DOCSLIB.ORG

The Future of Trading Floors

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Future of Trading Floors Expert Insights The future of trading floors Compete on cloud platforms with a remote workforce Experts on this topic Søren F. Mortensen Søren brings over 25 years of financial markets experience delivering mission critical transformational projects for IBM Director Global financial institutions. His responsibilities include complex Financial Markets transformations of financial institutions and innovation in linkedin.com/in/sorenfmortensen/ financial markets. In addition to his role at IBM, Søren has, [email protected] since January 2017, been an advisor to the Consultative Working Group of ESMA’s Financial Innovation Standing Committee (FISC), advising European regulators on technology and innovation. He is also on the advisory board of the EDM Council. Tina Naser Tina is an organizational strategy expert with over 20 years of experience designing and executing sustainable Partner and Practice Leader, people strategies at the intersection of digital and Enterprise Strategy business transformation. Tina works with clients to design IBM Global Business Services and bring to life their future workforce, workplace, and linkedin.com/in/tinanaser/ ways of working, with a focus on banking and financial [email protected] markets. This includes strategy activation, defining the future of work, designing and implementing resilient operating models, and transforming culture to be oriented around purpose, innovation, agility, and growth. Laura Cheung Laura is an Associate Partner in IBM’s strategy consulting practice, working with clients to understand and ride the Laura Cheung waves of ongoing disruptive change in their markets. She is Associate Partner, experienced in shaping and executing multiyear strategies Enterprise Strategy and transformation journeys. Laura draws upon a prior IBM Global Business Services career in architecture to help others navigate complex linkedin.com/in/laura-cheung- systems and effect real change. ba796317/ [email protected] Rethinking trading floor operations and ways of working is a necessity. Key takeaways A mindset shift empowers The realization of a problem talent to leverage exponential Trading practices weakened over the last technologies decade, questioning the capability of Trading practices are among the most complex in financial existing operations to remain competitive services. Traditionally, centralized and co-located and generate top revenues. Risk-taking operations reflected trading desk needs for face-to-face communication, regulatory demand for management ambitions were dampened by the control (a first-line defense) in risk management, and increasing cost of capital, regulatory technical preferences. restrictions, and unorthodox monetary Yet, the pandemic forced many to move quickly “from policies affecting the mechanics of centralized to anywhere,” which happened without quantitative finance with nearly zero or significant disruptions. The short term was doable as negative interest rates. regulators—understanding the challenges—eased on their requirements. However, this might not be sustainable for the long term without a fundamental review of trading Doubling down on talent and technology room practices. Advanced institutions envision the new trading floor as a platform underpinned The transformational journey to the trading floor of the future will require the following: (1) flexible workplace by two critical innovations. The first is to norms to attract and retain talent now accustomed to reimagine culture and ways of working. remote work—across all generations; (2) the cultivation of The second is to develop secured and new business approaches and architectures to advance cloud adoption of data and AI services; and (3) a refresh of regulated environments for decentralized risk and compliance procedures to keep pace with the modeling and the testing of machine virtualization of tasks on flexible operations. learning to explore new, unconventional trading ideas with alternative datasets. Decentralized access to trading models To boost competitiveness and address concerns of operational resilience following the COVID-19 pandemic, trading floors can extend beyond physical rooms and onto new trading platforms. The future of trading is underpinned by virtualized access to strong data and artificial intelligence (AI) foundations on open hybrid multicloud architectures, which can be accessed from decentralized locations. 1 Looking through the lens of time, the future of trading will Breaking “out of the box” be very different (see Figure 1). This transformation will allow trading institutions to improve: Trading is facing a progressive decline in competitiveness that began with the impact of the 2008 global financial – Agility. Decouple workloads to run on the most crisis on the structure of capital markets. Trading floors appropriate technical infrastructure. were asked to “confine” their practices to a narrower space – Control. Create operational consistency across the in response to tighter business rules, unconventional trading floor based on necessity and preference, with macro-economic conditions, and disintermediating workloads optimized for security, compliance, and technologies. latency. Regulators made risk-taking an unprofitable proposition – Flexibility. Adapt trading operations to match workload addressing a more prudent risk management expectation. capacity and workforce requirements. Unorthodox monetary policies saved the global economy— – Scalability. Support working conditions to sustain current at least temporarily—but dampened the economics of and future trading volumes and workforce demands. quantitative desks. The lower-volatility framework – User experience. Meet customer expectations and create narrowed most bid-ask spreads, countering profit-making a more responsive engagement with trading floors. on growing volumes. Figure 1 Trading floor transformation Operations become decentralized, electronic, and based on insights and algorithms. Trading will be less Trading will be more From anywhere Centralized Flexible workforce according to function, seniority, necessity Electronic Direct Electronic execution counters margins compression Insights-based Sales-based Contextualized inside client ecosystems Quantitative Algorithmic Co-development of trading algorithms with alternative data Source: IBM Institute for Business Value. 