Four out of five asset managers have cited greater transparency as the driving factor behind changes to way in which they conduct their over-the-counter derivatives trades, in a sign that sustained pressure from regulators wanting to reduce risk in the sector is paying off.

A report published yesterday by US consultancy TowerGroup, which surveyed 60 risk officers from buy and sell-side firms, as well as asset servicers, found that 80% of respondents cited greater transparency as the top driver for improving the processing of OTC derivatives trades. Counterparty exposure and regulatory compliance were the second and third most important factors.