Media Coverage

October 2014

Sapient Global Markets named "Best Consultancy" and "Best Regulatory Compliance Solution for Operations", FTF News, Summer/Fall 2014.
Sapient Global Markets is honored to be named Best Consultancy for Operations as well as Best Regulatory Compliance Solution for Operations for its Compliance Management and Reporting System (CMRS) by FTF News for the 2014 Technology Innovation Awards. 

Time to Protect the US Shale Revolution?, Forbes, October 17, 2014.
The recent plunge in oil prices may be welcome news to drivers, but it is bad news for the nation’s burgeoning shale energy industry, which has grown significantly over the last few years thanks to advances in technology, as well as from a relatively strong and stable oil price. All of this volatility may pose a real danger to the Shale Revolution if it causes risk-adverse investors to abandon the oil patch and look for more stable returns elsewhere. Such a scenario would not only hurt the new shale economy, costing thousands of jobs and billions of dollars in GDP, but would also deliver a major blow to the nation’s new-found energy security. 

SEFs still looking for the buy-side to bite, The Trade, October 17, 2014.
New ways of attracting buy-side participation on swap execution facilities (SEFs) are emerging after a year of relatively slow progress for the US electronic trading platforms. SEFs launched in October last year in line with regulatory mandates for OTC swaps to be executed electronically on the venues and then centrally cleared. Following their introduction, 50% of interest rate swaps and 70% of credit default swaps are now traded on SEFs, though buy-side uptake of the new form of trading has been slow.  

Gas might be priced 15% lower on fall in crude rates, Business Standard, October 16, 2014.
With global crude oil prices hitting a four-year low, global gas buyers, led by those from Japan, are asking sellers to shift to gas-to-gas pricing, rather than linkage with crude oil prices. In India, the notified Rangarajan formula, which is yet to be implemented, has attempted such a linkage by considering the average price of the gas imported, as well as those in global markets. Most of this gas remains linked to crude oil prices.  

Implementing Volcker: data and reporting challenges, Wall Street Letter, October 2014.
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. For most firms, the initial focus has been on restructuring legal entities, booking models and trading books which extended to the disposal of their proprietary trading (prop trading) businesses. Now, however, attention has turned to the challenges around data and compliance reporting. Although the final Volcker rules reduced the possible list of metrics reporting to just seven, daily data aggregation and consistency is posing problems for many firms whether above or below the $50bn threshold.  

Shifting market structure prompts energy trading firms to look at lifecycle management, FierceFinanceIT, October 15, 2014.
Tighter margins and the availability of an increasing amount of data is prompting energy trading firms to begin looking to better analyze data and optimize processes, but many firms in energy trading, are still wrestling with integrating disparate data silos, according to Sapient Global Markets. 

Pressure mounts on regulators to consider FX SEF phase-in, The Trade, October 14, 2014.
US regulators are being urged to employ a phase-in period for foreign exchange derivatives to be traded on swap execution facilities (SEFs) after they become subject to mandatory clearing. The US Commodities Futures Trading Commission (CFTC) met last week to discuss when FX non-deliverable forwards should be centrally cleared, a decision market participants have been awaiting for some time. Once that mandate is passed, the regulator will then aim to increase transparency by requiring all NDF FX trades to be executed electronically.  

Cross-Asset Universal Product Identifier: The Solution the Industry Is Looking For?, Wall Street & Technology, October 14, 2014.
A UPI will enable a holistic approach to identifying all trades and positions. While such an idea sounds great in theory, historical attempts at achieving global agreement have fallen short. 

Northern Trust in conversation with ISS Magazine, ISS Magazine, October 13, 2014.
Fiona Horsewill, head of EMEA Product, Northern Trust, in conversation with ISS discussing the extent to which technology vendors and custody service providers assist asset managers in overcoming the challenges of new regulations.  

Collateral Management Utilities Could Be Way of the Future, Global Custodian, October 10, 2014.
As the financial services industry looks to cut costs where it can, utilities models have emerged as a viable option, and these mutualized services could further emerge for collateral management, finds Celent. In its new report, Fortress to Federated Models in Collateral Management, Celent says that firms are likely to move away from in-house collateral management toward outsourced, cloud offerings and then longer-term toward utilities. These technology changes also come at a time when collateral is becoming increasingly important across entire organizations, with Sapient Global Markets finding in a recent survey that the activity is having greater front-office implications.

Single Dealer Platforms: Are Their Days Numbered?, Wall Street & Technology, October 10, 2014.
While single dealer platforms (SDPs) have improved the experience presented to an institution's trading clients, they are not entirely fulfilling the core requirements in terms of openness or degrees of specialty. The needs of the institution and its clients are still too much at odds and this discord will drive the next revolution in client trading and information services. Sean O'Donnell and Matt Hopgood discuss the next generation of these platforms and the implications to business and technology strategies. 

Firms Face Difficulty In Performing Intraday Calculations - Survey, Global Custodian, October 9, 2014.
A survey from tech firm SimCorp has found only a fifth of US capital market firms are able to perform intraday calculations, prompting concerns on how well they are able to change their positions in response to market driving-events. According to the poll, which interviewed over 60 executives from U.S.-based firms, only 23% are able to carry this out.  

