State Street Survey Finds Asset Managers Need Digital Solutions to Keep Pace with New Securities and Exchange Commission Rules
October 14 2016 - 9:26AM
Business Wire
As Clients Weigh Investments in Technology and Teams, State
Street Solutions Can Help Guide The SEC Liquidity Risk and
Reporting Modernization Implementation Program
State Street Corporation (NYSE: STT) today released new research
that found 67 percent of asset managers expect that the Securities
and Exchange Commission (SEC) Modernization changes impacting
liquidity risk and reporting which were announced today will pose
implementation challenges. The survey, fielded in August 2016, by
Oxford Economics for State Street, polled 100 global asset and
alternative asset managers about their readiness for these
changes.1
Seventy-eight percent of respondents reported an increase in
time spent on regulations. Overwhelmingly, the need for trusted
guidance emerged, with 76 percent of respondents noting that more
education would place their firm in a better position to implement
changes. Overall, companies do not feel confident that they can
meet the proposed requirements and are pursuing multiple solutions.
While 31 percent of hedge funds say they’re likely to leverage
outsourcing, 38 percent of asset managers plan to invest in new
technology to address the changes. Additionally, respondents are
concerned that the greatest challenges to implementing the SEC
Liquidity Risk Management rule include additional board reporting
and oversight and addition of new disclosures and reporting
requirements.
“The SEC’s rules on reporting and liquidity will require more
frequent reporting requirements, quicker deadlines and the need to
manage more complicated data,” said Andrew Erickson, executive vice
president at State Street. “This means our clients will need to add
risk management oversight requirements for liquidity measurement
and invest in more technology and specialized teams to meet
increasingly higher standards.”
“State Street’s proprietary technology and experienced teams can
help our clients perform these complex analytics and meet the
reporting requirements of the SEC Modernization, incorporating
derivatives exposure, advanced liquidity analytics, stress testing
and aggregating data from multiple sources. Clients can more
efficiently send those results to the SEC,” added Brenda Lyons,
executive vice president of State Street Global Services. “We will
also be able to guide clients and their boards in developing an
integrated implementation program.”
State Street’s comprehensive solution for SEC Modernization
includes digitally integrated data aggregation capabilities,
support for complex calculations required for Form N-PORT and Form
N-CEN, analytics to manage liquidity risk and measure exposure and
holistic reporting across asset classes. State Street supports more
than 200 clients globally using our proprietary risk analytics
platform, truView®. We support clients’ requirements by allowing
immediate insight into potential market and liquidity risks.
To learn more, click here.
About State StreetState Street Corporation (NYSE: STT) is
one of the world's leading providers of financial services to
institutional investors, including investment servicing, investment
management and investment research and trading. With $27.78
trillion in assets under custody and administration and $2.3
trillion* in assets under management as of June 30, 2016, State
Street operates in more than 100 geographic markets worldwide,
including the US, Canada, Europe, the Middle East and Asia. For
more information, visit State Street’s website at
www.statestreet.com.
* Assets under management were $2.30 trillion as of June 30,
2016. AUM reflects approximately $40 billion (as of June 30, 2016)
with respect to which State Street Global Markets, LLC (SSGM)
serves as marketing agent; SSGM and State Street Global Advisors
are affiliated.
Important InformationAll information has been obtained
from sources believed to be reliable, but its accuracy is not
guaranteed. There is no representation or warranty as to the
current accuracy, reliability or completeness of, nor liability for
decisions based on such information and it should not be relied on
as such.State Street Corporation, One Lincoln Street, Boston, MA
02111-2900.
© 2016 State Street Corporation - All Rights Reserved
CORP-2294
1 Regulatory Readiness Pulse Survey, August 2016. The survey was
conducted by Oxford Economics on behalf of State Street in August
of 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20161014005398/en/
State Street CorporationAnne McNally,
617-664-8576AEMcnally@StateStreet.com@StateStreet
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