LONDON and NEW YORK, March 18 /PRNewswire/ -- Over the last ten years the OTC derivatives market has grown from less than US$100 trillion to well in excess of $400 trillion today. But the systems in place to manage the risk associated with these instruments are often inadequate and a new approach is required finds a new white paper from GoldenSource Corporation (http://www.thegoldensource.com) a leading provider of Enterprise Data Management (EDM) solutions.
To successfully manage the new generation of complex structured financial products, financial institutions need to be able to gain a clear view of all the facts associated with a product: instruments, customers, counterparties, trades, positions - with a full understanding of how these data sets are linked. Building a new structured product, no matter how exotic, on a capable EDM platform immediately enables an institution to see all of the underlying links and dependencies and to understand the credit risk across all components and counterparties. In operational terms it significantly reduces the cost of developing and managing complex instruments, and allows traders to develop the instruments the market wants to buy at any given moment, without taking inappropriate risk.
Neil Edelstein, Senior Director, GoldenSource and author of the white paper, commented: "Managing structured products using a patchwork of legacy systems, point solutions and unstructured spreadsheets is unsustainable. The correct use of EDM cuts time to market for complex structured products, increases clarity, reduces exposure to risk, saves time and money in operations, and improves the global consistency of data."
The white paper is backed up by research commissioned by GoldenSource last year which found that almost three quarters of respondents were planning to re-evaluate their data management processes because of the growing use of OTC derivatives. As many as 85% of the respondents cited derivatives/options when asked to identify the top five most difficult data types to source and manage, and all respondents recognized the value in applying EDM across the enterprise.
Download a copy of the white paper at: http://www.thegoldensource.com/whitepaper.php?show_type=MARKET
To arrange an interview with Neil Edelstein, author of the paper, please contact: U.K. press office: Metia Ltd., Jon Angeloni, Tel: +44-20-3100-3566, Email: GoldenSource@metia.com; U.S. press office, Metia Inc., Tinne Teugels , Tel: +1-917-320-6452, Email : GoldenSource@metia.com