New research estimates that incomplete or incorrect corporate actions information poses a front-office trading risk of between EUR1.6 billion and EUR8 billion annually, while firms individually may face back-office processing risks amounting to tens of millions of euros from mishandling a single, complex corporate action event. The research was conducted by U.K. analysts Oxera, and was sponsored by DTCC. The report found two primary areas of risk facing all market participants. First, errors in the downstream flow of information. This is due to the lack of a standard way for issuers to announce events, the lack of a single securities identification system, the fact that different sources of information are often inconsistent, and that processing details and terminology are often highly specific to a particular market or instrument. Second, errors in the upstream flow of instructions. Here, the report said, “the sheer number of different financial intermediaries (custodians, fund managers, broker/dealers, and depositories) involved in any one event requires a complex chain of communications (with many instructions delivered via phone, fax, telex or unformatted e-mail, and processed manually).”
A-Team Insight Blogs
The transition away from LIBOR (London Interbank Offered Rate) is well underway, but there remains considerable ambiguity around how the final stages will be executed – especially with regards to benchmark replacements in markets outside the UK. What are the options, where are the uncertainties and what stage have firms reached in their preparations? The...
A-Team Group’s Data Management Summit USA Virtual Day Two was based on the theme of best practices for data driven strategies in today’s new normal. The day started with an informative live keynote from Arvind Joshi, director of data management at Scotiabank, on how to establish data quality for analytics. This was followed by three...
Regtech Summit Virtual will explore how business and operating models have adapted post COVID and how RegTech can provide agile and enhanced compliance for managing an evolving risk and compliance landscape. As the dust settles, we will look at the outlook for the global RegTech industry, where Regulators are focusing as they get back to business, and deep dive into global regulatory priorities for the rest of the year and into 2021.
This eighth edition of A-Team Group’s Regulatory Data Handbook is a ‘must-have’ for capital markets participants during this period of unprecedented change. Available free of charge, it profiles every regulation that impacts capital markets data management practices giving you: A detailed overview of each regulation with key dates, data and data management implications, links to...