In the Basle 3 rules, page 40, (see bcbs189 below) you see this:
Banks may stand to lose as much at $4.5 billion in OTC derivatives due to the mandated move to electronic trading, according to a new McKinsey & Co. report. That loss translates into a 35 percent revenue drop.
Collateral system provider 4sight and consultancy Rule Financial have published a complimentary whitepaper on the issues facing buyside firms around the collateral management process.
What’s the outlook for Investment Banking in 2014 and beyond?
Collateral and Financial Plumbing written by the leading authority on collateral, Manmohan Singh, published on the 30th June 2014.
Bringing Efficiency to Collateral Management
Trends, Challenges and Opportunities for Success
More than 55% of firms surveyed don’t believe they have efficient processes for collateral management or are well prepared for future challenges; according to a recent Sapient Global Markets survey. Due to an ever-evolving regulatory landscape, collateral management has been transformed into a complex, costly exercise. Through the onset of new regulations, firms continue to face many challenges including higher collateral volumes, increased margin calls and interaction with more counterparties.
What are the drivers of this transformation? And, how can your firm transform collateral management into a competitive advantage?
Margin & Collateral Efficiencies for the Sell Side - Ten Year Euro Asset Swap.
An article from Risk Magazine tells the story of how battle lines are drawn on the OTC Rates Clearing front between Eurex and LCH.Clearnet
As we are all deeply involved in the implementation process of new regulatory structures I am sure there is not so much time to "see" the future and how business will transform once everything is up and running.
Please read if you are on the daily email list
Collateral Challenges in the New Regulatory Environment
The ESMA Q&A has been updated, covering UCITS funds, AIFMD, intragroup exemptions, non-EU Central Banks, CCP Staff Employment, Risk Committees, interoperability, reporting of Collateral values and Trade valuations, and much much more.
The London School of Economics has written a study on the impacts of regulation on the collateral supply and dynamics.
Eurex announce the launch of a Euribor Initiative:
With the countdown to clearing in Europe ticking away, some market participants are concerned it will be a rush to the finish line as many asset managers have yet to begin preparing.
Collateral World Summit, 23-24 September, The Grange Tower Bridge Hotel
The Collateral World Summit (23-24 September) will unite buy and sell-side leaders in implementing the changes essential for lowering their collateral costs.
OTC Space is speaking at this event BTW:
In this article, I will look at whether we can see any differences in USD Interest Rate Swap Prices in the Dealer-to-Dealer and Dealer-to-Client markets.
In sport, as in life and as with our careers, we need to know where we are headed. We need a goal.