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: Are you making the most of the business-critical structured data stored in your mainframes?

Fewer than 30% of companies think that they can fully tap into their mainframe data even though complete, accurate and real-time data is key to business decision-making, compliance, modernisation and innovation. For many in financial markets, integrating data across the enterprise and making it available and actionable to everyone who needs it is extremely difficult....

BLOG

SmartStream Chief Jaffer Sees Rapid Change in Year at Helm

Just over a year into his tenure as chief executive of financial data automation provider SmartStream, Akber Jaffer finds himself surveying a data industry that’s changed enormously over his short time at the UK-based company. Chat GPT was a year old when he took on his new role and the artificial intelligence (AI) technology’s revolutionary...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Reporting Handbook – First Edition

Welcome to the inaugural edition of A-Team Group’s Regulatory Reporting Handbook, a comprehensive guide to reporting obligations that must be fulfilled by financial institutions on a global basis. The handbook reviews not only the current state of play within the regulatory reporting space, but also looks ahead to identify how institutions should be preparing for...