As regulators move closer to drafting specific rules around the derivatives market, it is important to remember one of the key drivers behind regulatory interest: risk. As the failure of Lehman Brothers has shown us, risk can take many forms. You can find examples of operational, counterparty, market, and asset class specific risk, among others.
Monthly Archives:: October 2009
On October 21, 2009, I attended a session at the FIA Expo in Chicago on the subject of upcoming regulatory changes and increased oversight and wanted to share some insight from the panelists.
With the events of the last 12 months, regulators have begun to scrutinize this market – in particular the credit default swaps market – in the hopes of increasing transparency and reducing counterparty risk. It’s not surprising that in the wake of this scrutiny, the central clearing counterparty (CCP) model has been suggested as a possible solution.
What are the main trends in the evolution of traded volumes in both equity and derivatives over the last year? The graphs and comments displayed in this section can help you find answers!
The multi-venue environment, the turbulent market conditions and the competition between sell-side players have contributed to maintain a rather high volume of market data, but also encouraged the need for automated trading systems, which are highly market data consuming. Such trends could explain why low latency and added-value market data flows are strong sell-side requirements.