Regulatory reform has created an increasingly difficult balancing act for operators in the derivatives markets. On one hand is the need to drive new business, increase efficiencies and monitor costs, on the other is the growing requirement for effective compliance and risk management. Considering the number of different configured technologies available, the lack of truly global identifiers creates additional challenges. The CFTC held consultations with the market in June regarding the introduction of new unique product identifiers, as required by the Dodd Frank Act. Mark Woolfenden, managing director of FOW TRADEdata, explains how good symbol management and interoperability can promote competition in both buy and sell side services.
The choice of and the investment in trading solutions for both the buy side and sell side of the derivatives industry is an important determinant in the degree to which competition exists in brokerage and other trading related services.
Well managed instrument...