ISLA: Opaque post-trade must change
06 October 2016 London
Image: Shutterstock
Post-trade lacks the transparency enjoyed by the front and middle offices and the time to upgrade is now, according to conference panellists.
"Most of the time you know who your counterparty is but that's it," explained one post-trade representative.
“We have had to put probes into our post-trade business to really get a good idea of what is going on and it's been very interesting to see the results.”
Another panellist added: “Post-trade teams are in the best place they have ever been because there is a lot of money to be made in having a good post-trade system.”
It was acknowledged by panellists that regulation is a great motivator for change in raising the quality of post-trade systems and one that trumps the issue that securities lending operations are sometimes ignored when it comes to investment allocation.
"The nature of securities lending is that it is a small part of most businesses activity, meaning that businesses might be investing in data but that might not be securities lending data," stated one panellist.
"Foreign exchange and derivatives will always take allocation until regulation means it's got to happen,” the panellist added.
"Most of the time you know who your counterparty is but that's it," explained one post-trade representative.
“We have had to put probes into our post-trade business to really get a good idea of what is going on and it's been very interesting to see the results.”
Another panellist added: “Post-trade teams are in the best place they have ever been because there is a lot of money to be made in having a good post-trade system.”
It was acknowledged by panellists that regulation is a great motivator for change in raising the quality of post-trade systems and one that trumps the issue that securities lending operations are sometimes ignored when it comes to investment allocation.
"The nature of securities lending is that it is a small part of most businesses activity, meaning that businesses might be investing in data but that might not be securities lending data," stated one panellist.
"Foreign exchange and derivatives will always take allocation until regulation means it's got to happen,” the panellist added.
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