NEW YORK, Nov. 17, 2014 /PRNewswire/ -- Women in Derivatives (WIND), a nonprofit organization whose core mission is to attract, retain, educate and develop female leaders in the derivatives industry, hosted a November 13 panel discussion titled "Shifts in the Liquidity Paradigm – An In-Depth Discussion of How Risk Takers View Liquidity Pools in Today's Evolving Market." The discussion featured distinguished female industry leaders including:
- Annette Nazareth, Partner at Davis Polk & Wardwell LLP and a former Commissioner at the Securities Exchange Commission;
- Nancy Davis, Founder, Chief Investment Officer, Quadratic Capital Management;
- Jenniffer Emanuel, Managing Director and Global Head of Counterparty Risk Management, Goldman Sachs;
- Angie Karna, Managing Director and Americas Head of Global Markets Legal, Nomura;
- Sara Strang, COO, Global Interest Rate Products, Managing Director, Goldman Sachs; and
- Supurna VedBrat, Managing Director, Co-head of Electronic Trading, BlackRock
The panel discussed the substance of various recent regulatory developments impacting liquidity in derivatives markets, including issues surrounding international rulemaking, new margin requirements, the standardization of derivative products and products moving to swap execution facilities and central counterparties. Panel members assessed the new regulations' possible effects on various market participants, including dealers, hedge funds, asset managers and end-users.
Annette Nazareth, serving as event moderator, highlighted one of the event's key themes: "The one constant in today's marketplace is that it is in a continuous state of evolution, although many of us would probably agree that the speed of change is accelerating and its effects are being experienced more acutely."
From an asset manager's perspective, Supurna VedBrat shared her thoughts: "Changes in bank business models and regulation have evolved the fixed income landscape faster than its underlying market structure. The result is a trading environment where assets exist, but the operational structure challenges buyers' and sellers' ability to actually transact. Buy-side investor needs will drive broader participation in 'all-to-all' venues and an increase dependency on e-trading solutions."
Nancy Davis spoke on the impact of liquidity shifts on market volatility: "The growing popularity of daily liquid products is creating a market in which flows can be driven by indiscriminate buying and selling to meet daily inflows and outflows. At the same time, increased regulations have seemingly dampened the ability of the market to handle rapid buying and selling, leading to more price volatility. With options currently priced very attractively and a plethora of interesting structural dynamics within options markets, the current investing environment is very appealing."
Sara Strang, from the dealer perspective, commented that "[t]he potential for liquidity impairment remains the main focus for industry participants as we adapt to the changing market structure in fixed income."
Jenniffer Emanuel stated that "Implementation of the margin rules for uncleared swaps will be the single biggest and most complex logistical challenge the industry has faced as a result of regulatory change since the crisis."
"Creating a forum for senior female leaders to share their insights about trends and opportunities emerging in the financial industry is one of WIND's top priorities," explained Kristin Boggiano, President of WIND and Special Counsel at Schulte Roth & Zabel. "We are in an industry undergoing historic regulatory and structural changes, and WIND provides education and a means for organic mentoring relationships to develop that help women navigate their careers as the market evolves. WIND aims to provide a platform to advance women on the path to leadership."
The event was sponsored by Davis Polk and Wardwell, the CME Group and trueEX.
About Women in Derivatives Inc.
Women in Derivatives (WIND) is a nonprofit organization. Its core mission is to attract, retain, educate and develop female leaders in the derivatives industry. WIND provides targeted channels for education, mentoring and sponsorship, leveraging senior leaders within its organization.
SOURCE Women in Derivatives