Northern Trust hires Andress to run derivatives operations

Chicago-based Northern Trust has recruited Stephen Andress as its global head of derivatives operations to run its back-office derivatives processing infrastructure.

The new role was created in response to the increasing use of derivatives by Northern Trust's investor and fund manager clients. "Enhancing our derivatives processing capabilities globally, by adding expertise and developing automated solutions for over-the-counter derivatives in particular, is a high strategic priority for Northern Trust, and we recognise that there is an opportunity for us to take a leadership position in the market," said Joyce St Clair, executive vice-president in Northern Trust's worldwide operations and technology group.

Andress joins from Commerzbank, where he was global head of OTC derivatives operations and collateral management from 2001 in London and Frankfurt. He previously worked at State Street Bank & Trust Company from 1988.

"Derivatives have been around for a long time but, traditionally, have not been favoured by large institutional investors, such as pension funds – but things are changing, and this trend is set to continue," said St Clair. She added that Northern Trust has processed 30% more derivatives each year for the past three years. “We processed as many OTC derivatives in the first quarter of 2006 as we did during the whole of 2005,” St Clair added.