Bill: If you haven't studied that mystical subject of Herstatt risk, or understand why CLS came into being, then this blog post from the BoE might help explain it:
Blog posts on LinkedIn Pulse by myself from May & June with useful infographics that assist with understanding collaterial efficiency, synthetic euro asset swaps, cross margining, client asset protection, and more.
As I have said in past articles, and since every swaps market participant and every swaps market regulator recognizes that transaction reporting has been something of a disaster, we are all waiting to see what the regulators will do about it. Recently, two swaps regulators went in somewhat different directions on this subject.
Earlier this year, the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) announced revisions to the framework for margin requirements for non-centrally cleared derivatives, giving participants a bit more time until we see the end of the OTC markets as we know them in late 2016.
Get the secret 'underground' views of Bank of England staff
The recent publication by the Volcker Alliance of a series of papers on reforming the financial regulatory structure makes interesting reading. You may or may not agree with their conclusions, but I, for one, can’t help but think that there are some important questions about structural reform lurking just under the surface, that were either not asked or were subsumed in these papers. So let’s get them out on the table and see where they lead us.
Team dynamics is one of the biggest factors affecting business success. Think about it. How much time do you spend struggling with detailed technical problems every week, and how much of your energy is actually sapped by people issues? A dysfunctional team is the single, quickest way to derail a project or to jeopardise a deadline. Here we look at some simple ways to build an effective team and to keep disruption to a minimum.
Following my blog on CME and LCH: What Happened on May 19 and Jun 12, I wanted to re-visit the data now that we have another week of published volumes. Weekly Volumes Using CCPView lets look at weekly volumes of gross notional…
In an announcement from ISDA, a wide range of trade associations have put forward a framework of principles to guide the development of a better approach to trade reporting. In summary these are:
The EBA/ESAs have launched a second consultation on the draft RTS on rules for uncleared margin under EMIR. The consultation contains a number of material changes as a consequence of industry feedback from its April 2014 predecessor.
The securities finance industry is currently digesting the heavy meal that has been Basel III, CRD-IV, Dodd-Frank and related regional regulatory initiatives impacting the global market.
The European Supervisory Authorities (ESAs) launched today a second consultation on draft Regulatory Technical Standards (RTS) outlining the framework of the European Market Infrastructure Regulation (EMIR).
Derivatives markets eye international expansion from China as dispute holds up US and Europe
The Futures Industry Association(FIA) have just published this review of regulatory reform in Europe, covering rule sets such as EMIR, MiFID and others.
There has been some confusion recently over Funding Value Adjustment (FVA). On April 29th, Risk Magazine reported that dealers were charging clients for FVA on collateralised trades, due to the quality and fungibility of collateral being posted by the client. To appreciate why this is happening, one needs to understand dealers’ funding operations when making derivatives markets.
Verena made the speech below at IDX yesterday, and took a tough line on the difference of opinion between the US and Europe of ETD margin rules being 1 day gross or two day net IM. See the transcript for her comments.