According to new research, reporting is the top post-trade process that respondents cite as a pain point due to regulatory pressure
Aite Group’s newest report, The Post-Trade Landscape: Infrastructures, Mega-Vendors, and So-Called Utilities, examines firms’ plans for post-trade investment and the pain points for which automation or standardization may be required. The capital markets’ post-trade plumbing has been in the industry spotlight over the last few years due to various regulatory and industry-driven changes. Industry participants have also engaged in much public debate about the potential application of distributed ledger technology and the utility model to post-trade processes, including clearing and settlement.
“The market is not short of centralized services, but these services’ current and future successes are predicated on gaining enough critical mass to operate with efficiency of scale,” explains Virginie O’Shea, research director at Aite Group. “When it comes to managed services, the client community is fairly open to considering these services in certain discrete areas, such as reconciliation, core operational processing, or data cleansing,” she adds.
This Impact Report provides an overview of the current global post-trade landscape. The report is based on 2017 telephone interviews with 22 market participants in settlement operations functions at capital markets firms, and it includes information supplied by market infrastructure providers and solution vendors that are active in the global financial markets.