IT spend of $6.7bn expected on new OTC regulations – in one year
Research published by SimCorp StrategyLab points to a multi-billion dollar IT spend just in the 2012-13 year by firms affected by additional regulation of OTC traded derivatives.
Regulations such as Dodd-Frank and EMIR are set to push spending to $6.7bn over this short period, according to a White Paper titled Dealing with the regulatory tsunami in capital markets: a spotlight on changes in OTC derivatives.
SimCorp StrategyLab said the new OTC regulations will impact the competitive positioning of firms, market structure, revenue growth, profitability, and ultimately IT budgets.
Co-authored by Gert Raeves, research director, and Dushyant Shahrawat, senior research director of CEB TowerGroup, the White Paper also suggests that new requirements to use central clearing will force buy-side firms to change their decision making processes.
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