These figures look modest and will be much much higher. LEI has wide industry benefits and impacts and will probably create a doubling up of costs as most banks will need to run legacy numbering along with new and have transformation technology. The architecture to handle all this will be very expensive and need some legacy replacement as well. If banks could do all this for $197.5m it looks cheap
17 May 2012 08:25 Read comment
Very good stuff here Kathleen and i tend to agree with much of this. I do think that as an industry (If we can call regulators part of the industry) are being far to simplistic in finding solutions to the many and various problems.
As we all know this industry is very complex in its design and its products and in many cases illogical and in some cases protectionist and in all cases over regulated. All this means if you change one thing you tend to change everything but not necessary in the order of process.
We are all aware of the huge problems being confronted and we all buy into the laudable objectives of politicians and regulators. Its just that "they dont know what the do"
Its really up to the finance industry to stand up and fight against what is wrong but also promote and introduce what is right
I am coming more to the conclusion that we simply dont have the right people in the correct positions able to apply the correct solutions. Consequently we meander along and lurch from one crisis to another upon one failed solution to another all the while increasing the problems
A more acdemic and sceintific aproach away from political and regulatory is needed where changes can be introduced after a comprehensive research of unintended consequences that may transpire from any change
16 May 2012 16:15 Read comment
This totally accurate research and will be discussed at the next Post Trade Forum in June where experts will be challenged about the value of shortening settlement cycles
16 May 2012 15:54 Read comment
This is not really news as the industry has been aware of the operational difficulties of acheiving shorter settlement cycles for years. OMGEO are dead right to raise this again though as T+2 and the investigations in the USA of T+1 are worrying when the markets are struggling with so many other important issues
Matching systems for both buy and sell side will need massive investment and probably not escaped the notice of OMGEO the leading supliers of ETC systems and static data services. I would expect OMGEO to do well out of this shorter settlement project but at a huge cost to the market
The next Post Trade Forum debate is digging into T+2 and should be a challenging morning
16 May 2012 15:48 Read comment
Thanks Darren
The CISI are planing a lunch time briefing on this subject and trying to get a FS firm to front up. Thats not an easy thing to do as this topic is far to controversal and scary for FS firms to admitt there short comings and now the growing legacy risks that will hinder badly their regulatory and future business capability. Boards should be made accountable but it will never happen
12 May 2012 15:05 Read comment
Yup! This is not really news as its been long known that Banks struggle to replace legacy systems. The personal risks of procurement and protectionism are massive barriers to investment. There is a lack of knowledge at a business level of IT that generally lets internal IT hold the wheel and obviously steer direction towards internal developments. A survey on the success of internal IT developments would be more enlightening but who would come clean on that?
11 May 2012 11:00 Read comment
Yes Kathleen. We are not starting from a blank sheet of paper otherwise it would be so easy. Some form of mapping between existing and new looks probable These maps could be in use for decades until they can be made redundent
10 May 2012 17:30 Read comment
This is good news for T2S but much more needs to happen to convince others to join. This will be highlighted and a focus at the next Post Trade Forum. The benefits of T2S to the market and Investors
08 May 2012 16:46 Read comment
Thanks Darren for your comments. I agree the end game has the ops working on exceptions. Firms often say this is the case today but its not. Its just people dont look at the big picture. This is something that is holding the industry back as the long term is getting lost in daily fire fighting
I agree totally the OTC points and this something i have been trying to highlight to try and get uniformity and dare i say action
I am encouraged by your kind words and be assured the Wright mouth is a long way off being shut
08 May 2012 15:34 Read comment
I urge any SME not to go down this route as it is fraught with danger. It also smacks of exploitation and its not the way to go
08 May 2012 11:28 Read comment
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Peter FokasAnalyst at na
Dave KershawAnalyst at Ulster Bank
Robert NewmanAnalyst at Future Markets Research Tank (FMRT)
Mary ReznAnalyst at ilink.dev
Rune WendtAnalyst at Protekt IT
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