Unified Securities Account: Available in October….in China
This new platform will permit investors to trade through multiple brokerage firms, across stock exchanges, through a single account. The centralization of brokerage activities will be provided by the China Securities Depository and Clearing Corp. (CSDC) the state owned clearing entity.
In addition the requirement for individual investors to one account for all trading will be repealed. The China Securities Regulatory Commission (CSRC) the national regulator believes that a single account will reduce operating costs and eliminate 40 different methods of trading.
While the motivation for this single account may be varied, it does make one wonder about how applicable this concept would be for other markets. A single account might reduce the cost of trading and activity reporting. But at the same time might expose investors to over-eager regulatory oversight and leakage or trading strategies and portfolios.
But it is an interesting change……
Sunday, August 31, 2014
Wednesday, August 20, 2014
Wednesday, August 13, 2014
Wednesday, June 25, 2014
Is this a positive change?
What other changes should be made at this time?
Or, should we be maintain the traditional 20% down payment?
Wednesday, April 16, 2014
Can you offer alternative responses?
Monday, April 14, 2014
The outcomes were many similar, but different processing systems, each requiring expertise, maintenance and support. For example some products settled one day after trade date, others five days after trade date while mortgage backed securities can settle up to six month after trade date. Differences were pervasive throughout the trade life-cycle as well as in reference data, trade entry, and asset servicing and reporting. This required systems developers and maintenance staff to have current and relevant expertise and knowledge of each product and the related processing functions. The bottom line is that this resulted in increased information technology costs and often delayed new functionality and updates to be applied, even today.
Firms are still struggling to find an approach to address this challenge. In the past 30+ years have seen many innovations in database design, programming languages and other advances that can provide benefits to financial services firms processing systems. But first they must reduce the number of product-centric systems to facilitate an efficient future environment. There are various alternatives; one is to build a new multi-product system to replace the product-centric systems. But the alternatives require a major effort in cost and resources. And have to be done in the current environment of keeping costs down.