Operational Challenges - Efficiency is 'king' for asset managers

Phil Slavin, Sibos, TaskizePhil Slavin, CEO of Taskize (a Euroclear company), argues that efficiency is "king" for asset managers.

As part of its coverage of Sibos 2022 in Amsterdam, Funds Europe reached out to financial experts on key topics at the conference. Read more analysis here.

What are some of the biggest operational challenges facing asset managers right now?

“In the current economic climate, efficiency is king for asset managers. The challenge is that new rules around initial and variation margin mean more disputes, consequently adding significant operational burden.

"A fundamental factor behind disputes in posting margins is the misalignment of margin calculation models. In many cases, fund managers will either be using a custom risk model for margin calculation or one from an external provider if they are resource constrained, which will very often differ from the model used by their counterparties.

"Even if all parties use the same models, amounts could still vary because of reconciliation errors or settlement breaks. Trying to resolve these disputes, traditional go-to solutions such as email, phone and chat are simply not fit for purpose in this day and age.

"Those affected need to find a solution to resolve these disputes more efficiently and quickly, mainly if they are to harbour any hope of ensuring effective collaboration across global financial operations staff.”

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