Financial Institutions Increasing Investment in Regulatory Compliance and Data Management Capabilities

SEC Regulations Drive Industry-Wide Investment in Data Management and Processing for Reporting and Liquidity Risk

Friday, March 17, 2017 9:49 am EDT



Public Company Information:

"Let’s Talk Liquidity: Opportunities in a New Market Environment3"

BOSTON--(BUSINESS WIRE)--New global regulations and volatile market liquidity is prompting more than half (56 percent) of asset managers and asset owners to increase their technology and operational capabilities over the next year to manage financial and other data to meet regulatory compliance deadlines. A global survey of 300 asset managers and asset owners, commissioned by State Street Corporation (NYSE: STT), shows that despite compliance deadlines being a year away, many fund managers have begun taking the steps needed to be compliant in a complex rapidly-changing regulatory environment.

In the US, the SEC delivered major rule-making results after extensive engagement and debate with the industry and modernized its standards for data collection, reporting, and disclosure practices. Fund complexes with over $1 billion in net assets must file new regulatory reports beginning June 2018,1 and each open-end fund (other than in-kind ETFs and money market funds) must establish and administer written liquidity risk programs with oversight by their boards that, among other things, classify each investment holding of the fund into categories based on settlement periods and limits a fund’s holdings in illiquid assets to no more than 15 percent.2

“Across the globe, regulations are increasingly focused on data transparency, portfolio holdings, valuations and liquidity, as well as increased reporting to both investors and regulators,” said Brenda Lyons, executive vice president and head of the specialized products division for State Street Corporation. “Consistent with this, in the US, the new SEC rules are focusing on monitoring, managing and reporting a broad spectrum of data. Fund management and boards have been actively evaluating and planning for how to best address these regulations within their operations to achieve compliance by the specified date.”

The findings from “Let’s Talk Liquidity: Opportunities in a New Market Environment3,” a recent research report from State Street, reveals that 42 percent of institutions are concerned about their ability to meet liquidity compliance rules and provide accurate liquidity status reports to external regulators, in addition to their own management boards. Additionally, 47 percent intend to rely more on external partners to improve their performance in this area, as nearly one in five institutions feel their reporting and workflow solutions for their regulatory jurisdictions are not developed enough.

Click here to listen to a recent Ignites Webcast featuring Brenda Lyons on how operations teams are adjusting their processes to prepare for the upcoming rules, as well as the types of new technology poised to impact the middle and back offices. Click here to view State Street’s liquidity solutions brochure which provides an overview of how we solve for clients’ liquidity challenges.

About State Street
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $29 trillion in assets under custody and administration and $2 trillion* in assets under management as of December 31, 2016, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at

*Assets under management were $2.47 trillion as of December 31, 2016. AUM reflects approximately $30.62 billion (as of December 31, 2016) with respect to which State Street Global Markets, LLC (SSGM) serves as marketing agent; SSGM and State Street Global Advisors are affiliated.


1 The Securities and Exchange Commission, October 13, 2016.
2 The Securities and Exchange Commission, October 13, 2016.
3 Research was made up of a quantitative survey conducted by Longitude Research, and qualitative interviews with key industry participants. A total of 300 respondents were surveyed, comprising 150 asset managers and 150 asset owners.


State Street Corporation
Brendan Paul, 617-662-2903

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