Michael Shashoua: The Shape of Things to Come
The International Securities Association for Institutional Trade Communication (ISITC) recently celebrated its 20th anniversary, and on this occasion, has begun thinking about what the next 20 years might hold for financial services industry operations, in data as well as in trade messaging.
The organization continues to push the adoption of the ISO 20022 messaging standard, which, after several years, still has further to go for widespread or universal acceptance. “Although we’re not as far along with implementation as I would like, when our members are ready to migrate, we’ll be there to help,” says Steve Goswell, a past chair of ISITC and a principal consultant for Incept5.
Also, with its recent establishment of a regulatory working group, ISITC signaled its intent to be involved in the legal entity identifier (LEI) and global regulatory efforts that affect messaging and communication standards for its members.
Collaboration and Cooperation
In the meantime, ISITC is pursuing collaboration and cooperation with other industry associations including ISITC Europe, its sister organization; FIX and the Asset Managers Forum (AMF), according to Goswell. ISITC’s current chair, Jan Snitzer, announced plans for a regulatory working group that will bring the organization a greater role in the conversation about the LEI and the European Market Infrastructure Regulation (EMIR). ISITC also plans to address international expansion, middle-office data issues, derivatives concerns and advances in data technology, according to Snitzer.
Globalizing
The prevailing wisdom, as ISITC’s members see it, is that anything that is done in data and messaging standards must be global. “The evolution of technology and the availability of information for people around the world to share has created a wellspring of activity and opportunity that will continue globalization dramatically, despite the economic volatility, economic crisis, protectionism and regulatory pressures that we all face,” says Susan Skerritt, executive vice president, business strategy, development and investment financial markets and Treasury services at BNY Mellon.
ISITC’s member firms will need to have more interaction internally as well, according to Skerritt. “The people involved in cash management and trade tend to be in different parts of the organization within an importing company—procurement for trades and the treasury department for cash management,” she says. “That’s changing, but they still are in separate parts of the organization. That aspect will continue to be a hurdle. Given the shift toward open account [away from letters of credit], there are fewer people who are experts just in the trade arena.”
Integrating staff should be complemented by integrating systems, she adds. “With the evolution of supply chain management, in part to address the move to open account, there’s more integration, and there are more banking institutions that are combining and providing technological tools that link cash management and trade,” she says. “It’s inevitable. It may not be tomorrow but we will see more convergence between those two areas.”
Overarching Key
The overarching key for ISITC members should be, Skerritt says, that while the industry has to work “to address the regulation and respond to the regulation, it should continue to think about ways to innovate and do things in a way that meets our clients’ needs.”
As a central gathering place for many of the industry’s largest firms, with an organization already in place through several working groups covering regulation, derivatives, and standards and market practice technologies, ISITC is seizing the initiative to shape industry operations for the long term.
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 Regulation
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Waters Wrap: Open source and storm clouds on the horizon
Regulators and politicians in America and Europe are increasingly concerned about AI—and, by extension, open-source development. Anthony says there are real reasons for concern.
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
‘Very careful thought’: T+1 will introduce costs, complexities for ETF traders
When the US moves to T+1 at the end of May 2024, firms trading ETFs will need to automate their workflows as much as possible to avoid "settlement misalignment" and additional costs.
Court case probes open-source licenses as movement stands at crossroads
The Software Freedom Conservancy’s lawsuit against TV-maker Vizio begins trial in California, raising questions about open-source licenses and the risks posed by adhering to them.
Waters Wavelength Podcast: Countdown to T+1
DTCC’s Val Wotton joins the podcast this week to discuss the impending move to T+1 in the US.
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs