
Identifying and managing specific risks
Within the derivatives operations environment, the use of systems
and technology is extensive. Everything from SPAN and TIMS margin
calculations to value-added services to clients are run on in-house
and/or external systems. Important interfaces exist for processes
such as trade registration and clearing with the clearing house,
as well as in some cases the process for submitting exercise and
tender notices between client and broker and broker and clearing
house.
It is therefore important to understand the operational risk that
exists in the form of system or technology ...