FINCAD 2012 Sell-Side Survey

FIN CAD 2012 SELL-SIDE SURVEY FINCAD conducted online surveys of financial professionals working for sell-side, buy-side, and corporations from around the world. Find out their perspectives on risk management practices, challenges with respect to derivatives. MOST HEAVILY TRADED: 59% Interest Rates 51% 2 FX 50% 3 Fixed Income 42% In a structured products portfolio, fixed income is still the most ARE INVOLVED WITH STRUCTURED PRODUCTS popular asset class, followed by rates. Slight increase in credit, commodities and FX compared to last year's survey. MORE THAN 2/3 USE A 3RD PARTY ANALYTICS LIBRARY 3rd Party Analytics are playing a significant role. 67% of respondents reported using an external library as their primary derivatives analytics tool – either alone or in combination with their in-house system. WHAT'S THE BIGGEST CHALLENGE? 1 Accurate Risk Assessment 2 Regulatory Compliance 3 Independent Pricing /Valuation While Accurate Risk Assessment (22%) was seen as the biggest challenge, this was followed closely by Regulatory Compliance (21%) and Independent Pricing/ Valuation (19%). KEY WAYS OF ADJUSTING RISK STRATEGY 1 Stress Testing and Scenario Analysis 2 Greater Analysis of Model Risk Stress testing and scenario analysis (48%) edged out greater analysis and awareness of model risk (47%) as the key ways of adjusting their risk strategy. KNOWING THEIR Monte Carlo VaR RISK IN REAL TIME (34%) topped the list as most important type of risk analysis used, followed by CVA (20%). was important for more than half of the respondents. 61% need to know the risk of their portfolio on-demand or intra day. ANTICIPATEDA MAJOR OR MODERATE IMPACT ON THEIR BUSINESS 68% 68% expect there will be a major or moderate impact on their business – this is an increase over results from prior years (57% in 2011 and 2010 surveys). 0000 3 IN 4 EXPECT SPENDING TO INCREASE In the 2012 survey, 75% expected their IT spending to increase this year. This is a decline compared to surveys in the prior years (87% in 2011 and 86% in 2010). FINCAD Founded in 1990, FINCAD provides advanced modelling solutions built on award-winning, patent pending technology. With more than 4,000 clients in over 80 countires around the world, FINCAD is the leading providor of financial analytics technology, enabling global market participants to make informed hedging and investment decisions. fincad provides software and services supporting the valuation, reporitng and risk management of derivatives and fixed income portfolios to banks, corporate treasuries, hedge funds, asset management firms, audit firms and gov- ernments. FINCAD analytics can be accessed through excel, matlab, as a software-as-a-service or embedded into an existing system through software development kits. Now, over 70 fincad alliance partners embed fincad analytics within their solutions. FINCAD provides sales and client services from Dublin, Ireland, and Vancouver, Canada. INFORMATION IS BASED ON FINCAD, 2012 Sell-Side Survey Results. http://www.fincad.com/derivatives-resources/survey/sell-side-2012.aspx DISCLAIMER Your use of the information in this article is at your own risk. The information in this article is provided on an "as is" basis and without any representation, obligation, or warranty from FINCAD of any kind, whether express or implied. We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research. FIN CAD 2012 ... SELL-SIDE SURVEY FINCAD conducted online surveys of financial professionals working for sell-side, buy-side, and corporations from around the world. Find out their perspectives on risk management practices, challenges with respect to derivatives. MOST HEAVILY TRADED: 59% 1 Interest Rates 51% 2 FX 50% 3 Fixed Income 42% In a structured products portfolio, fixed income is still the most ARE INVOLVED WITH STRUCTURED PRODUCTS popular asset class, followed by rates. Slight increase in credit, commodities and FX compared to last year's survey. MORE THAN 2/3 USE A 3RD PARTY ANALYTICS LIBRARY 3rd Party Analytics are playing a significant role. 67% of respondents reported using an external library as their primary derivatives analytics tool – either alone or in combination with their in-house system. WHAT'S THE BIGGEST CHALLENGE? 