Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Behind the Swap: The Broken Infrastructure of Risk Management and a Framework for a Better Approach

Behind the Swap: The Broken Infrastructure of Risk Management and a Framework for a Better Approach

Dejoy, Andrew

Hardcover

Business GeneralInvesting & Finance

Publisher Price: $27.00

ISBN10: 1637630670
ISBN13: 9781637630679
Publisher: Forefront Books
Published: May 10 2022
Pages: 304
Weight: 0.98
Height: 1.08 Width: 5.46 Depth: 9.99
Language: English
Andrew DeJoy's Behind the Swap offers a middle office perspective on the risks and miscommunications in post-trade processing and provides a framework and solutions for a better approach.

In August of 2020, Citibank made one of the worst mistakes in banking history: it accidently sent out almost $900 million of its own funds. Many of the recipients didn't give back the money. Citibank sued. And a federal court ruled that the recipients could keep the funds.

Citibank's error is not surprising. The underlying contributors that led to the mistaken payment permeate the global financial services industry. Manual data entry, decades old technological infrastructure, inadequate training, and systems that can't interact with one another are just a few of the problems that face post-trade processing--the machinery behind financial markets. Unfortunately, years of neglect by regulators and financial institutions themselves has left this infrastructure needlessly complex, astoundingly inefficient, frequently inaccurate, and woefully inadequate for modern financial markets.

The problems are easy to see but difficult to admit. For financial institutions, the current system costs billions of dollars each year in labor, systems maintenance, and lost funds. For regulators, the current system precludes the ability to track systemic risk. It also artificially inflates the stability of the global financial system. For lawyers and prosecutors, the current system allows ample opportunity for unlawful misconduct such as rogue trading and fraud.

Andrew DeJoy's Behind the Swap examines the risks involved in post-trade processing in swaps and derivative markets and provides solutions to better control those risks. While Andrew doesn't claim to have all the answers, he does believe there is a better system that is both achievable and necessary.

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