The $700 Trillion Derivatives Market Faces AI and Blockchain Overhaul
The derivatives market, long burdened by antiquated infrastructure, is undergoing a seismic shift. With a notional value exceeding $700 trillion, this behemoth now confronts a technological reckoning—AI, cloud computing, and blockchain are dismantling its fragmented, manual processes.
Generative AI and agentic systems are emerging as the new Quant brain, transforming risk modeling and trade execution. Meanwhile, tokenization is unlocking collateral mobility, and DeFi integration threatens to disrupt legacy systems with permissionless markets. Cloud-native infrastructure scales operations, while big data analytics turns noise into predictive signals.
This isn’t incremental change—it’s a multi-front revolution. The post-trade world, once a back-office afterthought, is now the battleground for efficiency gains and risk reduction.