Steve Woodyatt, chief executive and chairman of Object Trading, explores how new rules are impacting brokers and the challenges they face in meeting upcoming regulatory reforms.
Regulations driven by the G20, both finalised and yet-to-be,
are putting pressure on all market participants in the trading
lifecycle to improve their approaches to real-time risk
management and pre-trade risk constraints.
But really, firms should not wait for regulations to force
their hands, because actively managing their approach to
pre-trade risk can improve overall operational efficiency and
is, ultimately good for business.
Sang Lee from Aite Group summarised the problem, "You would
think that things should be more intuitive, streamlined and
integrated; but that’s not the reality we live in.
Buy side clients are using multiple trading platforms,
execution management systems, vendor gateways, and execution
"The brokers are dealing with fragmented markets, fragmented
and siloed internal trading infrastructure, and fragmented
trading relationships. The client’s total exposure
may be fragmented across multiple execution brokers and more
than one clearing member. In addition, the
brokers’ own infrastructure may be extremely
complex due in part to both organic growth and
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |