ACI BRIEFING
NEWS FROM THE FINANCIAL MARKETS ASSOCIATION
http://www.aciforex.com
JUNE 2008 ISSN 1469-2031
Vienna Special
29 to 31 May 2008
THE 47TH ACI WORLD CONGRESS:
SUCCESS IN VIENNA
Contents
THE 47TH ACI WORLD CONGRESS
SUCCESS IN VIENNA ........................... 2
COMING TOGETHER AT THE
COUNCIL DINNER ............................... 2
A VERY WELCOME RECEPTION ........ 3
STRICTLY BUSINESS ........................... 3
AN AUSTRIAN PARTY ......................... 5
THE GENERAL ASSEMBLY
AND GRAND FINALE........................... 5
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Success in Vienna: The 47th ACI World Congress
ver 700 financial markets participants from the
world over attended the 47th ACI World Congress held in the beautiful and cultural city of
Vienna from May 29 - 31.
O
The flurry of preparations that took place after the ACI
flag was handed over by ACI Canada to ACI Austria in
Montreal last year resulted in a world-class event. Combining serious business with equally serious networking
events, attendees were treated to the sights and festivities that the vibrant city and ACI Austria had to offer –
and just days before the European Championship football tournament kicked off in the country, further highlighting Austria’s presence on the world stage.
The Austrians’ optimism, efficiency and warm hospitality rubbed off on delegates, making every component of the Congress a success – from the ACI Council
dinner and Welcome Reception, through to the business sessions and Gala Dinner at the Imperial Palace
on the last evening.
FRANZ GRUBER - CHAIRMAN
ORGANIZING COMMITTEE
Here are some reminders of a memorable four days...
Coming Together at the Council Dinner
A
CI Council members were given a true taste of Austria when they were wined and dined at a traditional restaurant on the evening before the
Congress began.
An informal affair, the occasion provided the opportunity for the approximately 100 Council members from
around the world to network with their
peers following Executive Committee
meetings that day and in preparation of
the following day’s Council meeting.
The President of ACI – The Financial
Markets Association, Manfred Wiebogen, welcomed the Council members
and stressed the important role ACI has
to play in providing constructive assistance to the
global financial markets. He highlighted the importance of the Council in getting together to
communicate and achieve a common understanding, as well as the role of networking, “Let’s show
how important networking is in these times of
market turbulence,” he told the assembled diners.
Two guests were also welcomed: Honorary President Hans Jens Trelde and Honorary Member Saad
Jamalludin, who was the previous Chairman of the
ACI Board of Education. Both were presented with
a glass stone of Honorary Membership ACI – The
Financial Markets Association.
EXECUTIVE COMMITTEE MEETING MANFRED WIEBOGEN
ACI PRESIDENT
COUNCIL MEETING
ACI Congress Speacial | June 2008 2
A Very Welcome Reception - May 29
uring the day the Council members
converged to discuss industry issues
and provide updates on developments
in their respective countries (for a full report on
the Council meeting, please see the next issue
of ACI Briefing, which will be with members
in early July). While the Council meeting took
place, early arriving delegates were able to
wander among the 60 stands at the exhibition
held at the Austria Center Vienna.
D
The Congress kicked off that evening at the
Welcome Reception held in the banqueting hall
of the splendid Vienna Rathaus, the City Hall.
Manfred Kunert, the President of ACIAustria
took to the stage to welcome the Council members, delegates, sponsors, VIPs and members of
the ACI Austria Organising Committee.
The event was hosted by Oesterreichische
Nationalbank, the Austrian central bank. Further endorsing its support to ACI Austria and
the 47th ACI World Congress, Klaus Liebscher, Governor of the central bank, took to the stage to welcome delegates. He
highlighted ACI’s role as the leading global association of financial market professionals contributing to market development
through education, market practices, technical advice and networking events (for his full speech please visit:
http://www.aciforex.com/docs/misc/20080530_speech_of_the_Governeur_Mr._LIEBSCHER_Austrian_Centralbank_at_the_o
pening_Rathaus..pdf )
KLAUS LIEBSCHER - GOVERNOR
OESTERREICHISCHE NATIONALBANK
He was joined on stage by Thomas Reindl, a representative of the governing Mayor of the city, who thanked ACI for choosing
Vienna for one of the world’s biggest financial markets events.
Guests at the reception were treated to a night of decadence with free flowing wine, classical music from the Wiener Salon and
Ballorchestra and entertainment by a perfect Falco look-a-like. Taking the cue, attendees got into the spirit of the night and
were soon danceing to classics including “Rock me Amadeus.”
