SimCorp today released a new paper, titled “Derivatives Processing – Managing the Entire Trade Lifecycle,” that highlights the pressing need for automation of over-the-counter (OTC) derivatives transactions for firms to cope operationally.
The paper outlines the challenges for buy-side firms as the use of OTC derivatives increases while the regulations that govern them become increasingly complex. Implementation of regulations, such as EMIR and Dodd Frank, are underway raising a demand for centralized clearing services, collection and dissemination of trade data and trade execution through organized platforms.
These processes have new and complex operational requirements which many buy-side firms attempt to manage by using inadequate legacy systems, the paper explains. A recent SimCorp survey on the topic revealed that four out of five North American buy-side firms rely on work-arounds to support derivatives trading, compromising the accuracy of client reports in the process.
The paper also explores the benefits of state-of-the-art technology which allows for full automation of derivatives processing and eliminates the errors associated with the use of spreadsheets and manual processes. Without automated procedures in place, firms will find it increasingly difficult to achieve regulatory compliance, control operational costs and remain competitive.
The paper builds on an extensive report released earlier this year which investigates the dangers of investment firms operating with legacy technology, published by the SimCorp StrategyLab and available here.
To download a copy of the new paper on state-of-the-art derivatives processing, please click here.
Sophia Morrell, Greentarget, +44 (0) 207 324 5487+44 (0) 207 324 5487, [email protected]
Since 1971, SimCorp has been providing investment and portfolio management software and services to the world’s leading investment managers, asset managers, fund managers, fund administrators, pension funds, insurance funds and wealth managers. SimCorp’s world-class software provides global financial organizations with the tools they need to mitigate risk, reduce cost and enable growth. SimCorp is a global company, regionally covering all of Europe, North America and Asia Pacific. Listed on the NASDAQ OMX Copenhagen, SimCorp is dedicated to supporting the global investment management industry, its clients and its investors. For more information about SimCorp’s products, please visit www.simcorp.com/product.