Wednesday 6th May 2015
NEWS TICKER: FRIDAY, MAY 5th: Zurich Insurance Group will release its results for the three months to March 31st this year on May 7th - According to the Luxembourg Stock Exchange, National Bank of Greece Funding Limited says that in accordance with the terms of its Series B CMS-Linked non-cumulative guaranteed preference securities (ISIN: XS0203171755) which has the benefit of a subordinated guarantee from the National Bank of Greece, the non-cumulative preferential cash dividend on the preferred securities which would otherwise have been payable on today (May 5th) will not be declared and will not be paid - Randgold Resources confirms that at the Company's Annual General Meeting held earlier today the shareholders approved a final dividend for the year ended December 31st 2014 of $0.60 per share. The dividend payment will be made on Friday May 29th to shareholders on the register as at Friday March 13th The ex-dividend date was Thursday March 12th. The exchange rate for payment to those shareholders who have elected to receive the final dividend for the year in Pounds Sterling is: £1/$1.5134. The company also announces that at its Annual General Meeting all of the resolutions were passed on a poll. Copies of all the resolutions passed have been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do - Intercontinental Exchange today reports April 2015 futures and options average daily volume (ADV) declined 11% compared to April 2014. Commodity ADV increased 11% led by Brent, Other Oil and Sugar contracts up 21%, 37%, and 30% respectively, from the prior April. Meantime, financials ADV declined 28% from the previous April primarily due to continued low volatility in Continental European short-term interest rate and single stock equity contracts. ADV for NYSE’s US cash equities increased 3%, while US equity options ADV declined 30% from the prior April. NYSE’s U.S. cash equities market share was 23.8% and NYSE’s U.S. options market share was 18.4% - McDonald’s Corporation’s new chief executive today laid out initial plans for luring back customers, boosting sales and transforming the world’s biggest restaurant chain by revenue into a “modern, progressive burger company.” The plans include organising McDonald’s business around four new operating divisions, selling restaurants to franchisees, cutting corporate costs, improving food quality and taking layers out of its “cumbersome” management structure - The Central Electricity Authority (CEA) is reported to be planning an exhaustive basin-wise study of the hydropower potential in the country after a gap of 28 years. The study will also assess the environmental and social impact of river basin development. The last survey was undertaken between 1978 and 1987. The plans come against a backdrop of widespread protests against hydropower projects in India from people who are at risk of being displaced by the projects. Most of India’s hydropower potential falls in seismic zone 5, they charge, a region classified as highly vulnerable to high-intensity quakes. The exercise will also consider issues such as site geology, submergence and impact on environment and forests - Optical network infrastructure specialist has announced it has entered a definitive agreement to acquire Cyan Inc, a rival optical provider and software platform specialist. The agreement puts an approximate $400m on Cyan; no other terms have been released yet - Spain’s Cirsa Funding Luxembourg SA has announced the results of its tender offer to repurchase for cash up to €450,000,000 aggregate principal amount of its outstanding 8.75% senior notes due 2018. Deutsche Bank, London Branch is acting as tender agent and dealer manager - Trading turnover since the start of 2015 touched CHF534.3bn (+33.1% versus the same period in the prior year of 2014), while the number of trades since the start of 2015: 18,297,635 (+39.9% versus the prior year period) and average trading turnover per day was valued at CHF6.5bn over the first four months of this year says SIX Swill Exchange and SIX Structured Products Exchange - CME Clearing says it is aware that PAI was not included in the end-of-day (EOD) reporting or cash movements from Monday 5/4 for CDS in Production. IRS was not affected says the CCP. To correct, CME Clearing will enter cash adjustments tonight for each open position and will contact each firm with their expected adjustment figures. The CCP also apologies for the inconvenience caused – The Federal Reserve Bank of New York says its daily effective Fed Funds rate is 0.13% (Low 0.060% and High ).3125%) with four basis points of standard deviation - UK operator O2 has acquired the interest held in mobile commerce outfit Weve from its joint venture partners EE and Vodafone. Weve will now operate as a wholly owned subsidiary of O2 UK -

A streamlined approach

Friday, 15 June 2012
A streamlined approach The European asset management industry has grown considerably over the last ten years. Assets under management (AUM) stood at €3trn at the end of 2001, and had reached €7.89trn by the end of the second quarter (Q2) 2011. This growth, which will support the savings and retirement of a large portion of the European population, means asset managers have an enormous responsibility to their end clients. By Ann Doherty and Brian Coughlin, JP Morgan Worldwide Securities Services (WSS). http://www.ftseglobalmarkets.com/

The European asset management industry has grown considerably over the last ten years. Assets under management (AUM) stood at €3trn at the end of 2001, and had reached €7.89trn by the end of the second quarter (Q2) 2011. This growth, which will support the savings and retirement of a large portion of the European population, means asset managers have an enormous responsibility to their end clients. By Ann Doherty and Brian Coughlin, JP Morgan Worldwide Securities Services (WSS).

