CityIQ introduces the results of its recent survey of the derivatives marketplace. The survey, which was carried out in association with Northern Trust reveals:
Despite the recent set backs in the market the increase in derivatives transaction volumes looks set to continue and at a similar rate. However the majority of the organisations surveyed admitted they were concerned or significantly concerned about a variety of operational risks and issues including:
– Adequacy of systems;- Cost and availability of specialist technology, resources and data;- Sourcing of data;- Growth in volumes.
Most of our respondents recognise the value of derivatives processing as a means of controlling risk and so for them it is a question of carrying on doing what they have been doing says Paul Wiltshire, managing director, CityIQ. However derivatives processing has its own set of unique risks and issues and dealing with these can be a challenge as the survey results make clear.
This survey is the first of its kind, says Mark Schoen, head of Product Development and Strategy, Northern Trust, EMEA. We are always looking at ways to share industry insight with our clients and give them the inside track on market issues. Given our clients ongoing use of derivatives we were delighted to partner with CityIQ on this project.”
L.D.