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Custodian's must pass the derivatives test - Financial News
[22-10-2007]
This article which looks at how fund managers believe the operational shortcomings of custodians are limiting their options. Following a recent survey we carried out, managers said their plans to offer derivative products was being inhibited by operational limitations.
Chris Sier, Consultant, comments on how difficult it is to build an operating model for derivatives. He continues, "As a result, almost 60% of respondents are forced to adopt a blended or mosaic model involving a combination of some, or all available methods; 5% use five or more sources, which could be an operational nightmare to manage. Over and above valuations, the complexities of life-cycle management, confirmations, reconciliations and so on add to the problem."
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