2012 Buy-Side Survey Results

Key findings

  • The majority of respondents (92%) expect their OTC Derivatives usage to increase or stay the same. Using counterparties for OTC valuations was the most popular method cited in this year's survey (48%).
  • More than one-third (36%) of respondents trade, structure, support or sell structured products in their portfolio.
  • The biggest challenges faced by buy-side respondents this year include accurate risk assessment (27%) and independent pricing and valuation (25%).
  • Respondents cited "greater analysis and awareness of model risk" (49%) and "carrying out stress testing" (47%) as the key ways to adjust their risk management strategy.
  • Respondents believed that most the important elements of an OTC derivatives pricing and risk management solution were transparent, documented models (73%) and portfolio valuation and analysis (71%).
  • 64% of respondents said regulations will have a major or moderate impact.
  • 83% of the respondents expect their company to keep their IT spending as is or increase this year.

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