14 Jan 2011
David Holcombe
Activity in the post trade space is going to be high this year. From multiple matching services routing to multiple clearers for OTC products, the potential for geographic jurisdiction of client, dealer and product to influence routing from a regulatory perspective, OTC derivatives participants will have a lot on their plate in 2011.
What's more, each party will need to consider the financial implications of clearing, margin / collateral management and utilisation, to name just a few of the ingredients in their routing decisions. Plus, if you are dealer-side, plain old client-expressed choice cannot be overlooked.
OTC derivatives players should look at some of the change that the equity market has undergone over the past few years. For example, consideration of 'Smart Order Routers' built for equity could provide value when building out algorithmic decision making for multi-venue connectivity and trade state management for OTC clearing; essentially a future state that is going to need to be Smart Post Trade (SPT).
So will 2011 be the year that SPT becomes the new STP?
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This blog first appeared on Finextra. Click here to see the entry on the Finextra website
