FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Kroll LATAM Risk Report December 2010: Brazil Land Ownership & Infrastructure Fraud, Private Banking KYC, Colombia Corruption

FRAUD – Brazil – Steering Clear of the Potholes
Brazil has committed to billions of dollars worth of infrastructure investments in preparation for the 2014 World Cup and the 2016 Olympic Games. The opportunities for international suppliers, contractors and investors are considerable. So, too, are the risks of fraud.

Vander Giordano, Sao Paulo & Allie Nichols, New York  GO TO FULL STORY

CORRUPTION – Colombia – Battling Fraud & Corruption
By leveraging public outrage, the new administration of President Juan Manuel Santos has an opportunity to change Colombia’s “anything goes” culture and attack the scourge of corruption with a new sense of purpose.

Andrés Otero, Miami & Ernesto Carrasco, Bogota GO TO FULL STORY

PRIVATE BANKING – The Good, the Bad & the Ugly
For private bankers, there’s nothing more enticing than the prospect of landing a wealthy foreign client, but the client’s background and source of funds must be carefully analyzed. Often, only an enhanced due diligence will identify the risks.

John Price, Miami GO TO FULL STORY

LAND RIGHTS – Brazil – Sending the Wrong Message
Turning back the clock, the Brazilian government tightens land rights legislation, restricting land purchases for foreign companies and individuals. Real Estated

Paulo Sérgio Franco & Scheila Santos São Paulo  GO TO FULL STORY

Source: Kroll, 14.12.2010

Filed under: Banking, Brazil, Colombia, Latin America, News, Risk Management, Services, Wealth Management, , , , , , , , , , , , , , ,

Black Rock Bob Doll: 10 pronósticos para los próximos 10 años

“10 perspectivas para los próximos 10 años”, en el que Robert C. Doll, Vicepresidente y Estratega en Jefe de Capitales para Capitales Fundamentales de BlackRock, Inc. (NYSE: BLK), da sus pronósticos sobre el ambiente para las inversiones en la próxima década.

  1. La renta variable de E.U. experimentará retornos totales porcentuales de un solo digito después de la peor década desde 1930
  2. Las recesiones ocurrirán más frecuentemente durante esta década, en vez de solamente una vez cada década, como ocurrió en los últimos 20 años.
  3. El sector salud, la tecnología de información y alternativas energéticas liderarán las áreas de crecimiento en E.U.
  4. El dólar estadounidense continuará siendo menos dominante según avance la década.
  5. Las tasas de interés se elevarán irregularmente en los países en vías de desarrollo.
  6. El interés del país derivará en más conflictos comerciales y políticos.
  7. Una población en vías de envejecimiento genera para Europa algunos de los problemas de Japón.
  8. El crecimiento mundial se deriva del consumo en los mercados emergentes.
  9. Los mercados emergentes influyen en el aumento de los índices globales significativamente.
  10. Continuará el ascenso económico y político de China.

leer el reporte completo de Bob Doll BlackRock 10 perspectivas para los próximos 10 años

Fuente: BlackRock/ CarralSierra 02.08.2010


Filed under: Asia, China, Energy & Environment, Exchanges, Japan, Latin America, Risk Management, , , , , , , , , , , , , ,

BlackRock Bob Dolls: 10 prediction for the next 10 years

“10 Predictions for the Next 10 Years” by BlackRock’s Bob Doll and what it means to investors:

  1. U.S. equities experience high single-digit percentage total returns after the worst decade since the 1930s.
  2. Recessions occur more frequently during this decade than only once a decade as occurred in the last 20 years.
  3. Healthcare, information technology and energy alternatives are leading growth areas for the U.S.
  4. The U.S. dollar continues to be less dominant as the decade progresses.
  5. Interest rates move irregularly higher in the developing world.
  6. Country self-interest leads to more trade and political conflicts.
  7. An aging and declining population gives Europe some of Japan’s problems.
  8. World growth is led by emerging market consumers.
  9. Emerging markets weighting in global indices rises significantly.
  10. China’s economic and political ascent continues.

