Emerging tech key to market strategy, survey finds
12 April 2016 Windsor, Connecticut
Image: Shutterstock
Custodians are prioritising investment in emerging technologies, such as blockchain, in order to remain competitive, according to an SS&C Technologies survey.
The survey, which studied preparedness for moving to a T+2 settlement regime, found that nearly half of custodians surveyed are looking to enhance automation in the post-trade cycle.
SS&C gathered responses from 50 executives the from buy and sell sides, as well as custodian firms, in March.
Investing in third-party products to boost automation in the post-trade cycle is the top priority for 48 percent of buy-side respondents and 34 percent of all executives surveyed.
Interestingly, though, the survey showed that buy-side firms are the least likely to increase their technology budget to support upgrades for T+2, with 60 percent of respondents expecting to maintain the same budget while exploring outsourcing options.
Sell-side respondents were more focused on investing in their front office to help automate the post-trade cycle.
More generally, the survey showed that a majority of firms are already investing in the necessary technology to comply with T+2 settlement and on track to meet the 2017 deadline.
Looking forward, 78 percent of respondents predicted it is likely or possible that the US will move to T+1 within the next decade.
"Firms are operating in a dynamic environment that requires agility, efficiency, and reliability,” Bob Moitoso, senior vice president and general manager for financial markets at SS&C. “The survey findings show a widespread awareness in the industry regarding the need for adequate preparation time and a commitment to maintaining a robust technology infrastructure.”
“We counsel customers to be proactive in their approach despite the long lead time to prepare, and the survey feedback really resonates with that guidance. If you haven’t started, you’re already behind.”
According to the survey, those who have not started these assessments largely indicated they would begin in the first half of 2016.
A small number of buy-side respondents stated they would wait until 2017 to assess their operational preparedness.
The US T+2 Industry Steering Committee committed to a 5 September 2017 deadline for the move from a T+3 to a T+2 settlement cycle, subject to support from regulators and the successful completion of industry-wide testing in Q2 and Q3 2017.
The survey, which studied preparedness for moving to a T+2 settlement regime, found that nearly half of custodians surveyed are looking to enhance automation in the post-trade cycle.
SS&C gathered responses from 50 executives the from buy and sell sides, as well as custodian firms, in March.
Investing in third-party products to boost automation in the post-trade cycle is the top priority for 48 percent of buy-side respondents and 34 percent of all executives surveyed.
Interestingly, though, the survey showed that buy-side firms are the least likely to increase their technology budget to support upgrades for T+2, with 60 percent of respondents expecting to maintain the same budget while exploring outsourcing options.
Sell-side respondents were more focused on investing in their front office to help automate the post-trade cycle.
More generally, the survey showed that a majority of firms are already investing in the necessary technology to comply with T+2 settlement and on track to meet the 2017 deadline.
Looking forward, 78 percent of respondents predicted it is likely or possible that the US will move to T+1 within the next decade.
"Firms are operating in a dynamic environment that requires agility, efficiency, and reliability,” Bob Moitoso, senior vice president and general manager for financial markets at SS&C. “The survey findings show a widespread awareness in the industry regarding the need for adequate preparation time and a commitment to maintaining a robust technology infrastructure.”
“We counsel customers to be proactive in their approach despite the long lead time to prepare, and the survey feedback really resonates with that guidance. If you haven’t started, you’re already behind.”
According to the survey, those who have not started these assessments largely indicated they would begin in the first half of 2016.
A small number of buy-side respondents stated they would wait until 2017 to assess their operational preparedness.
The US T+2 Industry Steering Committee committed to a 5 September 2017 deadline for the move from a T+3 to a T+2 settlement cycle, subject to support from regulators and the successful completion of industry-wide testing in Q2 and Q3 2017.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
