Convergence of Securities Finance and OTC Derivatives Operations and Technology

Finadium
August 2016

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In the modern bank enterprise, operations and technology are deeply interconnected. The specific functions of operational staff vary from organization to organization but the infrastructure is always the vital link between trading intent and trading success. As bank profitability is increasingly challenged by capital regulations and low interest rates, the drive for efficiency is stretching to new lengths and bringing operations and technology along with it.

This Finadium Executive Briefing evaluates how operations and technology are evolving as capital market institutions consolidate their securities finance and OTC derivatives trading activities. We review the historical reasons for why siloes have broken down, the growth of the Enterprise model, the value of outsourcing, and the vendor response.

This report has been written for a wide range of capital markets professionals to better understand the process of merging operations and technology for securities finance and OTC derivatives. As the goal of financial institutions remains one of efficiency for profitability, this report aims to help facilitate planning for that objective.

This report is part of the Finadium Executive Briefing series, providing briefings and analysis to the financial markets industry.

This report is 14 pages with 3 exhibits.

TABLE OF CONTENTS
■ Executive Summary

■ Efficiency for Profitability

■ How Did We Get Here?
– Regulatory Unease and Segregation of Duties
– Outsourcing, Crisis and Contraction

■ Convergence for Banks and Vendors
– The Vendor Response

■ Going for Depth to Fill the Gaps

■ About the Author

■ About Finadium