ISDA AGM to Highlight Economic Value of OTC Derivatives
Targeted News Service |
According to the survey, the demand for OTC derivatives by end-users remains very strong. Eighty-six percent of the survey respondents believe that OTC derivatives are very important or important to their risk management strategy. More than three quarters expect to increase or maintain their current level of derivatives activity during the second quarter of 2014. A small fraction said they expected that their use of OTC derivatives would decrease.
A total of 245 firms responded to the survey. Forty-two percent were non-financial corporates and 49% were financial institutions (insurers, finance companies, asset managers and bank end-users). Forty-five percent were headquartered in
"As the OTC derivatives market continues to evolve amidst significant changes, it is clear that end-users around the world want and need the ability to use these instruments to manage the risks arising from their business and financing activities," said
Among the survey highlights:
* Most end-user respondents (57%) agree that the financial system is safer today than before the financial crisis. The top factor in enhancing safety is tighter credit risk management, which was identified by 86% of respondents as either very important or important. Reduction of leverage (76%) and capital requirements (79%) also rated highly. Central clearing mandates (32%), trade execution requirements (34%) and transaction reporting requirements (30%) were seen as less important.
* Nearly three quarters (74%) of end-users believe the new electronic trade execution requirements for OTC derivatives in the US and
* Sixty-eight percent of end-users believe the new financial landscape is increasing costs related to hedging and 81% believe it is increasing administrative burdens.
* Nearly half (47%) agree that market fragmentation is occurring along geographic lines as a result of the regulatory framework that is being put in place in key jurisdictions. Sixty-one percent of those who believe the market is fragmenting think it is having a negative impact on their firm's ability to manage risk. Eighty-three percent of those who see the market fragmenting believe it is increasing costs of OTC derivatives.
The
900 attendees are expected at
* Jean Pierre Mustier, Deputy
* Dr
* Thomas C Deas, Jr, Vice President & Treasurer,
*
* Prof Dr
* Dr
AGM sessions and panels include:
* The Social and Economic Value of Derivatives and Finance
* End-user Perspectives on Derivatives Growth
* The Many Facets of Capital and its Effect on Derivatives Usage
* Legal & Documentation
* Business Roundtable: Where is the Derivatives Business Headed
* Cornerstones of the New Market Structure: Clearing, Margin, Execution
* Specialist Sessions on collateral and product steering committees, global regulatory developments, data and reporting, and key legal initiatives
A full agenda of AGM 2014 is available on the
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Copyright: | (c) 2014 Targeted News Service |
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