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Converging Systems

Explore the current state of affairs and future trends in processing security-related derivatives, including transaction registration, trade clearing, payments, position keeping, margining, and more.

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Converging Systems

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  1. Converging Systems Future Trends in Processing Security-Related Derivatives

  2. Transaction Registration/ Reconciliation Matched Trade Clearing Payments Position Keeping/Marking Margining Delivery Dividends/Interest Corporate Actions Transaction Registration/ Reconciliation Matched Trade Clearing Payments Position Keeping/Marking Margining Delivery Dividends/Interest Corporate Actions Current State of Affairs Futures Processing Securities Processing Where Function Handled

  3. Panelists • Leslie R. Sutphen, President, Financial Markets Consulting, Inc. • Stephen P. Auerbach, President, SunGard Futures Systems • James Birney, Chief Financial Officer, Rolfe & Nolan • Eric Wicart, Global Head of Sales, Ubitrade • Leonard Musso, First Vice President, Lehmann Brothers

  4. Eric Wicart: The European Experience

  5. Lenny Musso: Likely Customers • Hedge Funds • CTA’s • Retail Clients

  6. Integrated Processing Solution Futures Engine Securities System Customer Physical Cash and option position Futures Clients Security Clients Portfolio Repository Margin Engine Trade Rec and Settlement Margin Calc OCC Customer Statements SEG SIPC

  7. Steve Auerbach: Margining Across Asset Classes • Legal Perspective: What am I allowed to do? • Operational Perspective: What can I do? • Business Strategy Perspective: What do my customers want?

  8. Margining Across Asset Classes • Algorithm favors equities • European/Asian experience show listed derivatives win

  9. Key: Know Your Customer • Daytrader would favor futures treatment • Position trader would favor equity treatment

  10. Jim Birney: Handling Physical Delivery

  11. General Discussion • What unique delivery problems are presented by narrow based index products?

  12. General Discussion • Where is equity derivative processing headed?

  13. General Discussion • What problems do lack of product fungibility present?

  14. General Discussion • What do “securities only” firms do to process security futures?

  15. General Discussion • Will securities futures processing impact other financial futures?

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