28 Sep 2011
In the first of a two-part podcast series, Ciaran Henry spoke with Rob Daly of Waters Technology on the various approaches sell-side firms are taking to comply with OTC regulations such as the Dodd-Frank reform.
In the podcast, Ciaran explores how sell-side firms are preparing legacy OTC systems for real-time, intraday reporting, as well as identifying opportunities to leverage new reporting capabilities as a prime broker offering. Considering the timeframes for reform compliance, Ciaran says, “It is a moving target and hard to align with. Work needs to be started now, and all compliance work should be completed within an 18-month timeframe”.
He added: “In my view, the OTC market will move in a similar way to how the equities market adapted to RegNMS. As the OTC market evolves, multiple liquidity pools will be created and we will need smart order-routing”.
New technologies will be instrumental to providing real-time reporting for regulators with Ciaran highlighting HTML5 and WebSockets as efficient ways to go about reporting via online portals.
In the next podcast, Ciaran will discuss how firms can leverage existing low-latency infrastructures and smart order-routing to prepare for the rocky maturation of this new electronic market. Having invested heavily in low-to-zero latency messaging, larger firms are seeking ways to adapt this technology for new regulatory reporting – and seeking to recover existing investments more quickly.
To listen to the full interview on WatersTechnology.com, click here.
