Back and middle office functions such as evaluated pricing for illiquid instruments, data management, corporate actions processing and risk management are all on the radar for potential outsourcing by asset managers over the next three years, according to a recent survey by Citi. The survey, which involved 237 asset managers from 29 countries, indicates that 28% of respondents have already outsourced the valuation of illiquid investments and 22% are planning to do so in the next three years.
The plans for the establishment of a US-based reference data utility in the guise of the Office of Financial Research continues to make its way through the US political system and it seems that many of those from the risk management world feel it will make a difference for the better. The Professional Risk Managers’ International Association (PRMIA) has given its seal of approval (see our coverage 
Despite the moves within the regulatory community towards mandating reverse stress testing procedures, the majority of firms have yet to take action and put in place new procedures and systems to cope with the changes, according to a recent survey conducted by the Professional Risk Managers’ International Association (PRMIA). Reverse stress testing is just one of the areas that risk managers have to tackle in the face of the deluge of new regulatory requirements and it is telling that 56.7% of the 360 respondents to the SunGard sponsored survey had not yet begun on the road to meeting these requirements.
The regulatory community is hell bent on increasing transparency into the derivatives market by any means necessary, including forcing OTC instruments to be cleared via central counterparties (CCPs) and requiring firms to report more data to new trade repositories. A-Team Insight speaks to Steve Ingle, derivatives product manager at BNY Mellon Asset Servicing, to find out how all of these changes are impacting the way firms deal with data.
The pace of change for risk management reform within the financial services industry has increased significantly over the last year as a result of regulatory drivers, according to a recent survey conducted by the Economist Intelligence Unit (EIU) on behalf of risk management system vendor SAS. Of the 346 banking and insurance executives who responded to the survey, 63% indicated that regulators were the stakeholders with the most influence on risk issues over the last 12 months. However, as well as helping to drive investment, uncertainty over future regulation is also holding back effective risk management, according to 39% of respondents. 
A-Team Insight Events combine A-Team's expertise in financial markets IT with thought leadership from world-class technology innovators and practical experience from financial market practitioners. In 2011, a quality constituency will once again gather for these focused events in London and New York City.
The subject of a European-based trade repository for the credit default swap market has long been a bone of contention between regulators and industry participants in the derivatives market (see, for example, discussions between European Commissioner Barnier and the US Treasury’s Geithner here), but it seems that the Depository Trust & Clearing Corporation (DTCC) is hoping to solve the issue by setting up a new subsidiary on European shores for the market. The DTCC Derivatives Repository Limited will therefore maintain global credit default swap data identical to that maintained in its New York-based trade repository, the Trade Information Warehouse, thus circumventing the possible problem of inconsistent data across jurisdictions (or so the plan goes).
Loading ...
(more…)