Segregation of assets in accounts that bear the name of the owner is one of the unstoppable regulatory and commercial trends of our time. While custodian banks have invested considerable resources in the development of ingenious arguments against segregation, one third party lender is pleasantly surprised to find concerns about asset safety are increasing the attractions of its business model.
The £126 million fine levied by the UK Financial Conduct Authority (FCA) on BNY Mellon in April for breaches of the rules on the safekeeping of client assets was the latest in a series of similar sanctions.
The announcement by Intercontinental Exchange (ICE) that it is to infuse a chunk of its own capital into some of its default funds across the world is welcome news as a growing percentage of the notional $700 trillion over-the-counter (OTC) derivatives market is pushed onto centralised clearing houses (CCPs) as mandated under the Dodd-Frank Act in the US and the European Market Infrastructure Regulation (EMIR).
Rob Scott, Head of Custody & Collateral Solutions at Commerzbank, speaks to COOConnect about the preparedness of the buy-side for mandatory clearing in terms of possessing collateral, the improvements that need to be made, and whether there will be a collateral shortfall when EMIR takes effect. Rob also summarises the conclusions drawn during his panel discussion on 'how can the investor enter new markets and what question should you ask of your custodian?' at the 2014 Global Custody Forum in London.
The European Commission has said the financial industry - as opposed to regulatory bodies – is better placed to reach an agreement over which counterparty develops the Unique Trade Identifiers (UTI), the alphanumerical code designed to enable trad
There is still uncertainty about the scope and nature of the reporting requirements likely to be expected under the recently proposed Securities Financing Transaction Regulation in the European Union (EU).
Asset owners are increasingly taking a holistic approach to their collateral management processes as a result of their growing retreat from securities lending coupled with the migration of over-the-counter (OTC) derivatives instruments into centra