Too much trouble to be worth it?


Does trading OTC derivatives these days seem to be too much trouble to be worth it?

Many firms are concerned about the transition from a bi-lateral, loosely-regulated market to a strongly regulated market reliant on new and untested central utilities. In the good old days, communications about swaps were on the phone or via fax, but now there are a myriad of requirements for electronic messaging, whether they be real-time, near-real-time, public, non-public, primary economic, confirmation-oriented, valuations, collateral, or clearing-related.

Navigating these changes and understanding the direction and impact and of the new standards can be a challenge. Global Electronic Markets (GEM) exists to help swaps market participants and service providers to learn about how to use, extend, and influence the standards that are being developed today to meet the challenges of Twenty-First Century trading in OTC derivatives.

GEM is the leading consulting firm specializing in FpML-based messaging about OTC derivative products and business processes.
Top Headlines
Sept, 2011 - GEM and Sapient Ally

GEM and Sapient have allied. See Partners for more information.

Sept, 2011 - GEM publishes an overview to financial reform acronyms

GEM has published a diagram and description of key acronyms related to financial regulatory reform, and how these relate to FpML. See Acronyms for more information .

July, 2011 - FpML 5.2 WD#2 Includes GEM Contributions

FpML 5.2 focuses on clearing and public price reporting enahancements. GEM's Brian Lynn chairs the FpML Reporting and Business Process Working Groups, which are charged with key aspects of FpML's response to Dodd-Frank regulations. See People for more information about Brian.

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Case Studies

BNP Paribas uses GEM's FpML Mediator to perform real-time reconciliation of their front office to back office STP feed for interest rate derivatives.

Result: 99%+ of trades and amendments reconciled automatically, lower error rate and less effort.

GEM developed the technical specification for the Data Standards Working Group (DSWG), a group of hedge funds needing detailed daily cross-product OTC derivative position reports from dealers.

Result: a dozen derivative dealers can now send daily inventory listings with valuations and settlement information in a standardized form to over a dozen funds. The Asset Managers Forum of the Bond Market Association has recommended this as a best practice for electronic derivatives position reporting.