ISITC Creates New Regulatory Working Group
The International Securities Association for Institutional Trade Communication has just added another working group to its roster of committees to address best practices in post-trade operations.
The Regulatory Working Group will focus on recommending how buy-side and sell-side firms should tackle regulatory policies such as the Dodd-Frank Wall Street Reform Act. Co-executive sponsors Karla McKenna, director of market practice and standards at Citi, and Tom Brown, associate partner at consultancy Brook Path Partners will coordinate the group's activities.
Other working groups which fall under the umbrella of the trade association specializing in operations issues address corporate actions, derivatives, trade settlement, reference data and reconciliation.
A statement issued by ISITC cites the movement to creating global legal entity identifiers as a key factor for the regulatory group's launch. "Regulatory bodies such as the U.S. Treasury; Office of Financial Research; Securities and Exchange Commission and Commodity Futures Trading Commission have formed subcommittees to align global legal entity identification led to the analysis of systemic risk. These new policies may impact ISITC constituents," says the statement. "There is no better way to produce solutions to industry challenges than by taking part of lively and collaborative discussions that will influence change."
Financial firms will need to adapt their operating systems to accept the new code and cross-reference it with other third party or proprietary IDs. But that won't be easy to do as the securities industry and regulators debate how an infrastructure for creating and distributing LEIs should operate; what LEIs should look like; and who should be assigned a code and when.
Written by Chris Kentouris, Editor-in-chief (Chris can be contacted through Chris.Kentouris@hotmail.com)