马特•约翰逊, 据导演, EMEA ITP Product Management and 行业关系, recently met with industry experts at 存’s CSDR Series 2021: CSDR Management with ITP Solution event to discuss ways to mitigate CSDR penalties by quickly resolving trade exceptions and facilitating the management of trade fails.
Joining Johnson was an impressive panel of experts including Craig Stirling, Executive Director – Fleet Lead Cash Confirmations and Statement & Global Cash Equities CTB Lead, Morgan Stanley; Garret Browne, 高级经理, 股票后交易主管, 固定收益 & FX, Fidelity 国际; Mark Austin, Principal, Head of Trade Support, Connor, Clark & Lunn Financial Group; and Philip Slavin, Chief Operating Officer & 联合创始人,Taskize.
工作流可见性的重要性
With the clock ticking until the regime begins, firms are very much focused on the possibility of fines and buy-in issues. There are already markets with varying penalties and potential buy-ins, and CSDR is adding the burden of an additional 27 jurisdictions. 考虑到这些复杂性, 统一的视图是必要的, as information currently comes in through numerous channels, 包括电子邮件, 客户门户网站, 还有电话. 存’s Exception Manager provides the oversight and the benefit of consolidating all possible scenarios into a single view. Slavin noted the ability to have visibility through the entire workflow chain is a significant driver for efficiency, particularly having all exceptions in one place—no matter the region, 资产类别或交易类型.
CSDR will force a rebalancing of resources and emphasize pre-matching functions to ensure trade affirmation. Getting all the information for standing settlement instructions (SSIs) will be crucial to managing inventory. “Fails will still occur due to issues outside of operations, 与此同时, we can do better by utilizing analytics, 监视代理行为, 建立模式,布朗说。. 改进的通信, 利用实时信道, and decreasing reliance on email will help reduce the time frame to settlement and help improve behavior. Austin agreed that getting the right settlement message on trade date is priority; followed by focusing on pre-matching trades prior to settlement.
"With the clock ticking until the regime begins, firms are very much focused on the possibility of fines and buy-in issues."
沟通是关键
Stirling stressed the importance of communication and that manual processes will pose delays. “Active real-time communication that is linked to a workflow and provides a quick resolution will be key,他说.
The panelists agreed that there will be an increased need for predictive analytics solutions as the industry starts to move to shortened settlement. Each firm will need to base their decisions on their particular needs, 但正如斯拉文所指出的, “无论我们多么努力, 仍然会有失败, and firms need to be good at solving those fails.” Knowing about an exception before it occurs is vital. But while proactive tools can help—even the best tools only work with communication and interoperability.
With an industry as interconnected as financial services, the stakes are higher as all parties of the trade are impacted if something on the chain breaks. Increased communication and engagement are needed not just for CSDR but for the industry at large. Slavin noted, “Communication and standards between platforms are vital. Interoperability has to be embraced in order to provide the right solution.”
需要及时准确的数据
在法规的推动下, these best practice issues will need to be addressed because the global aspect of these issues is no longer just a CSDR problem, 指出约翰逊. 随着对信息需求的增长, clients need access to timely and accurate data to develop a complete picture of the settlement landscape. The sharing of data can pose other issues, and the interactions between platforms will only work if all parties use platforms that are 可互操作的.
Citing the move from a paper environment to electronic trades, Browne noted that good things have come from regulation. To improve the visibility around settlement exceptions, 行为仍有增长空间, as trades will have a better chance of settling if instructions are accurate.
后贸易时代的未来
Johnson closed the panel by asking participants about the future of 帖子-trade. The panelists agreed that practices will evolve in response to CSDR and that further acceptance of capabilities and solutions is needed, including enhanced workflows that focus on the direct economic cost. New fintech and partnership opportunities will need to be consistent, 可互操作的, 和前瞻性, with a goal toward reduced exceptions and a lowering of the age profile.
With less than one year until the CSDR regime goes live, the industry is focusing on many unknowns—the size of the amount of fails, 买入的问题, 还有最好的准备方法. 关注ESMA的指引, 存继续专注于准备工作, 自动化, 和预防.