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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