serve emerging markets
Mervyn DAVIES, Group Executive Director, Standard Chartered.

Part III. MARKET INFRASTRUCTURES IN SEARCH OF GOVERNANCE MODELS
I. The kaleidoscope of “coopetition”: a State Street perspective
David A. SPINA, Chairman and CEO, State Street Corporation.
II. Connectivity and data: the wheat and flour of the information economy
Richard LI, Executive Chairman and CEO, Pacific Century CyberWorks.
III.Hand in hand: central banks and commercial banks come up with CLS
Joseph de FEO, CEO, CLS Services Ltd.
IV. Of markets and utilities: the Deutsche Bank perspective
Jürgen MARZINIAK, CEO, Global Securities Services, Deutsche Bank AG.

A single window on the financial frontier
Concluding dialogue with Leonard H. SCHRANK *, CEO, SWIFT

* You'll need to download Acrobat Reader to read these files

Quotes

Part I. NURTURING SUSTAINABLE GROWTH: THE NEW ASIAN FRONTIER

“As we become more connected, our different strengths and weaknesses will assert themselves. The result will be greater specialization.[…] Unfortunately, this must also lead to conflict because there will be new winners and losers. Trade is positive sum but relative positions will change. […] Historically, the seeds of change have always been more evident in the trading cities. They move quickly to new areas where there is profit to be made.”
BG George Yeo

“Foreign banks in China will have to operate with their eyes very wide open because China is not going to be an easy market. […] Only very brave foreign banks, at this stage, would go in and enter the mass-market! […] A sort of holistic relationship [will develop] where these services and products that the Chinese banks may not have today could be provided by foreign banks and dis-tributed by the Chinese banks.”
David Eldon

“The legal framework is very important to reinforce cor-porate governance. […] This must become a priority for all Chinese institutions, not only in the private sector but also in state-operated organizations as well as for the State itself.”
Liu Mingkang

“Many of the successful global players have had a regional presence far longer than we have. So our approach to the creation of a pan-Asian bank will probably have to be very individual.”
Philippe Paillart

“Hong Kong as a financial center [is] there to facilitate financial intermedi-ation by providing the necessary infrastructures. In Mainland China, there are still a few restrictions that make it difficult for them to make use of these infrastructures but it will change. […] Hong Kong needs to specialize and I see financial services as an area of specialization. Hong Kong will also have to play a role more as a principal rather than as an intermediary.”
Joseph Yam

Part II. TECHNOLOGY REDEFINING MONEY, INTERMEDIATION AND COMPETITIVE ADVANTAGES

“For the time being at least, the Internet can be described as a new, powerful media that is clearly changing the way in which we interact, but has left the underlying reality qualitatively unchanged… “e-money” in the narrow sense is simply money and its electronic form should have no impact whatsoever on the conduct of monetary policy. ”
Jean-Claude Trichet

“We had to adjust to the marketplace.[…] We found that to make the auction work, we also needed to develop the functionalities of a specialty investment-bank. […] We learnt that beyond price discovery, pro-viding the liquidity in the after-market is very important.”
William R. Hambrecht

“The sort of disintermediation debate you had two years ago … has changed. Still, I am sure technology will continue to change many things… Anybody who is not using technology cost-effectively is in big danger of disappearing. On the other hand, has technology brought quite the same changes that people expected a few years ago? I don’t think so.”
André Villeneuve

“Our future is in the emerging markets. We strongly believe that the potential in these countries is enormous, on the retail side as well as on the wholesale side. […] Our commitment to emerging markets is such that withdrawing was never an option for us. […] The top management of the company must be entrusted to people who have an international experience and can understand different markets.”
Mervyn Davies

Part III. MARKET INFRASTRUCTURES IN SEARCH OF GOVERNANCE MODELS

“Cooperatives have been very successful in addressing some of the issues you mentioned at a given point in time, either locally or globally. It remains difficult for them, however, to change and transform fast enough because their owners often have conflicting interests. […] I believe that the pace of innovation may favor private sector solutions from the start and that these solutions may then lay the groundwork for the new cooperatives.”
David A. Spina

“Being involved in new ventures keeps a company and its staff at the cutting edge of their industry. This involvement, however, must be understood and man-aged for what it is: a high-risk activity.[…] We must adapt to change as fast as the fastest learners in the new economy do but we must also meet the basic tests in profitability, no matter what happens. […] The business model [of] a large company has to combine stable and predictable revenues with a capacity to invest in new ventures – without becoming hostage to market fads and intermediaries.”
Richard Li

“There is big value in creating networks which serve large constituencies. CLS Bank is establishing this sort of network. The infrastructure we are creating, the applications and our connections to the central banks will be exploited so long as governance continues to operate as it has.[…] We will also increase the value of the infrastructure by providing services to business beyond the foreign exchange market.”
Joseph de Feo

“Financial markets […] demand a highly efficient settlement infrastructure in Europe in order to optimize capital allocation among the different European countries. Otherwise, some economies will continue to pay the bill for inefficiency in the form of relatively higher yields and lower share prices.”
Jurgen Marziniak