Outlook for Derivatives 2014: A Market in Transition

On May 6, topics from market structure developments to regulatory oversight and the impact of innovative technology were discussed at the Second Annual TabbFORUM Derivatives Conference in Chicago. Most agreed that market structure is changing constantly and that successful firms and traders must stay abreast of changes to existing rules and different types of technology being introduced into the marketplace.

Going forward, these changes will present unique opportunities, but it also means the industry must be ready to confront some of its biggest challenges. Front the front to the back office, ensuring seamless and adequate executions and trade processing will require constant investment. Moreover, finding qualified personnel, including programmers and compliance professionals, will require hiring talent that can support different realities of changing infrastructure under a new set of rules.

TABB Group believes that changes in regulation will develop slowly, although some form of principles-based regulation of automated trading is inevitable. Meanwhile, the derivatives industry, with its centralization advantages, needs to continue innovating products and services as well as developing best practices in handling complex new execution, business and technological processes.

The report includes data and analysis to support major findings including 7 TABB Group exhibits. Table of Exhibits:
• Derivatives Markets Key Areas for Discussion
• Timeline of Major Events
• Flash Boys’ likely impacts on the industry
• Primary Capital Markets Drivers
• Derivatives Markets’ Biggest Technology Challenges in the Next 2 Years
• U.S. Buy Side Futures Volume by Execution Channel
• Regulatory Drivers for Change