are requirements to post collateral;
however there are no sophisticated
collateral offerings especially at
time of trade for the buy-side to
What is your outlook for the derivatives market going forward?
SV: It’s mostly positive as derivatives are an essential tool to
express investment strategies.
Derivatives may change their form
or structure to adapt to market
structure but will always be a part
of the investment instruments used
by managers. One area where the
marketplace can focus is to provide
advanced analytics and easy to use
relative value tools where futures,
swap, cash and ETF’s for similar
underlying instruments can be
compared in one place. It is a rea-
sonable ask and an opportunity.
How is BlackRock looking to further
develop its trading team?
SV: We have evolved our trading
teams in the last couple of years.
Our traders are constantly devel-
oping their skills and techniques
to match what is required to trade
in the market. A combination of
skills involving technology, tactics
and transaction cost analysis is
what defines trading today. Trader
judgement is central to this,
supported by technical tools and
data that allow for more informed
decision making in today’s highly
interconnected trading ecosystem.
Having multi-generational teams
consisting of experienced trad-
ers and tech savvy traders allows
for differentiation of thought
and helps advance our trading
techniques as well as develop our