Read Bob Doll’s full report  10 Predictions for the next Decade

Source:BlackRock / Carral Sierra, 02.08.2010

Filed under: Banking, Brazil, China, Energy & Environment, Japan, Korea, Mexico, News, Risk Management, Wealth Management, , , , , , , , , , , , , , , , , , , , , , ,

China: The collapse of the Asian growth model

Over the last three decades there has been a dramatic shift in the stance of development policy with import-substitution being replaced by the export-led growth. A significant concern with this latter model is that it may risk turning global growth into a zero-sum game. This can happen if one country’s export growth comes by poaching of domestic demand elsewhere or by displacing exports of other countries.

China on ‘Treadmill to Hell’ Amid Bubble, Chanos, Faber, Rogoff Say

Rather than focusing on production for domestic markets, countries were advised to focus on production for export. This shift away from import-substitution toward the export-led growth was driven significantly by the economic troubles that emerged in the 1970s. At that time many developing countries, who had prospered under regimes of import-substitution, began to experience slower growth and accelerated inflation.
This led to claims that the import-substitution model had exhausted itself, and that the easy possibilities for growth by substitution had been used up.second factor fostering adoption of the export-led model was the shift in intellectual outlook amongst economists in favor of market directed economic activity. Import-substitution requires government provided tariff and quota protections, and economists increasingly came to portray these measures as economic distortions that contribute to productive inefficiency and rent seeking.
The shift in policy stance was also propelled by the empirical fact of Japan’s spectacular success in growing its economy in the twenty five years after World War II, and by the subsequent growth success of the four east Asian “tiger” economies – South Korea, Taiwan, Hong Kong, and Singapore. All of these economies relied on increased exports.

The problem is that the export-led growth model suffers from a fallacy of composition whereby it assumes that all countries can grow by relying on demand growth in other countries. When the model is applied globally in a demand-constrained world, there is a danger of a beggar-thy-neighbor outcome in which all try to grow on the backs of demand expansion in other countries, and the result is global excess supply and deflation. In this connection, it is not exporting per se that is the problem, but rather making exports the focus of development. Countries will still need to export to pay for their imported capital and intermediate goods needs, but exporting should be organized so as to maximize its contribution to domestic development and not viewed as an end in itself.
Export led growth model prompts countries to shift ever more output onto global markets, and in doing so aggravates the long-standing trend deterioration in developing country terms of trade. This pattern partakes of a vicious cycle since declining terms of trade and falling prices compel developing countries to export even more, thereby compounding the downward price pressure. This vicious cycle has long been visible for producers of primary commodities. However, as a result of the transfer of manufacturing capacity to developing countries who lack the consumer markets to buy their own output, the same process may now be present in all but highest-end manufacturing.
In the 1950’s, Western opinion leaders found themselves both impressed and frightened by the extraordinary growth rates achieved by an Eastern economy, although it was still substantially poorer and smaller than those of the West.
The speed with which it had transformed itself from a peasant society into an industrial powerhouse, and it’s perceived ability to achieve growth rates several times higher than the advanced nations, seemed to call into question the dominance not only of Western power but of Western ideology.
The leaders of that nation did not share Western faith in free markets or unlimited civil liberties. They asserted with increasing self-confidence that their system was superior: societies that accepted strong, even authoritarian governments and are willing to limit individual liberties in the interest of the common good, take charge of their economies, and sacrifice short-run consumer interests for the sake of long-run growth that would eventually outperform the increasingly chaotic societies of the West.
China’s economic growth has averaged 9pc a year over the past 10 years, compared with a paltry 1.9pc for the British economy. Last year, despite the credit crunch, China posted a remarkable growth rate of 10.7pc against a British contraction of 3.2pc.some are extrapolating present trends forward, and proclaiming that China will usurp the United States as the world’s largest economy.
However, in the absence of expanding foreign demand for its exports, it has instead come to rely on a massive surge in domestic bank lending to fuel its growth rate. When measured relative to the size of its economy, the 27pc point jump in bank loans to GDP is unprecedented; at no point in history has a nation ever attempted such an incredible increase in state-directed bank lending.
This appetite for cheap Chinese exports, which had at one point seemed insatiable, means that the West has come to owe China over 2 trillion $. China has become the world’s biggest creditor, but creditor nations running persistent trade surpluses has two historical examples. The US economy in the Twenties and the Japanese economy in the Eighties.
In both of the previous examples a failure to allow exchange rates to adjust to the new reality created a large speculative pool of credit that, in turn, led to overvalued domestic assets and, eventually, an economic crisis.
The banks in China are lending money at breakneck speed, but China’s state planners have favoured investment over consumption. High-speed rail networks, first-class infrastructure projects and the urban migration of 55 million people every year are common explanations for the ability of the nimble Chinese to overcome the frailties of this global economy. But the goal of economic policy, is to maximise households’ wellbeing and consumption. Unfortunately, and China’s share of consumption within its economy has fallen relentlessly, reaching 35pc of GDP in 2008.
In China, investment spending has tripled since 2001 and the consequences are staggering. A country that represents just 7pc of global GDP is now responsible for 30pc of global aluminum consumption, 47pc of global steel consumption and 40pc of global copper consumption. The overriding problem is that the Chinese model leads to a deflationary spiral that is perpetual in nature. Domestic consumption never grows fast enough to absorb the supply, prompting the planners to commit to ever-higher levels of investment. Over-capacity inevitably plagues many sectors of the economy and Chinese profitability is already low.