It is inevitable that asset managers want to retain their investment gains by reducing uncertainty and risk from their activities as much as possible and increase straight through processing (STP) and transparency, particularly in today’s volatile environment. One way to achieve that is to use a custodian that can provide all of these benefits through a streamlined product offering to help reduce both costs and risks while keeping up with the ever-

changing regulatory environment.



The objectives of asset managers present their own challenges, particularly with a regulatory reform agenda framed by G20 commitments, which culminated in the Dodd Frank Wall Street Reform Act and the European Market Infrastructure Regulation (EMIR). Since 2008, regulation has been constantly evolving and expanding. In addition to those two regulations, investors also have to adjust to the second iteration of the Markets in Financial Instruments Directive (MiFID II), UCITs IV, AIFMD, FATCA, Basel III and Solvency II.

To understand and execute on what regulators expect from them, asset managers today look to their service provider for help with the provision of an industry-leading  global custody and securities services offering with innovative technology to meet their daily requirements; seamless execution to increase STP and reduce risk; thought leadership to help them understand how regulation and potential market events could affect them (as well as their end-clients) and provide appropriate and timely data analysis.

Inevitably, the most sophisticated asset managers want to work with a securities services provider that can provide global reach and which has sufficient resources of capital to invest in industry-leading systems and technology. That means all of their requirements are met in one place. Investors then benefit and can have confidence in the fact that whatever complexity is injected into the market, whether by unexpected market events or by regulators, their custodian will be able to manage it.

Next, asset managers want seamless execution to help them eliminate risk and costs. Recognising the important role that asset managers play in the savings and pensions industry, regulators are putting pressure on them to provide their end clients with transpar­ency and as little risk as possible.  To do that, fund managers must tighten up the chain in their post-trade activities. 

For their part, custodians have been moving into more consultative technology-driven services for years, which asset managers and other users of custodian and related securities services have greatly benefitted from. Increasingly, these users of securities services are looking to their providers to move even closer to their front office, even coming just after the trading and investment decision. 

In the past, using one firm’s investment bank to execute trades and using the same bank’s custodian arm might have raised concerns about whether this one-stop-shop provided the best execution and cost in the market. ­Regulations, particularly MiFID, have removed that uncertainty.

Finding a provider that can tick the first two boxes as well as provide the critical consultative thought leadership all asset managers look for to keep up with regulatory and market changes, isn’t easy. Asset managers look to their service providers to provide ­information about changes arising from the rapidly evolving regulatory environment, to ensure that new requirements are understood and ­prepared for. Large international firms that are present in multiple jurisdictions are best placed to have a view of regulatory changes and to adapt their services to new requirements on a global basis.

Lastly, asset managers also rely on service providers to help them provide up-to-date and transparent data ­analysis, which is a critical reporting requirement to regulators, governments, trustees and other stakeholders, and is part of their own internal risk reviews.

This means asset managers want detailed information about their ­transactions, securities held, and ­breakdown of the core characteristics of those assets. They also want this data delivered in a fast and efficient manner, which requires a strong STP framework. This presents a challenge and an opportunity for service providers as it is not an easy task pulling together different sets of data and presenting it in a format that asset managers can consume and customise.

To meet all of these requirements, a service provider has to continuously invest in technology, and have ­regu­latory experts who can quickly analyse new regulations and understand how they will fit and potentially impact existing regulations with which asset managers are already complying. This re­quires a delicate balance between investing in business enhancements and people, while maintaining required capital levels. Large global custodians with the capacity to invest in its technology and systems are more able to make these investments than smaller firms.  

Asset managers are looking to ­securities services providers to act more strategically then ever before. By using one bank for all activities following the investment decision, asset managers are recognising their ability to cut potentially weak links from their post-trade chain, and rationalise the number of providers they use. This coordinated servicing effort across a firm, usually a bank, enables the large and fully-integrated players to really understand an asset manager’s needs, requirements, product and geo­graphical expansion plans. This support across many distribution channels helps fund managers reduce cost,

outsource the risk by leveraging ­operational cap­abilities, risk management capabilities and therefore offers a much better and broader value proposition. Today, a service provider must have all the ­necessary tools in the tool box and be willing and able to use them.

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP

Related News

Related Articles

Related Blogs

Related Videos