Central clearing and bilateral margining for OTC derivatives have a significant impact on both valuation and risk management. With the mandatory clearing deadlines now less than a year away, this training course is for practitioners keen to understand more about the quantitative impact of these changes, with a particular focus on Interest Rate products.
With the mandatory OTC Clearing timetable now finalised for Europe by ESMA, focus will now feature on the efficiencies of each CCP IRS offering and CCP IRS Switches will undoubtedly increase as Banks seek to minimise capital and funding costs via reduced initial margin requirements, default fund contributions and capital regulatory requirements.
The shifting capital, regulatory and industry landscape has created some unexpected consequences for CCPs. In LCH.Clearnet’s latest white paper, they examine the impact of these challenges on institutions in this new market paradigm.
In order to provide our Members and clients with most effective tools to estimate margin requirements, to execute portfolio optimizations or to decide on a clearing venue in general, we partnered with OpenGamma to create a new on-premise margin calculation solution.
Currency Swaps settlement can involve very large payments leading to settlement risk - an innovation from Markit and CLS aims to eliminate aspects of this.
News from the Polish CCP KDPW
Since May Comder in Chile went live and has cleared $44bn of FX NDFs, giving South American businesses a new reduced risk way of transacting business.
As a result of the turbulences caused by the global financial crisis, regulators worldwide increasingly focus on derivatives markets. Given the enormous risks posed by the unregulated off-exchange (“over the counter”/ OTC) market, there is a growing recognition that greater transparency in exchange trading significantly contributes to the future stability of the international financial markets.
This article looks into some of the tasks performed in risk and in finance related to collateral and risk management that may be delivered by one team or the other. Diana proposes a principle to define the border line and to identify the personalities that may enjoy being in one team or the other.
For people with very large data sets who need to use VLOOKUP, this trick could transform the time it takes you to recalculate the spreadsheet
As of this month we now have more than 3,000 registered readers; It's been a busy year for the world of OTC derivatives, as it has also been for The OTC Space. Take a journey with us back through the most popular content of 2015, and revisit some of the 'best bits'.
Historically, collateral management has been a task that required complex infrastructure: initial margin value-at-risk (VaR) computations required a risk management system and extensive market data, OTC contract valuation required complex pricing capabilities, and margin call communication remained a very manual and time consuming process, using email and a fax machine.
A number of readers attending the Clearstream webinar about the mandatory margining regulation. The webinar is now available to download as a PDF, MP3 and video.
A whole year has gone by since the last time we had a party - the revellers ate and drank their way through the finest drinks and snacks known to man. Come along and help us celebrate our second birthday, and any relevant festival (such as Christmas) at Jamies.
The start of mandatory OTC Clearing in Europe has now been confirmed to begin for Category 1 participants on 21 June 2016. Who qualifies as Category 1?
Typically considered an instrument reserved for hedge funds and complex investment strategies, derivatives are becoming far more common today within investment portfolios and are increasingly desired by portfolio managers for exposure and risk management.
Find out more about the FIA Asia Derivatives Conference, being held in Singapore this month.
Firms will have to centrally clear certain classes of interest rate swaps starting from 21 June 2016.