Author: Rich Hulit, former executive vice president, SunGard
Last month, I attended the FIA Futures & Options Expo in Chicago. Not only did I sit on the Expo’s Tech Solutions for OTC Clearing panel (which you can now listen to on the FIA site), but I participated in a video interview series with the Futures Industry Association.
Dodd-Frank with its many nascent requirements was, of course, the subject of many conversations at FIA Expo. One question that many people discussed was, “What is the biggest challenge?” From my perspective, the most pressing issue today is that the industry needs to be ready to comply with new regulations that are not fully developed yet. Right now it is about preparing to respond. As I say in the video, the “biggest challenge is understanding the challenges themselves.”
When it comes to OTC derivatives in particular, we also talked about the push to increase transparency. As I say in the interview, regulators will require transparency into what’s being traded, how it’s being traded, how it’s being priced, how it’s being processed, exposures, and positions… Are you ready for this?
Watch the video above and tell me your thoughts here in the comments section. How would you have answered the questions? What do you think is “the biggest challenge” as we head into 2011?
Video recorded at FIA Futures & Options Expo 2010. Visit www.futuresindustry.org/expo for more information.