About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Credit Crisis Has Meant a Dramatic Shift in Derivatives Clearing, Says Sophis

Subscribe to our newsletter

The credit crisis has resulted in a dramatic shift from OTC to exchange cleared platforms for derivatives, according to the results of Sophis’ recent survey. The Derivatives Trading Outlook Survey for 2009, which included responses from chief risk officers, heads of derivatives trading, and chief investment officers, indicates that 50% of respondents will be moving at least half of their credit default swap (CDS) trades to the new exchange cleared platforms for these instruments.

Moreover, 73% of respondents said that next generation clearing houses for CDSs are absolutely necessary to improve credit trading. This is great news for the four main contenders to the CDS clearing counterparty (CCP) throne, which will be facing off against each other to attain the highest volumes of CDSs over the next 12 months at least.

Eric Bernstein, chief operating officer at Sophis, makes the rather obvious statement that change is afoot in the derivatives market. “With the leading practitioners in our field asserting that derivatives historically traded OTC will find a home on an exchange, and that more transparency and improved trade processing are a necessity, we are sure to see strong ripple effects in the technology space,” he says.

Although Bernstein doesn’t elaborate on what these changes may involve, it is pretty certain that 2009 will witness some degree of vendor consolidation. It will be every vendor for themselves as the competition heats up.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

AI in Focus as Experts Meet in UK Capital for Data Management Summit London

Artificial intelligence has dominated the data management conversation in the past couple of years as organisations have recognised the technology’s potential to streamline operations, improve decision making and draw value from the data they use. A-Team Group has responded to the growing demand for intelligence on AI and has given the technology a keen focus...

EVENT

RegTech Summit New York

Now in its 9th year, the RegTech Summit in New York will bring together the RegTech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

High Performance Technologies for Trading

The highly specialised realm of high frequency trading without doubt is a great driver for a range of high performance technologies that are becoming essential tools for Wall Street. More so than the now somewhat pedestrian algorithmic trading and analytics/pricing applications that are usually cited as the reason that HPC is hitting the financial markets,...