From February 13-15, 2019, FIA and the SIFMA Asset Management Group hosted their annual forum, which brings together market participants from all sides of a trade to examine the latest developments in global derivatives trading and clearing, operations and regulation. More than 400 attendees examined important trends related to regulatory recalibration and industry collaboration.
Today’s markets are still adapting to significant changes since the 2008 global financial crisis. In the aftermath of the crisis, regulators and legislators across the globe began developing new regulations and laws to improve the safety and soundness of the global financial system and protect their own nations’ systems and economies.
We ended up with a two-track system: (1) high-level reforms issued by global standard setters to repair the global financial system and to maintain the global flow of capital; and (2) regional and national laws and regulations, some of which followed global recommendations while others added additional regulatory requirements. Markets ended up with a spider web of regulations across the globe, some of which are duplicative or even contradictory. What can market participants do to move forward?
This question and more were discussed at the FIA and SIFMA Asset Management Group’s fifth annual Asset Management Derivatives Forum. FIA and SIFMA staff developed a high-level report detailing the key takeaways form the forum include:
- Regulatory Recalibration, Changing the Story – Properly sizing the total market changes the conversation on sizing risk and then regulators can re-examine how regulatory thresholds are set.
- Cross-Border Harmonization, In and Out of the US – Without harmonization, markets can fragment, splitting liquidity pools and negatively impacting the efficiency of trading and clearing.
- Fintech, the Search for Solutions – The complexity of derivatives markets makes it more challenging to implement emerging technologies, but practical applications in operations & compliance are already underway.
- Operations, Creating Intelligent Workflows – Operational enhancements and industry collaboration to pave the way for a more intelligent workflow for derivatives trading.
Read the full recap report and save-the-date for the next year's forum taking place from February 5-7, 2020 in Dana Point, CA.