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

Knight Capital Group Appoints Merrill’s Scott and Tradeweb’s Shapiro to Head CDS Efforts

Subscribe to our newsletter

Knight Capital Group has appointed ex-Merrill Lynch executive Andrew Scott as managing director to oversee the operations of its credit default swap (CDS) platform NetDelta. The vendor has also poached Michael Shapiro from Tradeweb to become director responsible for leading NetDelta’s sales effort.

At Merrill Lynch, Scott was the lead attorney for credit derivative products and a senior representative for key industry and regulatory initiatives. Prior to joining Knight, Shapiro was responsible for sales, business strategy and product development for TradeWeb’s credit derivatives trading platform, including leading a global effort to increase post-trade business for CDS and interest rate swaps (IRS).

Steven Sadoff, executive vice president and chief information officer at Knight Capital Group, hopes that both hires will use their credit derivatives experience to strengthen the commercial viability of the vendor’s CDS platform, which it is pitching as a solution to counterparty risk. Netdelta is being offered as an alternative to central clearing via the introduction of standard contracts and the use of pooled credit, maintaining the bilateral nature of CDS contracts. According to the vendor, counterparty risk is minimised by multilaterally netting transactions and using participants’ credit lines to reallocate exposures so that their market exposure remains neutral.

Sadoff explains: “NetDelta can help its platform participants address concerns regarding risk management, trade settlement and balance sheet usage. Indeed, counterparty risk management has become increasingly important, and both the industry and regulators are actively looking for ways to reduce systemic risk in the market. We believe NetDelta has a solution that addresses risk concerns without hindering the ability of market participants to invest and trade CDS.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: High-performance, real-time multi-stream data processing for trading analytics and risk management

Financial analytics platforms in Hedge Funds are often segmented between real-time and back-office analytics systems fed by slower batch processes. To support winning analytics, hedge funds and other trading firms need to bring together real-time streams with historical analytic data in a single high-performance data store to refresh reports and risk models in near-real-time. Listen...

BLOG

Complex Sanctions Environment Demands Powerful Screening Monitors: SIX Report

Sanctions screening technology has never been more important for financial institutions as new geopolitical and economic threats create the riskiest trading environment in recent history. That is the key finding of a new report, that highlights the need for greater resilience among organisations to the raised threat level faced by the global financial system. In...

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

Regulatory Data Handbook 2014

Welcome to the inaugural edition of the A-Team Regulatory Data Handbook. We trust you’ll find this guide a useful addition to the resources at your disposal as you navigate the maze of emerging regulations that are making ever more strenuous reporting demands on financial institutions everywhere. In putting the Handbook together, our rationale has been...