Imagine an IRS and a Bund Future cleared within two CCPs, or both cleared at Eurex via PRISMA to achieve cross-margining. The resulting drop in IM is dramatic.
Mark Croxon may have the best beard in Finance, but won't for much longer - if you can sponsor his shave-a-thon he'd be grateful.
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In my last article I reviewed the SEC’s final and proposed rules on transaction reporting by market participants. In this article I will look at the final rule on SDRs, and make some observations on the effectiveness of current and future reporting regimes.
NetOTC updates it's website to describe two new services to address the un-cleared OTC market
One of the biggest challenges for both the Buy Side and Sell Side with the introduction of mandatory OTC Clearing is the posting of the required collateral for initial margin requirements at the clearing house on a daily basis.
Margin and collateral efficiency have been two of the most frequently discussed topics over the past year or two and will continue to be so for some time. Why is this topic so important? Simply put, the market as a whole is going to need more collateral, and will have to learn to deliver it with greater frequency and efficiency. This article summarizes the key suggestions on how to address these challenges.
The timing of the Bilateral Margin rules has moved to September 2016, along with a phase in period for the requirement to exchange Variation Margin.
From London Loves Business, 10th February 2015
Research paper on 'crowded trades' suggests under-margining in certain cleared market scenarios.
Agenda, Speakers and Sponsors Update | Come along and Participate
In a world where money never sleeps and banks continue to seek cost savings by offshoring their operations – where is the best place to base your OTC confirmations team?
CFTC chair Timothy Massad said dealers would gain only a few extra months to comply
Bill: This refers to the bilateral margin rules, you need a subscription to read the full story but the one line summary gets to the point.
Utility provider will offer a more efficient way for banks and brokers to deal with regulation
First conference from The OTC Space in Stockholm on March 24th.
The UK won the right to continue to clear euro denominated products when the ECJ ruled on March 4th in its favor.
The dust has settled from the initial fall out from retail brokerages going out of business as a result of the SNB's abrupt removal of the CHF vs EUR peg several weeks ago.
So I think it's time to ask a deeper question - does it make sense to use risk-based margins in retail FX proprietary trading? After a quick review I can't see a good reason why not.