New research published by the TABB group finds that data levels may surge by nearly 400 percent once the OTC derivatives market reforms are implemented, reports Virtual Strategy Magazine.

The swaps market has never before had to deal with processing the amount of data produced by clearing, reporting, risk management and other processes mandated by last year's Dodd-Frank legislation. The TABB report gathered interviews with swaps dealers, exchanges, buy-side firms and clearinghouses, according to the news outlet.

Kevin McPartland, a principal at TABB, writes, "Just like equities, futures and options before them, OTC derivative market winners and losers will be determined by the strength and intelligence of their technology infrastructure."

Market participants will need to adjust their technology to comply with the data challenge. In 2011, participants in the OTC derivatives market will spend approximately $3.4 billion on just back-office and clearing technologies. Derivatives technology must be updated and firms will need to ensure they have appropriate data management strategies in place, according to the news source.

Regulators have been finalizing Dodd-Frank rules for months, though the law was passed last year.