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
Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings
A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...
In pursuit of data collaboration and standardisation across capital markets, the Fintech Open Source Foundation (FINOS) and Goldman Sachs have released Legend, the bank’s flagship data management and data governance platform. The source code for five of the platform’s modules is available from FINOS. Goldman Sachs contributed its PURE logical modelling language and Alloy platform...
The TradingTech Summit in London brings together European senior-level decision makers in trading technology, electronic execution and trading architecture to discuss how firms can use high performance technologies to optimise trading in the new regulatory environment.
he US may seem to be ahead of the rest of the world in terms of championing the data management cause with the inclusion of reference data focused items in the Dodd-Frank Act, but Europe is not too far behind. Senior European level officials such as European Central Bank (ECB) president Jean-Claude Trichet have taken...