SIFMA 2011: Varying Thoughts on Dodd–Frank
At the Sifma conference this year, opinions of how the Dodd–Frank Act is affecting the buy side varied greatly.
Here are a few of those opinions:
Paul Baram, director of client services for financial and risk solutions at OpenLink:
"Where it gets most murky for the buy side is for clients trying to get their heads around what Dodd–Frank means to them. If you're on the sell side, you're going to be participating and you're used to moving data around in FpML and you've got connectivity to all these players and you've got huge IT budgets. On the buy side you don't have big IT departments and you don't typically have depth of knowledge to understand what these requirements mean. The question we get asked all the time is, ‘What do your other clients that look like us feel about these changes?'"
Mark Israel, vice president of business consulting at Sapient:
"The most vocal complaint we hear is the cost of collateral management and complexity around that. That's basically going to reduce their ability to generate returns. There are even firms that are saying, ‘I don't trade a lot of derivatives, maybe I should just cut that business out because the cost of the collateral alone will make it not worth the return. That's not the popular view, but there are a handful of firms questioning whether to stay in the derivatives business."
David Merrill, CEO of FinAnalytica:
"For the buy side, some of the legislation is not starting there as early as it has on the sell side, but we are seeing people continue to recognize that whatever they're doing in the risk management area—it needs to be more. It seems like in Europe there's more direct, specific requirement for the buy side—for example, Ucits IV. In the US, however, it's not as direct. But I think we are seeing people be more aggressive about evaluating what they're doing and generating a plan of action around their situation."
Alexei Miller, executive vice president of DataArt:
"Contrary to a lot of popular belief—specifically on the buy side in the asset management space—regulatory reform is not such a huge spend burden. Most of the work we see is improving the foundation, improving time-to-market and agility, but not in the compliance space—that is not driving tech spend. The money is being spent on catching up after sitting out for most of 2009 and 2010, and I expect there to be more spending on the fund administration side. But it's not about spending on regulatory changes that haven't even been implemented yet."
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
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
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.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- FactSet looks to build on portfolio commentary with AI
- Women in Technology & Data Awards 2024: All the winners and why they won