Well, it’s a wrap on our 6th Annual OTC Derivatives Operations & Processing conference, which was held last week in New York City. But in case you weren’t able to make it this year, here are a few highlights from the event.
So to start, we kicked the day off with a look into 2012 and the “Year of the OTC Derivative Reform”. I know what you’re thinking, “haven’t we heard enough about Dodd Frank?” But the fact is that 2012 is when we will finally start to see moves being made to enact the many changes in this space. So this first session did well to begin conversation around the challenges firms are going to face in the upcoming year but also the benefits that would come from their hard work. Central clearing was one of these topics, and everyone thought that central clearing made perfect sense… but not because of regulator mandates. CCPs were also a main topic of the day. Some of the speakers thought that CCPs now need to draw attention to a “specialty” they have due to the fact that there are too many competitors in the space and without a notable area of expertise it will be a big hurdle to make a difference in the marketplace.
Other issues brought up throughout the day involved counter-party credit risk, specifically the challenges of weaving U.S. regulations with regulations abroad, the timing around when we can see SEFs come on board, the risks and benefits of multiple clearing houses and the emphasis on your firm’s IT infrastructure.
One funny comment from the day was that even with all the struggles and nervous anticipation around Dodd Frank it is something we will all need to contend with, because unless you move your headquarters abroad, you are stuck with Dodd Frank!
So that’s all for now… at least until next year and our 7th Annual event! Thanks to all the exhibitors and sponsors! This year we were pleased to have SimCorp, SunGard, Omgeo, OpenLink, GBP Financial Solutions, Algorithmics, TriOptima, OCC, Quinnox, Lombard Risk and Calypso!