MARKIT METRICS: Q3 2013 trend analysis
Since 2005, Sapient Global Markets and Markit have worked together to provide the G15 banks with global derivative transaction metrics for the over-the-counter (OTC) Derivatives Regulators’ Forum chaired by the Federal Reserve Bank of New York. The dealer group community utilizes this data to increase operational efficiency, along with verifying the ranking within the group and evaluating trading activity. The key metrics encompass OTC derivatives transaction volume and electronic processing of trade confirmations and measures the time delay in issuing trade confirmations.
The industryís desire for self-regulation stated by the introduction of commitments to the OTC Derivatives Regulators Forum (ODRF) was a unique approach to a completely new industry challenge. The electronic processing of OTC transactions still remains stimulating across asset classes due to a range of dependencies, such as the availability of products on electronic trading platforms or client onboarding on electronic trade confirmation matching engines. Through the evolution of post-financial crisis market reforms, in particular the Dodd-Frank Act and the European Market Infrastructure Regulation, the need for self-regulation was superseded; however, it remains a voluntary commitment that the industry is dedicated to deliver.
The contributors to the data are Bank of America-Merrill Lynch, Barclays Capital, BNP Paribas, Citi Group, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan Chase, Morgan Stanley, Nomura, Royal Bank of Scotland, Societe Generale, UBS and Wells Fargo.
The quarterly Markit Metrics Trend Report is published by Sapient Global Markets and can be found on the Markit website (www.markit.com).