The story in China has been one of imperiled, marginally profitable enterprises relying on generous state-provided incentives for utilities, credit, etc. now having to deal with slowing global demand. The drying up of trade finance isn’t helping, either. The giant stimulus worldwide, and especially in China, helped the world economy for one year but that has now dried up.

Source and full article at  Israel Financial Experts, 08.06. 2010,

Filed under: Asia, China, Energy & Environment, Hong Kong, News, Risk Management, , , , , , , , , , , , , , , , , , , , ,

Chinas growing worries

China is in the midst of “the greatest bubble in history,”
March 17 (Bloomberg) –The Chinese central bank’s balance sheet resembles that of a hedge fund buying dollars and short-selling the yuan, said Rickards, now the senior managing director for market intelligence at McLean, Virginia-based consulting firm Omnis Inc.

“As I see it, it is the greatest bubble in history with the most massive misallocation of wealth,” Rickards said at the Asset Allocation Summit Asia 2010 organized by Terrapinn Pte in Hong Kong yesterday. China “is a bubble waiting to burst.”
Rickards joins hedge fund manager Jim Chanos, Gloom, Boom & Doom publisher Marc Faber and Harvard University professor Kenneth Rogoff in warning of an overheating and potential crash in China’s economy following a rally in stocks and property prices. The government has raised lenders’ reserve requirements twice this year to cool an economy that grew at the fastest pace since 2007 in the fourth quarter.

Leveraged speculation in the stock market, wasteful allocation of resources by state-owned enterprises, off-balance- sheet debt through regional governments and the country’s human rights record are concerns, said Rickards, who worked for LTCM between 1994 and 1999, helping negotiate a $3.6 billion rescue after the hedge fund lost $4 billion in a few weeks in 1998.

“Take Russia and China together, neither of them is really deserving any investment” except for short-term speculation, Rickards said. India and Brazil are two of the “real economies” among the developing countries, he said.

U.S. Treasuries
Rickards also disputed an argument that China could hold U.S. policies hostage through its U.S. Treasury securities holdings. The Asian nation remained the largest overseas owner of the debt after trimming its holdings by $5.8 billion in January to $889 billion, according to Treasury Department data released March 15.