2 To succeed, trading desks need to embrace a cultural shift. The simplification of pay-offs, and the settlement of over Quantitative desks have also started embracing new the counter (OTC) operations to centralized clearing modeling techniques based on machine learning. However, houses, contributed to a significant contraction of trading trading floors have found that they often lack enough fees. Finally, the ban on proprietary trading constrained competencies in data science and access to alternative profit-seeking and forced most investment banks to scale datasets to gain sufficient time to market for trading of back operations accordingly. The glamour of Wall Street insights. In 2019, Goldman Sachs announced the intention faded, and talent was lured to Big Tech and start-ups to recruit more than 100 engineers (coders and data embracing data science and new exponential technologies. scientists) to join the trading floor and help automate part Global fintech investment reached $44 billion in 2020, an of the bank’s trading business.3 overall increase of 14% from 2019.1 To regain higher competitiveness, traders must break “out of the box.” Financial markets are moving toward more Putting the “tech” in fintech standardized products, which intrinsically will have lower margins. Therefore, to maintain and grow revenues they While the industry started to scale back, trading floors need to increase the volume traded, which is done by responded by modernizing their trading infrastructure with entering new geographies, attracting new clients with electronic trading. According to The Financial Times, most fintech channels, and having more cross-asset play. mainstream government bond trading is now electronic, and inroads into more traditional market segments, such as This cannot be done without fintech innovation. Financial corporate debt, are now trading electronically. At the end of institutions can reclaim the top spot with new value 2020, 38% of investment grade and 27% of high-yield propositions based on flexibility and work-life balance (see paper traded electronically, almost double from 2 years Figure 2), contextualization into ecosystems, and higher 2 earlier. ethical standards. Enabling a flexible workforce may appeal to new talent, countering the competitiveness of non- For the last half-century, capital markets have grown more banking players. institutionalized, while 2020 signaled a sudden reversal from the trend following an increased participation of retail investors riding an all-time high stock market. Fintech innovation and smartphones have made direct trading an all-day-long opportunity, demanding higher regulatory scrutiny of the suitability and appropriateness of digital offers engaging a non-professional population. This has increased the velocity and market relevance of non- institutional trades compared to the previous surge in retail interest preceding the dot.com bubble in the 1990s. Social media and zero-commission market access have also brought changes in market sentiment. Trading floors are asked to incorporate new behavioral patterns in their trading models amid novel ethical and regulatory considerations. 3
Load more

Recommended publications
  • The Stock Exchange Trading Room, 1977
    “View looking southeast from [The Art Institute] gallery into reconstructed room.” Originally published in The Stock Exchange Trading Room, 1977. 80 Downloaded from http://www.mitpressjournals.org/doi/pdf/10.1162/1526381041165476 by guest on 25 September 2021 The Stock Exchange: Standing Upright, Idle CATHERINE INGRAHAM It is clear, in any case, that mathematical order imposed upon stone is really the culmination of the evolution of earthly forms, whose direction is indicated within the biological order by the passage from the simian to the human form, the latter already displaying all the elements of architecture. Man would seem to represent merely an intermediary stage within the morphological develop- ment between monkey and building.1 One room, the second-floor Trading Room, of Louis Sullivan’s Stock Exchange Building (1863) in Chicago, has been preserved (1977) in the Chicago Art Institute for museum visitors to see and for the museum to use for banquets and fund-raising events.2 Housing architecture, or parts of architecture, in a museum has always been odd. Short of leaving architectural fragments lying around where they fell—the scenic architectural ruin that becomes its own museum—architecture is typically brought into the museum in miniaturized or schematic or cinematic form; as a model, drawing, photograph, or film. On some occasions—the stock exchange trading room is one such occasion— architectural parts are brought into a museum context and completely recon- structed at the original scale. The Pergamon Museum in Berlin houses pilfered building fragments (gates, walls) from Babylon that seem almost plausible architecturally, perhaps because the museum building itself and the colossal fragments are in rooms whose scale is already so large that nothing but archi- tectural remains can be imagined inside them.
