An excellent summary of the impasse within the CFTC on SEFs, and the arbitrary setting of holding periods for IM on swap futures.
I added three more guest writers, see http://theotcspace.com/profiles/ for more details. The final tally is:
From the FT: @FTTradingRoom: CME Group's European interest rate swaps clearing starts in London today. Debuts with 7 currencies: GBP, EUR, CAD, AUD, CHF, JPY and USD Anyone know who CME have signed up for this? It would be interesting to know.
FT article: BBG threatens to sue CFTC (subs required) Bloomberg has taken the first step towards suing CFTC over what they see as an un-level play
A variety of people are making a contribution to the site, each of their posts will show their profile at the bottom of the page.
Interesting if it affects you... LCH.Clearnet Group - CDSClear - Regulatory Updates.
I happen to be working with a client whose office is now right under St Paul's Cathedral. In the photo below (click the link), the entrance to the office can be seen just to the right of the tower down at ground level.
I came across this story which I need to read more, but it's an interesting analysis that US banks have a favourable accounting treatment which may attract change.
Given the report about the unsuitability of Expected Shortfall and back-testing, here's an article from 2007 by Risk which explains more.
See the quote below, read the PDF, then enjoy your weekend. 300? WTF. Sorry. Update from the FSB: http://www.financialstabilityboard.org/publications/r_130308.pdf
Scott O'Malia doesn't mince his words, he's critical in a forensic take-down of the process for defining the reporting requirements within his own organisation. He abstained from the vote regarding CME-1001, his press release explains why.
Exclusive to The OTC Space for now, a new reporting service from Deutsche Börse to facilitate accurate reporting of ETD and OTC business executed or cleared within the DB group.
DTCC (Larry Thompson) may go after the CFTC or CME if he feels there is a case, with CME automatically delivering cleared OTCs into their own SDR. But, on rule 1001 they put this:
NASDAQ OMX intend to provide it's members connectivity into the other TRs such as DTCC or REGIS-TR to route ETD & OTC reporting data, sort of a consolidated feed service. See link below.
The DTCC public SDR portal now shows trades from Rates, Credit, Equities, FX and Commodities. Have a look at Fixed-Fixed IR Swaps - can anyone explain what purpose a fix-fix swap serves? Is it like a currency swap without the notional exchanges?
Like the "big bang" for CDS which moved them to standard coupons, "The nonbinding proposal would see some of Wall Street's biggest customers trade interest-rate swaps on the same payment dates and coupons, rendering the contracts more like futures
I got a letter in the post alerting me to the fact that the clearing business in Sweden will become a standalone legal entity. They reference EMIR but it would make a sale easier?
Tom at Capco sent in a re-re-revised ESMA / EMIR timeline, see the usual page. Official Timeline for EMIR | The OTC Space.