Over the past month, we have all experienced unprecedented events. The first quarter of 2020 ended with a unique set of challenges for many investment teams. While this was anything but normal from a market perspective, Clearwater was a model of consistency and stability during this time.
As the first quarter comes to an end, we wanted to share Clearwater’s quarter-end close delivery success rate. We partnered with more than 900 clients across the industries we serve, including insurers, investment managers, corporations, governments, and institutions to ensure their books were closed on time.
In times of uncertainty and change, a smooth, on-schedule close process is vital. Clearwater is dedicated to maintaining those critical deadlines and keeping teams on track. If delays happen, they are resolved in hours, not days. This is a commitment to offer some peace of mind when it’s needed.
Our observations from March include:
- Market Volatility: Over the past few weeks, Clearwater has seen average daily trade volume jump from 61,000 to 112,000 transactions a day in addition to price volatility error checks jumping from 2,100 a day to 10-35,000 a day depending on the market swings for the day.
- Data Delays: Facing similar obstacles, third-party, custodian, and investment manager source data has been delayed or incomplete in some instances, which resulted in manual work for both clients and the Clearwater team to be updated prior to close.
- Regulatory Changes: We are all also navigating ongoing regulatory changes, including the new Current Expected Credit Loss (CECL) model. That additional internal scrutiny resulted in slowdowns for some teams at quarter-end as they assessed impact and implementation of new guidance. Clearwater is actively tracking guidance and timelines to ensure we are prepared as they go into effect.
Like many of our clients, the Clearwater team also adjusted to a complete work-from-home model in March. The entire workforce of more than 1,000 people successfully moved from Clearwater’s offices in the US, UK, and India to their home offices.
In the face of these events, change, and home offices, Clearwater is committed to delivering on our SLAs and ensuring consistent, timely processes. This is a team game, and we strive to be an extension of our clients' teams.