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).
This paper by EFAMA (the European Fund and Asset Management Association) is the third update to the report that was first published in 2005 to present recommendations to increase efficiency in the processing of fund orders and achieve cost savings. This
latest version, which includes new sections on new technologies,…
This paper was authored in response to increasing concerns raised by their members that the UK may withdraw from the EU without concluding a withdrawal agreement under Article 50 of the Treaty on European Union and without any transition (or implementation) period to allow market participants time to adjust. It sets out…
The authors of this report provide the findings of a recent survey into European hedge fund managers and what they value about their prime brokerage (PB) relationships. The survey participants share insights into the strengths and weaknesses of their current providers, and much more.
The insurance sector is actively adapting to an array of disruptive forces. These forces include technological advancements such as blockchain, autonomous vehicles and telematics; ever increasing amounts of real-time data; societal shifts such as the rise of the sharing economy; new market entrants and changing customer…
Blockchain and other business disruption technologies have created a buzz in the last few years and have become an inevitable discussions topic in the financial circles. It will have game-changing impact on businesses, particularly on the banking and financial services. Consortium or Enterprise Blockchain is the latest…
This Mid-year report gives an update about the evolution during the first half of 2018. The EFAMA Fund Processing Standardisation report combines the Luxembourg and Ireland data into one single cross-border fund processing report providing (a) An aggregated view of both fund processing centres; and (b) a detailed overview,…
Central clearing of standardized derivatives and margin requirements for non-cleared derivatives are two of the basic tenets of global financial regulatory reform. They are also inter-related: the purpose of margin requirements is to both reduce systemic risk and promote or incentivize central clearing. Recent studies and…
Smart contracts could help revolutionize the derivatives market by creating much-needed efficiencies that would benefit the entire industry. But transforming smart contracts from an exciting concept to practical use will present a number of challenges.
From a legal perspective, a number of issues need to be considered…
How will capital markets be reshaped in the coming years? In the period through 2022, we see three major trends disrupting the industry as a whole, namely a reshaping “core”, game-changing technologies and new digital value chains.
This paper analyzes recent trends in the size and composition of over-the-counter (OTC) derivatives markets, using the latest data from the Bank for International Settlements (BIS) and ISDA.
In this blog post, we discuss how operational risk has come into greater focus over the past two decades—to the point that it now accounts for more than a quarter of financial institutions’ regulatory capital.
The clearing of over-the-counter transactions through central counterparties (CCPs), one of the pillars of financial reform following the crisis of 2007-2008, has promoted CCPs as key elements of the new global financial architecture. It is important to examine how these reforms have affected risks in the financial system…
Many businesses are fine with “good enough.” They aren’t willing to go the extra mile to make themselves great. With the rise of index funds and exchange-traded funds (ETFs), however, good enough is no longer an option for active investment management firms. Survival requires that they make the leap from good to great.
This new Report appraises as to how the securities services industry has adapted to these various evolutions, notably by modifying internal organization and operational processing, but also by introducing new types of client services.
The problem is massive. It is not a potential problem. It is a problem that is happening now. Asset managers are failing to optimize corporate action decisions on a global scale, which has resulted, and is continuing to result, in significant losses to beneficial owners. We estimate these losses in Section I of this White…
Cyber risks pose unique threats to financial stability that are not well understood or managed, despite growing investment in research and dependence by financial institutions, consumers, and governments on cyber technologies. This paper considers the ways in which cyber risks differ from traditional financial shocks.
Over the last decade, the size and structure of the global credit default swap (CDS) market have changed markedly. With the help of the BIS derivatives statistics, we document how outstanding amounts have fallen, central clearing has risen and the composition of underlying credit risk exposures has evolved. Netting of CDS…
Security concerns about Software as a Service (SaaS) in the banking and financial services sector have less to do with technology than with business culture, governance, and compliance.
