January 2011: Hurry Up and Wait
![victor-anderson victor-anderson](/sites/default/files/styles/landscape_750_463/public/import/IMG/701/101701/victor-anderson-580x358.JPG.webp?itok=Yz2bKI10)
In this issue of Waters, Faye Kilburn’s “Great Expectations” feature outlining people’s prospects for the year ahead was conceived in order to present our readership with a mosaic of opinions from a number of the industry’s different constituents. It would have been odd, to say the least, if everyone’s expectations been the same or even similar, and I’m happy to report that we’ve been able to present 18 different opinions in a single editorial. But if you’re looking to this piece for shared estimations in the hope of identifying trends, you’ll be disappointed: No one, it seems, has a clue what to expect this year—least of all me.
But I’m not alone. I have spoken to many senior people at buy-side and sell-side organizations on both sides of the Atlantic about what this year holds for them, their colleagues and their clients, and the only consistency is that everyone is equally clueless. Perhaps more pressing issues like the $13.5 trillion fiscal gap in the US is weighing heavily on people’s minds. Forget the notion that California is bankrupt—the whole US economy seems to be pretty much in the same boat. But that’s another discussion for another time.
What is more pertinent to our industry for the year ahead is the likelihood of significant and far-reaching regulations coming down the pike, although when exactly this will occur and what those new mandates will look like is anyone’s guess.
I was in New York recently for the Waters USA conference where I moderated the CIO panel discussion, which covered, among other things, the capital markets’ outlook for the year ahead.
The discussion turned to regulation, which, as it transpired, turned out to be a little underwhelming. Peter Kelso, managing director, global CIO at DB Advisors and global CIO at Deutsche Insurance Asset Management, was one of the five panelists, and anyone who knows Peter or who has listened to him speak at an event will be familiar with his frankness. When pressed on the issue of impending regulations and how they might affect his firm, he was characteristically candid: “On the buy side, we are not sure yet—we have a meeting with the Securities and Exchange Commission (SEC) in early January and with the Federal Financial Supervisory Authority in Germany (Bafin) sometime in the first quarter of 2011, but right now we are not real sure what that’s going to mean to us,” he said.
Kelso’s vagueness isn’t peculiar to his organization. A number of buy-side and sell-side firms I have spoken to have adopted similar wait-and-see strategies, which can be used as a pretty reliable barometer for the industry as a whole, an industry primed for change, but nonetheless still in the dark as to what those changes will entail.
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 Regulation
Industry associations say ECB cloud guidelines clash with EU’s Dora
Responses from industry participants on the European Central Bank’s guidelines are expected in the coming weeks.
Regulators recommend Figi over Cusip, Isin for reporting in FDTA proposal
Another contentious battle in the world of identifiers pits the Figi against Cusip and the Isin, with regulators including the Fed, the SEC, and the CFTC so far backing the Figi.
US Supreme Court clips SEC’s wings with recent rulings
The Supreme Court made a host of decisions at the start of July that spell trouble for regulators—including the SEC.
This Week: FCA, Plato/Turquoise, Franklin Templeton, and more
A summary of the latest financial technology news.
Insurers deny cyber premiums are rising
Contrary to banks’ complaints, underwriters and brokers claim current market for policies is soft.
Size matters: US equity market players wrangle over new tick size regime
The industry expects the SEC to finalize the Reg NMS shake-up as soon as late summer. While there is broad agreement about the need for change, the extent of the reduction in access fees and tick sizes will have a big impact on markets.
CME: CFTC OKs clearing move to Google Cloud
The CFTC has given the Chicago-based exchange approval to run its clearing and settlement infrastructure on the Google Cloud Platform, while the exchange and vendor have extended their partnership to last until at least 2037.
Cutting through the hype surrounding the FDTA rulemaking process
A bill requiring US regulators and institutions to adopt a machine-readable data framework for reporting purposes applies to entity identifiers, but not security identifiers, in a crucial difference, writes Scott Preiss, SVP and global head of Cusip Global Services.