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It could be a lack of knowladge and a desire to live in the last century but this will change over time. SaaS and the C;loud have a huge role to play in the future of FS and the Post Trade Forum will be pushing to increase awareness of this important development

This debate is really hot now as FS firms struggle with updating their systems to meet new regulatory demands. The Cloud and SaaS are helpful but people in operations need to understand that the first decision is always the most important. Outsource or not? People think control is an issue and costs will rise but this is not evident in when outsourcing works.

The debate is profound and will test the panel and audience to come up with an industry responce to the question of the day outsource or internalise?  

Thanks for the comment and i agree with you. I am having a ongoing argument on the CISI Group on LinkedIn and its amazing how people have been emotional on this subject. However they are not proffesional people with much understanding of markets or short selling just missguided by politcians and the rather panic mood its created 

Well thats only part of the story. For years i worked in Jobbing and market making firms and managing short selling was a normal daily operation.

First lets get this clear! No bank or market making firm sells short on idol speculation. Selling short is normally part of a strategy and entails covering the short with an option or other derivertive. Naked shorts are managed very closely by firms as the potential loss is ,well as wee used to say "The sky is the limit". For this reason heads of dealingdesks/rooms and the board monitor short selling very very closely.

There is no such thing as dealers driving the price down by shorting the market. This is market abuse and there are severe penalties for this practice.

To cover settlment of the bear sale the firm will borrow the stock from a investing Institution and pay for the privalage a percentage but also provide acceptable collateral that is margined. There is a mark to market each day and sometimes during the day if there is severe volatility. So no settlment risk

There is a risk taken by the firm that is going Bear and that is why they buy put options or the like to reduce their risks

Now there are now a number of OTC products that allow people or firms to effectivly short the market and it this area that i believe needs closer regulation and management

The Post Trade Forum will be debating this throughout next year and on the Post Trade Forum group on LinkedIn

Really major moves at last and i now expect all MTFs and Stock Exchanges to follow

Interoperability should have a very positive impact on price and i hope that is passed back to the investor as soon as it is created.

Now the risk impacts that i feel are still within reach to bring down but will need further attention. Collateral management and margining next and look out for next years Post Trade Forum debate 

Thanks Aiden

Yup that still olds true and will never change but today we have greater technology more knowladge and understanding that will reduce risks. It all comes down to does the benefit outway the risk and can the business better service the client with outsourcing. If so what? 

Thanks Paul

Yes it was very interesting viewing and i did keep getting flashes of the Godfather. I am sure that they will have a Sunday newspaper again and James underlined that

If the FBI find any 9/11 hacking they are toast otherwise this story is going to cost them. No wonder they have set up a fund to cover damage costs

Hi Matt

I can see why you think this. Rupert and James both are out of touch with their business which i think is clear but i do believe that they are very sorry for whats happened and sincere. Never thought i would say that about the Murdochs

Thanks Chris

I think Fleet Street is safe from my ramblings

Agree the Murdochs did a pretty good job in trying circumstances. I thought Rupert was very expressive in his sadness of the whole terrible mess that has engulfed everyone and i think James will have learnt plenty through this sorry business

Hopefully we can now all move on and let the law take its course and the various enquiries come up with recomendations to prevent any like it happening again

There are some really awafull situations in the world that need our leaders undivided attention and this episode must be allowed to close  

Its vital for the future of the industry that commercial network suppliers offer competition to SWIFT. Lets hope there is a land rush for licences