RMASL: compliance costs
17 October 2014 Naples, Florida
Image: Shutterstock
Securities finance is in a period of re-pricing thanks to the new regulatory landscape, heard attendees of the Risk Management Conference on Securities Lending in Naples, Florida.
BNY Mellon’s James Slater made the comment as part of an industry roundtable on the regulatory environment.
He said that the cost of compliance with the likes of the Dodd-Frank Act and Basel III is even being passed on to beneficial owners, as borrower default indemnification is becoming more expensive.
Credit Suisse’s Indrajit Bardhan agreed, telling attendees: “We’ve segmented who we work with, which is another kind of re-pricing”.
Slater went on to describe new regulations as a “chemistry experiment”, but their mission is righteous, he added, explaining that regulators want to make markets safe and spread risk among old and new participants.
State Street’s Louis Maiuri added that securities finance is in a state flux due to market exits and that he hopes regulators are considering the effect on liquidity when writing new rules.
BNY Mellon’s James Slater made the comment as part of an industry roundtable on the regulatory environment.
He said that the cost of compliance with the likes of the Dodd-Frank Act and Basel III is even being passed on to beneficial owners, as borrower default indemnification is becoming more expensive.
Credit Suisse’s Indrajit Bardhan agreed, telling attendees: “We’ve segmented who we work with, which is another kind of re-pricing”.
Slater went on to describe new regulations as a “chemistry experiment”, but their mission is righteous, he added, explaining that regulators want to make markets safe and spread risk among old and new participants.
State Street’s Louis Maiuri added that securities finance is in a state flux due to market exits and that he hopes regulators are considering the effect on liquidity when writing new rules.
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