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: How to simplify and modernize data architecture to unleash data value and innovation

The data needs of financial institutions are growing at pace as new formats and greater volumes of information are integrated into their systems. With this has come greater complexity in managing and governing that data, amplifying pain points along data pipelines. In response, innovative new streamlined and flexible architectures have emerged that can absorb and...

BLOG

Scalability the Keyword Behind S&P Global’s Enriched iLEVEL

S&P Global Market Intelligence’s update to its iLEVEL private markets data tool has been designed to enable firms to scale their engagements in private markets. The financial data company is betting that financial institutions’ growing engagement in these markets is such that they will need the sort of data provisions associated with public markets. S&P...

EVENT

Data Management Summit New York City

Now in its 15th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Risk & Compliance

The current financial climate has meant that risk management and compliance requirements are never far from the minds of the boards of financial institutions. In order to meet the slew of regulations on the horizon, firms are being compelled to invest in their systems in order to cope with the new requirements. Data management is...