IBM Watson, Euro Clearing and Finastra: A Week in Review
John reviews some of last week’s top sell-side stories, including the European Commission’s proposals for new rules on the supervision of non-EU CCPs.
![news-media news-media](/sites/default/files/styles/landscape_750_463/public/import/IMG/487/354487/news-media.jpeg.webp?h=4b0ee618&itok=7oTFnZah)
Tech Challenges Loom as Europe Eyes London’s Clearinghouses
The fallout from Brexit has begun in earnest for the capital markets as the European Commission (EC) this week unveiled new plans for supervising non-EU CCPs as a direct result of the UK’s departure from the European Union.
In a nutshell, the EC’s proposal suggests splitting non-EU—or third country—central counterparties (CCPs) into two camps: The first would consist of smaller CCPs allowed to use existing equivalence arrangements, while the second would comprise systemically important CCPs.
There are undoubtedly significant market, operational and technological implications for such a move. James Rundle and Aggelos Andreou have compiled an excellent analysis with some insightful commentary from senior figures from the European Securities and Markets Authority (Esma), Eurex and the London Stock Exchange, which is well worth a read, as is James’ recent column on what Brexit and last week’s UK General Election means for the buy side.
IBM Takes Aim at the Regtech Space Using Cognitive Technology
IBM has set the considerable cross-hairs of its artificial intelligence (AI) and analytics behemoth, Watson, on the RegTech arena, rolling out three new products to aid banks with the evolving regulatory landscape, anti-money laundering and know-your-customer requirements, and to help improve their architectural performance.
US editor, Anthony Malakian, spoke with Alistair Rennie, general manager of IBM Watson Financial Services Solutions, about how the software giant is utilizing Watson in this space, although it is the potential of using cognitive computing with blockchain technology that I found most noteworthy.
Rennie said that the combination of the two could lead to a processing or monitoring platform becoming a compliance system at the same time, something that I’m sure many sell-side organizations would be interested in, given the astronomical figures involved in trader monitoring specifically and regulatory compliance in general.
Waters held its inaugural RegTech Americas event on June 14 in New York, where IBM and Promontory senior executives shared their vision for regtech with respect to end-to-end risk and compliance across the enterprise. Panel write-ups from that event will surface imminently.
Misys, D+H Complete Merger to Launch Finastra
The year so far has been dominated by a spate of mergers and acquisitions, in particular the long-running and ill-fated attempt to marry the London Stock Exchange and Deutsche Börse, while Euronext, Bloomberg and IHS Markit have all been involved in big-money deals.
The launch of Finastra might not rank as the highest among these, but it is still a significant development for the financial markets technology space.
London-based Misys has made a name for itself through its risk and portfolio management systems for fund managers, and although there doesn’t seem to be any immediate crossover with D+H’s stable of payments and lending technologies, I’m sure those at the helm of the new entity will have already drawn up integration plans.
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Once a blockchain cheerleader, Axoni changes its playbook
The fintech, whose origins can be traced back to the genesis of capital markets’ complicated flirtation with DLT, has largely ditched the tech as the foundation of its data synchronization offering, opting for more familiar territory.
The IMD Wrap: Quality drivers—the sticks and carrots accelerating the data quality race
Like a Formula One Grand Prix, data management is a race that can be won or lost. And just as each race is part of a larger F1 championship that pays large sums of TV money to the winning team, winning or losing one race can contribute to winning or losing an endgame with much more at stake.
This Week: Clear Street, Hudson River Trading/Google Cloud, Alveo and more
A summary of the latest financial technology news.
Start-up uses ‘Magic’ to democratize access to AI for hedge funds
Spun out of Brevan Howard five years ago, SigTech hopes its new no-code generative AI offering can help smaller buy-siders even the odds with AI models.
JP Morgan touts DLT, tokens for collateral management
Distributed-ledger technology could make moving non-cash collateral more efficient, said managing director Toks Oyebode during an Isda conference on Thursday.
Waters Wrap: The changing definition and perception of blockchain
Anthony says that questions of definition and perception are killing DLT projects in the capital markets—oh, and a lack of proven implementations.
This Week: IPC extends Google Cloud partnership, BlackRock/AIA, DTCC and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: Deutsche Bank’s Boon-Hiong Chan
Boon-Hiong Chan from Deutsche Bank joins the podcast to talk about blockchain interoperability.