Sapient Global Markets Publishes OTC Derivatives Industry Initiatives Handbook to Provide Clients with Consolidated Reference Point for Over-the-Counter Regulatory Commitments and Market Utility Deliverables for 2010
Handbook Made Publicly Available for Free Download at SapientGlobalMarkets.com
Boston, MA -- October 21, 2010 – —Sapient Global Markets, part of Sapient (NASDAQ: SAPE) and a leading provider of services to today’s institutional, financial and commodity markets participants, today announced the availability of its Over-the-Counter (OTC) Derivatives Handbook to provide a consolidated reference point for all OTC regulatory commitments and market utility deliverables for 2010. Originally created for clients, the OTC Handbook is available for the first time to the public as a free download at: www.SapientGlobalMarkets.com.
Since 2005, Sapient Global Markets has been involved closely with industry-led initiatives, including the collation of industry metrics and the implementation of system and process change in response to a dynamic market landscape. Sapient also worked to establish a market utility Program Management Office (PMO), and has served as an advisor to service providers and a range of financial institutions.
“Because Sapient Global Markets offers services across advisory, analytics, technology, and process, we are able to provide a unique 360° insight that allows us to present a comprehensive road map with context for each milestone as well as additional points of view from a variety of industry experts,” said Chip Register, SVP and managing director of Sapient Global Markets. “The purpose of the handbook is not to justify Industry Initiatives, but to raise awareness and create a better understanding of how market participants can meet them successfully. Ultimately, we compiled them into one convenient handbook to provide clients with a one-stop-reference point for these initiatives. We are happy now to offer this handbook to the public for free download from our website.”
The 2010 OTC Handbook is divided into six sections:
1. Background and History - A look back at the evolution of Industry Initiatives and commitment letters in an effort to better understand the context of the 2010 commitments as well as review the lessons learned.
2. The Road Ahead - An overview of the current industry commitments set forth in the OSC’s March 2010 letter with a view to understanding the challenges ahead, including a consolidated roadmap.
3. 2011: The Road Beyond - A look at potential 2011 changes to the market landscape.
4. Commentary from Service Providers and Industry Associations - Insight from prominent service providers and industry association representatives.
5. Commitments by Asset Class - A quick reference guide for commitments, by asset class, and inclusive of commentary from relevant industry forum figures.
6. Appendices and Reference Material
“Given the global nature of OTC derivatives trading, the solution to protecting the markets from systemic risk and ensuring the highest level of transparency must include a global approach, while still having the ability to fulfill the needs of a regulator in its home jurisdiction,” noted Stewart Macbeth, General Manager DTCC Trade Information Warehouse.
Julian Day, Head of Trading Infrastructure, International Swaps and Derivatives Association (ISDA) said: “Through improved transparency, we will no longer have issues like we did after the Lehman bankruptcy, when market participants and others were concerned about firms’ exposures to that situation. And firms like AIG will no longer be able to amass so much exposure virtually unnoticed.”
All 2010 initiatives described within the OTC Handbook are from the Operations Steering Committee’s (OSC) March 2010 Supervisory Letter sent to the Federal Reserve Bank of New York (FRBNY). For many Sapient asset management and investment banking clients, Industry Initiatives have driven the majority of their 2010 project portfolios for OTC Derivatives.
“The popularity and influence of Industry Initiatives is based upon their recent record of success in delivering major operational and process efficiencies through central infrastructure and revised market practice,” added Register. “There is a strong correlation between Industry Initiatives and regulatory legislation -- particularly clearing and reporting -- with the former providing the delivery vehicle to satisfy the latter.”
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.
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