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Manual processes and bottlenecks threaten to throttle OTC derivatives reform 

March 18, 2014
Elliott Holley, Banking Technology

Regulatory change in the OTC derivatives market has produced serious problems that indicate a clear need for more automation of cleared derivatives post-trade processing, according to a new report published by research house Greenwich Associates.

Market reforms currently affecting the derivatives markets include the G20 agenda agreed in Pittsburgh in 2009, under which 20 countries agreed in principle to reduce systemic risk by improving transparency in the OTC derivatives market. The Dodd-Frank Act in the US and EMIR in Europe are attempts to implement that agenda. Both pieces of legislation essentially mandate the central clearing and reporting of the bulk of formerly OTC derivatives contracts, along with their standardisation and trading on exchange-like platforms wherever possible.

Read more: Banking Technology

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