The analytical period for the world's worst financial crisis is well underway and due to the depth and breadth of the many problems that need to be overcome, the success of this analysis will be vital in setting the future agenda to rebuild the financial markets and regain lost confidence.
The sub-prime mortgage crisis, market illiquidity and increased demands for transparency resulting from FASB Statement No. 1571 have created numerous challenges for Operations and compliance.
The ban of short selling in the U.S., U.K. and now Japan is a testament to the serious state of the financial markets and the real possibility that a growing number of banking institutions are vulnerable to having their share price artificially depressed, by naked short selling by greedy traders.
Among the enablers of the credit crisis that has put a chill on the global economy were everyday operational failures at many of the world's largest banks, investment firms and hedge funds.
While the European securities markets are highly developed at a national level, even the best national market still has much poorer economies of scale than those available in the U.S.
A combination of factors has presented severe and on-going operational challenges across the life-cycle of the credit derivatives processing (see Figure 1 for depiction of the credit derivatives processing life-cycle).
Historically, Enterprise Data Management (EDM) projects have largely focused on reference data associated with products, however, some sell-side firms and many firms in Europe are leveraging EDM to help them meet the challenges associated with managing clients and counterparties.