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ISITC 2011 Member Survey Reveals Vast Impact of Regulatory Reform

ISITC (International Securities Association for Institutional Trade Communication), the industry trade group focused on standards in transaction processing and related communications, announced today the results from its annual Member Survey which focused on the new landscape for Wall Street. Findings revealed that financial institutions are already feeling the direct impact of regulatory reform and are preparing for massive overhauls to the derivatives market structure.

The 2011 Annual Member Survey gauged the sentiments of executives from leading investment managers, broker/dealers, custodians and vendors on issues ranging from regulation to social media. Poll findings revealed the widespread impact of regulatory reform with 92% of respondents saying that financial regulatory reform has had a direct impact on their companies. Of these respondents, 39% claim that the impact has been “massive.” The survey showed that although regulation has not affected everyone, of those respondents who had not yet been affected by regulatory reform, nearly 60% expressed the expectation that the impact will be massive.

When asked about the effects of reform on specific asset classes, the majority (92%) believe that derivatives, including credit and interest rate derivatives, will be most impacted. Over half of respondents believe that alternative investments will also be greatly affected.

Looking at 2011 as a whole, the majority of financial institutions feel that 2011 will be a year of recovery. When asked about priorities this year, a large percentage of companies ranked risk mitigation at the top of their agenda. Straight-through-processing (STP) is also considered to be a top priority for nearly 70% of firms, with 80% of firms expressing that ISITC has helped them achieve STP for their organization.

When questioned about social media, most firms revealed the minimal usage of social media at the business level although 22% are using LinkedIn for a business purpose such as sales or marketing. Fifty-seven percent of companies are not using social media at all for business purposes. Only 16% of companies are either blogging or Tweeting and 0% of companies are using YouTube.

“Our Annual Member Survey confirmed that regulation has already had far-reaching effects on our industry,” comments Gary Probert, Chair of ISITC. “The whopping majority of firms have already felt the direct impact of reform and many more are preparing for it. As the year progresses, we are finding firms turning renewed attention and focus to straight-through-processing as regulatory pressures place greater emphasis on improved efficiency. We are looking forward to tapping into the industry mindset and discussing some of these prevalent issues at our March conference. We hope to come out of our forums with best practices for the industry to implement in preparation for a new reality for Wall Street.”

The ISITC 17th Annual Industry Forum and Vendor Show will be held March 27-30, 2011 at the Renaissance Boston Waterfront Hotel. Over 450 industry professionals, representing all areas of the financial industry, including broker/dealers, investment managers, custodians and associate constituencies, will be attending. Event delegates include C-suite and senior executives from ISITC’s member firms who hold a wide variety of roles in both business and operations.