JAMES WATT
Sponsored by: Ineum Consulting
The formation of the Chicago Board of Trade (CBOT), arguably the first modern futures exchange, was born in 1858. Since that date, over 100 independent futures exchanges have developed around the globe. Futures markets are being traded electronically 24x7 on a global basis, however, these markets have developed in a disparate manner with minimal standardisation.
Consequently (and surprisingly) there are virtually no systems that facilitate Straight Through Processing (STP). There is a lack of standardisation of data, golden sources, contract terms for similar contracts, margin algorithms or communications protocols. While there has been significant development of front office applications, the middle and back office has lagged behind. This lack of development in post trade processes is reflected in a selection of inflexible and old middle and back office application systems presented by the vendors.
With new developments such as algorithmic trading and the transition of bilateral OTC contracts to become exchange traded, the pace of market change continues to outstrip the capability of systems. The renewed focus by regulators on the middle and back office is forcing vendors to develop new applications to meet with client requirements.
This session will assess market and vendor developments, the options available to market participants and challenge the notion that true STP can be achieved.
| 
