ISDA "Future of Derivatives" Survey Finds Participants Optimistic in the Face of Significant Market Challenges

ISDA released a survey on the derivatives market in which participants expressed optimism about the future, but also concerns about the effects of a number of significant challenges.

The survey found, among other things, that:

• nearly half of respondents expect the number of dealers to decrease in the near future;

• nearly two-thirds of respondents believe regulatory compliance will remain a significant challenge, even more so than Brexit or benchmark reforms;

• 65 percent of respondents said they were optimistic about the future of derivatives markets; and

• while a majority of participants expect greater liquidity and increased volumes, a majority also expected the cost of using derivatives to increase in the near future.

Of the over 900 participants that responded, 33 percent were dealers, 43 percent were from buy-side institutions, and the remainder were infrastructure providers, FinTech companies and law firms.