Outsourcing Taking Hold in Derivatives Processing
As the asset management and brokerage communities place increasing emphasis on over-the-counter derivatives, their middle and back offices are struggling with the demands. Many are turning to outsourcing for help with the complex administrative needs.
Recent events have highlighted the need for automation. "Counterparty risk has existed in the OTC market from day one, long before the credit crunch took place," says Colm Gaughran, global product head of JP Morgan Chase & Co.'s Derivatives Collateral Management (DCM) service. "However, market turmoil and regulatory intervention have increased the focus on the risks, and created an impetus for change."
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