Qualified custodian. That’s a term that compliance and operations managers at registered investment fund advisors, not to mention the US Securities and Exchange Commission, are now grappling with, when it comes to the safekeeping of digital assets. The reason is two-fold. For starters, it is unclear whether the SEC’s custody rule for RIAs investing in […]
US T+1 Settlement: Not So Fast (Updated)
Update (May 13, 2018): Come late 2019, bank and broker-dealer members of the US Depository Trust & Clearing Corp. could look forward to reducing their settlement exposures by one day while retaining the current two-day settlement cycle. DTCC now says that US trades could be settled before the market opens on T+2 instead of the […]
Love Taxes, Operations: Be a Tax Ops Director
Knowledge of processing 1099 Forms, cost basis-reporting, Internal Revenue Service Section 871(m), financial transaction taxes and corporate actions, FATCA, and issues and errors management. Over ten years of corporate tax compliance experience necessary. Those are just some of the qualifications that large global asset servicing providers — Societe Generale, BNP Paribas and JP Morgan — […]
Global Network Management: Are My Assets Safe?
Global network managers of custodian banks are redefining the word relationship when it comes to monitoring local agent banks that safekeep assets of underlying clients in multiple countries. It is no longer enough to make a sporadic visit or have a phone call. Global network managers have become detectives sifting through mounts of data to […]
Middle-Office Blockchain: BNP Paribas, Broadridge
Recent announcements of blockchain pilots from BNP Paribas Securities Services and Broadridge Financial show how distributed ledger technology continues to make inroads into the post-trade arena. Both come with claims of operational efficiencies through a single indisputable source of data that reduces the potential for processing errors. BNP Paribas Securities Services project for corporate action […]
Seeking Depository: Call Ireland’s Central Bank (Updated)
Update (May 3, 2018) Bank and broker-dealer members of Euroclear UK & Ireland now have to worry about where they will settle trades in Irish equities post-Brexit. They will no longer be able to do so through the shared UK and Irish depository and parent Euroclear recently announced that it has abandoned plans to set […]
Variation Margin: Facing the Countdown to March 1
With less than three weeks left until posting variation margin for uncleared swap transactions becomes mandatory, it’s do or die for fund managers still scrambling to be ready by March 1. As FinOps Report went to press, the US Commodity Futures Trading Commission (CFTC) said in a no-action letter that it would not take any […]
Pre-Release ADRs: More SEC Fines on the Way?
First ITG. Who is next? That is the question fund managers and other investors are asking themselves after learning that the US Securities and Exchange Commission fined broker-dealer ITG $24.4 million for violating regulations on how it used the pre-released shares of American Depositary Receipts (ADRs). The SEC says that ITG violated Section 17(a)3 of […]
T+2 in Canada: Affirmations in the Headlights Again
Canada and the US are in lockstep to shorten their settlement cycle from three days to two days on September 5, 2017, but Canada is taking its preparations one step further when it comes to the critical post-trade function of matching trade details. The Canadian Securities Administrators (CSA), the umbrella organization representing all of Canada’s […]
Uncleared Swap Deals: Clarity Is Work in Progress
“It’s not that complicated.” Regulators might have thought that setting specific rules for margining uncleared swap transactions would make life easier for financial firms because they will won’t have to negotiate over how, or even whether to collateralize their deals. They couldn’t have been more wrong. So said panelists and attendees at the International Swaps […]