AIM Survey: Financial Institutions Struggling with Regulations and Realising Efficiencies.Major Challenges for Banks Continue to Be Reference Data Management and Risk Management VIENNA, Austria -- According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a survey undertaken by AIM Software, the financial industry continues to struggle with compliance with regulations, including Basel II Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II is to create an international standard that banking regulators can use when creating regulations , MiFID, and the Sarbanes-Oxley Act See SOX. . AIM Software's study was designed to provide insights into the driving forces, and planned investments for reference data automation and risk management. The survey was sponsored by FT Interactive Data, an Interactive Data (NYSE NYSE See: New York Stock Exchange :IDC) business, and a leading supplier of financial information to global markets. The findings reveal that improving reference data quality is regarded as a key issue for risk management and that regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. are strongly driving investments in IT. Companies now pay more attention to the challenges of Basel II and the Sarbanes-Oxley Act of 2002. Regulations apart, the companies are also focusing on reducing errors and costs associated with back-office workflows through improved straight through processing In financial technology, the ability to process a stock transaction by computer from beginning to end without manual intervention at any of the stages. (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ). Martin Buchberger, head of Marketing, AIM Software, states: "Financial institutions are beginning to realise that investments in reference data management and risk management can help to reduce not just the risks but also the costs. The surging investments in the back-office are proving a drastically changed agenda and are a sign of the silent revolution in the back-office that started some years ago." The results show that companies see the close interdependence in·ter·de·pen·dent adj. Mutually dependent: "Today, the mission of one institution can be accomplished only by recognizing that it lives in an interdependent world with conflicts and overlapping interests" between high quality reference data management and efficient risk management. 37% of companies are planning to invest in the automation of reference data within the next two years. The focus in reference data management lies on the automation of static data and the processing of corporate actions. 26% of the 1,027 respondents plan to increase their levels of automation for corporate actions. "Companies realise that they could face serious operational risk and huge losses in this area. Corporate actions are one of the least automated and therefore one of the most labour-intensive, error- and risk-prone areas," states Graham Parry, manager of FT Interactive Data's European Business Development Group. Results at http://www.dmstudy.info/2006 AIM Global Data and Risk Management Survey 2006: AIM Software's study asked 1,027 respondents in 77 countries about their plans in reference data management and risk management, the handling of regulatory requirements, and standardisation Noun 1. standardisation - the condition in which a standard has been successfully established; "standardization of nuts and bolts had saved industry millions of dollars" standardization efforts. AIM Software: AIM Software is a leading provider of reference data management and risk management solutions for financial markets with 100 clients worldwide. Supported by the company's expertise in the areas of reference data management, risk management and financial instrument pricing, the creation of leading edge software solutions is the cornerstone of AIM Software's success. Visit http://www.aim-sw.com. Interactive Data: Interactive Data Corporation (NYSE:IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company's businesses supply time-sensitive pricing, evaluations and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Visit http://www.interactivedata.com. |
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