It was a unique and memorable evening for the hundreds of delegates that attended, many of whom were “victims” of local
radio presenter Tom Walek and his video camera and microphone.
To view the video footage, visit: http://www.1060film.com/walek/VB Mikromann.wmv
Strictly Business – May 30
elegates got down to serious business on Friday with a series of presentations and
panel discussions that began with the keynote speech by Dr. Herbert Stepic, CEO of
Raiffeisen International Vienna, entitled “Europe – Growing Together”.
D
In his talk, Dr Stepic described Central and Eastern Europe as the driving force in the economic growth in Europe. This, he said, is because the regions are in an enormous catch up
process. With 50 years of communism behind them, a younger, well educated workforce
wants to compensate for the “lost years” of two generations.
He said since 1993 investments in Austria have doubled resulting in a higher GDP by 0.5-1%
due to the stimulus coming out of Eastern Europe, which has brought additional employment
in Austria. The country is now the second richest nation in Europe largely because it has been
emerging into Central and Eastern European markets. Overall, Russia will be the dominating
banking market of the future and in 2011 will have a balance sheet of €1.2 trillion that will
equal the combined banking assets of all the other Central and Eastern European markets, he
predicted.
MANFRED KUNERT - PRESIDENT
ACI AUSTRIA
ACI Congress Speacial | June 2008 3
Dr Stepic told delegates he sees a bright future for Europe, where its global importance will increase; Europe has already become the second largest economy
worldwide, almost in parity with the US. “In the medium and long run, the question will be how successful will we be in managing economic integration, primarily with Russia,” he said.
The first panel session of the day focused on the topic, “Banking in Eastern Europe – Chances Versus Risks” and was moderated by Paul Kocher, Chairman and
Board Member of Hypo-Alpe-Adria Bank, Klagenfurt. Panelists included: Slawomir Sikora, President and CEO, Citi Handlowy Bank in Warsaw; Csaba Pastor,
Board Member, MKB Budapest; Dr Hannes Enthofer, Finance Trainer, Vienna/
Luxembourg; Dr Peter Harold, Board Member, Hypo Niederösterreich; and
Heinz Meidlinger, Senior Manager, Bank Austria, Vienna.
The panelists’ presentations and discussions looked at the effect of the sub-prime
crisis on the region, opportunities in Central and Eastern European banking, the
threat of inflation due to energy price increases, and how the new international environment is leading to higher uncertainty and volatility and a general re-pricing
of risk. It was argued, however, that Central and Eastern Europe’s usual growth
drivers will hold, although their growth cycle peaked in 2006-7.
The afternoon session began with a second panel discussion, in which moderator
Alois Steinbichler, Chairman and Board Member, BAWAG P.S.K Bank Vienna,
and panelists Dr Michael Heise, Chief Economist, Dresdner/Allianz, Frankfurt;
Dr Rudolf Trink, Director, Treasury, Oesterreichische Nationalbank, Vienna;
Bernard Conolly, Chief Economist at AIG Group in London; and Uta Pock, Chief
Economist at Investkredit/Volksbank Group Vienna, debated the question of “Europe: Driver or Driven?”
Conolly took the controversial stance that the Monetary Union means greater economic instability. If the European Central Bank decides to avoid depression, deflation and default in some of the weaker countries then a required depreciation of
the euro would be enormous and inflation in stronger countries such as the German Bloc would be well into double digits for several years, he argued.
If weak countries have, individually, little political influence, it will be hard for
them to get the ECB to bail them out via low interest rates and a weak euro, he
said. But if there is no ECB bailout, vulnerable economies face ‘catastrophe’.
“Given that, once the market comes to understand the choices, the risk of a sudden funding run on banking systems in weak
economies is very real – hence the build-up of “war chests” of dubious collateral for ECB refinancing,” he said.
Other panelists were more optimistic about Europe. “Europe is (still) on the road to success with employment close to Lisbon goals,”
said Heise, adding that the sub-prime crisis has not strongly affected the euro economy and hasn’t led to a reduction in loan volumes.
Meanwhile Pock argued that being diversified, the European economy is not looking like an international driving force – but it is also
less driven by international shocks than many other regions.
With the exception of Conolly, the panelists agreed that a
deepening of European integration and enlargement is important to overcome challenges such as a shrinking and
aging population, improving the qualifications of its labour
force, and facing the economic superpowers that are emerging in Asia.
The business sessions for the day were capped off by an address from Richard Koo, chief economist at Nomura Research Institute in London who discussed, “The US
Subprime Crisis and the Lessons from Japan”.
