|
|
- 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
|
|
- Industry regulatory initiatives
- In the US,
the SEC, CFTC and Treasury want to ‘reform’ the regulatory
framework
- In Europe, MiFID will
penetrate the derivatives market creating the need for:
- Pre
and post-trade transparency
- Demonstrable
best execution
- Accurate
record keeping and trade reporting
- Both in
the US and Europe there are a number central clearing “CCP”
initiatives
-
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
- 9/11 showed us how important it is to maintain up-to-date trade
records
- Can
review broker performance by
|
|
