Posts tagged ‘OTC’

Today via Twitter, I conducted a live interview with TowerGroup Research Director Stephen Bruel about key issues in the derivatives space. In case you missed the “twitterview,” I’ve posted the Q&A for you here.  You can also find the whole conversation on Twitter by searching the #derivchat hashtag.

Have another question or a comment to add? Weigh in with your perspective.

@tonyscianna: Thanks for joining us for #derivchat, and thank you to @StephenB_TG for participating in this live “twitterview” today #WHN

StephenB_TG: Glad to participate. Shall we get started?

tonyscianna: Sure. What are the major pain points within listed or centrally cleared derivatives processing?
StephenB_TG: Trading tools improving, but mid&back office needs help in comms, allocations, margin mgmt, settlements &more

tonyscianna: How could communications improve re: listed or centrally cleared derivative settlement between buy & sell side?

StephenB_TG: Streamline, move away from phone/fax. Too many relationships (buyside,fcm,broker,etc) to manage info manually

tonyscianna: Do you think an industry utility would help with buy & sell side communications? How, why?

StephenB_TG: Firms need easier way to view trades by status & counterparty & to recon breaks to help manage intraday risk

tonyscianna: Equities space has comms utility b/w buy & sell side. Why not in listed or centrally cleared derivatives space?

StephenB_TG: Unique ETD charac (margin,etc) lead to mkt structure diff from cash eq. As vols increase demand could increase

tonyscianna: One more Q: What’s your view re: central clearinghouses & exch settlement for CDS & other #OTC asset classes?

StephenB_TG: Not the panacea the regulators think it is. Help some issues (transparency) but create new(risk concentration)

tonyscianna: Thank you for your time. How can people connect with you to learn more about these topics?

StephenB_TG: Hope they’ll join us at the #SunGard breakfast in NYC on 12/17. Register here: http://bit.ly/CliqToRegister