To say the least, FTF News is very proud to present our first completely digital magazine. As you flip through the pages (love those sound effects) and admire the look of it, you will see that we are making some major predictions for 2013.
To cut to the chase, for our top prediction, we are seeing a revival of interest in reconciliation technology (page 10). We are hoping that the days when reconciliation was a costly, manual trip down a rabbit hole of complexity are numbered. Automation is the only rational answer to the pressures of new regulations and the huge volumes of data that are required for modern reconciliation. With profits tighter than ever, firms can no longer throw people and dollars at this problem and hope for the best.
On another front, we foresee a new push for enterprise-wide control of data that can help firms get around the walls and barriers of internal data and business silos (page 13). While this is not as sexy as Big Data trend, it is a major change for many firms as they struggle to better use data across their enterprises and still meet the demands of regulatory requirements such as cleared and executed over-the-counter (OTC) derivatives. New data links can also pave the way for innovative connections among front, middle- and back-office systems.
Speaking of the OTC reforms, firms will also start to feel the impact of next-generation derivatives trading in 2013 (page 15). If they haven’t already, they will need to pick a clearing services provider and will have to shop for a swaps execution facility (SEF), a swaps data repository (SDR) provider and put together a long to-do list.
We also predict that there will be a growing need to develop a surveillance strategy for your firm’s social media interactions. Prospera, a broker/dealer, and Direxion Funds, a firm that sells mutual and exchange traded funds (ETFs), are proving that you can use social media sites without harming your firm or your clients (page 18).
While American celebrities abroad are tearing up their U.S. citizenship to avoid taxes caused by the Foreign Account Tax Compliance Act (FATCA), financial services firms will have to come to grips with FATCA. We think that the law’s new regulations and requirements will be a major concern throughout the year leading up to the Jan. 1, 2014 deadline (page 20).
Predictions aside, we also foresee that five upstart providers will be making waves in 2013 (page 24), and that corporate actions could be a surprisingly great fit for cloud computing (page 30).
We hope this is just the start of some very positive trends for 2013. We’re also hoping this inaugural digital issue is the first of many more to come. Of course, that depends on you.
Click on the link and download the issue. Read it on the train or at your desk and let us know what you think.
–Eugene Grygo, Editor, FTF News