Latest Blog Posts

Money Market Funds – what cost safety?

Matt Grinnell, Fidessa

Jul 22, 2014
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Tomorrow the SEC’s five member Commission is expected to vote on new changes to rules for money market funds (MMFs), but will the changes be safer or costlier? The two main changes will see ‘prime’ funds move to a floating NAV and boards permitted to impose redemption fees or even suspend redemptions on a temporary basis. This is all designed to make MMFs less susceptible to runs that could harm investors, but it has not been universally well-received by the Investment Company Institute (ICI), by large fund complexes or by a group of 20 United States senators. read more

Hang on a second!

Anne Plested, Fidessa

Jul 17, 2014
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MiFID II introduces the requirement to synchronise the business clocks of trading venues and their customers, standardising the recorded time on post-trade data, transaction reporting and, most importantly, order event auditing. Regulators argue that in the event of unusual market activity they will be able to pinpoint the exact moment things turned sour. A noble cause then, but is it feasible? The first problem is that of a clock source. Trading systems will need to synchronise themselves to some ‘golden source’ of time. read more

Mitigating risk with an investment book of record

Paul Westgate, Linedata

Jul 15, 2014
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Over the past couple of years, the Investment Book of Record (IBOR) has been a topic increasingly seen in articles, interviews and conferences. The fact that it is still widely discussed, suggests that, although far from a new concept, its precise nature is not clearly defined. Today the debate is perhaps more about how an IBOR will be delivered and how it will operate rather than what it will offer. Different business types will have different needs and this will govern exactly what practical implementation is needed, along with their size and operational model. read more

Bringing surveillance to Europe

Robert Powell, Etrali

Jul 11, 2014
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European compliance officers are facing a raft of new proposals driven by MIFID II. These range from: Transparency and Data Publication through to Investor Protection. Inside the Investor Protection proposals are some subtle, but important, changes to the records retention requirements. The proposals form part of the consultation and discussion paper issued by ESMA following the politically agreed text of the MIFID II European Directive. Although the records retention changes are just a small part of the discussion they represent a seismic shift in the way that European regulated firms deal with records retention. read more

Getting Fit For Summer

IPC

Jul 10, 2014
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We all feel the urge to get in shape now that summer’s on the way. However, this isn’t always straight forward, and often the best results come when you’re working with a personal trainer, dietician or physio. This trend continues into the financial markets, where every participant works hard to be leaner, fitter and more competitive. Firms are reducing costs and increasing efficiency by using managed services to provision, maintain and future-proof their IT infrastructure. We surveyed over 100 Front and Back office executives at the recent TradeTech expo in Paris to hear their views on allocating resources, calling in the experts and getting fit for the summer. read more

Tour de force

Christian Voigt, Fidessa

Jul 09, 2014
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The current MiFID II consultation is infamously complex, covering 800 pages and 800 questions to be answered in 8 weeks. If that in itself is not enough of a challenge, ESMA invited all market participants to Paris this week for a two-day Tour de Force, aka public hearing. Be it equity, non-equity, pre- or post-trade transparency, SIs, OTFs, trade reporting, third country regimes, liquidity measures, best execution, investor protection, commodity derivatives, position reporting or position limits, there was hardly a topic left out of the discussion. read more

Big Data takes the stage

Karl Rieder, GFT

Jul 02, 2014
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Financial services firms are all grappling with similar operational, risk, and regulatory challenges, and trying to meet these challenges with tight budgets and resources. What can they do to gain a competitive edge, to innovate, and to grow? At the same time, bank management, clients, and the world have their attention firmly fixed on whether the banks will ‘get their houses in order’. So how can organisations respond with decisive strategic direction and invest in new programs of work with confidence? This week, I’ll have the pleasure of addressing a room of data, compliance, risk, and IT executives at the at the ‘Big Data & Analytics for Financial Services’ conference in London. read more

Re-thinking post-trade

Steve Grob, Fidessa

Jul 02, 2014
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If you watched our last video you will have seen how firms are re-engineering processes rather than just trying and do the same things more cheaply. Post-trade represents an ideal area for this type of thinking as it is dominated by old proprietary technologies and unnecessary duplication. On top of this, the move to T+2 for European equities in October will reduce by a third the time available to prepare the trade for settlement. Whilst this will do much to reduce systemic risk in the system, it seems like many firms still haven’t fully realised just how much impact this will have on their daily operations. read more