Only 23% of Buy Side Can Perform Intraday Calculations, Wall Street & Technology, October 9, 2014.
According to a recent poll of more than over 60 capital market executives by SimCorp, a provider of investment management services, 83% of buy-side respondents place a high importance on the ability to perform intraday calculations, but only 23% said they are able to perform these calculations. Intraday calculations help firms better comprehend the impact of market events on their held securities during trading hours, rather than wait for an end of day report. The ability to perform intraday calculations impacts a variety of business decisions, including NAV calculations, the ability to post and optimise collateral, and perform more accurate risk analysis. 

Custodians Face Trade Reporting Headache Amid ESMA Deadline, Global Custodian, October 9, 2014.
Custodian banks active in the delegated reporting space are scrambling to fill the gaps of missing information as another deadline set for European trade repositories loom. The European Securities and Markets Authority (ESMA) has told Europe’s trade repositories (TRs) that from December 1, 2014, they must reject trade submissions where certain reportable fields have not been supplied, according to a notice from the Depository Trust & Clearing Corporation (DTCC).

Integrating Voyage Partners: Straight-through Processing in Tanker and Bulk Commodity Shipping, Breaking Energy, October 8, 2014.
While marine transport enables the lion’s share of global trading in bulk commodities today, the business-to-business (B2B) information integration across the value chain of a voyage has yet to evolve. As both the shipping industry and commodity merchants face tighter profitability, they need to look at a holistic approach to improve efficiency and data quality through information integration. In this article, Thomas Pappas, Jay Rajagopal and Rashed Haq discuss a way to harness emerging information services and technology platforms.  

Does it make sense for businesses to procure solar panels?, Breaking Energy, October 8, 2014.
While marine transport enables the lion’s share of global trading in bulk commodities today, the business-to-business (B2B) information integration across the value chain of a voyage has yet to evolve. As both the shipping industry and commodity merchants face tighter profitability, they need to look at a holistic approach to improve efficiency and data quality through information integration. In this article, Thomas Pappas, Jay Rajagopal and Rashed Haq discuss a way to harness emerging information services and technology platforms.

Exchange Technology in Focus, Markets Media, October 7, 2014.
While some market participants and observers believe automation and speed are over-emphasized in exchange trading, there is broad agreement that on balance, technology has massively increased efficiency, and there is no turning back. Regulatory pilot programs that aim to boost liquidity by widening ‘tick sizes’ in trading of certain small-capitalization stocks are in effect rolling back technology, but only at the margin, and it’s unclear whether such programs will stick.  

The business case for industrialisation of market utilities, DerivSource, October 2, 2014.
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, Sapient Global Market's 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. 

Managing Compliance from a Single Platform, Inside Reference Data, October 1, 2014.
Northern Trust says it has improved post-trade OTC reporting for clients since deploying Sapient's Compliance Management Reporting System. The solution brings into a central source data that traditionally was maintained across several different operations. With differing requirements across jurisdictions and repositories; differing timing and frequency requirements; the introduction of new identifiers such as the USI; differing data element requirements, it is no wonder firms have found compliance onerous. Northern Trust have been able to work with one core, clean data set that can then be transmitted to the CMRS and transformed for specificity to whatever regime or repository their client is reporting to.

After warm-up, custodians ready for the long game of OTC reform, Global Custodian, Fall 2014.
With the initial rollout of the Dodd-Frank Act done and dusted, custodians are confident in preparing for the next phase of OTC derivatives reform. Over the next two years, the buy side, which never before dealt with regulation like those the U.S. Commodity Futures Trading Commission (CFTC) was issuing, educated itself, implemented the necessary changes to their operations and met their regulatory obligations.  

September 2014

Northern Trust Supports Client Reporting with Sapient Global Market’s CMRS Platform, Reference Data Review, September 26, 2014.
Northern Trust is up and running with a delegated client trade reporting service based on the software-as-a-service (SaaS) version of Sapient Global Markets’ Compliance Management Reporting Solution (CMRS). The solution supports Northern Trust in fulfilling its clients’ derivatives reporting requirements under EMIR and Dodd-Frank, and eases the burden of keeping up with regulatory change. 

Northern Trust Sets Up Delegated Reporting with Sapient, Waters Technology, September 26, 2014.
Northern Trust is now able to offer delegated reporting to its buy-side clients, after implementing the Compliance Management Reporting Service (CMRS) platform from Sapient Global Markets. With the new system, Northern Trust will be able to provide services that are compliant with both the Dodd-Frank Act and the European Market Infrastructure Regulation (EMIR), both of which govern derivatives reporting. 

Andy Hall: Long And Wrong In The Oil Market, Forbes, September 26, 2014.
Is Andy Hall on to something? The legendary oil trader is reportedly telling his investors that America’s shale energy boom will be coming to a swift end, sending oil prices skyward to $150 a barrel over the next five years. Such bold predictions helped Hall amass a small fortune; he was once awarded a $100 million bonus for his oil trading genius and bought a castle in Germany. So his words are being taken very seriously by the energy community, but that doesn’t mean everyone agrees. 

Compliance solution by Northern Trust and Sapient, Asset Servicing Times, September 25, 2014.
Northern Trust and Sapient Global Markets have launched a new solution in compliance management. Compliance Management Reporting Solution (CMRS) will be available to Northern Trust clients and will deliver delegated reporting requirements for the Dodd-Frank Act and the European Market Infrastructure Regulation for all derivatives, including over the counter/exchange traded, cleared/bilateral and foreign exchange. 

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