Post Trade

Blockchain: DTCC Takes the Plunge with Repo Project

+0
1 View

The decision of the Depository Trust & Clearing Corporation (DTCC) to try out distributed ledger technology for processing repurchase agreements has drawn plenty of attention from Wall Street and blockchain enthusiasts. It also has participants in the repo business at the edge of their seats, watching to see how their bottom lines could be affected. The DTCC’s announcement […]

Share
Category

Custodian Banks: New Landscape, New Strategies

+0
1 View

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 […]

Share
Category

The Derivatives ID Dilemma: Industry Accord Suggests an ISIN Solution

+0
1 View

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 […]

Share
Category

Europe’s Revised Settlement Regime: Still Problematic? 

+0
0 Views

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 […]

Share
Category

Fund Managers: Reducing Costs of Collateral Fails

+0
0 Views

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. The sobering figures, delivered in a document entitled “Implications of Collateral Settlement Fails: An Industry Perspective on Bilateral OTC […]

Share
Category

US Braces for Testing T+2 Preparedness

+0
0 Views

Testing, testing, testing. That is the next critical focus for achieving a successful transition from a three-day to a two-day (T+2) settlement cycle, say panelists and attendees at the T+2 symposium held by the Securities Industry and Financial Markets Association (SIFMA) earlier this week. September 5, 2017 is the date for lift-off, set by a T+2 industry steering […]

Share
Category

Johannesburg in Final Sprint to T+3 Settlement

+0
1 View

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 new shorter cycle will still be a day longer than more than 100 other markets. Thirty European markets migrated to a two-day (T+2) settlement cycle in October 2014, while Australia will […]

Share
Category

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

+0
1 View

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 […]

Share
Category

US T+2 Playbook: Rush to Affirmation

+0
1 View

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 […]

Share
Category

TrueEx: A True Alternative Swaps Post-Trade Provider?

+0
0 Views

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 […]

Share
Category