Dr Stepic told delegates he sees a bright future for Europe, where
its global importance will increase. Europe has already become the
second largest economy worldwide, almost in parity with the US
To view presentations from the business sessions, please go
to: http://www.aciforex.com/gb/aciforex-past-events.cfm
ACI Congress Speacial | June 2008 4
An Austrian Party – May 30
ith business sessions over, delegates
got down to the other important task
at an ACI Congress – networking.
Raiffeisen Zentralbank sponsored “An Austrian
Party” at the Austria Trend Eventhotel Pyramid
in Vienna.
W
Inside the 42 metre high glass pyramid, a thousand sponsors, delegates, partners and guests
enjoyed the culinary delights of Austria’s federal provinces and regions, served with traditional wine and beer within a tropical plant
landscape. The evening featured performances
by Die Fetzentaler party band and Starmix who encouraged guests to loosen up on the dance
floor. Within minutes, the floor was crowded with delegates pairing up and dancing tirelessly
until the end.
The General Assembly and Grand Finale - May 31
P
resident Manfred Wiebogen opened the General
Assembly and discussed the events and crises in
the financial markets over the past year. Besides
others, he emphasized the important role of two of
ACI’s key committees, the Board of Education and the
Committee for Professionalism in supporting the industry, traders, mid- and back office staff, as well as ACI’s
“The Model Code”, which he described as being a
“trader’s conscience in the financial markets”.
CHRISTOPH NIGGLI - CHAIR
BOARD OF EDUCATION
MANFRED WIEBOGEN
ACI PRESIDENT
He asked attendees to stand for a minute’s silence in
memory of Bill Hahn, the retired Managing Director of
ACI, and Armin Steppan, the former Treasurer of ACI,
who both sadly passed away last year.
Presentations and updates were
given by the Committee heads including Shadi Hanna, ACI Vice
President who announced that he
was stepping down from the
Board after 30 years’ affiliation
with the organization, which
began with ACI-Lebanon;
Christoph Niggli, Chair Board of
Education; Godfried de Vidts,
President, EURIBOR ACI; and
Lynn Kenndy, who stepped in for
L-R: GODFRIED DE VIDTS, SHADI HANNA, MANFRED WIEBOGEN, CHRISTOPH NIGGLI AND LYNN KENNDY
Teruo Tanaka to provide an update
on the Committee for Professionalism (for a report on the General Assembly, please see the next edition of ACI Briefing).
In his closing remarks Wiebogen talked about next year’s ACI World Congress in Cape Town, South Africa. “The conference
shall provide the opportunity to learn more about the South African financial market but also to connect with other emerging
African markets. South Africa is seen as the gateway to Africa and the World Congress is seen as a convergence of regional
and global intellectual capacity,” he said.
With the General Assembly over, delegates were free to spend the afternoon roaming the exhibition arena before the start of
the evening’s festivities.
ACI Congress Speacial | June 2008 5
The Gala Dinner, hosted by UniCredit Markets & Investment Banking, was held in the Imperial Palace Hof, one of Europe’s most
beautiful baroque castles, situated close to the Slovakian border.
Guests were invited to cocktails in the landscaped garden by ornate water fountains and mingled with characters in period costumes, court jesters and fire breathers before taking their places in
the palace for dinner. Music by the Barbara Helfgott & Rondo Vienna set the mood for a memorable night for both local and foreign delegates.
After a few sets, the orchestra gave way for ACI Austria’s President Manfred Kunert to lead the ceremonial turnover of the ACI
flag to the next ACI World Congress host. ACI South Africa PresiSEE YOU IN CAPE TOWN
dent Roy Daniels was called on stage to receive the ACI flag and
deliver a short message of invitation to the 48th ACI World Congress in Cape Town, which will take place from March 12 -14,
2009. This was followed by a promotional video featuring former South Africa President Nelson Mandela, after which Kunert
formally thanked delegates for coming to Vienna and invited the members of the organizing committee to be recognized for
the ceremonial toast. After the stage was cleared, delegates were invited out to the front of the castle for a spectacular fireworks display.
THE ORGANIZING COMMITTEE
ACI – The Financial Markets Association would like to thank the Austrian Organizing Committee for all their efforts in
making the 47th ACI World Congress the success that it was. ACI looks forward to the 48th Congress in Cape Town and
hopes to see as many of you there as possible.
To view photos from the Congress please visit:
http://www.austropa-interconvention.at/congress/aci_world_congress/gallery/index.htm
ACI Congress Speacial | June 2008 6