The Future of OTC Derivatives: Keeping the Business Alive

Will the over-the-counter derivatives market disappear? The death of this market would please the popular press and some regulators, but trading financial products in a bilateral manner is in the blood of companies in all sectors, such as oil companies, consumer products companies, and, of course, financial service institutions. The failure of major OTC derivative players and public outcry ensure that the regulators will transform — though not kill — the industry.

Stephen Bruel is a Research Director in TowerGroup's Securities & Capital Markets practice. He focuses on the strategic impact of technology in the capital markets industry, addressing technology, operations, and business issues. In his research and analysis, he examines the dramatic changes affecting the capital markets business, including global regulatory issues, risk management, alternative asset classes, and investment banking.