China would suffer massive losses if the debt was dumped, reducing the funds available in the U.S. securities market and forcing the prices lower, he said. The U.S. president also has the authority, rarely used, to freeze such positions, he said.
Harvard’s Rogoff said Feb. 23 that a debt-fueled bubble in China may trigger a regional recession within a decade, while Chanos, founder of New York-based Kynikos Associates Ltd., predicted a slump after excessive property investments.
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net.

March 18 (Bloomberg) — Chinese companies owned by the central government should speed up plans to pull out of property development if it doesn’t form part of their main business, their watchdog said today amid complaints that private real- estate groups are being squeezed out of the market.

PEs preferring China, India for investments in 2010
The survey noted that distressed private equity and small to mid-market buyout funds continue to attract a significant degree of investor interest, with 35 per cent and 36 per cent of respondents citing these as areas of the market that present the best current opportunities respectively.
Economics Inside China bubbling, NPL rising and local government fiscal insolvency are clearly increasing. Though still under debate, macro tightening (monetary policy and property) has begun
China’s 8,000 Credit Risks
Beijing’s stimulus has spawned thousands of special government investment funds holding billions of dollars in off-balance-sheet debt.

As the world struggles to recover from the most severe economic slowdown in a generation, China seemingly has accomplished a miracle. Growth registered at almost 9% last year, yet the government debt-to-GDP ratio still stood around a modest 20% as of December 31. Has China enjoyed the proverbial free lunch?

Far from it: The Chinese government has financed much of an enormous stimulus package through thousands of investment entities created by local governments. If Beijing doesn’t soon recognize this problem and put a stop to it, banks in China, which have provided the bulk of the funding, may soon face …

Source: SinoRock, 18.03.2010

Filed under: Asia, China, News, Risk Management, , , , , , , , , , , ,

Jim Rogers’ Crystal Ball on Latin America and China

The legendary investment guru and long-time commodities booster shares his views on the global economy, the commodity bull market and how Mexico, Brazil, Colombia and other Latin American economies will hold up in 2010 and beyond.

Ian McCluskey, Miami, Kroll – Tendencias January 2010

Alabama-raised Jim Rogers is perhaps best known as co-founder, with George Soros, of the Quantum Fund, which made him a wealthy man by his mid-30’s. But that was 30 years ago. Since then, he has circumnavigated the globe on a motorcycle and in a souped-up yellow Mercedes, written several best-selling books, and made countless millions more investing and dishing out advice in his customary blunt, yet southern gentlemanly manner.

A regular face on financial news networks and at investment summits the world over, Rogers – his timing impeccable — pulled up stakes in Manhattan in late 2007, selling his Riverside Drive mansion for a record $15 million just as the real estate market began to sour. He now makes his home in Singapore, while running his business out of a law office in downtown Miami. Rogers spoke with Kroll Tendencias in late December during a brief stopover.

Like other soothsayers, Rogers is bullish on much of South America. He foresees a great future for Colombia, but is not smitten by Brazil’s long-term prospects. Rogers, whose Rogers’ International Commodities Index (RICI) provides a compass for investment funds worldwide, predicts that the commodity bull market has another 10 years or so to run its course. He expects gold to hit $2,000 an ounce and oil to reach $200 a barrel sometime this decade.

Here are some excerpts from our conversation.

The Global Economy At least in the first half of 2010, he global economy will be better than in 2008 or 2009, but I would worry about 2011 and 2012, because governments are printing and spending so much money. We’re still in an ongoing economic problem that started in 2000 or 2001. We’ll see it get better for a little while, but over the next couple of years, things will not be better than they were in 2007, and perhaps never will be, in some countries.

Commodity Prices If the world economy gets better, commodity prices will go up because of shortages and, if the economy does not get better, commodities will still go up because governments are printing so much money. Will commodities go up in 2010?  I have no idea. If there is some big surprise – if the U.K. goes bankrupt, if America invades Iran — everything will go down for a while. But whatever happens, I expect commodities to be among the best places to be in 2010.

