Dealers face up to OTC clearing's tech revolution

Build or buy? It’s a key decision in every big IT project, and the shift to OTC clearing is one of the biggest the industry has faced. Many dealers are adapting existing in-house systems, but vendors are also pushing off-the-shelf solutions

Over-the-counter derivatives markets depend on technology. Pricing, trade execution, life cycle management and risk control demand an IT infrastructure that is both extensive and complex – so any change in the way the market operates will have a technology impact. And when the change is as fundamental as a move from bilateral trading to central clearing, the impact is immense. As the market is restructured around new entities, relationships and processes, all participants have to review and