1 Accurate Risk Assessment 2 Regulatory Compliance 3 Independent Pricing /Valuation While Accurate Risk Assessment (22%) was seen as the biggest challenge, this was followed closely by Regulatory Compliance (21%) and Independent Pricing/ Valuation (19%). KEY WAYS OF ADJUSTING RISK STRATEGY 1 Stress Testing and Scenario Analysis 2 Greater Analysis of Model Risk Stress testing and scenario analysis (48%) edged out greater analysis and awareness of model risk (47%) as the key ways of adjusting their risk strategy. KNOWING THEIR Monte Carlo VaR RISK IN REAL TIME (34%) topped the list as most important type of risk analysis used, followed by CVA (20%). was important for more than half of the respondents. 61% need to know the risk of their portfolio on-demand or intra day. ANTICIPATEDA MAJOR OR MODERATE IMPACT ON THEIR BUSINESS 68% 68% expect there will be a major or moderate impact on their business – this is an increase over results from prior years (57% in 2011 and 2010 surveys). 0000 3 IN 4 EXPECT SPENDING TO INCREASE In the 2012 survey, 75% expected their IT spending to increase this year. This is a decline compared to surveys in the prior years (87% in 2011 and 86% in 2010). FINCAD Founded in 1990, FINCAD provides advanced modelling solutions built on award-winning, patent pending technology. With more than 4,000 clients in over 80 countires around the world, FINCAD is the leading providor of financial analytics technology, enabling global market participants to make informed hedging and investment decisions. fincad provides software and services supporting the valuation, reporitng and risk management of derivatives and fixed income portfolios to banks, corporate treasuries, hedge funds, asset management firms, audit firms and gov- ernments. FINCAD analytics can be accessed through excel, matlab, as a software-as-a-service or embedded into an existing system through software development kits. Now, over 70 fincad alliance partners embed fincad analytics within their solutions. FINCAD provides sales and client services from Dublin, Ireland, and Vancouver, Canada. INFORMATION IS BASED ON FINCAD, 2012 Sell-Side Survey Results. http://www.fincad.com/derivatives-resources/survey/sell-side-2012.aspx DISCLAIMER Your use of the information in this article is at your own risk. The information in this article is provided on an "as is" basis and without any representation, obligation, or warranty from FINCAD of any kind, whether express or implied. We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research. FIN CAD 2012 ... SELL-SIDE SURVEY FINCAD conducted online surveys of financial professionals working for sell-side, buy-side, and corporations from around the world. Find out their perspectives on risk management practices, challenges with respect to derivatives. MOST HEAVILY TRADED: 59% 1 Interest Rates 51% 2 FX 50% 3 Fixed Income 42% In a structured products portfolio, fixed income is still the most ARE INVOLVED WITH STRUCTURED PRODUCTS popular asset class, followed by rates. Slight increase in credit, commodities and FX compared to last year's survey. MORE THAN 2/3 USE A 3RD PARTY ANALYTICS LIBRARY 3rd Party Analytics are playing a significant role. 67% of respondents reported using an external library as their primary derivatives analytics tool – either alone or in combination with their in-house system. WHAT'S THE BIGGEST CHALLENGE? 1 Accurate Risk Assessment 2 Regulatory Compliance 3 Independent Pricing /Valuation While Accurate Risk Assessment (22%) was seen as the biggest challenge, this was followed closely by Regulatory Compliance (21%) and Independent Pricing/ Valuation (19%). KEY WAYS OF ADJUSTING RISK STRATEGY 1 Stress Testing and Scenario Analysis 2 Greater Analysis of Model Risk Stress testing and scenario analysis (48%) edged out greater analysis and awareness of model risk (47%) as the key ways of adjusting their risk strategy. KNOWING THEIR Monte Carlo VaR RISK IN REAL TIME (34%) topped the list as most important type of risk analysis used, followed by CVA (20%). was important for more than half of the respondents. 61% need to know the risk of their portfolio on-demand or intra day. ANTICIPATEDA MAJOR OR MODERATE IMPACT ON THEIR BUSINESS 68% 68% expect there will be a major or moderate impact on their business – this is an increase over results from prior years (57% in 2011 and 2010 surveys). 