Crises on the Horizon I don’t foresee any critical events that will impact commodities in 2010. I would expect there to be a currency crisis or semi-crisis in the next year or two. I don’t think many people expect it, except me.

Bubbles in the Making Some emerging markets may be over-priced, but that does not mean a bubble. That’s just being expensive. Every market gets over-priced one time or another in any given year. The only bubble I see developing anywhere in the world is in the U.S. bond market, the long-term government bond market. I cannot conceive of lending to the U.S. government for 30 years in U.S. dollars at 3, 4, 5 or even 6% interest. It’s just mind-boggling to me.

Outlook for Latin America I am much more optimistic about most of Latin America, especially South America, than I am about North America, with the exception of Canada. I am more optimistic about parts of Latin America than I am about much of Europe. And that’s partly because of all the natural resources. South America is a commodity story.

Gushing over Colombia It looks like there will be real peace in Colombia and, if so, that would be one of the phenomenal opportunities of our time, because they have it all. Colombia’s been at war for, what, 30 years, 40 years? Any time you can get to a country shortly after a war ends, there are usually enormous opportunities because everything is so cheap. There’s not much energy, not much capital, not much optimism, still a lot of malaise. I’ve seen it happen over and over again. And Colombia has natural resources – coal, oil, agriculture – and, of course, it could become a tourist destination again. Terrific country. (Note: Last summer, after Sri Lanka declared an end to its long-running civil war, Rogers paid a visit to look around. “I didn’t buy anything yet,” he says.)

Not Sold on Brazil Whenever commodities have done well, Brazil has done extremely well. People get excited about Brazil, they start talking about the new Brazil, but then the bear market comes back to commodities, and the same old thing happens – [Brazil] prints money, inflation, military problems, military coups – and I suspect that will happen again, perhaps in 20 years or so. Right now, of course, things are great. Brazil’s economy is commodity-based and commodities are going through the roof. Do not get me wrong; I’m just suggesting that I have heard this story before about the great new Brazil.

Brazil’s President Lula The country is run by a socialist, but nobody really wants to be a socialist any more, and the ones that do want to be rich socialists. [Lula] came in in 2002 just as the bull market was gathering steam, so he looks like a genius.

More Attractive South America
Chile is doing well, even Uruguay. I’m still optimistic about Peru, too. It’s got a lot of natural resources and a reasonably good government. It, too, had a long war. Look around South America and, other than Venezuela and perhaps Ecuador, there are better things happening than before. But, again, whenever there’s a boom in commodities, if you’re a commodity country, you look better, you feel better. There’s nothing like having lots of money in the bank, lots of income, to make countries feel better and more attractive.

Waiting for the Other Shoe to Drop in Argentina (Note: In a November 2000 article in AmericaEconomia magazine, Rogers famously announced that, after driving around Argentina for several weeks, he was liquidating his remaining investments in the country and encouraged everyone else to do the same.)  The good on the horizon in Argentina is that things have gotten so much worse over the last seven years or so, that we are getting closer to a bottom. I’m not putting a single peso back into Argentina and have not done so since the [the 2001 debt default] because their governments – I don’t know how they do it – it’s astonishing how bad they can be. I’m still waiting for the other shoe to drop — another default, another debt crisis or whatever it might be. Argentina is a great agricultural nation, but they tell their farmers “You can’t export your stuff.” What they desperately need is foreign exchange and yet they say “We’re not going to earn any foreign exchange.” It’s stupefying how hopeless they can be at times.

Wary about Mexico Mexico has some huge problems. Forty percent of its income comes from oil but the oil is depleting at a very rapid rate. And of the country’s 100 million people, they are mainly young people.  I suspect you’ll see serious problems in Mexico over the next decade because young people get agitated pretty easily. If the government faces serious economic problems because they don’t have any money any more, Mexico could boil over.

