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Bailey McCann, Opalesque New York:

A recent report from Misys suggests that regulation continue to be the driving force for the financial services market even as a number of key provisions are already in place. Between Dodd-Frank, Basel III, EMIR, FATCA and others, regulation is placing significant operational, capital, and liquidity burdens on both the buyside and sellside.

Much of this reality was unclear until recently. As rulemaking and implementation have fully picked up steam, financial markets participants are gaining a clearer picture about the business realities involved. Data in the report shows that both buy and sell side players are seeing significantly higher than expected operational costs, margin compression and a considerable impact on overall profitability.

"It was evident from our discussions that a vast majority of bank participants – well over 80% – are overwhelmed with the mounting pressures of regulation and regulatory compliance, and are forcing institutions to re-assess their business platforms," report authors write. "As a consequence of such regulatory efforts globally, many participants (both banks and investors) share the belief that regulation has in some ways taken on a life of its own."

"I think what you've seen overall is a risk transfer to a greater number of participants. Where that risk goes e......................

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