A recent poll by Sapient Global Markets found that while the majority of buy-side firms expect their derivatives volumes and trades to substantially rise over the next three years or so, many are not yet fully prepared for the changes to come.
In this podcast Geoff Cole, director business consulting at Sapient talks to DerivSource about the technologies, market infrastructure, and governance structures they will need to implement.
DerivSource reporter, Lynn Strongin Dodds speaks to Geoff Cole. The podcast covers the following questions:
- Was there anything that surprised you in the recent poll that found the majority of asset managers said their derivatives volumes and trades would substantially increase in the next three years?
- Why do you think asset managers are still not yet fully resourced to accommodate derivatives?
- How can asset managers prepare for the pre- and post-trade on boarding for new derivatives, including legal agreements and regulatory requirements as well as client services?
- In terms of technology though, what type of technology do they need to implement? Do they already have it within their organization? Do they need to build it or buy it? What exactly is the technology needed; a lot of talk about front-to-end systems, is that what you were alluding to, or is it something different?
- Are they building this in-house or using third parties? What do you think will be the evolution of utilities, which seems to a very popular option going ahead?
- Finally, given the level of change, governance is always such an important issue, do they have to change their governance structures as well, or what type of structures will they need to implement to oversee this?
- Are you seeing asset managers creating these types of committees?
Listen to the podcast or read the transcript below.