China’s LatAm Connection China sees huge shortages of raw materials developing. The Chinese are not just going to Latin America. They are all over Central Asia, Africa. They are buying up everything in sight, because they know what’s coming. They are going where the commodities are and are willing to pay proper prices. And, in most countries the Chinese don’t tell the locals what to do. They say “Here’s your money, now let’s develop those mines, or grow those cops.” Most countries seem to be welcoming the Chinese with open arms.

Commodities Trading in China (Note: China’s Dalian Commodities Exchange recently invited Rogers to become its first foreign advisor.)  The main problem with doing anything with the Chinese as far as exchanges are concerned, is that their currency is blocked. You cannot trade the currency. It’s illegal for me to buy and sell commodities in China because I am not Chinese. Even if a foreigner could invest on the commodities exchange in China, the currency is still blocked. Not many people are going to take their money to China if they can’t get it out. Some companies, like Cargill, have licenses to trade but there aren’t many. If and when China does open up to foreign investors, I suspect China would become the largest commodities trading exchange in Asia, perhaps even in the world.

Hugo Chavez’ Perennial Threat to Stop Selling Oil to the U.S. and Sell Instead to China Chavez could conceivably do it, but oil is oil. It’s not like we’re talking about Picassos. Even if Chavez told the U.S. “We’re not going to sell you oil any more,” who cares? We’ll buy it somewhere else. There would be a temporary dislocation in the market. Some refineries would suffer, some ships would suffer, but it would all be re-jiggered. Chavez has to sell his oil somewhere; he can’t simply stop selling. So that oil is still in the market. If he sells it to China instead of America, those who were selling to China would now sell to the America. Oil’s a fungible product.

The author: Ian McCluskey ( imccluskey@kroll.com ) is Editor of Kroll Tendencias, a monthly online thought leadership platform that focuses on business trends and business challenges in Latin America and the Caribbean. Articles are produced by Kroll consultants and other thought leaders in the region.

Source: Kroll – Tendencias January 2010

Filed under: Argentina, Asia, Brazil, Central America, Chile, China, Colombia, Latin America, Mexico, Peru, Venezuela, , , , , , , , , , , , , , , , , , ,

Ten Trading Technology Trends and Tools for 2010

Despite the continued economic downturn, many buy- and sell-side firms still opened their wallets in the search for best-of-breed technology solutions. In order to decrease latency and increase speed, countless firms both big and small, bulge-bracket and boutique, have upgraded trading platforms, invested in latency management solutions, or set themselves up at co-location facilities.

But the race to have the best technology that will slice latency down to microseconds—and eventually, nanoseconds— is far from over.  In interviews with Securities Industry News, industry experts pointed at technology solutions the buy and sells sides are expected to spend their dollars in the New Year.

Networking (both intra- and inter- data center). Growing market data message rates and shrinking latency have made networks a key focus of the sell side, said Kevin McPartland, senior analyst with the Tabb Group.  “Upgrades of data center network equipment and purchases of long distance bandwidth will accelerate driven by current bandwidth requirements and future capacity planning,” explained McPartland. “And looking beyond bandwidth and transmission speed, reliability is tremendously important as downtime in today’s market is unacceptable.”  The core goal: Reduce the number of hops or other factors that introduce network inefficiencies.

Multi-asset-class platforms. Mutating asset classes is the future – different ways to trade traditional asset classes, going electronic, and new types of listed derivatives and structured products will be the norm, said Lloyd Altman, a senior executive in Accenture’s Capital Markets Industry division. “The multi-asset class problem is really affecting the buy side more than anyone else,” he said. “[There are traditional institutional asset management and hedge funds that are employing multi-asset strategies in order to generate alpha… everyone on the buy side is multi-asset class at this point. The question is will they need to replace what they have with something that’s new, or will they continue to modify what they have—it depends on the nature of how they use technology and whether they view themselves as technologists.”

