Contributor: Matthew Wash
This blog post was originally published by Commodities Now.
Author:Matthew Wash, client advisor, SunGard’s commodities trading business
A pipeline of new regulations in over-the-counter derivatives trading is changing how stakeholders will approach business planning. The mandated move of OTC contracts into the realm of standardized, cleared derivatives will present significant challenges for market participants; however, we believe that disruption caused by regulatory reform can also create exciting opportunities. In particular, firms employing corporate hedging strategies are in a unique position to improve organizational processes as they adapt to the impending regulatory environment.... read more
Commentary from SunGard experts on news and events affecting the financial services industry.
Contributor: SunGard Viewpoint
A version of this blog post was originally published by Retail Banker International.
We all know that one of the biggest fall outs from the global financial crisis was the severe knock to consumer trust. However, while Europe’s bankers continue to deliberate on how to rebuild this trust, emerging market banks have arguably benefitted. For example, the post crisis consumer in emerging markets has put more trust in local providers; this is evident in new research* we published in November 2013 regarding consumer attitudes and expectations of banks. The findings showed that more than 75% of consumers in the Middle East and Asia do trust their banks.
So, are consumers learning to love their banks again? In short, the answer is no.... read more
senior vice president, Astec Analytics, SunGard’s capital markets business
Contributor: David Lewis
A version of this article originally appeared in Securities Lending Times.
The term “copper-bottomed” refers to something trustworthy, strong and dependable, something with a firm foundation you could rely on. The phrase originated in the 18th century when it was discovered that a copper covering on the underside of a ship prevented rotting and prolonged the life of the ship, presumably boosting the returns to the ships’ owners. It must have seemed a miracle cure in those times, but in more recent times, our fondness for copper has fluctuated.... read more
Contributor: Paul Moffat
A version of this blog post was originally covered by GTNews.
Significant change has been seen in global markets since the financial crisis.
In many markets, the reliance on traditional asset classes like FX, money markets and fixed income as drivers of profitability continue to deliver, but the search for yield drives an increasing appetite for more complex structured products that can deliver a higher margin for treasury businesses.... read more
Contributor: Daniel McNavich
This blog post originally appeared on DerivSource.
It goes without saying that global regulations have brought about increased challenges and costs associated with the use of collateral. The ability to pool collateral assets and prioritize asset utilization is an integral part of a firm’s success today and into the future, as regulators are changing the game when it comes to capital requirements. With regulations driving change, the industry is experiencing increased initial margin (IM) requirements, mandatory clearing of over-the counter (OTC) derivatives, and increased segregation of collateral assets, creating an expensive and fragmented new model.
Buy-side firms across the industry are being forced to reconsider how they use collateral and are determining how they will meet the demand for increased levels of high-quality collateral while navigating the liquidity concerns they now face. While some buy-side firms that use derivatives as a daily business activity understand the value of using collateral efficiently, many others that use derivatives on either a smaller scale or that plan on using derivatives at some point into the future have not yet fully embraced the opportunities of using collateral to help drive added revenue and increased efficiencies.... read more