Adjusting the OTC market notionals to re-calculate the effects of compression puts the OTC market at a bigger size than ever, but the reported notionals say otherwise
The link below is to an Excel sheet showing the details of which authority in each country is responsible for which piece of legislation. Sort of handy for compliance people I guess, and also for all the URLs to the regulators websites. Bill
Edd Denbee, Carsten Jung and Francesco Paternò.
Central Counterparties recently published their new CPMI-IOSCO Quantitative Disclosures, meaning we now have three sets of disclosures, so I thought it would be interesting to look at trends in the data.
Diversity is key to the future of the banking industry. Diversity includes an attitude of open-mindedness, and a willingness to value the contributions of employees regardless of their background and lifestyle. There should be training to encourage openness towards different ideas and diversity in thought. This also means a specific focus on gender, race, disability, age and social mobility etc.
This two day advanced level conference programme will provide delegates with advanced theoretical and practical training on documenting and negotiating a broad range of over-the-counter (OTC) derivatives documentation. A 10% discount is available to registered readers of The OTC Space.
Will include topics such as market risk, regulatory spotlight, credit risk, stress testing, liquidity risk, and operational risk. Registered OTC Space readers can make use of a 10% discount on registration for the event.
Razor Risk™ now supports the FRTB – minimum capital requirements for market risk capital reforms. The solution offers financial institutions the ability to calculate and manage market risk capital and performance across desks, business lines or top of house.
Our magazine Rocket 7 is coming soon, packed with inside viewpoints and expert knowledge. Save or update your address to be eligible to receive a copy now.
Compression for Clients of Clearing Members Becomes Available to Release Capital
In order to look ahead, we must first take a look back and examine how OTC markets have evolved; some of which was voluntarily undertaken, most of which was regulatory reform driven.
According to a recent survey of banks’ legal and regulatory operations executives, an overwhelming number of respondents noted a concerning lack of clarity around margin mandate regulations and compliance requirements.
On 9th June, it became clear that the European Union would delay the implementation of the mandatory bilateral margin. See for example the Risk article or the Bloomberg article.
In November 2015 we consulted on guidance to clarify the requirements on firms when outsourcing to the ‘cloud’ and other third party IT services. The guidance is updated in the following areas:
Like many people, I woke up on Friday June 24 expecting to hear the UK had voted to remain in the European Union (EU). The final polls had suggested the Remain campaign was ahead, and sterling had begun to rally the day before.
This is the first part of a video series looking at how data in the OTC market needs reconciliation to achieve high quality for internal and regulatory purposes. This video features Julie Carruthers who is Head of Operations for the ICAP global broking division, taking about how the role of IT is changing, why Excel is no longer suitable for carrying out reconciliations.
The last few years have seen many anti-abuse cases brought against traders, spanning LIBOR, insider dealing and others. We have also seen some anti-abuse cases in commodities and energy, for example the case where the CFTC and FERC investigated a North America based oil company in 2015 for gas price index manipulation. However, many cases have not resulted in fines. Examples of this include the alleged NBP price manipulation of 2012 and the “Chocfinger” case in 2010, neither of which resulted in convictions.
Many financial institutions and buy side firms in particular are seeking ways to leverage the work required in achieving MiFID II compliance by adopting a much more strategic approach to all of their regulatory trade & transaction reporting requirements.
On Tuesday, 28th June, I posted a blog post about the impact of Brexit on OTC swaps cleared margin. We anticipated that the impact of Brexit would progressively increase in magnitude over the subsequent days.