Converging Systems

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					Converging Systems
Future Trends in Processing Security-Related Derivatives

Current State of Affairs
Futures Processing • Transaction Registration/ Reconciliation • Matched Trade Clearing • Payments • Position Keeping/Marking • Margining • Delivery • Dividends/Interest • Corporate Actions Where Function Handled Securities Processing • Transaction Registration/ Reconciliation • Matched Trade Clearing • Payments • Position Keeping/Marking • Margining • Delivery • Dividends/Interest • Corporate Actions

Panelists
• Leslie R. Sutphen, President, Financial Markets Consulting, Inc. • Stephen P. Auerbach, President, SunGard Futures Systems • James Birney, Chief Financial Officer, Rolfe & Nolan • Eric Wicart, Global Head of Sales, Ubitrade • Leonard Musso, First Vice President, Lehmann Brothers

Eric Wicart: The European Experience

Lenny Musso: Likely Customers
• Hedge Funds • CTA’s • Retail Clients

Futures Engine

Integrated Processing Solution Securities System
Customer Physical Cash and option position

Futures Clients

Security Clients

Trade Rec and Settlement

Portfolio Repository
Margin Calc

Margin Engine

OCC SEG SIPC
Customer Statements

Steve Auerbach: Margining Across Asset Classes
• Legal Perspective: What am I allowed to do? • Operational Perspective: What can I do? • Business Strategy Perspective: What do my customers want?

Margining Across Asset Classes
• Algorithm favors equities • European/Asian experience show listed derivatives win

Key: Know Your Customer
• Daytrader would favor futures treatment • Position trader would favor equity treatment

Jim Birney: Handling Physical Delivery

General Discussion
• What unique delivery problems are presented by narrow based index products?

General Discussion
• Where is equity derivative processing headed?

General Discussion
• What problems do lack of product fungibility present?

General Discussion
• What do “securities only” firms do to process security futures?

General Discussion
• Will securities futures processing impact other financial futures?


				
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