ISLA panellist: Regulation tends to focus the mind
05 October 2018 London
Image: Shutterstock
“Regulation tends to focus the mind”, said one panellist at this year’s ISLA post-trade conference.
In the ‘making sense of it all’ discussion, panellists reflected on some of the key topics of the day, with one panellist noting the positives of the pending regulatory changes by saying that it benefits everyone in the value chain.
“We all look at Securities Financing Transaction Regulation and Central Securities Depository Regulation (CSDR) and quite rightly we are all quite critical of it but it is forcing the industry to look at things they don’t want to look at.”
“Have the regulators been super smart or has it happened by accident? It is forcing everyone to shine a light on things that we usually shine away from.”
Another panellist also noted the positives of the upcoming regulation: “From my perspective, it has been a focus and so I am quite happy to see this regulation come in.”
The speaker added: “This is because I am not the only person trying to push for change, it now involves the wider market. In my opinion, the industry works well together when we have these kinds of issues to face.”
Meanwhile, another panellist saw the regulatory changes as adding complexity to the industry, he said: “There is a fundamental dilemma, at the moment we are making the business ever more complex, now we have a lot of ways of doing business from a lot of different collateral clients.”
“It seems that CSDR is getting the limelight, in the background, there has been an effort to create best practice papers in regards to regulation but is that really effectively working?”, one panellist added.
He continued: “If that is not proving to be effective then do we need more statistical data to put us in a name-and-blame culture to see who isn’t recording and reporting to the industry?”
In response, one speaker said: “It will take more than one individual market system, that will not fix it. It is going to have to be a combined effort.”
In the ‘making sense of it all’ discussion, panellists reflected on some of the key topics of the day, with one panellist noting the positives of the pending regulatory changes by saying that it benefits everyone in the value chain.
“We all look at Securities Financing Transaction Regulation and Central Securities Depository Regulation (CSDR) and quite rightly we are all quite critical of it but it is forcing the industry to look at things they don’t want to look at.”
“Have the regulators been super smart or has it happened by accident? It is forcing everyone to shine a light on things that we usually shine away from.”
Another panellist also noted the positives of the upcoming regulation: “From my perspective, it has been a focus and so I am quite happy to see this regulation come in.”
The speaker added: “This is because I am not the only person trying to push for change, it now involves the wider market. In my opinion, the industry works well together when we have these kinds of issues to face.”
Meanwhile, another panellist saw the regulatory changes as adding complexity to the industry, he said: “There is a fundamental dilemma, at the moment we are making the business ever more complex, now we have a lot of ways of doing business from a lot of different collateral clients.”
“It seems that CSDR is getting the limelight, in the background, there has been an effort to create best practice papers in regards to regulation but is that really effectively working?”, one panellist added.
He continued: “If that is not proving to be effective then do we need more statistical data to put us in a name-and-blame culture to see who isn’t recording and reporting to the industry?”
In response, one speaker said: “It will take more than one individual market system, that will not fix it. It is going to have to be a combined effort.”
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