Risk management system of the year (vendor): Markit Group

paul-jones-markit-2014
Paul Jones

There’s a simple way to explain how the derivatives market has changed in recent years: the business consumes more capital and funding at a time when the costs of those resources has increased. Resource consumption is rising in large part because of new rules on counterparty risk – the Basel III charge for credit valuation adjustment (CVA) drives up capital requirements, while the mandatory use of clearing houses and bilateral collateral agreements means dealers need more funding.