– 92% of respondents believe that improved trade processing is integral to creating more transparent and efficient markets
– 62% of respondents agreed that the industry is moving more towards reducing the use of OTC derivatives in favor of exchange-traded derivatives products
Sophis, a leading provider of cross-asset, front-to-back portfolio and risk management solutions, today announced the results of its Derivatives Trading Outlook Survey for 2009. The survey, which took in the views of Chief Risk Officers, Heads of Derivatives Trading, and Chief Investment Officers, and others from all over the industry, expresses what they see to be key trends for the derivatives space for this year.
The results point to a dramatic shift in the way derivatives will be traded as a result of the credit crisis. Key findings include:
– Half of the respondents indicated that at least 50% of their CDS trades will move from OTC to exchange-cleared platforms
– 73% of industry leaders expressed that next generation clearing houses for CDSs are absolutely necessary to improve credit trading
“The finance industry is clearly bracing itself for more substantial changes in 2009. With the leading practitioners in our field asserting that derivatives historically traded over-the-counter will find a home on an exchange, and that more transparency and improved trade processing are a necessity, we are sure to see strong ripple effects in the technology space,” comments Eric Bernstein, Sophis coo. “We look forward to evolving with the new landscape and continuing to advance our offering in response to these shifting demands.”