BOSTON – August 19, 2010 – Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), has published its Summer 2010 edition of Crossings, The Journal of Trading and Risk Management, that looks closely at the regulatory reforms proposed in Europe and the U.S. and the effect that these regulations may have on the global financial markets. This third installment of Crossings is now available as a PDF download at www.sapientglobalmarkets.com.
“At the end of May 2010, right as we were going to print this edition of Crossings, the U.S. Senate passed its version of financial reform legislation,” writes Chip Register, SVP and managing director, Sapient Global Markets. “It’s no coincidence that a majority of the topics covered in this edition are dedicated to the review and commentary of pending reforms, as well as potential future-state market structures. The scale and ambition of the overhaul is astounding and will shape the markets in the years ahead.”
Article titles in the Summer 2010 Crossings issue include:
- U.S. Financial Reform: overview and industry implications - Chris Ekonomidis and Ryan Baccus shed light on the committees and influencers involved in U.S. financial services regulation.
- OTC Derivatives: the evolution of market infrastructure - Bill Hodgson and Ryan
Baccus highlight how far the infrastructure of the OTC (over-the-counter) derivatives market has evolved over the past four years to become more automated and discuss how some of the new market developments will address regulators’ concerns regarding transparency.
- Loan Trading: market reform - Bernadette Conway and Karl Page look at how some of the regulatory reforms in the U.S. and Europe will affect the trading of loans.
- Insurance: risk, regulation, and the path to Solvency II – Winn Faria and Paul Saunders offer an analysis of how potential regulation may affect various industries, and discuss the impact of Solvency II on the insurance sector.
- Regulatory Shifts and Lessons for Risk Management: an interview with Dynegy’s Rudi Zipter – As vice president of commercial trading at Dynegy, a leader in the energy sector, Zipter offers his unique insights on the trickle-down effect that pending financial market reforms may have on banking counterparties and explains the challenges of new reporting requirements and how organizations can be better prepared to meet them.
- Asset Management Technology and Process: alignment and evolution toward cross-asset operational efficiency - Mark Israel and Sean Smillie discuss how asset managers are moving toward a single technology platform that processes all trades across asset classes.
- OMS Evaluation: accommodating asset managers’ evolving needs - Kevin Masso and Anurag Mathur add to this technology discussion by outlining key considerations for upgrades or new implementations of Order Management Systems.
- OTC Derivatives Valuation: adoption of multiple pricing curves - Kevin Samborn investigates a remarkable new development in the derivatives market regarding how swap curves are valued.
- Energy Risk Management: toward a consistent approach – Tony West and Sunilkumar Ramakrishnan write on how energy trading companies are becoming more sophisticated in the way that they manage risk.
“In reviewing all of these articles, it is clear that whether you are involved in asset management, insurance, energy trading, or investment banking, regulatory reform will drive increased automation and transparency,” comments Jonathan Davies, vice president of Sapient Global Markets. “The reforms are likely to provide an impetus for many of our clients to better manage and understand their risks. The short-term effects of this improvement could be reduced market liquidity and costly implementation projects, while the strategic long-term outcome could be improved risk management. It is important, however, that the industries do not become over-regulated—with the cost to implement regulations driving key institutions out of the capital and commodities markets.”
For more insights from the third edition of Crossings, please visit: www.sapientglobalmarkets.com.
About Sapient Global Markets
Sapient Global Markets, a division of Sapient® (NASDAQ: SAPE), is a leading provider of services to today’s evolving financial and commodity markets. We provide a full range of capabilities to help our clients grow and enhance their businesses, create robust and transparent infrastructure, manage operating costs, and foster innovation throughout their organizations. We offer services across Advisory, Analytics, Technology, and Process, as well as unique methodologies in program management, technology development, and process outsourcing. Sapient Global Markets operates in key financial and commodity centers worldwide, including Boston, Chicago, Houston, New York, Calgary, Toronto, London, Amsterdam, Düsseldorf, Geneva, Munich, Zurich, and Singapore, as well as in large technology development and operations outsourcing centers in Bangalore, Delhi, and Noida, India. For more information, visit www.sapientglobalmarkets.com.
# # #