You’ve probably heard more than you would like to about COVID-19, so I’ll keep it short. Please focus on the health and well-being of the people around you. Like most people, we’re working from home, but busier than ever, so keeping a balanced perspective can be challenging. You can make a difference.
Perspective is important for us all to bear in mind, not just in terms of our personal lives. At CurveGlobal, we see our mission as being fully supportive of the industry, looking to make changes for the good of all participants. This is in contrast to others who are simply seeking to maintain the status quo.
This being said, we understand that during volatile periods, many people look for the sense of security in dealing with venues that they have become accustomed to. It makes sense – in the short term. That’s why we saw a drop-off in volumes at CurveGlobal during the height of the market volatility (in March). Fortunately, recent volumes and depth of market have improved sharply.
In many ways, it’s your support that is the fuel that powers our mission to change the markets. After all, without a broader acceptance of the need for change – and the need to manage the unacceptable execution risk of relying on a single venue – we will not succeed in embedding the transformation that the industry is crying out for. So thank you for your encouragement, and your active participation in CurveGlobal. Choice and competition will bring its rewards over time.
Over the last few weeks, we’ve been busy. Will Mitting and his team at Acuiti conducted a survey for us on the market’s views on competition. We are also hosting a webinar on Monday where we will discuss the results further (register here). What was super exciting was that people felt that resilience and competition were needed more than ever. This is clearly topical given the disruption experienced as a result of technical outages at a competitor this year.
In some ways, I believe COVID-19 has been a turning point for CurveGlobal and we remain excited about our plans. While neither we nor our clients had any issues with breaks or give-ups – or indeed with margin – this wasn’t the case for all markets and all participants.
I’m ever impressed with the FIA and Walt’s leadership, as they have a series of operational workshops on this topic. I believe that the listed derivatives market has much to learn and some of its best practice, especially around resilience, may need rethinking. This isn’t an overnight task, but it is essential to get moving on it.
Lastly – I wanted to thank you for joining our Future of Derivatives series of webinars. We’ve had thousands of views and playbacks as well as many live questions. If you have a topic you’d like us to cover or revisit, please let me know.
Keep well, stay safe, wash your hands!