Spring 2013 Edition

  • 789

    OTC TRADE DOCUMENTATION: a revolution awaits

    Until the third quarter of 2012, trade confirmations had existed on the periphery of the regulatory change agenda. Previously, the Over-the-Counter (OTC) derivative industry had been fully focused on meeting regulatory obligations in relation to swaps clearing and reporting. This all changed in a matter of weeks as the Commodity Futures Trading Commission (CFTC) in the US and the European Securities and Markets Authority (ESMA) both published final rules detailing their future requirements for this area of the market2 3. In this article, Nick Fry outlines what is being mandated by the regulators; why compliance is going to be such [...]
  • 777

    DATA MANAGEMENT: it’s more about “WideData” than BigData

    The systemic meltdown in 2008 and subsequent ripple effect of overexposures and bad debt have all led to the global revisions of regulations. Whether as part of major reforms, like the Dodd-Frank Act and European Market Infrastructure Regulation (EMIR), or as part of local implementations of regulatory changes, the key underlying theme in all of them is data management. In this article, Gavin Kaimowitz, Simon Lyon and Geoff Cole discuss the importance of the interconnectedness of data and how a focus on “WideData” will be needed to support future regulatory requirements. Rather than thinking about the physical size of data, [...]
  • 660

    REPORTING FOR EMIR: firms that assume they are covered because of Dodd-Frank implementations may need to reconsider

    Through most of 2012, derivative dealers across the globe have been frantically making efforts to become compliant with the Commodity Futures Trade Commission (CFTC) implementation of the Dodd-Frank Act’s Title VII reporting regulations. On February 28, 2013, most of the approximately 70 registered Swap Dealers1 stumbled across the finish line for the last asset classes to be reported (Equities, Commodities, and FX). While undoubtedly a major milestone, the CFTC implementation of Dodd-Frank was one of the first of the G20 reporting commitments to go live with many more to follow, and there is enough difference in its European Union (EU) [...]
  • 477

    MOBILE STRATEGY: from maturity model and roadmap to success

    The ever-increasing presence of mobile technologies at home, work and in the field has captured the interest of stakeholders within the trading and risk management domain. But many firms struggle with developing a comprehensive and cohesive mobile strategy to support their users. Jennifer Evans, Parry Ruparelia and Matt Hopgood introduce the concept of the Mobile Maturity Model, how it can be used to develop a roadmap and key points firms should consider as they build their mobile strategy. According to Forrester, currently 89% of companies have invested in a mobile strategy. However, only 40% of those companies have defined a [...]
  • 499

    USER-CENTERED DESIGN: increasing the value of data

    User Experience (UX) design has been used in many industries to display information in a way that is easy to consume and interpret. From desktop software to iPhone applications, UX design has become a baseline requirement for consumer products. In recent years, there has been a need for UX design in the business sector as well. The rapidly increasing volume of data firms are facing today is contributing to reduced efficiencies in everyday workflow, increased costs and limited employee potential. In this article, Parry Ruparelia, Jennifer Evans and Matt Hopgood discuss how firms in the capital and commodity markets are [...]
  • 508

    ENERGY INTELLIGENCE: detecting new revenue opportunities

    As energy merchants face tighter profitability, they need to look beyond reduced cost to efficiency and automation and explore innovative ways to identify new revenue opportunities around their current portfolio. In this article, Rashed Haq, Abhishek Bhattacharya and Charles Ford discuss approaches for harnessing emerging information services and technology capabilities to more systematically detect new revenue opportunities. INDUSTRY CHALLENGES Over the last decade, it has become harder for many energy merchant organizations to continue growing their bottom line. The economic collapse of 2008, followed by the energy renaissance in the US that caused tectonic shifts in supply, demand and transportation, [...]
  • 524

    REGULATORY REPORTING: how do capital market participants assure ongoing compliance within an ever-changing regulatory landscape?

    The investment banking industry is undergoing a monumental transformation as the world’s regulators shift their focus away from exchange-traded instruments to the strict enforcement of a new regulatory regime in the historically unregulated and opaque OTC derivative market. Nowhere is this shift more apparent than in the US where the Commodities Futures Trading Commission (CFTC) is pushing ahead of the other global regulators with all four of the G20 commitments: mandated execution (trading), clearing, capital and reporting obligations. These requirements are certain to transform the investment banking industry altogether. As the industry is currently implementing a number of tactical fixes [...]