The largest obstacle to proposed reforms to the over-the-counter derivatives market, that is seeking to reduce risk and increase transparency in the sector, is a lack of automated trading processes, according to new research.

Whilst the majority of interest rate swaps are standardised enough to be fully automated from the point of sale to being settled, no OTC asset class has a post-trade automation of "greater than 57%", according to a report published today by Boston-based research firm Tabb Group.