London, 18 April 2011: Zohar Hod, Head of Americas at SuperDerivatives (SD), the derivatives benchmark and leading multi-asset front office system, has responded to comments made by European Securities and Markets Authority (ESMA) chairman Steven Maijoor at last week’s International Derivatives and Swaps Association conference in Prague.

Hod said: "We welcome Mr. Maijoor’s comments. We host one of the most actively used derivatives management systems in the financial markets, which gives us a unique insight to how they are used and traded.

"Conceptually the notion of a central clearing house for all derivatives trades is the logical next step to instilling transparency and liquidity in the industry. However, in practice the investment required in the people and infrastructure required to efficiently handle bespoke complex derivatives still remains a significant barrier to progress.

"It has long been clear to us that markets need the flexibility which bespoke derivatives instruments deliver. Regulations that limit flexibility impair organisations’ ability to hedge effectively, and could therefore have an adverse effect on the market.

"Legislation to bring greater oversight to the OTC derivatives market must take into account the differences between the various products used and their specific functions and ensure the investment in the necessary resources is made prior to any legislative change.

"It is encouraging to hear this realisation openly expressed by Mr. Maijoor."

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About SuperDerivatives
SD is transforming the world of derivatives by introducing transparency to all major traded derivative classes including foreign currency, interest rates, equities, commodities, energy and credit. Providing prices that reflect the interdealer market has led the company’s web-based, market-calibrated solutions to be widely accepted as the benchmark for derivatives pricing.

Trading professionals on both the buy and sell side benefit daily from SD’s unique combination of unbiased, aggregated market data and sophisticated modelling techniques. The company also provides fully-fledged risk management solutions, award winning derivatives data and independent portfolio revaluation services.

At the core of all the company’s solutions is SD’s extensively sourced and intelligently amalgamated market data, comprising true live market rates that are acid tested in real-time in the marketplace by active traders and run through a proven pricing model.

SD customers include leading banks, hedge funds, asset managers, custodians and hedge fund administrators in more than 60 countries, supported by a global network of SD offices with 24-hour support services.

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