!css

Tackling Dodd-Frank (and other regulations)



“ It is too expensive and too risky to try and follow the do-it-yourself route.”

Guillaume Heraud,
Global Head of Business Development, Financial Institutions and Brokers, SGSS

 

Momentum has previously addressed the question of how markets around the world continue to adjust to the dramatically changed economic circumstances of recent years.

In this latest issue, Guillaume Heraud, Global Head of Business Development, Financial Institutions and Brokers at SGSS, argues that it is hardly possible for a small to mid-tier institution acting on its own to become compliant with the requirements of the Dodd-Frank act and other impending legislation and regulation in the US and Europe. “For anyone who does not already have unquestioned capabilities in OTC derivatives valuation and trade support, custody and collateral management, it is too expensive and too risky to try and follow the do-it-yourself route,” he says.

“It is hardly possible for a small to mid-tier institution acting on its own to become compliant with the requirements of the Dodd-Frank act and other impending legislation and regulation.”

He points in particular to the requirements to clear OTC derivatives centrally. This will have significant implications for collateral management, introducing daily resetting, marking to market and the posting of variable capital. Clients will find themselves faced with totally new demands that will challenge their ability to manage collateral in a cost-effective and timely manner while addressing the threats of concentration risk. The importance of the ability to combine collateral optimisation and transformation and direct access to the clearing process will come to the fore to ensure that the right collateral is in the right place at the right time.

SGSS can minimise the operational impact of this measure, by acting as the customer's agent and managing all the complexity of the new regulatory obligations, including regulatory reporting. Says Guillaume Heraud. “It is not possible to keep parts of the processing chain in-house and find an external solution for the rest; this would be inefficient and quite possibly dangerous. It is a question of managing the clearing process from start to finish; this requires access to the right affirmation platforms and central counterparties, large investments in automation, skill and human resources, qualities which are beyond the reach of all but the very biggest investors. The alternative to appointing an external provider involves unacceptable levels of operational and counterparty risk; this could lead to costly errors, and missed investment opportunities elsewhere.”

For more information: guillaume.heraud@sgss.socgen.com


Find out more about EMIR and Dodd-Frank on our website Regulatory Watch or subscribe to Regulatory Review, our regulatory webzine, by contacting us at sgss.com@socgen.com.

Apr
2017
SGSS innovates with Euronext to provide a new fund investment solution
SGSS is contributing to an innovative model, Euronext Fund Service, to facilitate investments in funds for domestic and...
Fund Administration and Asset Servicing
SGSS is contributing to an innovative model, Euronext Fund Service, to facilitate investments in funds for domestic and international investors.
en/newsroom/news/news/news/sgss-innovates-with-euronext-provide-new-fund-investment-solution/
Apr
2017
Fighting poverty and striving for women empowerment
Mar
2017
SGSS strengthens its coverage team across Southern Europe
SGSS has appointed Lucrezia Brucoli as Head of Coverage to support business development across Southern Europe.
Appointments
SGSS has appointed Lucrezia Brucoli as Head of Coverage to support business development across Southern Europe.
en/newsroom/news/news/news/sgss-strengthens-its-coverage-team-across-southern-europe/
Feb
2017
Quarterly Financial Information
2016: HEALTHY GROWTH IN GROUP NET INCOME
Results
2016: HEALTHY GROWTH IN GROUP NET INCOME
en/newsroom/news/news/news/quarterly-financial-information-2/
Jan
2017
SGSS in Italy launches Synapse, a new service to support fund distribution
Societe Generale Securities Services in Italy (SGSS S.p.A.) launches SYNAPSE, a new service to support fund distribution...
Jan
2017
SGSS strengthens its Coverage, Marketing and Solutions team
SGSS has appointed Matthew Davey as Managing Director and Head of Business Solutions to reinforce its service offering...
Appointments
SGSS has appointed Matthew Davey as Managing Director and Head of Business Solutions to reinforce its service offering for institutional investors, asset managers, financial intermediaries and corporates.
en/newsroom/news/news/news/sgss-strengthens-its-coverage-marketing-and-solutions-team/
Dec
2016
Altana Wealth Limited selects SGSS in Ireland for its UCITS fund structure
Altana Wealth Limited in the United Kingdom has appointed Societe Generale Securities Services (SGSS) in Ireland to...
Nov
2016
Vatel Capital appoints SGSS to provide custody, depositary bank and valuation services
Introduced by the Finance Law in 2007, FIP Corse is a local investment fund of which 70% of its assets are invested in...
SGSS
Introduced by the Finance Law in 2007, FIP Corse is a local investment fund of which 70% of its assets are invested in small and medium-size enterprises on the French island of Corsica. The purpose of FIP Kallisté Capital n°9 is to invest in Corsican SMEs whose main activities are in the tourism, renewable energy, health and dependency, agro-food or business...
en/newsroom/news/news/news/vatel-capital-retient-sgss-pour-fournir-des-services-conservation-banque-depositaire-valorisation/
Nov
2016
SFIL appoints SGSS for global custody services
SFIL, the leading French local public sector and export financing agency, and CAFFIL, a French specialized credit...
SGSS
SFIL, the leading French local public sector and export financing agency, and CAFFIL, a French specialized credit institution (société de crédit foncier), have mandated Societe Generale Securities Services (SGSS) to provide global custody services for their public sector assets in Europe. This extends an existing mandate for valuation services with SFIL in...
en/newsroom/news/news/news/sfil-appoints-sgss-for-global-custody-services/