Banks lament pace of trade data regulation

Basel II, Mifid and Dodd-Frank come in for criticism

Banks and other financial industry participants have expressed their frustration around the pace of regulation being introduced in the markets.

While they said they recognised the regulation was needed to protect the markets, they said some of the rules were being introduced too quickly for market participants and without regard for some of the difficulties for banks.

Speaking at the TradeTech summit in London this week, members of an expert panel showed support for regulations such as Basel II, Mifid and Dodd-Frank, but criticised the speed at which requirements were being introduced.

Sue Baldwin, an executive director at JP Morgan, said she supported regulation. But she added: "The industry is being forced to do something, by the regulators, when they [the regulators] are not absolutely clear what they want. We want to lobby the regulator, so they can see the impact on us."

Referring to the increasing requirement to record large volumes of trade data, she stated: "There is a lot of benefit to regulation, but what are the regulators going to do with all these trades?"

Adam Bennett, chief executive at vendor Hatstand, agreed. "At the moment, the politicians are driving the changes, not the customers. Most of it is being forced on the banks, the brokers and the markets faster than they can cope with.

"It's a political hammer, while the financial crisis is in the front of people's minds."

Other industry participants noted an improvement in the situation, with regulators listening closely to politicians, the public and the banks.

David Berry, director of market data global sourcing at UBS, said: "Both customers and regulators are setting the pace. The questions we get from the regulator are now much clearer, and the regulators have learnt."

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