Sluggish Back-Office Systems Added to Margin Pressures
Systems supplied by FIS struggled to handle a massive spike in March trading volumes, according to multiple sources.
Banks’ back-office margin systems buckled under the sheer weight of trading volumes seen during the coronavirus market rout, resulting in missed margin payments and give-up trades being left on the books of executing brokers.
A combination of processing backlogs and manual errors meant some clearing brokers were left with uncollateralised overnight exposure to buy-side clients, while others had to meet surprise margin calls at a time of funding stress.
Five sources cited problems with systems
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