TABB Group Says Spending on Automating OTC Derivatives Processing is Growing at 30% CAGR, Rising from $70 Million in 2008 to $120 Million by 2010

Although Nearly 1,000 Hedge Funds Currently Trade OTC Derivatives, Few Use Automated Processing Systems, Increasing Risk and Reducing Transparency

NEW YORK, NY, March 18, 2008 – In a research note published today, “OTC Derivatives Processing:  Blazing a Trail to Automation,” TABB Group says that although top-tier, sell-side broker dealers have invested millions of dollars since the mid-1990s developing best-of-breed processing for their burgeoning OTC derivatives businesses, many other counterparties, including mid-tier banks, hedge funds and other trading firms have yet to implement any kind of automated solution, a problem that has not gone unnoticed by the Federal Reserve.

According to Kevin McPartland, senior analyst at TABB Group and author of the note, “When the Fed first instructed major dealers in 2005 to catch up on ...   more »