Thursday October 10 2013

News Source: Global Exchanges

Focus: Derivative Market Segment

Type: General




In a publication dated 9thOctober 2013, SunGard Financial Systems, a software provider for the financial services industry, has identified key trends that will shape the future of commodities trading over the next 12-18 months. These include:

  • Safe havens from collateral charges in the over-the-counter (OTC) marketplace will become scarce under new regulatory requirements, prompting a need for collateral management systems in both hedging and trading operations.
  • Movement of margin calculations from formula to value-at-risk (VaR) based systems will increase the importance of risk-modeling methodologies for the middle and back-office processes of market participants.
  • The volume and complexity of data, including reference and market data, are increasing, driving the need for timely data management and interpretation.
  • The growth of high-frequency trading in the commodities futures markets has simultaneously increased market depth and intraday execution risk, making it more important than ever to empower decision makers with real-time risk analytics and reporting.

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