    [Show full text]
  • View the Bloomberg Terminal User Guide
    Press the <HELP> key twice for instant Helpx2 live assistance. bloomberg.com Frankfurt New York Singapore +49 69 9204 1210 +1 212 318 2000 +65 6212 1000 Hong Kong San Francisco Sydney +852 2977 6000 +1 415 912 2960 +61 2 9777 8600 London São Paulo Tokyo GETTING +44 20 7330 7500 +55 11 3048 4500 +81 3 3201 8900 The BLOOMBERG PROFESSIONAL service, BLOOMBERG Data and BLOOMBERG Order Management Systems (the “Services”) are owned and distributed locally by Bloomberg Finance L.P. (“BFLP”) and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, STARTED Japan and Korea (the “BLP Countries”). BFLP is a wholly-owned subsidiary of Bloomberg L.P. (“BLP”). BLP provides BFLP with all global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries. BLOOMBERG, BLOOMBERG PROFESSIONAL, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG ANYWHERE, BLOOMBERG TRADEBOOK, BLOOMBERG BONDTRADER, BLOOMBERG TELEVISION, BLOOMBERG RADIO, BLOOMBERG PRESS and BLOOMBERG.COM are trademarks and service marks of BFLP or its subsidiaries. ©2007 Bloomberg Finance L.P. All rights reserved. 26443337 1107 10006030 02 The Bloomberg Keyboard Keyboard and Navigation 04 Creating a Login Name and Password 06 Finding Information Autocomplete and the <HELP> Key 06 The Global Help Desk: 24/7 Interact with the Bloomberg Help Desk 08 Broad Market Perspectives Top Recommended Functions 09 Analyzing a Company Basic Functions for Bonds and Equities 10 Communication The BLOOMBERG PROFESSIONAL® Service Message System 11 Tips, Tricks, and Fun 12 Customer Support If you are not using a Bloomberg-provided keyboard, press the Alt + K buttons simultaneously to view an image of your keyboard.
    [Show full text]
  • Securitization of Assets: Problems and Solutions
    S. HRG. 111–397 SECURITIZATION OF ASSETS: PROBLEMS AND SOLUTIONS HEARING BEFORE THE SUBCOMMITTEE ON SECURITIES, INSURANCE, AND INVESTMENT OF THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION ON EXAMINING THE SECURITIZATION OF MORTGAGES AND OTHER ASSETS OCTOBER 7, 2009 Printed for the use of the Committee on Banking, Housing, and Urban Affairs ( Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html U.S. GOVERNMENT PRINTING OFFICE 56–262 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS CHRISTOPHER J. DODD, Connecticut, Chairman TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama JACK REED, Rhode Island ROBERT F. BENNETT, Utah CHARLES E. SCHUMER, New York JIM BUNNING, Kentucky EVAN BAYH, Indiana MIKE CRAPO, Idaho ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee DANIEL K. AKAKA, Hawaii JIM DEMINT, South Carolina SHERROD BROWN, Ohio DAVID VITTER, Louisiana JON TESTER, Montana MIKE JOHANNS, Nebraska HERB KOHL, Wisconsin KAY BAILEY HUTCHISON, Texas MARK R. WARNER, Virginia JUDD GREGG, New Hampshire JEFF MERKLEY, Oregon MICHAEL F. BENNET, Colorado EDWARD SILVERMAN, Staff Director WILLIAM D. DUHNKE, Republican Staff Director DAWN RATLIFF, Chief Clerk DEVIN HARTLEY, Hearing Clerk SHELVIN SIMMONS, IT Director JIM CROWELL, Editor SUBCOMMITTEE ON SECURITIES, INSURANCE, AND INVESTMENT JACK REED, Rhode Island, Chairman JIM BUNNING, Kentucky, Ranking Republican Member TIM JOHNSON, South Dakota JUDD GREGG, New Hampshire CHARLES E.
