B2B – Expert Network – Methodology- In Depth Interviews
OTC Derivatives Case Study
"The research revealed a highly segmented OTC derivatives market, with respondents highlighting significant differences across various market segments."
Introduction
FG Connect was retained to conduct qualitative research for our clients upcoming annual benchmarking report on the global OTC derivatives market. The report aims to analyse the market’s size, structure, strengths, weaknesses, opportunities, and threats. Our client sought deeper insights into the market’s dynamics and the factors driving change, with a particular focus on data needs, transparency, and market evolution. FG Connect’s task was to gather qualitative feedback from key players in the market, providing a comprehensive understanding of the current landscape, using a qualitative guide designed to probe deeper into the challenges, opportunities, and future expectations for the OTC derivatives market
Specifications
FG Connect conducted 12 in-depth interviews with senior professionals from financial institutions across the UK, Europe, Nordics, the US, and APAC. Participants were selected based on their strategic involvement in the OTC derivatives market. The research aimed to capture spontaneous, candid feedback on various aspects of the market, including data accuracy, cost, transparency, and emerging market trends.
Results
The research revealed a highly segmented OTC derivatives market, with respondents highlighting significant differences across various market segments. Key concerns included the accuracy and availability of data, particularly in emerging markets and for exotic currencies. Participants noted that while the most reliable data sources, such as Bloomberg and MSCI, are costly, they are often incomplete or outdated for less conventional contracts.
Despite these challenges, there was a notable sense of optimism around the growing transparency in the market. Some respondents suggested that the OTC derivatives market could eventually evolve into a structure more similar to exchange-traded markets, moving away from its current bilateral, one-to-one nature. These insights will help Parameta shape their thought leadership strategy and enhance the credibility of their annual benchmarking report.
