Trading systems

Credit model meltdown

Dealers are trading increasingly high volumes of bespoke tranches of synthetic credit risk with each other, yet there still appears to be little consensus on the application of credit models. Is there a danger the house of cards may come tumbling down?

The MiFID Threat

Thanks to compliance, many of the European Union’s smaller exchanges now face fresh competition.

Hedge fund technologies

Energy markets continue to attract hedge funds - but, as recent high profile losses have shown, operating in them is challenging. Having the right trading and risk management IT is essential. Stewart Eisenhart reports

Risk management for LDCs

US Gas Distribution Companies, long experienced in managing volumetric risk, now face market risk, high commodity prices and credit risk. Matthew Frye looks at strategies to model these risks in aggregate

Enterprise 2.0: the next generation

A growing number of banks are using Web 2.0 technologies within their risk management, trading and research operations. Clive Davidson looks at how blogs, wikis and podcasts are being applied by financial services companies

The arrogance of hindsight

Some governments are reportedly becoming more active in using derivatives to manage their debt and funding costs. While arguably quite sensible, public distrust and sensationalist journalism present special dangers, argues David Rowe

A successor to VAR?

Regulators may be pressing banks to more rigorously stress test their portfolios, but when it comes to how hedge funds apply the technique, debate remains as to how and what they should be testing. John Ferry reports