Operations Teams are (Finally) Getting the Recognition They Deserve

A major reason for the increased focus on operations is the current global regulatory environment. Since the 2008 market crash and subsequent recession, regulators around the world have tightened compliance requirements for financial institutions–a trend that shows no sign of slowing down. The list of new regulatory measures since 2008 reads like alphabet soup: EMIR, MiFID II, SRD II, ISO 20022, SFDR, SFTR, CSDR, etc. These changes, which affect processes ranging across trade confirmation & settlement, regulatory reporting, governance, and other areas, demand skilled operations teams to keep an organization abreast of shifting compliance requirements. And the more regulatory developments arise, the more crucial operations are to the successful functioning of the organization.

In addition, financial services firms are laser-focused on pre- and post-execution in real time, as well as establishing standardized and interoperable workflows to reduce market risk (if not eliminate it altogether) while increasing profitability. Operations professionals, learning from past and present gaps and mistakes, are the ones equipped to re-engineer their firms’ operating models by engaging with strategic third-party vendors that complement their technology and enable secure interoperability with verified counterparts.

As the industry’s perception of operations evolves, professionals in this area should take a renewed sense of pride and purpose in their work. They have earned a seat at the table in financial market associations, and play an important role in advocating for market changes and establishing guidelines for best practices. The sales team may be the stereotypical star players in the world of finance–but when it comes to the value professionals bring to an organization, senior management is increasingly recognizing the people who keep the engine running smoothly.