April 28, 2008 Issue Abstract

OTC Derivatives: Erratic Manual Processes, Fragmented Systems Increase Risks in OTC Derivatives Processing. Even after witnessing many improvements in automating processing of credit derivatives trades, achieving electronic processing of the broader category of over-the-counter (OTC) derivatives remains a “herculean” task in the marketplace.

Industry Alert: Fragmentation, Multi-Asset Trading Make DMA Obsolete. The combination of new regulations and rapid technology advances have changed the nature of liquidity in the financial markets in ways outside the reach of, and unaffected by, economic ups and downs.

Securities Trading: NYFIX-FIXCITY Merger to Breathe New Life Into IOIs. NYFIX Inc., a provider of marketplace connectivity and electronic trading solutions, is setting out to change the buy-side’s perception of indications of interest (IOIs) from being the equivalent of spam advertising by helping sell-side firms make them significantly more meaningful IOLs, or indications of liquidity.

Spotlight: Jenny Tsouvalis, Vice President, Investment Operations and Applications, OMERS. The Ontario Municipal Employees Retirement System has implemented IT solutions and operational processes to deliver daily and, where necessary, up-to-the-minute information flows.

FX Trading: Wall Street Systems Scores With Modular Solutions. Bank Julius Baer turned to transaction processing systems provider Wall Street Systems and its Wallstreet FX solutions because of its modular offerings covering multiple products within the FX space.

Reference Data: Regulatory Hand Seen as Major Driver in Data Push. The trend toward straight-through processing, the Markets in Financial Instruments Directive (MiFID), Basel II, the Sarbanes-Oxley Act and UCITS III regulation have each led to significant progress in reference data management, according to a survey of 412 financial institutions in 65 countries in all major geographic regions.

Investment Trends: Global Mandates, 130/30 Strategies on the Rise in 2008. Corporate and public pension funds, endowments and foundations in the US will increase emphasis on alternative investments and foreign equity products in 2008, focusing less on allocations to US equities and fixed income mandates, suggests a survey of consultants who assist pension funds in manager searches.