This morning, SunGard released a new report, “Key Trends Shaping the Future of Commodities Trading.” I spoke with Matthew Healey and Giancarlo Delia from Kiodex, Sungard’s commodity risk management system for capital market participants. The trends include the end of the commodities supercycle, which will drive fund managers to adopt asset class-specific strategies, and collateral and margin changes as a result of Dodd-Frank and its global counterparts. Additionally, according to Healey, the intra-day execution risk from the growth of HFT is driving a need for real-time risk analytics at the firm, exchange and regulatory levels.

Regarding the shift of swaps onto transparent, cleared platforms? Delia believes it will lead to more volume in all venues, likening it to the effect of ETFs on S&P 500 futures and options back in the ‘90s. Let’s hope he is right.

I couldn’t help pointing out that, for each “trend” identified, SunGard has a solution in place. How convenient that their research supported the product mix. “On the contrary,” said Healey, arguing that the company adapts its product mix to its research, not the other way around.

Touché.

To view the press release: jlne.ws/1gpRIts
To visit the Kiodex web site: jlne.ws/GMQuvb

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