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Custodian Banks: New Landscape, New Strategies

March 29, 2016 By Chris Kentouris 1 Comment

A new research report authored by Morgan Stanley and consultancy Oliver Wyman has resurrected the debate over how some of the world’s largest custodian banks will need to rethink their time-honored strategy. Gathering more assets from more clients won’t be enough to sustain profitability. Earnings are under pressure from low interest rates and a historical […]

Filed Under: Analytics, Corporate Actions, Custody, Financing, Outsourcing, Post-Trade, Slider Tagged With: Collateral, Corporate Actions, Custodians, Data, Depositories, Middle Office Ops, Post Trade

The Derivatives ID Dilemma: Industry Accord Suggests an ISIN Solution

March 18, 2016 By Chris Kentouris Leave a Comment

Is the International Securities Identification Number (ISIN) not fit for purpose for identifying certain types of derivatives, as claimed by some partisans for other identifiers or just “concerned citizens” of the derivatives realm? Or is the only possible solution for regulatory reporting requirements a Unique Product Identifier (UPI) based on the descriptive taxonomy developed by […]

Filed Under: Clearing, Compliance, Data, Derivatives, Infastructure, Post-Trade, Slider, Standards, Trading Tagged With: Clearinghouses, Compliance, EMIR, ESMA, Fund Ops, Investment Ops, MiFID, Post Trade, Regulators, Reporting, Standards, Swaps

Europe’s Revised Settlement Regime: Still Problematic? 

March 15, 2016 By Chris Kentouris Leave a Comment

Just who is responsible for fixing a securities transaction which fails to settle on time? a. the securities depository b. the custodian of the injured counterparty c. the injured trading counterparty d. all of the above The European Securities and Markets Authority, the pan-European regulatory agency, recently decided that the answer should be switched from […]

Filed Under: Clearing, Compliance, Post-Trade, Reporting, Rules, Settlement, Slider, Trading Tagged With: Compliance, Custodians, ESMA, Investment Ops, Post Trade, Reporting, Settlement

Fund Managers: Reducing Costs of Collateral Fails

March 3, 2016 By Chris Kentouris Leave a Comment

US$3.6 million. That is the average cost a fund management firm could incur for correcting failures to settle their collateral requirements for bilateral swap transactions in 2020. The amount comes to US$2.4 million for a broker-dealer. These sobering figures, delivered in a document entitled “Implications of Collateral Settlement Fails: An Industry Perspective on Bilateral OTC […]

Filed Under: Clearing, Compliance, Derivatives, Infastructure, Margining, Post-Trade, Risk, Settlement, Slider Tagged With: Clearinghouses, Compliance, Depositories, DTCC, Fund Ops, Hedge Funds, Post Trade, Regulators, SEC, Settlement, Swaps

US Braces for Testing T+2 Preparedness (Updated)

February 26, 2016 By Chris Kentouris Leave a Comment

(Editor’s Note: After the publication of this article, DTCC published a document which outlines the testing requirements from its subsidiaries NSCC, DTC and Omgeo for impacted organizations and instruments. The paper entitled “T+2 Test Approach: DTCC’s High-Level Testing Framework” can be found here). Testing, testing, testing. That is the next critical focus for achieving a successful transition […]

Filed Under: Infastructure, Post-Trade, Settlement, Slider, Standards, Trading Tagged With: Brokerage Ops, DTCC, Fund Ops, Middle Office Ops, Post Trade, Regulators, SEC, Settlement, T+2

Johannesburg in Final Sprint to T+3 Settlement (Updated)

February 17, 2016 By Chris Kentouris Leave a Comment

(Editor’s Note: This article was updated on February 29 to reflect the JSE’s announcement on February 26 that it had selected July 11 as the go-live day for T+3.)    South Africa is in the last lap of a longstanding project to shave two days off its current five day settlement cycle, even though the […]

Filed Under: Clearing, Corporate Actions, Infastructure, Margining, Outsourcing, Post-Trade, Settlement, Slider, Standards Tagged With: Depositories, Innovation, Matching, Ops Risk, Post Trade, Settlement, Standards, T+2

FINRA’s TBA Margin Rule: No Meeting of Minds with Industry

February 4, 2016 By Chris Kentouris Leave a Comment

The pleas of fund managers and broker-dealers for the Financial Industry Regulatory Authority (FINRA) to change proposed rules requiring the collateralization of agency mortgage-backed securities and other transactions are falling on deaf ears and time is running out. The SEC is requiring that final comments on FINRA’s new proposal published last month be submitted by […]

Filed Under: Clearing, Compliance, Derivatives, Margining, Post-Trade, Regulations, Slider, Trading Tagged With: Clearinghouses, Collateral, Compliance, Custodians, Depositories, DTCC, FINRA, Investment Ops, Ops Risk, Post Trade, Regulators, SEC

US T+2 Playbook: Rush to Affirmation

January 6, 2016 By Chris Kentouris Leave a Comment

Make certain your trades are affirmed as quickly as possible. (And fix your T+2 failures now, rather than later). Speeding up affirmations is one of dozens of recommendations operations and technology managers at fund management, broker-dealer and custodian banks will find if they read through the 164 pages of an implementation playbook just issued by […]

Filed Under: Compliance, Post-Trade, Settlement, Slider Tagged With: DTCC, Matching, Post Trade, SEC, Settlement, T+2

US Post-Trade Matching: Omgeo, Bloomberg or SS&C?

December 16, 2015 By Chris Kentouris Leave a Comment

The mundane world of post-trade matching just got a long-awaited shakeup. What has been a virtual monopoly in the post-trade matching market is about to become a horse race, since the US Securities and Exchange Commission has approved Bloomberg and SS&C Technologies to enter the business of post-trade matching services in competition with incumbent Omgeo. In allowing […]

Filed Under: Infastructure, Post-Trade, Settlement, Slider Tagged With: DTCC, Innovation, Matching, Post Trade, SEC, T+2

TrueEx: A True Alternative Swaps Post-Trade Provider?

December 11, 2015 By Chris Kentouris Leave a Comment

Does the swaps market really need another standalone post-trade service provider? That’s the question emerging from trueEx’s announcement that it has split off its post-trade services from its swap execution platform for interest rate swaps. The answer: it isn’t clear. It could well-be that the new truePTS will offer “next-generation” services as TrueEx’s Chief Executive […]

Filed Under: Clearing, Derivatives, Post-Trade Tagged With: Post Trade, Swaps

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