Special Report

Securities Industry Outlook 2009

As exchanges prepare to clear credit derivatives and regulators push to mandate price reporting, disputes are surfacing about the best way to mitigate counterparty risk and increase transparency. “We’ll probably have two or three or maybe four different approaches to this on a competitive basis,” said Goldman Sachs managing director E. Gerald Corrigan, “but over time I’d rather we gravitate toward a single, global” central counterparty. “Having the process in one place where the regulators and everybody else can see it and control it has a great deal of appeal.” But dealers, for one, envision the services splitting market share across regions and products--keeping clearing fees and collateral requirements low. Also in this report: Spending cuts may miss executions systems; global opportunities in a worldwide crisis; volatility spurs options technology growth.

Contents

Volatility and Data Demands Driving Options Tech

Niche Opportunities in Global Crisis

Spending Cuts Could Spare Execution, Order Management Systems

For Centralized CDS Clearing, More May Not Be Merrier