    [Show full text]
  • Overview of Risk Management in Trading Activities Section 2000.1
    Overview of Risk Management in Trading Activities Section 2000.1 Risk is an inevitable component of intermedia- must determine that the computer system, man- tion and trading activity. Given the fundamental agement information reports, and other forms of trade-off between risks and returns, the objec- communication are adequate and accurate for tive of regulators is to determine when risk the level of business activity of the institution. exposures either become excessive relative to the financial institution’s capital position and financial condition or have not been identified to the extent that the situation represents an unsafe GLOBAL RISK-MANAGEMENT and unsound banking practice. FRAMEWORK Determination of whether the institution’s risk-management system can measure and con- The primary goal of risk management is to trol its risks is of particular importance. The ensure that a financial institution’s trading, primary components of a sound risk-management position-taking, credit extension, and opera- process are a comprehensive risk-measurement tional activities do not expose it to losses that approach; a detailed structure of limits, guide- could threaten the viability of the firm. Global lines, and other parameters used to govern risk risk management is ultimately the responsibility taking; and a strong management information of senior management and the board of direc- system for monitoring and reporting risks. These tors; it involves setting the strategic direction of components are fundamental to both trading and the firm and determining the firm’s tolerance for nontrading activities. Moreover, the underlying risk. The examiner should verify that the risk risks associated with these activities, such as management of capital-markets and trading market, credit, liquidity, operations, and legal activities is embedded in a strong global (firm- risks, are not new to banking, although their wide) risk-management system, and that senior measurement can be more complex for trading management and the directors are actively in- activities than for lending activities.
    [Show full text]
  • Futures Trading Rooms: 7 Reasons You Should Stay Away
    Futures Trading Rooms: 7 Reasons You Should Stay Away Futures Trading Rooms – 7 Reasons You Should Stay Away Futures trading rooms are probably the next step in the evolution of marketing hype that can entice the gullible traders for all the wrong reasons. In the world of online trading, there is no dearth of misinformation. From books to trading courses and well, trading rooms, without due diligence, it is quite easy for anyone to unwillingly fall prey to false information. This can be quite detrimental to one’s trading success especially if the pattern is caught quite early on. The amount of choices that are available especially for someone who is new to trading can often lead to making false choices which lead to losing money rather than making money trading the financial markets. Even before one has dabbled in trading online, chances are that the lure of making it rich and the easy path to success have already blinded the potential trader. It is easy and perhaps understandable as to why one wouldn’t be tempted to take the easy route. No matter which market you look at, stocks or forex or even futures, it is not very difficult to miss out on the various advertisements screaming at you telling how easy it is to make money by joining the trading room. If you have been wondering or thinking about joining a futures trading room either in expectations that you might make a fortune trading based off an expert’s trading calls or hoping to learn more by hanging out with other traders in the trading chat room, here are seven reasons why you should stay away from joining a futures trading room.
    [Show full text]
  • The Socio-Technology of Arbitrage in a Wall Street Trading Room
    Tools of the Trade: The Socio-Technology of Arbitrage in a Wall Street Trading Room Daniel Beunza Department of Economics and Business, Universitat Pompeu Fabra and Center on Organizational Innovation, Columbia University [email protected] and David Stark Department of Sociology, Columbia University, and The Santa Fe Institute [email protected] Published in Industrial and Corporate Change 2004, 13: 369–400. Winner of the 2005 Outstanding Paper Award, American Sociological Association (Communications and Information Technology Division). This is a pre-copyediting, author-produced PDF of an article accepted for publication in Industrial and Corporate Change. The definitive publisher-authenticated version is available online at http://icc.oxfordjournals.org/ . Daniel Beunza is Assistant Professor at Universitat Pompeu Fabra, Barcelona (Spain) and Faculty Associate at Columbia’s Center on Organizational Innovation. David Stark is Arthur Lehman Professor of Sociology and International Affairs at Columbia University and an External Faculty member at the Santa Fe Institute. Tools of the Trade: The Socio-Technology of Arbitrage in a Wall Street Trading Room Daniel Beunza and David Stark Abstract Our task in this paper is to analyze the organization of trading in the era of quantitative finance. To do so, we conduct an ethnography of arbitrage, the trading strategy that best exemplifies finance in the wake of the quantitative revolution. In contrast to value and momentum investing, we argue, arbitrage involves an art of association - the construction of equivalence (comparability) of properties across different assets. In place of essential or relational characteristics, the peculiar valuation that takes place in arbitrage is based on an operation that makes something the measure of something else - associating securities to each other.
