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Press Release

February 27, 2014

Survey Finds Financial Reporting Requirements to Impact European Economy

New capital market regulations are expected to influence operations; high operational costs constitute a major challenge

Stockholm – 27 February 2014 – An Infiniti Research survey sponsored by TradeTech Consulting Scandinavia AB - a Virtusa, Swedish subsidiary - reveals that nine out of ten respondents were of the opinion that new financial reporting regulatory regimes are expected to be more complex and will have a more long-lasting impact on the European economy than earlier reporting standards did.

Capital markets in Europe are dynamic in nature and play a key role in boosting the region’s economy. These markets can be influenced to a large extent by economic variations in nearly any part of the world, depending on the magnitude of the variation and the geographical significance of the region(s) involved. For instance, the Euro crisis and the US subprime crisis in 2011 paved the way for the implementation of various regulatory reforms in both these regions.

These reforms are expected to influence the operations and fund movement in Europe’s capital markets for the next few years. Among the numerous regulations being implemented in Europe at present, it has been observed that the Revised Prospective Directives, the Money Transactions Offices Act and the Ban on Bonuses for Entities Receiving State-aid regulations may have a major impact on the functioning of business organisations in the continent.

Key findings of the survey:

  • 80% of the respondents indicated that the regulations being currently implemented in Europe’s financial markets are expected to make business operations increasingly reliant on the usage of IT.
  • Seven out of ten respondents indicated that they have adopted measures to manage the impact of new reporting regulations in the financial markets. Moreover, anticipation of complicated reporting standards has led to organisations restructuring their business models to facilitate the deployment of efficient, customised IT systems.
  • 80% indicated that with such measures in place, the on-going impact of market instability is expected to have a slightly reduced impact on Europe’s financial markets in the next five years; in fact, these markets are expected to witness increased usage in the form of swaps, derivatives and hedge funds.

Joakim Wiener, CEO of TradeTech Consulting, commented, "Various regulatory policies such as Basel III Capital Requirements and Consumer Protection Agenda are expected to have significant impact on the business operations due to increase in demand for IT usage in the Financial Institutions."

About the survey
A judgmental sampling survey was conducted in the Banking and Insurance industries in Nordic, Netherlands, the UK and other European countries. The survey, which has a confidence level of 95%, involved in-depth one on one interviews with senior financial executives. Their job titles include: Compliance Officers, Chief Financial Officers, Chief Executive Officers, Head of Administration, Chief Risk Officers, Economic Capital Modellers, Heads of Capital Management, Heads of Business Support, Heads of Treasury, Heads of Capital Markets, etc

A whitepaper based on the study is available for download at:
http://www.tradetechconsulting.se/wp-content/uploads/TTC-research-whitepaper-final-.pdf

About TradeTech Consulting - A Virtusa Company
TradeTech Consulting delivers outsourcing and consulting to the financial services sector. Established in 1998, TradeTech tailors offerings specific to corporate treasury, banks, financial institutions, government and central banks. TradeTech was acquired by Virtusa Corporation (NASDAQ GS: VRTU) in January 2014, and is now a wholly owned subsidiary of this global organization. For more information visit www.tradetechconsulting.com and www.Virtusa.com

About Infiniti Research
Infiniti Research Ltd is a global customized market intelligence firm with offices in the US, Canada, the UK, India and China. Founded in 2003, we have the experience in conducting complex research assignments and serving 120+ Global clients including 35 Fortune 500 companies. Our team of 200+ research analysts with specialization in different sectors, conducts research on more than 50 countries (including all OECD and extended BRIC countries), and in more than 20 languages (including French, German, Mandarin, Japanese, Korean, Spanish, Portuguese and Hindi). We conduct 400+ in-depth research assignments every year. www.infiniti-research.com

 

 

About Virtusa

Virtusa Corporation is a global provider of digital engineering and technology services and solutions for Forbes Global 2000 companies in the financial services, healthcare, communications, media, entertainment, travel, manufacturing, and technology industries worldwide. At Virtusa, digital engineering is at the heart of everything we do. We are 30,000 builders, makers, and doers that partner with customers to reimagine enterprises and creatively build solutions to the most pressing business challenges that move them to the forefront of their industries.

Virtusa's unique Engineering First approach means never presenting an idea we can't execute. With deep industry expertise and empowered agile teams made up of world-class talent, we think about execution early in the process, because the earlier you think about execution the earlier an idea can have an impact. Solving from the inside out enables businesses to respond swiftly to changing needs with improved quality, lower costs, and lasting results.

Virtusa is a registered trademark of Virtusa Corporation. All other company and brand names may be trademarks or service marks of their respective holders.

Media Contact:

Paul Lesinski
Edelman
(971) 226-5299
paul.lesinski@edelman.com

Media contacts
Joakim Wiener
CEO, TradeTech Consulting
+46 70 871 21 18
joakim.wiener@tradetechconsulting.com

 

Maggie Warbrick
Public Relations and Marketing
+46 70 688 78 87
maggie.warbrick@tradetechconsulting.com

 

 

About Virtusa

Virtusa Corporation is a global provider of digital engineering and technology services and solutions for Forbes Global 2000 companies in the financial services, healthcare, communications, media, entertainment, travel, manufacturing, and technology industries worldwide. At Virtusa, digital engineering is at the heart of everything we do. We are 30,000 builders, makers, and doers that partner with customers to reimagine enterprises and creatively build solutions to the most pressing business challenges that move them to the forefront of their industries.

Virtusa's unique Engineering First approach means never presenting an idea we can't execute. With deep industry expertise and empowered agile teams made up of world-class talent, we think about execution early in the process, because the earlier you think about execution the earlier an idea can have an impact. Solving from the inside out enables businesses to respond swiftly to changing needs with improved quality, lower costs, and lasting results.

Virtusa is a registered trademark of Virtusa Corporation. All other company and brand names may be trademarks or service marks of their respective holders.

Media Contact:

Paul Lesinski
Edelman
(971) 226-5299
paul.lesinski@edelman.com

Media contacts
Joakim Wiener
CEO, TradeTech Consulting
+46 70 871 21 18
joakim.wiener@tradetechconsulting.com

 

Maggie Warbrick
Public Relations and Marketing
+46 70 688 78 87
maggie.warbrick@tradetechconsulting.com

 

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