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
This Week: Startup Skyfire launches payment network for AI agents; State Street; SteelEye and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: Standard Chartered’s Brian O’Neill
Brian O’Neill from Standard Chartered joins the podcast to discuss cloud strategy, costs, and resiliency.
SS&C builds data mesh to unite acquired platforms
The vendor is using GenAI and APIs as part of the ongoing project.
Chevron’s absence leaves questions for elusive AI regulation in US
The US Supreme Court’s decision to overturn the Chevron deference presents unique considerations for potential AI rules.
Reading the bones: Citi, BNY, Morgan Stanley invest in AI, alt data, & private markets
Investment arms at large US banks are taken with emerging technologies such as generative AI, alternative and unstructured data, and private markets as they look to partner with, acquire, and invest in leading startups.
Startup helps buy-side firms retain ‘control’ over analytics
ExeQution Analytics provides a structured and flexible analytics framework based on the q programming language that can be integrated with kdb+ platforms.
The IMD Wrap: With Bloomberg’s headset app, you’ll never look at data the same way again
Max recently wrote about new developments being added to Bloomberg Pro for Vision. Today he gives a more personal perspective on the new technology.
LSEG unveils Workspace Teams, other products of Microsoft deal
The exchange revealed new developments in the ongoing Workspace/Teams collaboration as it works with Big Tech to improve trader workflows.