Euroclear: There is less pressure towards clearing
16 November 2018 Brussels
Image: Shutterstock
There is “less pressure” towards clearing at the moment, according to panellists at this year’s Euroclear Collateral conference.
Panellists said there were “two main pressure forces” that were particularly prominent in the past, one the regulatory pressure and the other was the withdrawal of financial resources from the sell side.
This affected the buy sides’ ability to access the market.
One panellist said that they “don’t see that pressure coming back any time soon”, but said it was too early to write anything off completely.
In terms of trends, panellists agreed that there was a big trend around efficiencies. One panellist said: “In a world where margins are becoming more compressed, there is a big trend that we are seeing around product efficiencies. I expect that trend to continue. The new thing is the relationship with the client.”
“The burden that is going onto our clients is enormous, and this does not get enough attention.”
“We are equipped to handle these things but clients are tearing their hair out trying to keep up with this,” one panellist said.
The speaker added: “The sell side is being constrained for various reasons. Unless a sweep of solutions is made available for clients, I think this is going to be a serious problem.”
Additionally, the panellist drew upon the idea that ‘clients are being de-marketed’ and said that as the pressure on financial resources increase, this will continue to be an ongoing issue.
Panellists said there were “two main pressure forces” that were particularly prominent in the past, one the regulatory pressure and the other was the withdrawal of financial resources from the sell side.
This affected the buy sides’ ability to access the market.
One panellist said that they “don’t see that pressure coming back any time soon”, but said it was too early to write anything off completely.
In terms of trends, panellists agreed that there was a big trend around efficiencies. One panellist said: “In a world where margins are becoming more compressed, there is a big trend that we are seeing around product efficiencies. I expect that trend to continue. The new thing is the relationship with the client.”
“The burden that is going onto our clients is enormous, and this does not get enough attention.”
“We are equipped to handle these things but clients are tearing their hair out trying to keep up with this,” one panellist said.
The speaker added: “The sell side is being constrained for various reasons. Unless a sweep of solutions is made available for clients, I think this is going to be a serious problem.”
Additionally, the panellist drew upon the idea that ‘clients are being de-marketed’ and said that as the pressure on financial resources increase, this will continue to be an ongoing issue.
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