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lower the risk of errors , and decrease the marginal cost of each transaction .
“ Overall , investing in technology will make it more economical for firms to comply with the new rule changes ,” adds Pacenti .
With rule changes such as these , the impacts will be felt across institutions , spanning across different areas of their operational structure . Having open and more transparent communication among the different strands of a business will have a positive impact on efforts to make compliance successful .
“ We have to understand the impact from a fixed income trading perspective , but also post-trade services and capabilities . We need to assess the impact to operations , risk , and other business units as well as our external providers for sourcing portfolio liquidity ,”
“ We have to understand the impact from a fixed income trading perspective , but also post-trade services and capabilities .”
KEVIN KHOKHAR , HEAD OF INVESTMENT FUNDING AT T . ROWE PRICE argues Khokhar .
“ Another aspect is having operational strategies , where market participants should implement a governance structure across all potential impacted business units to fully understand the impact to your front-to-back trading platform .”
Despite some hopes that the implementation of these fixed income clearing rules will be delayed , institutions should act as though the set dates are expected to go ahead as planned to ensure adequate adjustments are made to ensure successful compliance . Clearing obligations will undoubtedly become more prominent , requiring an increase in viewpoints of margin requirements and risk management processes . As with any key regulatory change , the sooner institutions can prepare , the better the outcome will be for the industry at large .
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