The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Financial Services Braced for Global Data Deluge in 2010

The financial industry has been flooded with over 2,000 pages of regulatory documents this month including a dozen publications from European supervisory agencies, two major consultations from the Basel committee on banking supervision and over 15 pronouncements from the UK’s Financial Services Authority (FSA).

The surge of regulatory activity comes amid a torrent of speeches from politicians who are pushing through large restructuring efforts in Brussels, Washington, Tokyo and London. With the G20’s comprehensive 93 point action plan covering everything from compensation, liquidity and capital ratios, large exposures, concentration risk and recovery and resolution plans it is doubtful that any part of the global financial services supply chain will remain untouched next year.

PJ Di Giammarino, CEO of JWG, comments: “Bankers that were hoping to reach higher ground in 2010 are in for a rude awakening. Everything from their business models and suppliers, to the size of their procedure manuals and quality of their information infrastructures will be subject to scrutiny.

“Calls for transparency and control have catalysed a colossal wave of regulatory information requirements across all parts of the supply chain. The data tsunami, predicted by the chair of a Basel Standards Implementation Group at a risk conference last week, has well and truly hit. If the politicians have done the job right, regulators will now start focusing their attention on the monumental task of creating industry data standards, upgrading legacy infrastructures and ensuring that financial services firms ‘know their business’ at a far deeper and granular level.

“Bank infrastructures will subsequently be strained on many fronts in 2010 and it is difficult to pinpoint what will hurt the most. In a ‘normal’ year we could forecast the ‘league table of pain’ 12 months out. This year is an exception; the surge in regulatory documents this December has brought activity levels to an extreme for infrastructure professionals, as nobody can begin to fathom how all this change can be absorbed at once.

Di Giammarino concludes: “Simply asking for ‘information’ is not enough. Without banks and their regulators agreeing common methods of producing and receiving data, the clarity sought by these regulatory efforts will not be achieved. We are encouraged by the US House Proposals, as they have outlined procedures to share data across the FS oversight bodies in agreed formats. In the New Year JWG will continue to call for more clarity on who is accountable for the data rulebook in both the UK and EU.”

Related content

WEBINAR

Recorded Webinar: BCBS 239

This webinar has passed, but you can view the recording by registering here. With only weeks to go until BCBS 239 takes effect on January 1, 2016, large banks within the scope of the regulation are making final preparations for compliance. Some may be more than ready on the day, others less so, but all...

BLOG

Reformis Adds Matrix IDM and NeoXam to Vendor Partner Programme

Reformis, a buy-side business transformation consultancy, continues to build out its vendor partnership programme with the addition of Matrix IDM’s cloud native data management software, and NeoXam’s Impress reporting solution. These join the company’s list of existing partners and products including IHS Markit’s EDM software, Snowflake’s cloud data platform, and Compliance Solution Strategies’ Accudelta product....

EVENT

Data Management Summit USA Virtual

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

FATCA – The Time to Act is Now

The US Foreign Account Tax Compliance Act – aka FATCA – raised eyebrows when its final regulations requiring foreign financial institutions (FFIs) to report US accounts to US tax authorities were published last year. But with the exception of a few modifications, the legislation remains in place and starts to comes into force in earnest...