This is the second white paper in our series addressing the margining and collateral challenges facing the banking industry. The first paper examined the regulatory timelines and emerging vendor utility ecosystem. In this paper we look at potential disruption to the business operating model facing sell-side and buy-side firms caused by BCBS/IOSCO regulations relating to the margining of non-cleared OTC derivatives. We provide a framework for understanding which areas will be impacted and suggest an approach for planning your response.
Those of you who have come to an ISDA conference, read our comment letters or, indeed, read this blog over the past several years know that cross-border harmonization matters a lot to us and our members.
Clarus tools calculate margin under LCH, CME and ISDA SIMM™. It is a natural question to compare the three models. There are interesting differences across currencies and tenors. We find that SIMM is up to 37% higher than at a CCP. At last….!
MessageAutomation grows their engagement with Andile in South Africa.
Build a car engine from scratch, and it’s a fair bet that it won’t be purring the first time it’s switched on. That doesn’t mean the engineer has failed, and it doesn’t mean the whole thing needs to be smashed up.
In the second part of Karl Wyborn's article on The Future of Collateral Management, he forecasts the type of solutions firms need going forward. Collateral Management is moving from being a necessary function to a regulated compliance task, hence a greater level of focus on how firms carry out their risk mitigation role.
The incoming Trump administration has promised to “dismantle the Dodd-Frank Act.” In previous posts, we’ve described the technical mechanisms that an incoming administration can use to undo regulation put into place by the previous administration (see How Regulatory Rollback Works and More than Just Midnight Regulations).
The team here at The OTC Space are pleased to announce the availability of the downloadable PDF edition of Rocket 8.
The time has come to hold another PTF meeting, and according to your survey feedback Trade Reporting is the topic to talk about.
Bill: The R3 consortium has support from a large number of banks and has momentum in this space.
In order to buttress financial markets against another 2008 crisis, mandatory margin rules are being introduced across the globe. This article explains the timelines, gives a global settlement timing cycle chart, checklists for Legal, Operations, Risk, Tech, and Front Office.
An excellent piece by DRS on the difficulties of the VM protocol. It appears that the legal world lives in the parallel universe occupied by Captain Kirk and Scottie, read on for more. Bill.
We're looking for great images for the front cover of Rocket next year - do you have something that might work? Abstract, colourful, weird, stunning?
Over the past year, I’ve been speaking to buy-side UK and European clients and discussing issues they might not be aware of yet instead of challenges they are currently facing, with the aim to bring best practises from a variety of sources on the latest developments to incorporate in their business and add value; whether it’s trading practises, collateral optimisation or pre-trade total cost analysis (TCA).
I've recorded a very short video to explain ClearCompress, including what it does, how it does it, what it costs and how quickly we work. Check it out, and the 3D ending!
Complying with new financial regulation has led to the layering of new processes and systems onto existing infrastructure.
Monday 21 November 2016 11:08
The Summit for Performance, Risk & Attribution (SUPRA) brings you together with senior decision makers – leaders within Asset Management Risk & Performance – from the most innovative and foreword thinking firms globally. Join your counterparts this November in London, to learn, benchmark and make valuable new industry connections. OTC Space registered readers can obtain a 20% discount on registration.