Tech vendor FINCAD's reflection on 2015 and projections for 2016
By Nik Venema, communications lead
at FINCAD, a technology provider.
With regulatory reform, a continued
increase in business competition, and the impact of
unconventional monetary policy, such as negative interest
rates, 2015 saw huge changes in the derivatives marketplace.
2015: Where have we
In 2015, benchmark rates below zero became
more commonplace than many would have ever predicted. This
began in 2014,when the European Central Bank elected to set the
Deposit Facility Rate (DFR) lower than zero in an attempt to
stimulate activity. It wasn’t the first
negative benchmark rate in Europe (central banks including
those of Switzerland, Sweden and Denmark had all moved into
negative rate territory to maintain currency pegs), however,
the ECB’s move was significant because it hit the
Euro and was the first below-zero rate meant as a direct
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