    [Show full text]
  • Trading and Capital-Markets Activities Manual First Printing, February 1998 Prepared By: Federal Reserve System
    Trading and Capital-Markets Activities Manual First Printing, February 1998 Prepared by: Federal Reserve System Send comments to: Director, Division of Banking Supervision and Regulation Board of Governors of the Federal Reserve System Washington, D.C. 20551 Copies of this manual may be obtained from: Publications Services Division of Support Services Board of Governors of the Federal Reserve System Washington, D.C. 20551 Updates are available at an additional charge. For information about updates or to order by credit card, call 202-452-3244. Trading and Capital-Markets Activities Manual Supplement 8—September 2002 Nature of Changes how a banking organization can mitigate the risk that may arise if a counterparty claims that a Trading Activities bank-recommended or -structured derivatives transaction was unsuitable for it. Other changes In section 2020.1, ‘‘Counterparty Credit Risk discuss the new-product approval process in and Presettlement Risk,’’ a new subsection on banking organizations, including the role of off-market or prefunded derivatives transactions in-house or outside legal counsel in defining and has been added to provide examples of deriva- approving new products. The examination tives transactions that are the functional equiva- objectives and examination procedures, sections lent of extensions of credit to counterparties and 2070.2 and 2070.3, respectively, have also been to describe the risks associated with them. The updated. discussion of assessment of counterparty credit risk has been revised to specify that banking Capital-Markets Activities organizations should understand and confirm with their counterparties the business purpose of Section 3040.1, ‘‘Equity Investment and Mer- derivatives transactions. chant Banking Activities,’’ has been completely A more detailed discussion of contingency revised.
    [Show full text]
  • Financialization's Global Infrastructure
    Financialization’s Global Infrastructure: Transformation of the Securities Trading Industry Conference “Financialization and Labor” February 27‐28, 2014 Prof. Dr. Sebastian Botzem [email protected]‐bremen.de Universität Bremen| Institut für Interkulturelle und Internationale Studien (InIIS) Wissenschaftszentrum Berlin| Projektgruppe “Modes of Economic Governance” (MEG) Outline I. Introduction: Past and present − images of markets and trading II. Conceptual background: exchanges and financialization III. Transformations in securities trading: i. Technological innovation ii. Deregulation and competition iii. Organizational reform IV. Reinterpreting the global exchange industry V. Conclusion: Financialization and inter‐organizational relations Outline Sebastian Botzem 2 1. Introduction • Rapid and profound change for traders, firms and society at large • Industry perspective to capture blurring boundaries of securities trading • Cross‐border securities trading as mode of market based governance (short termism, redistribution of risk and ownership) • Inter‐organizational focus to grasp embeddedness and change in securities trading; and pointing to financialization of exchanges themselves • Increasing global harmonization, but local varieties of securities trading remain Sebastian Botzem 3 2. Images: NYSE, 1963 I. Introduction Sebastian Botzem 4 2. Images: Zurich, 1988 I. Introduction Sebastian Botzem 5 2. Images: CBOT, 1993 I. Introduction Sebastian Botzem 6 2. Images: UBS trading room, 1996 I. Introduction Sebastian Botzem 7 2. Images: Deutsche Börse, 2011 I. Introduction Sebastian Botzem 8 2. Images: Twitter IPO on NYSE, 2013 I. Introduction Sebastian Botzem 9 2. Images: Börse im Ersten (prime time TV) I. Introduction Sebastian Botzem 10 2. Images: Börse im Ersten (Switch Reloaded) I. Introduction Sebastian Botzem 11 3. Financialization and securities trading • Securities trading – Provision of capital (Weber 1896, Lee 1998) – Market‐based financial system (Hall/Soskice 2001) – Exchanges as icons of statehood and modernity (Mayer et al.
