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- Review
of counterparty performance
and quantitative feedback
- Alpha
generation (best price versus average
or worst prices)
- Time
to price, % win / lose - price consistency -
- Market
impact, depth of liquidity, price discovery
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- Regulatory
initiatives
- In the US
the SEC, CFTC and Treasury want to ‘reform’ the regulatory
framework
- Both in
the US and Europe there are a number central clearing “CCP”
initiatives
- MiFID will
penetrate the derivatives market creating the need for:
- Pre
and post-trade transparency
- Demonstrable
best execution
- Accurate
record keeping and trade reporting
-
Cost reduction and efficiency
- Commoditisation
of once exotic derivatives allows automation
Large (and expensive) ‘one-size fits all’ systems
don’t cater for derivatives
- Low cost
automation creates efficiencies and allows increase in volume
-
Increased focus on risk management
- Increased
volumes create focus on error reduction
- September
15th showed us how important it was to maintain up-to-date trade
records
- Can
review broker performance by
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