About Derivatives Software
In short, any institution, small or large that manages money, needs to manage risk using some derivatives. Smaller institutions mostly rely on their traders or service providers for the purpose of valuation, accounting, and other functions of derivatives, while the large companies use proprietary systems or vendor systems. One of the complex software systems in the capital market world is the derivative software system. While derivative products are not new to the markets themselves, there are many complex derivative products that were introduced in about a decade. Due to the complexity and the user-defined nature of OTC derivatives, all software solutions are not fully developed. However, the systems that deal with listed derivatives are quite sophisticated. Systems to support OTC products, however, have a lot to catch up with. Although there are few well-developed price and risk libraries, end-to-end derivative processing systems have yet to deliver on their promise.
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
The companies are exploring the market by adopting expansions, investments, new service launches, and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions across the globe to avail of competitive advantage through combined collaborations. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Derivatives Software market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Finastra (United Kingdom), Calypso (United States), Imagine Software Inc. (United States), Murex (France), Ferential Systems Inc. (United States), Trapets AB (Sweden), Suite LLC (United States), Valantic Trading Solutions AG (Germany), SS&C Technologies (United States), Numerix (United States), SciComp Inc. (United States) and EQ Finance Ltd. (United States) are some of the key players that are part of study coverage.
Segmentation Overview
AMA Research has segmented the market of Global Derivatives Software market by Type (Cloud, Hybrid and On-premise), Application (Stocks, Bonds, Commodities, Currencies and Others) and Region.
On the basis of geography, the market of Derivatives Software has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by End-User, the sub-segment i.e. Banks will boost the Derivatives Software market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Subscription Type, the sub-segment i.e. Annually will boost the Derivatives Software market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Features, the sub-segment i.e. Valuing (Pricing) Derivatives will boost the Derivatives Software market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Awareness of Derivatives And Brokerage through Various Financial Programs, Growing Number of Listing Companies in Stock Exchange Across the Globe and High Adoption of Cloud-Based Technology in Sectors from Developed Regions
Market Growth Drivers:
Rising Financial Brokerage Industry for Investments and Trading on Lower Margin, Enhancement in Online Cryptocurrency Exchanges and Transactions Predicted to Benefit Global Market and Demand for the Secured Investment Options to Make Profits
Challenges:
High Risks Associated with the Derivatives Software and Less Awareness About the Trading
Restraints:
Problems with Fraudulent Companies Engaging with the Derivatives Software and Rising Cyber Attacks and Rising Concern Towards Data Privacy
Opportunities:
Growing Number of Trading Companies Around the World will Boost the Derivatives Software Market, Rising Approval of Electronic Communication Networks and Institutional Investors Expected to Remain to Create Massive Demand for Online Trading Platform
Market Leaders and their expansionary development strategies
In February 2023, Finastra, a global provider of financial services software applications and marketplaces, announced a partnership with Integro Technologies a subsidiary of Aurionpro, the pioneer provider of high-end lending platforms, to offer Integro’s SmartLender Trade Limits solution alongside its own Trade Innovation solution.
In November 2022, Finastra, announced a collaboration with Fragmos Chain, a blockchain platform which digitalizes interactions between financial institutions, to provide Finastra customers with out-of-the-box integration with Finastra Summit, its over-the-counter (OTC) derivatives market solution. The API-first integration, via FusionFabric.cloud, enables banks globally to digitalize their OTC derivatives products to reduce the costs and risks associated with manual processes.
"Commodity derivatives have been within the scope of UK regulation since the Financial Services Act 1986 (FS Act) came into force. The FS Act captured: futures (which, for these purposes, includes some physical forwards and does not relate exclusively to exchange-traded products), contracts for difference, and options on financial instruments (as well as currencies and precious metals). The Financial Services and Markets Act 2000 (FSMA) did not materially change the scope of commodity market instruments covered under UK regulation."
Key Target Audience
Providers of Derivatives Software, New Entrants/Investors, Analysts and Strategic Business Planners, Government Regulatory, Commercial Users and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.