Press release: 4 August 2008
Investment
Solutions Consultants (ISC), the leading Investment Management
consultancy, today announced the launch of their Derivatives
Operational Health Check service. The service will provide a structured
review of managers’ existing derivative operations, systems and
processes from front through middle to back office in order to provide
pragmatic advice designed to expedite the delivery of the robust and
scaleable operating model required to manage derivatives. The service
will cover the following functions:
· Portfolio modelling and risk management
· Compliance (including UCITS III regulations)
· Trade execution and messaging
· Confirmations, novations and terminations
· Pricing and valuations
· Collateral management
· Lifecycle payments and settlements
· Performance and client reporting
· Data management
· ISDA documentation
· Governance structures
Sean Sprackling, ISC Partner explains, “Derivatives within investment managers are moving inexorably from being regarded as state-of-the-art, esoteric instruments to becoming sine qua non. Consequently, it ... more »
· Portfolio modelling and risk management
· Compliance (including UCITS III regulations)
· Trade execution and messaging
· Confirmations, novations and terminations
· Pricing and valuations
· Collateral management
· Lifecycle payments and settlements
· Performance and client reporting
· Data management
· ISDA documentation
· Governance structures
Sean Sprackling, ISC Partner explains, “Derivatives within investment managers are moving inexorably from being regarded as state-of-the-art, esoteric instruments to becoming sine qua non. Consequently, it ... more »
Corrigan Releases CRMPG III
by
Sean Sprackling
on Thu 07 Aug 2008 09:24 BST
At last Gerald Corrigan's much heralded report has been published. I have not had a chance to read the whole thing yet (it is 176 pages long), but just skimming it it would appear that there are no surprises - calls for centralised clearing, more spending on infrastructure and risk management, same day trade matching, and agreements to “hardwire” a standard way of settling credit default
swaps in the event of a default in documentation as well as an
agreement on settling trades in the event of a default, or close-outs.
Inevitability all this is likely to increase the cost of transacting in credit derivatives; however as the report points out, “Costly as these reforms will be, those costs will be minuscule compared to the hundreds of billions of dollars of writedowns experienced by financial institutions in recent months, to say nothing of the economic dislocations and distortions triggered by ... more »
Inevitability all this is likely to increase the cost of transacting in credit derivatives; however as the report points out, “Costly as these reforms will be, those costs will be minuscule compared to the hundreds of billions of dollars of writedowns experienced by financial institutions in recent months, to say nothing of the economic dislocations and distortions triggered by ... more »
