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Regulatory demands for the derivatives industry to improve operational efficiency have become increasingly stringent in the past year. To meet the targets, dealers say interoperability between technology platforms is vital. But in the competitive vendor space, to what extent is this achievable? By Donna Haws

In October 2005, a group of 14 major dealers - which would eventually evolve into the Operations Management Group (OMG) - sent a letter to the Federal Reserve Bank of New York and other regulators, outlining a list of targets to improve the infrastructure of the credit derivatives market. The co-ordination effort among banks formalised the process of raising operational standards in the over-the-counter derivatives market, with seven subsequent letters establishing targets for all asset classes