Regulation affecting technology spend
31 May 2010 Tunis
Image: Shutterstock
VERMEG, announced today, the publication of its latest commissioned white paper. The research conducted by B.I.S.S. Research, states that custody systems have fallen well behind other business needs, due to ongoing regulatory demands. The Whitepaper entitled Custody Relationships - A Carthaginian Approach, tracks historical developments in the custody market and the impact of political objectives in restructuring the EU Securities Market and concludes that it is essential that systems supporting the customers and investors must be continually modernised.
Gary Wright, Senior Banking Analyst at B.I.S.S Research said "Custodians are the lynchpin of settlements, in the securities market and it's vital that they continue to refresh and modernise the systems that support their customers and the investors. It's understandable that with a packed business development agenda and a treadmill of new regulatory demands, the systems development budget to enable compliance, will hold sway. However, the needs of the customer and the end investor must not be allowed to slip down the priority ladder. The good news is that there are some very high quality custody systems available from suppliers, like Vermeg and all Custodians should undertake a review of what's available off the shelf, rather than pursue the more costly and time consuming route of developing in-house."
Christian Cure, Business Development Director from Vermeg said "This Whitepaper confirms what many people in the securities industry have thought for some time. Custodians have been under intense pressure to develop systems solutions, for a rapidly changing market, which can add an intolerable burden, especially when regulators also demand attention. Vermeg has invested heavily in state of the art, modular technology for the custody market and we are ready and waiting to assist any Custodian through these difficult and stressful times."
Gary Wright, Senior Banking Analyst at B.I.S.S Research said "Custodians are the lynchpin of settlements, in the securities market and it's vital that they continue to refresh and modernise the systems that support their customers and the investors. It's understandable that with a packed business development agenda and a treadmill of new regulatory demands, the systems development budget to enable compliance, will hold sway. However, the needs of the customer and the end investor must not be allowed to slip down the priority ladder. The good news is that there are some very high quality custody systems available from suppliers, like Vermeg and all Custodians should undertake a review of what's available off the shelf, rather than pursue the more costly and time consuming route of developing in-house."
Christian Cure, Business Development Director from Vermeg said "This Whitepaper confirms what many people in the securities industry have thought for some time. Custodians have been under intense pressure to develop systems solutions, for a rapidly changing market, which can add an intolerable burden, especially when regulators also demand attention. Vermeg has invested heavily in state of the art, modular technology for the custody market and we are ready and waiting to assist any Custodian through these difficult and stressful times."
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