Managing Derivatives Contracts : A Guide to Derivatives Market Structure, Contract Life Cycle, Operations, and Systems

CHAPTER   17

Derivatives and Information Technology

Although fundamental derivative products are not new to markets, many complex derivative contracts have been introduced in the last decade. The systems dealing with listed derivatives have matured, but because of the complexity and customized nature of OTC derivatives, systems are still evolving in this market. Although there are many well-developed products serving specific independent areas such as trade processing, analytics, and risk management, there is still room for an integrated, efficient platform that supports end-to-end derivatives business activities. Immature processes, use of distributed data across multiple systems, and poorly functioning systems increase operational and other ...