FINCAD Annual Buy and Sell-Side Survey Results Webinar
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Transcript of FINCAD Annual Buy and Sell-Side Survey Results Webinar
©2013 - Proprietary and Confidential Information of FINCAD 1
2013 SURVEY RESULTS WEBINAR
Start Time: June 27th, 2013 11:00 A.M. EST
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Presenter: Matthew Streeter, CFAProduct Marketing Manager at FINCAD
->10+ years of finance industry experience
-> Work experience at buy-side & sell-side institutions.
-> Structuring & quantitative product development, Trade execution, Risk measurement, P&L attribution.
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Agenda
FINCAD’s Survey Methodology
Derivatives Market Trends
Pricing & Risk Business Requirements
Technology Initiatives & Spending
Q & A
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FINCAD’S SURVEY METHODOLOGY
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404 buy-side firms represented
Asset Managers (47%) Other responded firms:
Hedge funds Fund administrators Pensions Insurance
Respondents were from a global pool
FINCAD’s Buy-Side Analysis
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667 sell-side firms were represented in survey
Two largest segments: Commercial banks Investment banks
Other responders: Broker-dealers Private banks Regional banks
FINCAD’s Sell-Side Analysis
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SELL-SIDE & BUY-SIDE OTC DERIVATIVES TRENDS
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Sell-Side Buy-Side
Sell-Side & Buy-Side OTC Derivatives Trends
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Detail into OTC Derivatives Reduced Usage
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Biggest Sell-Side Challenge: Regulatory Compliance & Independent Valuation
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Biggest Sell-Side Challenge: Regulatory Requirements
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A Look at Evolving Buy-Side Risk Requirements
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Global Framework of Regulatory Compliance
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A Look at EvolvingSell-Side Risk Requirements
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A Look at Evolving Sell-Side Risk Requirements
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A Look at Evolving Buy-Side Risk Requirements
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A Look at Evolving Buy-Side Risk Requirements
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A Look at Evolving Buy-Side Risk Requirements
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TOP 6 SYSTEM RISK SYSTEM IMPLEMENTATION REQUIREMENTS
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Technology Spending Trends
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Today’s takeaways
Projected Derivatives usage: Projected increase in derivatives strategies for return generation & risk management.
Potential volume increase in centrally cleared instruments as trading alternatives.
Pricing & risk related trends: focus on regulatory compliance, more effective risk management, and improved independent valuation capabilities.
Technology spending: Projected to increase since last year. The majority of these projects are related to risk & pricing systems.
Pricing & Risk Solution capabilities: Required to be a fully transparent & documented tool that is easy to implement.