Banking regulators want to regulate and regulate more. That is the natural reaction to the banking collapses last year in the US and in Switzerland.
The thoughts of the Fed’s Vice Chair for Supervision are worth reading - see link in comments to an article from my colleague Pete McIntyre.
Here is how I am thinking about what this tells us.
Not so long ago, I spoke to one of the regulators here in Europe. He was very clear that collectively the central banks and the prudential regulators are looking very closely at Intra-Day liquidity. That makes sense. Alongside that, I can see those regulators looking to have tools at their disposal which can be used more quickly. I think they will be far, far more aggressive in cleaning up open audit points. They will want to see capabilities in action, not nice PowerPoints about theory or intentions.
The good news in all of this is that Planixs has one of those tools: Realiti.
The other news is that just over the horizon will be the possibility to do more atomic trading and settlement on an intra-day basis. However, all that new technology and the new marketplaces won’t be accessible unless you have great control of your intra-day liquidity management.
So with my futurologist hat on, I would say to financial services market participants, you have the choice to act now and take advantage of what will change in the next couple of years.
#BankingRegulation #RiskManagement #Realiti #realtimetreasury