Back Office and Custody

Back Office and Custody - Articles & White Papers

Articles and white papers relating to back office and custody issues. This section covers research for investment operations professionals, clearing & settlement staff, fund accounting managers and global custody executives. Particularly popular papers in this section include those which tackle the operational challenges facing investment managers as they manage complexity and change in investment operations. Surveys of fund operations and investment banking operations have also been well received. A number of papers examine middle office operations: should the middle office be outsourced, or can you transform the asset management middle office to a bottom-line contributor? Other back office research in this section includes white papers on global custody, custodian ratings, clearing and settlement, settlement systems, securities lending and collateral management. A number of articles examine back office issues relating to alternative investments, specifically hedge fund administration, prime brokers and alternative investment fund operations and domiciles. Other reports cover the effect of investment regulation on the back office, for example, IFRS9 (impairment of financial assets and AIFMD).
  • Robeco

    How will Blockchain impact the Financial Industry? (Robeco, 2016)

    There is growing agreement that Blockchain technology, though overhyped, is here to stay. This excellent report from Robeco explains the distributed ledger technology, transaction flows and the eco-system. It then examines the ways in which it might transform the asset management industry in the future. 

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  • Mason Blake

    UK Investment Management Salary Survey 2016 (Mason Blake)

    This insightful report by Mason Blake looks into the UK investment management employment market. Compensation levels are revealed across a variety of investment roles, covering marketing and distribution, investment analysis, finance, risk & compliance, and investment operations. The analysis is split by role and experience.

  • Vanguard

    Securities Lending: Key considerations (Vanguard, 2016)

    The authors of this paper review the participants and mechanics in a securities-lending transaction. They explore the strategies used to generate return, the primary sources of risk, and the role of the lending agent (if any) in shaping both.

  • Bruegel

    Brexit and the European financial system: mapping, markets, players and jobs (Bruegel, 2017)

    When the UK leaves the EU and its single market by the spring of 2019, UK-based financial firms will lose their passport to do direct business with EU27 clients. Brexit will thus lead to a partial migration of financial firms from London to the EU27 (EU minus the UK) . This 13-page paper by Bruegel provides a comparison between London and four major cities (Frankfurt, Paris, Dublin ...

  • The 2016 Hays Asia Salary Guide

    This bumper 110 page survey reveals salaries in the major Asian centres of China, Hong Kong, Japan, Singapore and Malaysia. Turn to pages 34-43 for typical ranges of the following: a) Front office salaries in asset management, private equity, hedge funds; including execution & trading, quant, structuring, research, strategy and wealth management, b) Middle office salaries in credit ...

  • PricewaterhouseCoopers

    How to transform the asset management middle office to a bottom-line contributor

    The authors of this paper argue that asset managers will most probably face lagging margins and scarce resources if they fail to effectively transform the middle office into a contributor to the bottom-line. The market has become more and more competitive. In their view, asset managers can overcome institutional roadblocks and be successful by means of appropriate planning. Every ...

  • Operational challenges facing investment managers in 2015 (Swift)

    This 25 page report is based on a survey of the heads of investment operation and fund distribution at large asset management companies. The report discuss the impact of regulation upon fund management companies, the risks associated with outsourcing, and issues surrounding corporate actions, collateral management, trade processing and fund distribution.

  • FX Global Code 2017: Principles of Good Practice in Foreign Exchange

    This set of global principles of good practice in the foreign exchange market (Global Code) has been developed to provide a common set of guidelines to promote the integrity and effective functioning of the wholesale foreign exchange market (FX Market). It is intended to promote a robust, fair, liquid, open, and appropriately transparent market in which a diverse set of Market ...

  • Office of Financial Research

    Benefits and Risks of Central Clearing in the Repo Market (OFR, March 2017)

    Recent regulatory changes have raised the cost of activity in the repurchase agreement (repo) market for bank-affiliated dealers. Many transactions between dealers are centrally cleared. Expanding the use of central clearing to transactions between dealers and nondealers could reduce costs and improve market access for market participants. But what are the trade-offs? Data from the ...

  • Financial Industry Regulatory Authority - FINRA

    Distributed Ledger Technology: Implications of Blockchain for the Securities Industry (FINRA, 2017)

    Distributed Ledger Technology (DLT) - also known as blockchain technology or distributed database technology - has attracted significant interest and funding in the financial services industry in recent years. Several large financial institutions have established dedicated teams to explore the technology, and some market participants have formed consortia to create industry ...

  • Vanguard

    Explaining the differences in funds' securities lending returns (Vanguard)

    What impact does securities lending have on the returns of regulated funds? According to the authors of this paper, this is an issue that is not well understood within the investment industry. In this paper, they aim to give a comprehensive view of the contribution of securities lending to fund returns. To do this, they collected data from a large sample of funds across several ...

  • Deutsche Börse Group

    Future of Fintech in Capital Markets (2016)

    Fintech is one of the key drivers of change within the banking industry. Now together with incumbent infrastructure players, fintech firms are imagining a new capital market modeled on a collaborative approach to technology, regulation, capital provision, connectivity and work-flow processes. This report by Deutsche Börse analyses the power of future collaboration between fintech ...

  • Oliver Wyman

    Unlocking Economic Advantage with Blockchain: A Guide for Asset Managers (Oliver Wyman / JP Morgan, 2016)

    It is widely accepted that distributed ledger technology — or "cblockhain" — will bring about a dramatic shift in the way the financial industry will work in the future and the way we think about financial assets. This report, co-authored by Oliver Wyman and JP Morgan, argues that asset managers must keep up with industry changes and embrace this emerging ...

  • The UK Referendum - Challenges for Europe's Capital Markets (AFME, 2016)

    This 62-page paper by the Association for Financial Markets in Europe examines the consquences - legal and regulatory - of Brexit on the Eurozone's wholesale capital markets. The authors consider the best arrangements that might exist to lessen the impacts on the new relationship UK/EU relationship that will emerge.

  • Brexit - What now for the cleared derivatives markets? (FIA, 2016)

    This paper by FIA examines the impact of Brexit on the UK's cleared derivatives markets. The authors comment on the uncertainty likely to be experienced during exit negotiations as well as the framework yet to be created for the UK's future relationship with the EU and other non-EU states.

  • Fund Formation, Domiciling & Distribution 2016 report

    I am delighted to inform you that the annual Fund Formation, Domiciling & Distribution 2016 report has now been published - featuring key contributions from First State Investments, Pioneer Asset Management and GAM Investment Management. Contributors will discuss how you can develop a robust process for the formation, domiciling and ...

  • Deloitte

    Elements for successful growth - Illustrative IFRS financial statements for UK Investment Funds - May 2015

    The disclosure and presentation requirements of IFRS for investment funds are illustrated in this publication. It includes standards applicable as at December 31, 2014. The publication also contains additional disclosures generally said to represent industry best practice, especially where they are included in examples provided with a specific standard.