Firms Prep Increased Regulation in Europe and the US
The Post-Crisis Mode
I attended a lunch with a UK Member of Parliament (MP) this month, and when commenting on where the regulatory environment seems to be going, it was all about the fact that the UK appears to be in a mindset to work with Europe – a very active Europe.
Jonathan Evans, MP and newly elected chairman of the All Party Parliamentary Group on Insurance and Financial Services in the UK, said: "In post-financial crisis work, we're going to see significantly more European activity."
This did not come as a surprise. It seems to be impossible to go to any data management event without talking about potential future impact of regulation nowadays. In the London market, meetings about MiFID II are rapidly becoming more frequent, and firms are still awaiting more details on Basel III.
At our continental European financial information summits in Copenhagen and Paris, regulation and standards also underpinned the majority of the discussions (see pages 1 and 8). In Paris, panelists discussing integrated data management ended up talking about the growing regulatory focus on data quality, and the potential for regulators to mandate the use of more standards as opposed to putting in new infrastructures.
In the US, the change in infrastructure already seems to be on the agenda, resulting in banks currently running internal meetings to assess the potential impact. The focus continues to be on what the set-up of the proposed government-run reference data and analysis centre, the Office of Financial Research, could mean for each organization.
This was further looked into at the Sifma Technology Expo Show in New York, where my colleague Carla Mangado heard speakers debating the impracticalities of attempting to manage systemic risk by collecting all this data and aggregating it in one massive repository (see feature page 20). It is not the preferred option by all market participants.
In fact, these types of major infrastructure changes, which seem to be happening everywhere at the moment, really get people talking. In the UK, the first significant change may be the planned split of the regulator the Financial Services Authority. For data managers in the UK, the main complaint I've heard about the current regulatory system has been the large piles of documents produced by the FSA, with some saying that just over the Christmas period there were hundreds of pages to read for anyone working in the client data space.
Evans, the MP, said the current system may have been committed to consultation, but in reality it has been committed to burying people in paper. "I hope what we don't do is go back to the structure with the FSA with the consultation paper," he said.
I think our entire industry, representing the professionals who have to read and interpret all these documents, would agree with that—particularly if the regulators continue in this post-crisis activist mode.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Nasdaq to market new options strike listing tech to other exchanges
The exchange operator is experimenting with emerging technologies to determine which options strike prices belong in a crowded market, with hopes to sell the tech to its peers.
The IMD Wrap: Talk about ‘live’ data, NAFIS 2024 is here
This year’s North American Financial Information Summit takes place this week, with an expanded agenda. Max highlights some of the must-attend sessions and new topics. But first, a history lesson...
MarketAxess builds strategy around X-Pro
MarketAxess profits were down in Q1, but revenues were up and automation volume hit a record $94 billion.
Canada’s triparty repo launch aims to fill C$60bn void
Test trades on TMX/Clearstream platform represent “quantum leap” for creaking funding markets.
People Moves: NorQuant, Tradition, Duco, HKEx, SimCorp, Hazeltree, Xceptor, Broadridge, and more
A look at the past month’s people moves in the capital markets technology and data space.
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
This Week: BBH, AllianceBernstein add data solutions, Deutsche Börse-Nodal Exchange, and more
A summary of some of the latest financial technology news.
Consortium backs BGC’s effort to challenge CME
Banks and market makers—including BofA, Citi, Goldman, Jump and Tower—will have a 26% stake in FMX.
Most read
- Waters Wavelength Podcast: Bloomberg’s Tony McManus
- IMD & IRD Awards 2024: All the winners
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters