07 December 2017
Reporter: Jenna Lomax

BACS has the need for speed, according to global custody audience

“The three days movement of cash by BACS in the UK is shameful”, according to an audience member at this year’s Global Custody Forum in London.

Panellist Beverley Furman, managing executive of central securities depository operations at Strate, agreed that “banks are waking up and realising the UK is slow, these UK banks do need to realise that technology is the future of cryptocurrencies”.

To achieve this increase in overall speed, Furman stated that there needs to be “more of a collaboration and a sense of partnership [between global custodians]”.

“Global custodians' main concerns are asset recording and settlement achievements,” she said.

Other panellists noted that automation in both T1 and T2 environments are beneficial to the industry and the speed of moving cash.

Anand, head of custody at StockHolding, said: “The level of automation in a T1 environment helps us.”

Brian Allis, senior vice president and head of State Street trustees, added: “With T2 you can usually get all your cash ready quicker.”

Furman added that if there was a clearer structure in the industry, across the world, regardless of timezone and automation, it would help financial management information systems especially.

Allis said that the US model is one to follow and learn from.

“There are single platforms of dismediation already happening in the US, it’s way ahead of Europe in that sense,” he explained.

“The second Markets in Financial Instruments Directive has given the UK challenges with a compromised timeline. But US models, and also German models, in terms of buy-side, are the ones to follow.”

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