Industry experts concluded, during a recent panel, that investment managers do not have sufficient systems in place to meet the demands of OTC derivatives.
The panel, “Operations: Supporting Derivatives,” reached a consensus that the primary issue facing investment management companies using derivatives was the ability to effectively capture and use data when trading.
Investment managers are suffering operational woes brought on by incomplete data captures at the time of trades.
Though IT vendors have continued to show great strides in the area, the panel says they are still falling short of needs.
Third-party administrators are hitting the same roadblocks, because while their systems are able to track the lifecycle of OTC derivatives, they lack a single platform addressing all of the requirements voiced by clients.
But the panel agreed that outstanding confirmations, which were long among the leading problems associated with OTC derivatives, had diminished because of programs such as Swapswire and DTCC.