business transformation

  • 649

    AUTOMATED RETAIL DERIVATIVES PLATFORMS: challenges and opportunities

    The retail derivatives industry faces the same challenges seen in many mature financial markets: slow growth, heightening competition, increasing regulatory requirements and demanding clients. In this article, Stefan Naumann, Patric Mayer and Roger Waldhausen discuss how the automation of product platforms can help banks proactively maintain and expand their market share and highlight the different options to get there. During the last several years, the market for retail derivatives in central Europe has been in turmoil. In the early days, structured products, also known as certificates, were highly successful, sold well and provided high margins to the issuing banks. Because [...]
  • 635

    THE INVESTMENT RESEARCH MARKET: how regulations are driving technology innovation

    The post-crisis regulatory environment has had far-reaching effects—impacting processes in the front, middle and back offices. With two regulatory initiatives in the UK, the investment research market is now bracing for change. In this article, Neil Scarth, Principal, Frost Consulting, discusses how regulations are affecting research and, in particular, how they are driving technological change that will ultimately make the process of searching for and using information more efficient and productive. The institutional equity market, which involves the management of pension/mutual funds, etc., is a unique business model funded by the “currency” of equity commissions. These small charges are added [...]
  • 614


    The notion of centralized infrastructure and services is not new. It has been used successfully in other industries for years. There is, however, a renewed interest in industrialization within the capital and commodity markets. Many firms are once again considering how utilities could help increase efficiencies, reduce costs and, ultimately, improve their return on equity (RoE). In this article, Ryan Baccus discusses the ways in which todayís industrialization efforts are putting market utilities back in the spotlight, when they make the most sense and what firms can expect in terms of benefits. Definition of Industrialization The process in which a [...]
  • 586

    EUFTT: the tax that is dividing a union

    The European Union Financial Transaction Tax (EUFTT) is one of the most talked about regulations in the last couple of years. Despite the controversy, it will likely be imposed on almost all financial transactions by early next yearóif not in late 2014. In this article, Ajay Mathur and Thomas Zimmermann provide an overview of the current state of the discussion around the EUFTT and highlight some key concepts of the proposed legislation. They also address the challenges financial institutions may face during implementation and important next steps firms should take to prepare for the EUFTT. Some attention will also be [...]
  • 566

    SWAP EXECUTION FACILITIES: a catalyst for OTC market change?

    Could mandatory electronic execution of over-the-counter (OTC) derivatives, stemming from the 2009 G20 Pittsburgh Summit, act as the catalyst in spawning new business models? Jim Myers, Kimon Mikroulis and Paul Gibson discuss the impact of mandatory electronic execution for certain OTC products under the most advanced of these electronic mandates, Dodd-Frankís swap execution facilities (SEF). As the OTC markets are entering a phase of rapid evolution, concepts that were originally created in the exchange-traded world, such as sponsored access, agency execution and general price aggregation, are emerging as critical issues to be addressed by OTC market participants. Introduction The Dodd-Frank [...]
  • 255

    IMPLEMENTING VOLCKER: who sets the standards for compliance and reporting?

    After a lengthy development period, the Volcker rule (section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) finally hit the regulatory statute books on December 10, 2013. Prior to finalization, many banks had already started work to meet the anticipated requirements for compliance. In this article, Chris Collins, Ted Harvey and Alpa Rajai discuss the real-world challenges associated with Volkerís conformance and reporting requirements and propose some immediate actions that firms can consider as they work to comply with this long-anticipated regulation. Volcker, like many recent regulatory initiatives, is aimed as much at driving changes to culture [...]
  • 1070

    USER EXPERIENCE: a unique investment opportunity that pays high dividends

    When planning any IT project—whether it’s a large enterprise-wide application or a small tool intended for a few users—User Experience skills and disciplines can help to guarantee successful adoption and integration into new or current work processes, effectively reducing rework, frustration and costs. Julie Rodriguez and Matt Hull discuss the high returns firms can expect when incorporating UX into their technology initiatives. If the return on an investment was guaranteed to be at least 1,000%, wouldn’t everyone want to capitalize on it? The obvious answer is yes. But in reality, when it comes to investing in User Experience (UX), many [...]
  • 477

    MOBILE STRATEGY: from maturity model and roadmap to success

    The ever-increasing presence of mobile technologies at home, work and in the field has captured the interest of stakeholders within the trading and risk management domain. But many firms struggle with developing a comprehensive and cohesive mobile strategy to support their users. Jennifer Evans, Parry Ruparelia and Matt Hopgood introduce the concept of the Mobile Maturity Model, how it can be used to develop a roadmap and key points firms should consider as they build their mobile strategy. According to Forrester, currently 89% of companies have invested in a mobile strategy. However, only 40% of those companies have defined a [...]