Market Structures

This blog collects thought leadership from SunGard’s market structure experts, looking at how transparency, efficiency and networks are shaping the future of this critical area of financial services. For more of SunGard’s views, see http://blogs.sungard.com/ten/

7
Jul
2014

Lewis on Lending: Changes Continue in the Industry – Some Less Subtle Than Others

Contributor:

The June issue of the Securities Lending Focus noted the changes going on in the securities lending industry, such as the emergence of the central counterparty model and the future implementation of trade repositories. This month, we continue to look at the changes in themes and nuances of how the industry views itself, and importantly those stakeholders on the outside view the industry.... read more

10
Jun
2014

Investor Protection: The Next Focus of Automated Compliance and Surveillance Systems

Contributor:

The European Securities and Markets Authority (ESMA) is turning up the heat on national regulators to enforce and monitor MiFID conduct of business rules, where Article 37 of the MiFID Implementing Directive aim to ensure that firms 1) sell only suitable products to their clients and 2) feel comfortable that clients can afford them and understand the associated risks. The latest example is ESMA opinion 2014/146, which addresses investor protection measures for the sale of complex products to retail customers. ESMA defines complex products as any contract that is a derivative, contains more than one leg, is priced based on a non-mainstream index, or has barriers to exit. Such a broad definition means that the investor protection measures will affect a large number of brokers across Europe.... read more

4
Jun
2014

Lewis on Lending: The More Things Change, the More They Stay the Same

Contributor:

The securities lending market is certainly not insulated from the changes reverberating around the finance industry, even if we are six years past (what is now termed) the financial crisis really kicking off. Many of these changes are arguably overdue; perhaps one would even go as far as to say that they should have been thought of and undertaken long before the crisis took hold and that they seem almost too obvious with the aid of hindsight.... read more

3
Jun
2014

Securities Lending & Pharmaceuticals: Is Price Everything?

Contributor:

A version of this article originally appeared in Securities Lending Times. The Pfizer (PFE) bid for AstraZeneca (AZN) has rarely been out of the news since the bid broke cover around April 20. Whether it has been politicians, other pharmaceutical companies or the business owners and investors themselves, it seems everyone has something to say about this vast U.S. to U.K. acquisition, a deal which now appears to have foundered with AZN’s official rejection of PFE’s “final offer” on May 19.... read more

12
May
2014

Telling Both Sides of the Story on Risk

Contributor:

To attract assets and satisfy both clients and regulators, every buy-side investment strategy needs to tell a good story. But when it comes to risk management, is the story always as complete as it could be? Traditionally, buy-side institutions have used factor models to pinpoint, through attribution, the sources of risk in a portfolio or fund. Sell-side investment banks, on the other hand, have more typically used simulation tools that are better-suited to manage the large numbers of derivatives on their books.... read more