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Survey points to regulatory burdens as resource drain

Executives typically point to regulatory burdens as a drain on resources, a ne

Ask the CFO of a company working in capital markets to name the biggest drains on resources, and odds are he or she will mention regulatory burdens and data latency issues. So suggest the results of a new survey from mobile software firm Sybase.

"Regulatory challenges coupled with rapid data growth and the 'urge to merge' call for world-class, innovative technology that can consistently meet the demanding high-performance standards of today's capital markets firms," said Neil McGovern, senior director of financial services marketing at Sybase. "Customers facing regulatory challenges are required to collate very large amounts of data on-demand to meet intra-day regulatory requirements."

It's not just U.S. executives who feel this way. The survey also solicited responses from top brass in Asia-Pacific, the Middle East, Europe and Africa. Only in the APAC region were executives more worried about something other than regulatory issues. Those execs cited front-middle-back office integration as their biggest challenge.

Roughly nine in 10 executives in North America are concerned that capital requirements under Basel III regulations will negatively impact profits, while 96 percent aren't certain stress testing has identified all the risks to the banking industry. Between regulations and potential banking trouble, CFOs might do well to update their risk management infrastructure.