Will you have the cash to cover your losses when the next quake shakes your custody contracts? A blog post by industry veteran John Gubert, in Global Custodian, suggests a long list of operational risks that could deserve more attention.
ESMA opens for public consultation on draft guidelines for the upcoming Securities Financing Transactions Regulation (SFTR), which will require 153 reported fields for securities lending and repo trades.
Steering clear of officially sanctioned assets requires a lot more than just recognising the names of targeted persons and getting the client on-boarding right. Oliver Bodmer, senior product manager at SIX, looks at the need for continuous monitoring.
Some fear that extensive reporting requirements, which are to come in with Europe’s Securities Finance Transaction Regulation (SFTR), could discourage actors from continuing their services – leaving market liquidity suffering.
For only 40 percent of all swaps trades in the EU, both sides report the trades in the way they are obliged to since five years, says ESMA. Yet, many in the industry expected the percentage to be even lower.