0000 3 IN 4 EXPECT SPENDING TO INCREASE In the 2012 survey, 75% expected their IT spending to increase this year. This is a decline compared to surveys in the prior years (87% in 2011 and 86% in 2010). FINCAD Founded in 1990, FINCAD provides advanced modelling solutions built on award-winning, patent pending technology. With more than 4,000 clients in over 80 countires around the world, FINCAD is the leading providor of financial analytics technology, enabling global market participants to make informed hedging and investment decisions. fincad provides software and services supporting the valuation, reporitng and risk management of derivatives and fixed income portfolios to banks, corporate treasuries, hedge funds, asset management firms, audit firms and gov- ernments. FINCAD analytics can be accessed through excel, matlab, as a software-as-a-service or embedded into an existing system through software development kits. Now, over 70 fincad alliance partners embed fincad analytics within their solutions. FINCAD provides sales and client services from Dublin, Ireland, and Vancouver, Canada. INFORMATION IS BASED ON FINCAD, 2012 Sell-Side Survey Results. http://www.fincad.com/derivatives-resources/survey/sell-side-2012.aspx DISCLAIMER Your use of the information in this article is at your own risk. The information in this article is provided on an "as is" basis and without any representation, obligation, or warranty from FINCAD of any kind, whether express or implied. We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research. FIN CAD 2012 ... SELL-SIDE SURVEY FINCAD conducted online surveys of financial professionals working for sell-side, buy-side, and corporations from around the world. Find out their perspectives on risk management practices, challenges with respect to derivatives. MOST HEAVILY TRADED: 59% 1 Interest Rates 51% 2 FX 50% 3 Fixed Income 42% In a structured products portfolio, fixed income is still the most ARE INVOLVED WITH STRUCTURED PRODUCTS popular asset class, followed by rates. Slight increase in credit, commodities and FX compared to last year's survey. MORE THAN 2/3 USE A 3RD PARTY ANALYTICS LIBRARY 3rd Party Analytics are playing a significant role. 67% of respondents reported using an external library as their primary derivatives analytics tool – either alone or in combination with their in-house system. WHAT'S THE BIGGEST CHALLENGE? 1 Accurate Risk Assessment 2 Regulatory Compliance 3 Independent Pricing /Valuation While Accurate Risk Assessment (22%) was seen as the biggest challenge, this was followed closely by Regulatory Compliance (21%) and Independent Pricing/ Valuation (19%). KEY WAYS OF ADJUSTING RISK STRATEGY 1 Stress Testing and Scenario Analysis 2 Greater Analysis of Model Risk Stress testing and scenario analysis (48%) edged out greater analysis and awareness of model risk (47%) as the key ways of adjusting their risk strategy. KNOWING THEIR Monte Carlo VaR RISK IN REAL TIME (34%) topped the list as most important type of risk analysis used, followed by CVA (20%). was important for more than half of the respondents. 61% need to know the risk of their portfolio on-demand or intra day. ANTICIPATEDA MAJOR OR MODERATE IMPACT ON THEIR BUSINESS 68% 68% expect there will be a major or moderate impact on their business – this is an increase over results from prior years (57% in 2011 and 2010 surveys). 0000 3 IN 4 EXPECT SPENDING TO INCREASE In the 2012 survey, 75% expected their IT spending to increase this year. This is a decline compared to surveys in the prior years (87% in 2011 and 86% in 2010). FINCAD Founded in 1990, FINCAD provides advanced modelling solutions built on award-winning, patent pending technology. With more than 4,000 clients in over 80 countires around the world, FINCAD is the leading providor of financial analytics technology, enabling global market participants to make informed hedging and investment decisions. fincad provides software and services supporting the valuation, reporitng and risk management of derivatives and fixed income portfolios to banks, corporate treasuries, hedge funds, asset management firms, audit