Author Archives: Nick Stafford
The future state of securities financing: evolution or revolution
“The secret of change is to focus all of your energy, not on fighting for the old, but building the new” – Socrates Most of us don’t like change change, particularly within the securities industry, most will try to actively avoid it. Consequently, market practices evolve at a glacial pace, all too often ignoring the […]
SFTR Scenarios & Key Considerations
Following extensive review of the SBL / Repo Landscape – including the actors involved, information flows and functional requirements, we have identified four SFTR reporting scenarios that firms will need to consider: Some firms will be looking to fully delegate the reporting function, including data enrichment before sending data to a Trade Repository. Others will […]
Merging of stock lending & OTC derivatives collateral management
Derivatives and Securities Finance businesses are clearly aligning. Both business areas are looking to mitigate their capital consumption and maximise the use of collateral. Driven by increased Initial Margin demands in the OTC space, some firms are aligning their collateral management functions in order to maximise optimisation and use of collateral, whilst leveraging Tri-Party processing efficiency. This […]
NSFR Impact Analysis – Mark Barnard
Implementation of the first tranche of funding ratios (LCR) was relatively painless. This potentially lulls us into a false sense of security when considering the next tranche – NSFR. Whilst LCR changed the funding profile of the industry, NSFR’s movement of the tenor of liquidity generation to greater than 6 or 12 months dependent upon […]
New Article: Trends & Challenges in Collateral Management
Simcorp asked David Field & Nick Stafford to write an article on the current trends and challenges in collateral management. Industry players tend to react too late to regulatory change, necessitating tactical and inefficient projects. For quite some time the focus for sell-side firms has been reducing costs, we see serious savings if steps are […]
SFTR dominates the ISLA Conference
There was lots of talk of SFTR impacts at the ISLA conference last week. It’s clear that the enormity of changes required to meet reporting requirements at both an industry and individual firm level are starting to concern market participants. Firms are at varying stages on their preparation timeline and there is still much to […]
SFTR Impact Analysis
Whilst the drive is towards SFTR compliance, the business will need to know the impact on their trading activity and operating model. Additionally, what are the costs of implementing SFTR and on-going reporting? Like many regulations, its envisioned that there will be further enhancements in the future, once the dust has settled, what will be […]
The Field Effect is heading to the ISLA Conference 2017
David Field (Managing Director), Mark Barnard (Sec Finance Practice Lead), Simon Davies (Senior Consultant) & Neelam Rathod (Senior Consultant) will be attending this year’s ISLA conference. They are looking forward to meeting you all and discussing major challenges facing the industry including SFTR. To read more about the event, click here
Derivatives Margin Requirements & Legal Documentation
Banks and Investment Managers are seeing an increase in the complexity and scope of the legal documentation challenge, with mass repapering requirements around Derivative collateral management being just the tip of the iceberg. Its time to look at how efficiently you extract and use data from your legal documents, not just to meet regulatory requirements, […]
SFTR Implementation Dates
In March ESMA published its final RTS for SFTR. This doesn’t mean the 12 month implementation countdown has begun. We expect the European Comission and Parliament to ratify the RTS and publish it in the Official Journal of The European Union by October 2017. This would mean an SFTR go-live date of October 2018. Whilst market participants […]