Commoditizing high-frequency trading. Turnkey high-speed algorithmic trading systems will be a trend in 2010 as more players enter the high frequency trading business, explained Paul Zubulake, senior analyst with Aite Group. “We’re seeing a lot of people leaving large broker dealers and starting up their own small businesses related to trading,” he said. “If you’re a new group and want to start out on your own it’s not that easy to just dive into that business, so what’s happening is there are a few firms out there selling their technology and setting you up to trade… it’s an interesting story for next year.”

Latency management. The quest to squeeze more latency and provide more throughput is still creating opportunities for network, data center, and niche technology providers, said Accenture’s Altman. “It feels at times like squeezing a toothpaste tube to find one more use, and it is asymptotic on the latency front as we approach zero,” added Accenture’s Altman. “Whoever can advertise that they can get their first with the trade wins, and they can charge for that as a service. At some point it will not matter anyone, but we’re not there yet.”

Co-location. “Putting trading systems under the same roof as matching engines “is at the top of our priority list,” said Frederick Scuteri, senior vice president of prime brokerage services at institutional brokerage Cuttone & Co. “We’re seeing a lot of interest in many buy-side firms, especially the black box/high frequency trading shops looking for sponsored access to the different exchanges and alternative trading systems (ATSs). That game itself is a low-latency game, and co-location is a very big component of the success of that business. That’s something we’re full throttle on both with the NYSE and some other vendors and exchanges as well.”

Risk management for sponsored access. This ties in with the whole co-location story, said Feargal O’Sullivan, managing director of high performance messaging with NYSE Technologies, the commercial technology arm of NYSE Euronext. “Risk management for sponsored access is the idea of being able to allow buy side firms to use a broker ID and get access to markets directly without having to go through the broker systems but with the risk management that’s required before you allow them to do that,” explained O’Sullivan, noting that NYSE Technologies offers a risk management gateway.  “It’s an additional step of latency that’s required to ensure that traders are not taking unjustified risks and bring the market down.”   Added Aite’s Zubulake: “Pre-trade risk management in all asset classes will become a pre-requisite, or regulatory mandate, for trading.”

Central clearing. Over-the-counter, or OTC, products are going to central clearing, which will increase the demand for proper data management, said Zubulake.  This is a trend that is already happening, with the Chicago Mercantile Exchange having begun clearing credit default swaps through CME Clearing on Dec. 15. “You’re taking a business that was purely a voice business… and now instead of having a one-to-one trade you’re going to have the trade done on that basis but it will be cleared through the central clearer. There will be multiple counterparties.”

Data loss prevention (DLP) technology. DLP, which is made up of systems that identify, monitor and secure data whether it’s in use, is on the upswing, according to Jim Routh, KPMG’s chief information security officer. Several major vendors including Symantec and McAfee have emerged as leaders in this relatively new market and are currently selling these offering as integrated suites rather than individual products.

Data profiling. Data profiling, which examines data in an existing database, collects statistics and information about that data and determines if it can be used for other purposes, provides a deeper, broader and speedier insight to data analysis than the more traditional approaches. Garry Katz, a senior vice president and information architect at SmithBarney/Citigroup, says this technique is getting increasing play, becoming an “essential tool’’ in trading.

Virtualized solutions. JP Morgan Chase & Co. is currently deploying technologies, which create “virtual desktops” within its network – and even virtual networks within its overall network capacity. The selling points here include reduced support costs, improved security, greater agility and more streamlined application deployment. As a result of its virtualized network, JP Morgan’s data centers will evolve “from application-based silos to unified fabrics that allow for greater agility and utilization while improving the bottom line,” said Cory Shull, VP of investment architecture at JP Morgan, in a statement.

Source: Securities Industries, 17.12.2009

Filed under: Corporate Action, Data Management, Market Data, News, Risk Management, Services, Trading Technology, , , , , , , , , ,