Invited over to the Sungard office to broadcast a panel that was organized by Steven Edge from Asia E Trading. The panel included TK Yap, Exec Director, from DBS Securities, Matthew Pang, CEO of UOB Bullion & Chris Rojek, Head of Pre-Sales at Sungard.
We had a very interesting discussion on having a single platform that provides margin for both exchange traded and OTC derivatives. We moved on from there to discussing who should be responsible for a enterprise wide margining platform, whether it’s the clearing broker, executing broker or the CCP. TK Yap mentioned how on the securities side SGX was already building a platform to cater to the end user of brokers. I mentioned that from the OTC perspective, a CCP cannot be relied on for providing an enterprise wide margining system simply because it does not have an ability to view a clearing member’s bi-lateral trading portfolio. Hence an enterprise wide margining system should be built in house for every market participant.
We also discussed the benefits of pledged collateral versus title transfer as well as the costs of technology in the near future for providing margining solutions.
You can capture the whole session on youtube on: