Where compression seeks to offset economically similar trades to reduce notional, optimisation seeks to free up committed margin and capital by placing a series of market risk-neutral trades.
A more sophisticated methodology has been introduced for calculating capital requirements with the aim of better capturing systemic risk; the downside being an increased regulatory burden on the banking system.
Inspired by their use in the tech industry, financial firms are embracing biometric security as a way of improving security, easing the customer experience and catering to a growing consumer demand.
Driven by rapid innovation in the tech sector, financial services have embraced cloud computing, aiming to redeploy this towards their specific needs.
The reliance of the financial industry on both customer volume and complex decision-making makes it a prime candidate for embracing this artificial intelligence (AI) and machine learning (ML).
At its core, decentralised finance (DeFi) is the use of a peer-to-peer (P2P) network through which traditional financial services can operate, free from intermediation.
Various features of the blockchain and the underlying distributed ledger technology (DLT) make it ideally suited for use in any kind of transfer system whether it be payments, trading or lending.
Decentralised ledger technology (DLT) has immediate applications in the context of fraud prevention and security as it provides financial institutions with the ability to maintain a centralised ledger of transactions
Over the past decade, the financial industry has begun to embrace a series of innovations that have the potential to dramatically change the nature of the business in the future.
But what of the smaller firms? The ripples of the USD LIBOR transition are felt not only by the biggest players, but downstream to the very smaller corporates and PEs. It is these organisations that face the most daunting challenges mainly because they are just not as well resourced