Investors that use legal entity identifiers can help regulators prevent counterparty risks. But the Asian take-up has been low to date, says the Depository Trust & Clearing Corporation.
Like some of its big rivals, the bank has repositioned its securities services arm, appointing a new head in Asia and putting more emphasis on collateral and clearing, and on cross-selling opportunities.
Five years after the collapse of Lehman Brothers, central clearing services are appearing for over-the-counter derivatives in Asia Pacific, but challenges remain.
The bank becomes the second after Citi to combine trading execution with settlement/clearing on a multi-asset class platform.
New capital requirements, sustained low interest rates and falling commissions from derivatives trading have compelled the agency brokerage to readjust.
Compliance officers at financial institutions outline how the cost of complying with a raft of regulatory reforms is dampening innovation and making it difficult to stay competitive.