Letter From the Publisher

While regulatory change has presented huge challenges for the global derivatives industry, there is reason for optimism as derivatives activity continues to increase year after year. Today, derivatives are being used in a wide variety of applications to provide vital solutions that ultimately affect the lives of people from all walks of life.

Over the coming years, we can expect to see both continued growth in derivatives activity as well as further, broad evolution in the practices of market participants. While Dodd-Frank has already fundamentally altered the structure of the US derivatives market, Europe´s EMIR, being at least two years behind its transatlantic counterpart, is also likely to have a big impact. Such is the scale of regulatory change that there may well be unintended consequences of new rules designed to reduce systematic risk and generally increase transparency.

In many ways, regulation has created a new set of risks for institutions to manage. Firms should question whether their own internal infrastructure and general organisational approach is adequate to meet the challenges and opportunities that are being presented in this rapidly evolving market. Market participants and other stakeholders must decide how best to position themselves to ensure that they can both survive and prosper.

The year 2014 is shaping up to be another monumental year for derivatives. In this edition, we cover some of the biggest issues currently facing the derivatives industry and look ahead to what we can expect from 2015 and beyond. 

Mohammed Rami