Canada Investment Managers Confident on T+1 Matching
Uncertainty about monitoring and reporting rules, greater confidence behind meeting new matching requirements, and increased automation are at the top of the priority list for Canadian operations chiefs at investment management firms, according to a study by Stratix Consulting and post-trade processing provider Omgeo.
Of the 15 interviews conducted, all with firms with at least CA$10 billion ($9.7 billion) under management, 60 percent of respondents said monitoring and reporting will drive change in their middle- and back-office processes going forward.
Particular concerns are international initiatives regulating electronic trading for over-the-counter (OTC) derivatives, and the forthcoming legal entity identifier (LEI) requirement for derivative instruments, which two-thirds of those surveyed said would require significant improvement in their back offices, even while few respondents reported making those improvements yet because of regulatory uncertainty
Meanwhile, post-trade derivatives matching is becoming both more electronic and more automated in Canada: The number of derivatives locally and centrally matched has doubled, from 10 to 20 percent, since 2010.
On a brighter note, all 15 respondents reported the full ability to comply with the Canadian Securities Administrator's (CSA) new trade date plus one day (T+1) matching requirement, which stipulates that firms match 90 percent of their trades by noon of the following day. Respondents attributed much of that achievement to advancements in straight-through processing (STP).
"Canadian investment managers are confident that if trade settlement in North America moved to T+2 from T+3, in response to Europe adopting a trade settlement standard of two days, that their systems and processes could accommodate T+2 settlement. They did, however, express concerns about delays in receiving trade information from the sell side, and said that they were not receiving adequate information on the cause of these delays that would allow corrective action to be taken," says Bob Smythe, consultant for Stratix Consulting.
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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
This Week: ION/LuxSE, BNY Mellon, Nasdaq, and more
A summary of the latest financial technology news.
Nasdaq to market new options strike listing tech to other exchanges
The exchange operator is experimenting with emerging technologies to determine which options strike prices belong in a crowded market, with hopes to sell the tech to its peers.
Former Goldman analyst aims to blend GenAI and synthetic data with start-up
Synthera.ai is taking a novel approach to calculating risk. While promising, industry observers are skeptical.
Waters Wavelength Podcast: Bloomberg’s Tony McManus
Tony McManus, global head of enterprise data division at Bloomberg, joins the podcast to talk about the importance of data in the context of AI and GenAI.
Devil’s Bargain: Closed architecture systems will derail AI ambitions
Rob Flatley explains why closed-off systems will fall flat when it comes to AI adoption.
This Week: First Trust/Bloomberg/New Constructs, Cboe/Metaurus, LTX/MultiLynq, and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
Frank Tarsillo, CTO at S&P Global Market Intelligence, joins the podcast to discuss the firm’s approach to AI, the importance of data, and what might be in store for datacenters in the coming years.
BMO’s cloud migration strategy eases AI adoption
The Canadian bank is embracing a more digital future as its cloud strategy makes gains and it looks to both traditional machine learning and generative AI for further augmentation.
Most read
- Waters Wavelength Podcast: Bloomberg’s Tony McManus
- IMD & IRD Awards 2024: All the winners
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters