Fidessa examines derivatives markets
26 June 2012 London
Image: Shutterstock
Fidessa has a new white paper, For Whom the Bell Tolls, which examines how the previously separate OTC and exchange-traded markets are being brought together by overlapping regulations.
It considers three key changes in detail. First, it looks at the drive to move bilateral OTC trading onto centrally cleared, electronic platforms. Doubting the validity of the regulators’ belief that this approach is intrinsically safer, it considers the subtle interplay between Dodd-Frank and EMIR and discusses some of the unintended consequences that could result.
Second, the paper examines the growing competition that is emerging between the derivatives venues themselves and discusses how this will affect market participants. Finally it turns its attention to clearing and the interplay between the OTC and exchange-traded markets.
"Just as we saw with equities, regulation and technology are combining in new ways and firms need to decide how they are going to run this particular gauntlet" said Steve Grob, director of Group Strategy at Fidessa and author of the paper.
It considers three key changes in detail. First, it looks at the drive to move bilateral OTC trading onto centrally cleared, electronic platforms. Doubting the validity of the regulators’ belief that this approach is intrinsically safer, it considers the subtle interplay between Dodd-Frank and EMIR and discusses some of the unintended consequences that could result.
Second, the paper examines the growing competition that is emerging between the derivatives venues themselves and discusses how this will affect market participants. Finally it turns its attention to clearing and the interplay between the OTC and exchange-traded markets.
"Just as we saw with equities, regulation and technology are combining in new ways and firms need to decide how they are going to run this particular gauntlet" said Steve Grob, director of Group Strategy at Fidessa and author of the paper.
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