Wind down of SwapClear LLC in the US
There's a lot of legal words in the PDF below, but the short answer is that Danish retirement pension plan is right to apply for a permanent exemption from clearing and reporting under EMIR and has been granted an exemption as requested.
Posted by Christopher Leonard, Akin Gump Strauss Hauer & Feld LLP, on Thursday, June 30, 2016
In the European market the relationships between exchanges and CCPs are currently driven by commercial decisions, with MiFID 2, this is supposed to change.
French president moves to block London clearing of euro trades
In the run-up to the Brexit vote, many firms trading OTC interest rate swaps were understandably worried about the impact of short term market volatility on the margin that they would need to post to their clearing houses.
Given the large moves in Swap rates that we highlighted in our BREXIT Day One and Day Two blogs, I thought it would be interesting to look at the impact on Swap margins.
Harmonization and coordination are easy enough to identity as objectives, but harder to achieve. Regulators can take a lot of credit, then, for their efforts to develop a coordinated global margining framework for non-cleared derivatives.
London is the world centre of the complex plumbing of markets, but leaving the EU complicates that
Confounding all elite prognostication (more on this aspect below), British voters repudiated their self-anointed better-thans and voted to leave the EU.
Statement from Agustín Carstens, Chairman of the Global Economy Meeting, on the implications of the EU referendum in the United Kingdom (25 June 2016)
Posted by Alec J. Burnside, Cadwalader, Wickersham & Taft LLP, on Friday, June 24, 2016
Posted by Ben Perry, Sullivan & Cromwell LLP, on Friday, June 24, 2016
Potential economic impact from a mis-match in timing of the new un-cleared margin rules between the EU and US (and the rest of the world)
The best case scenario is that some or all of the EU regulations and laws which apply are transposed into UK law. Worst case, UK becomes an outsider and the focus for financial services moves on-shore into Europe.
Last night the UK population voted to leave the European Union, by a narrow margin.
A brief statement from the FCA - nobody really knows what the future for UK based financial services will look like.
Razor Risk will be presenting a hypothetical portfolio comparing the Sensitivity Based Approach to the Internal Model (ES) Approach, and demonstrating how one might structure a desk in order to optimize a portfolio under the new rules, as a result of the Fundamental Review of the Trading Book.