firms and gov- ernments. FINCAD analytics can be accessed through excel, matlab, as a software-as-a-service or embedded into an existing system through software development kits. Now, over 70 fincad alliance partners embed fincad analytics within their solutions. FINCAD provides sales and client services from Dublin, Ireland, and Vancouver, Canada. INFORMATION IS BASED ON FINCAD, 2012 Sell-Side Survey Results. http://www.fincad.com/derivatives-resources/survey/sell-side-2012.aspx DISCLAIMER Your use of the information in this article is at your own risk. The information in this article is provided on an "as is" basis and without any representation, obligation, or warranty from FINCAD of any kind, whether express or implied. We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research. FIN CAD 2012 ... SELL-SIDE SURVEY FINCAD conducted online surveys of financial professionals working for sell-side, buy-side, and corporations from around the world. Find out their perspectives on risk management practices, challenges with respect to derivatives. MOST HEAVILY TRADED: 59% 1 Interest Rates 51% 2 FX 50% 3 Fixed Income 42% In a structured products portfolio, fixed income is still the most ARE INVOLVED WITH STRUCTURED PRODUCTS popular asset class, followed by rates. Slight increase in credit, commodities and FX compared to last year's survey. MORE THAN 2/3 USE A 3RD PARTY ANALYTICS LIBRARY 3rd Party Analytics are playing a significant role. 67% of respondents reported using an external library as their primary derivatives analytics tool – either alone or in combination with their in-house system. WHAT'S THE BIGGEST CHALLENGE? 1 Accurate Risk Assessment 2 Regulatory Compliance 3 Independent Pricing /Valuation While Accurate Risk Assessment (22%) was seen as the biggest challenge, this was followed closely by Regulatory Compliance (21%) and Independent Pricing/ Valuation (19%). KEY WAYS OF ADJUSTING RISK STRATEGY 1 Stress Testing and Scenario Analysis 2 Greater Analysis of Model Risk Stress testing and scenario analysis (48%) edged out greater analysis and awareness of model risk (47%) as the key ways of adjusting their risk strategy. KNOWING THEIR Monte Carlo VaR RISK IN REAL TIME (34%) topped the list as most important type of risk analysis used, followed by CVA (20%). was important for more than half of the respondents. 61% need to know the risk of their portfolio on-demand or intra day. ANTICIPATEDA MAJOR OR MODERATE IMPACT ON THEIR BUSINESS 68% 68% expect there will be a major or moderate impact on their business – this is an increase over results from prior years (57% in 2011 and 2010 surveys). 0000 3 IN 4 EXPECT SPENDING TO INCREASE In the 2012 survey, 75% expected their IT spending to increase this year. This is a decline compared to surveys in the prior years (87% in 2011 and 86% in 2010). FINCAD Founded in 1990, FINCAD provides advanced modelling solutions built on award-winning, patent pending technology. With more than 4,000 clients in over 80 countires around the world, FINCAD is the leading providor of financial analytics technology, enabling global market participants to make informed hedging and investment decisions. fincad provides software and services supporting the valuation, reporitng and risk management of derivatives and fixed income portfolios to banks, corporate treasuries, hedge funds, asset management firms, audit firms and gov- ernments. FINCAD analytics can be accessed through excel, matlab, as a software-as-a-service or embedded into an existing system through software development kits. Now, over 70 fincad alliance partners embed fincad analytics within their solutions. FINCAD provides sales and client services from Dublin, Ireland, and Vancouver, Canada. INFORMATION IS BASED ON FINCAD, 2012 Sell-Side Survey Results. http://www.fincad.com/derivatives-resources/survey/sell-side-2012.aspx DISCLAIMER Your use of the information in this article is at your own risk. The information in this article is provided on an "as is" basis and without any representation, obligation, or warranty from FINCAD of any kind, whether express or implied. We hope that such information will assist you, but it should not be used or relied upon as a substitute for your own independent research.