About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Firms Should Focus on Operational Resilience in Trading, Refinitiv Report Suggests

Subscribe to our newsletter

In response to the Covid-19 pandemic, and the subsequent disruption caused by remote working and extreme market volatility, firms need to rethink their approach to operational resilience for their trading businesses, not only to ensure business continuity, but also to manage regulatory change and develop greater agility and efficiency. That’s the recommendation of a recently published Refinitiv white paper, which explores operational resilience in trading.

One particular area of interest, according to the report, is the increased focus that regulators have been placing on operational resilience, even prior to the pandemic. The UK’s FCA issued a policy statement, PS21/3, in March this year, having started its open consultation on the subject in 2019. And the Basel Committee also recently published its own Principles for Operational Resilience.

It’s clear that operational resilience is developing into a new international regulatory requirement for trading firms, and that national regulators are developing their own rules in light of the Basel Committee’s new principles. The white paper cites a number of recent publications from regulators around the globe, who are also looking at subthemes such as cyber risk, third-party risk, outsourcing and the cloud.

A number of recommendations are made in the report. For example, trading teams should consider the operational resilience aspects of day-to-day compliance with regulatory requirements. Trading teams should also consider how modifying processes and systems to comply with any new regulations could temporarily impact their operational resilience.

Data is also an important factor. The white paper describes how firms can take a more strategic approach to the operational resilience of their data sources and usage.

One key takeaway of the report is that robust operational resilience can result in more agility within the business, which can become a competitive advantage for firms Trading teams should therefore consider operational resilience when making investments in new technology solutions, and explore cloud-based options as a way to achieve their goals.

The white paper concludes that although operational resilience is a new regulatory requirement, considered in the right way, it contains the possibility for trading teams to transform themselves in new and exciting ways that deliver real value.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Re-architecting the trading platform for interoperability, resilience and profitability

Trading platforms have come a long way since the days of exchanging paper certificates and shouting across trading floors, pits and desks in the early 2000s, but there is progress still to be made as firms strive to reduce risk, increase profitability, and make their mark in digital assets trading. This webinar will review the...

BLOG

Trading South Africa’s Financial Markets – Technology Considerations, Challenges and Opportunities

The Republic of South Africa (RSA) stands apart from many other African nations, in that it benefits from a mature, well-structured and dynamic financial market environment, supported by modern technology, and backed by robust regulations. And despite various global and domestic challenges and uncertain macroeconomic conditions, the country has managed to maintain a strong growth...

EVENT

Data Management Summit New York City

Now in its 14th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

What the Global Legal Entity Identifier (LEI) Will Mean for Your Firm

It’s hard to believe that as early as the 2009 Group of 20 summit in Pittsburgh the industry had recognised the need for greater transparency as part of a wider package of reforms aimed at mitigating the systemic risk posed by the OTC derivatives market. That realisation ultimately led to the Dodd Frank Act, and...