Alexander Camargo made the comments following the publication of a white paper, produced in collaboration with Scivantage, analysing the current condition of the cost-basis reporting market.
He said: âThe market is continuing to evolve. There was an implementation in 2010 but many firms indicated that they didnât have sufficient time to select a long-term answer for their reporting needs.
âInstead they selected a short-term solution and are planning on re-considering a second round in the next two or three years.â
Findings from the report, which questioned more than 40 broker-dealers, technology providers and custodians, showed that the majority of firms expect their CBR budgets to increase over the course of the next 12-24 months.
A majority of respondents also said that they opted to use a third party supplier when developing a CBR solution.
âOn the technology side very few firms elected to build an in-house solution with cost and complexity being the main reasons,â Mr Camargo explained.
Further results from the paper showed that CBR is viewed in terms of compliance - and not as a value-added function which can enhance solution and service.
By Jim Ottewill