2012 Sell-Side Survey Results
Key findings
- For sell-side respondents, the most heavily traded derivatives were interest rates (59%), FX (51%), and fixed income (50%).
- More than two-thirds of respondents (67%) reported using an external library as their primary derivatives analytics tool, either alone or in combination with their in-house system.
- While accurate risk assessment (22%) was seen as the biggest challenge for sell-side respondents, this was followed closely by regulatory compliance (21%) and independent pricing/valuation (19%).
- Stress testing and scenario analysis (48%) edged out greater analysis and awareness of model risk (47%) as the key ways of adjusting respondents' risk strategy.
- As regulations take shape, 68% expect that there will be a major or moderate impact on their business.
- Three in four respondents (75%) expect IT spending to increase this year.
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