Perspectives

Everyone is talking about the regulations that are being created in the wake of the financial meltdown. Of course, no one knows exactly what the regulations will mandate. As a result, it may seem as though it is impossible to prepare for these rules ahead of time. But it is also a mistake to do nothing.

Whatever the details of the new regulations, it has become clear that the biggest impact will be around the need for real-time information, whether that relates to counterparty exposure, margins, risk reports, or other areas. It is no longer sufficient to wait until tomorrow or next week or even end of day to calculate your margins or determine your positions.

So what can you do? Take an old-fashioned inventory. What systems are not real-time? What do you need to do to get your systems ready to feed downstream applications with real-time information – or to deliver information in real-time? Then develop a plan to get to that point.

And don’t assume that if you’re in one country then you don’t have to worry about the regulations elsewhere. If the painful experience of the past year has taught us anything, it’s that as different as the various economies around the world are, they are inextricably tied together. What’s happening in one country can affect everyone else.

Don’t waste time – start preparing now.