tech trends

Asset Managers Need Digital Solutions to Keep Pace with New Securities and Exchange Commission Rules

As Clients Weigh Investments in Technology and Teams, State Street Solutions Can Help

BOSTON, October 21, 2016 — /BUSINESS WIRE/ —  Sixty-seven percent of asset managers expect that the Securities and Exchange Commission (SEC) Modernization changes impacting liquidity risk and reporting will pose implementation challenges, according to new research released by state street last week.

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.”

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 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.



About State Street
State 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.
* 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.
1 Regulatory Readiness Pulse Survey, August 2016. The survey was conducted by Oxford Economics on behalf of State Street in August of 2016.