An Infiniti Research survey sponsored by TradeTech Consulting Scandinavia AB, a Virtusa, Swedish subsidiary; reveals that the numerous regulations currently being enforced in Europe's financial markets have considerable impact on business functionality.
Beginning 2011, European financial markets have witnessed an upsurge of regulations such as the Foreign Account Tax Compliance Act (FATCA), the Basel III Capital Requirements and the Markets in Financial Instruments Directives (MIFID). The Infiniti Research survey aimed to understand the influence and impact of these regulations on various factors such as business operations, technological developments and types of funding.
Key findings:
• 90% of the respondents were of the opinion that the regulations implemented in Europe's financial markets had an impact on the cost structure of the business operations.
• 100% indicated that they would adopt measures to improve operational efficiency, in order to reduce high operational costs.
• 80% indicated that the regulations are expected to revolutionise the usage of IT in business operations.
Joakim Wiener, CEO of TradeTech Consulting, commented, "Most regulations have turned out to be significant cost drivers, and improved automation through new IT initiatives is the preferred way to counteract adverse effects of these compliance initiatives on the bottom-line. Companies who are fastest to adapt to new market conditions will emerge with significant market advantages over their competitors."