“To walk onto a modern trading floor is to witness the extraordinary power of technology in changing the way business is conducted. While trades were once struck with esoteric shouts and signals, machines now dominate, with microseconds saved and dollars gained by the smartest systems. Just as smartphones have revolutionized how we communicate and consume information, technology has created unprecedented efficiencies in trading financial instruments. But scratch below the surface, and you’ll find the financial world is not always as automated and efficient as it might appear.
The over-the-counter derivatives market enables governments and companies worldwide to manage their business risks and create greater certainty and stability. Yet, despite its importance, the industry still relies on paper documents, manual processes and non-standard practices. Unlike on the trading floor, where individual entities can yield a competitive advantage by adopting faster and more powerful systems, operational challenges are addressed most effectively when market participants work together to design common solutions.”
ISDA CEO Scott O’Malia wrote an article for the Autumn 2023 edition of International Banker magazine, in which he explores the benefits of mutualized industry solutions to address common challenges in the derivatives market, addressing regulatory initial margin, document negotiation and the physical delivery of critical termination notices.
Click on the attached PDF to read the article in full.
Documents (1) for International Banker: Common Problems, Mutualized Solutions
Latest
ISDA AGM Studio: Emmanuel Geinoz and Eleanor Kelly
Five jurisdictions went live with revised derivatives reporting rules in 2024, with more to follow in 2025 and beyond, putting reporting teams under extreme pressure to implement accurately and on time to avoid regulatory penalties. Emmanuel Geinoz, market infrastructure and...
ISDA AGM Studio: Tyler Wellensiek, Stephen Berger
The first phase of the Securities and Exchange Commission’s Treasury clearing mandate will come into effect in December 2026 – a requirement that will have a significant impact on both US and non-US market participants. Tyler Wellensiek, ISDA board member...
ISDA AGM Studio: Jacques Vigner, BNP Paribas
Jacques Vigner, ISDA board member and chief strategic oversight officer for global markets at BNP Paribas, speaks with Mark Gheerbrant, global head of risk and capital at ISDA, on the key obstacles to a consistent, risk-appropriate capital framework and how to...
ISDA AGM Studio: Future Leaders in Derivatives
Following publication of the latest whitepaper from the ISDA Future Leaders in Derivatives (IFLD) program, Collateral and Liquidity Efficiency in the Derivatives Market: Navigating Risk in a Fragile Ecosystem, Joel Clark talks to IFLD participants Koen Ottenheijm, senior treasury and...