    [Show full text]
  • Developing a University Financial Trading Room
    McLaren Advances in Business Research 2010, Vol. 1, No. 1, 103-113 9rryvt)h)Vvr v)Avhpvhy)U hqvt)S))6)8hr)Cv Bruce McLaren, Indiana State University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and vendors appear in the comprehensive references list. !"#$%&%'($%('#')*#$*!'$+','-.%/')*$.0$*!'$[)&)2"&-$*(&+")3$(../$")$*!'$42.**$5.--'3'$.0$67#")'##$&*$8)+"&)&$ 4*&*'$9)",'(#"*:;$[(#*$.%')'+$")$<==>?$@7($*(&+")3$(../$"#$%&(*$.0$*!'$A")&#$5')*'($0.($8),'#*/')*$&)+$B")&)2"&-$ Education, and was partly funded by a grant from the Lilly Endowment. The paper explores design, construction, project oversight, installation, operations, and budget implications. The lessons we have learned are being applied to the new trading room in the new business building now under construction. UC@)ADI6I8D6G)US69DIB)SPPH
    [Show full text]
  • Software in the Financial Research and Trading Room
    Software in the Tozzi Trading Floor – R0400 Updated March 2016 – Kai Petainen FactSet http://www.factset.com/ FactSet combines data from a number of databases and places into a single information system. The broad data library offers information on financial, market, and economic information, including fundamental data on tens of thousands of companies and securities worldwide. Clients can manipulate and analyze data in an infinite variety of formats, they can create custom reports, perform stock screens through Universal Screening, and even back-test financial variables historically. Factset is a premier software solution for equity and quant research. Bloomberg http://www.bloomberg.com/ “A massive data stream, unparalleled in scope and depth, delivered to your desktop in real time. Along with data, the Bloomberg Professional® provides access to all the news, analytics, communications, charts, liquidity, functionalities and execution services that you need to put knowledge into action. Once you have access to our rich content, you can build a customized View of the markets using Launchpad, our real-time platform for news, security monitors, charting and more.” Trading Technologies https://www.tradingtechnologies.com/ “Our flagship product, X_TRADER®, is the front-end execution solution of choice for professional traders. It provides broker-neutral global market access from a single platform. X_TRADER incorporates many proprietary technologies and industry-leading features including MD Trader®, the patented ladder that is the best available tool for point-and-click trading.” “Simultaneously trade multiple markets from one fully-customizable screen with superior speed, stability and accuracy. Single-click order execution and the patented MD Trader® ladder coupled with tools for automated trading, charting and more give traders the edge for optimal trading performance.” upTick “upTick is financial-simulation software developed at the Harvard Business School.
    [Show full text]
  • Study Guide for Come Into My Trading Room
    01 Chap SG 3/1/02 2:41 PM Page 1 STUDY GUIDE FOR COME INTO MY TRADING ROOM hink of the millions of people who throw money at stocks, options, Tand futures. Probably less than one percent of them ever pick up a trading book. Only a tiny fraction of those perform any learning exer- cises or take tests. If you can work through this Study Guide, grade your performance, then study and retake some of the tests if necessary, you will belong to a small sophisticated minority. It is easy to sit at a lecture, sagely nod your head, and think you understand everything. What if someone asks you a question about that lecture a week or a month later? Will you be able to answer, or will you have forgotten by then? It took me three years to write Come into My Trading Room, yet a person can read it in just a few days. Do you expect to get full value out of it after a quick read? Or will you return, reread, review, and under- line key sections and paragraphs? I created this Study Guide to help you grasp the main ideas in my book, expose blind spots, and achieve a deeper degree of understanding. Do not rush yourself through this workbook. Take the tests one chap- ter at a time and keep returning to the original source until you get that chapter right. Then move to the next one. There is nothing wrong with taking several weeks to work through this book. Quality is more impor- tant than speed.
    [Show full text]
  • The Transition of Legacy Assets to the Securitization Market
    Special Issue Innovating Financial Information Infrastructures: The Transition of Legacy Assets to the Securitization Market Antonios Kaniadakis University of Central Lancashire [email protected] Panos Constantinides University of Warwick [email protected] Abstract The introduction of mortgage securitization in the UK as a new type of financial innovation to help banks raise funds took the form of transferring existing legacy mortgage assets into the emerging securitization chain. In this paper, we explore the role of financial information infrastructure (FII) innovation as a process that enabled this transition and we ask what the implications for the calculation of financial risk were. New empirical evidence from a qualitative case study research in a U.K. bank shows that instead of focusing on the re-calculation of risk of the pre-existing legacy assets, the bank’s innovative efforts were centered around validating the accuracy of the data available on those assets as an independent process. Our contribution is twofold. First, we show that FII are built with specific financial functions in mind that are formulated in the context of managerial and political decisions. Second, we show that data validation, although not a direct calculation of risk, constitutes an effort to order risk calculation practices. This is important in understanding the role of FII innovation as a mechanism by which FII become an integrating and standardising force in securitization markets. Keywords: Information Infrastructures, Mortgage Securitization, Calculation, Risk, Legacy Assets. Journalofthe Association for Information * Eric Monteiro was the accepting senior editor. This article was submitted on 28th January 2013 and went through two revisions.
    [Show full text]