I came across one item in a series from the NY Fed on bank complexity - the charts demonstrate an aspect of Banks which we often overlook - that they contain many affiliates as a result of SPVs, or for other commercial purposes.
HanMag Securities recent default has shown that clearing can mitigate credit risk, but is not perfect. Managing and valuing credit risk to Central Counterparties (CCPs) is a must, particularly with new regulations. This article lists 10 checking points to analyse credit risk to CCPs.
ESMA published their official list of CCPs and their products.
OTC Clearing & Individual Client Asset Segregation Whitepaper
Following on from my article SEF MAT Week 4, IRS Volumes a
A brief update - SEF MAT weeks 4 and 5 numbers show fixed float IRS fairly stable. Using any one week to form conclusions is questionable.
A number of significant trends have been in place since the Lehman insolvency and the G20 Leaders summit at Pittsburgh in September 2009. The G20 'commitments' to reform the OTC derivatives market have been made real via the Dodd Frank and EMIR regulatory reforms. These regulatory mandates have spelled out significant changes to the market model and the associated market infrastructure.
I am not sure how your day was today but mine had a special bonus! A stroll under the dazzling sun along Vouliagmeni's coast lines, a suburb beach not that far from Athens city centre.
I hope you enjoy the photo.
Portfolio compressions can be useful to manage counterparty risk in derivative transactions. This article is the first of 3 parts and examines how companies can benefit from the mark-to-market credit exposure perspective, and some potential downsides.
Small but important site updates today - expect to see the introduction of Premium content going forward
The ESMA EMIR Q&A was updated this morning with the following questions:
Our client is looking for Senior Manager/Director level management consultants with a track record of successful delivery of new client programmes
ESMA have removed their lovely timeline chart and replaced it with a simplified table:
The clock starts ticking towards mandatory clearing in Europe.
Another week is in the books and last week US reported IRS volumes perked back up close to averages. Drilling down does not flatter SEF progress however given off SEF volumes increased substantially more than on SEF and only USD SEF MAT volumes increased. The most important improvement factors (CLOB, standardization) are not easy to guage but anecdotally are going very slowly.
OTC shrank by ~20% in six months: from $25tn at end 2012 to $20tn market value by end H1 2013. Not yet clear why.
Now that Reporting for Europe has come into effect I am looking further into the next challenges that await for us just around the corner and I would like to share some thoughts in this post and in others coming soon on what I believe will be one