Funding and Capital Economics

6th Annual Risk Management Forum: 10% Discount for OTC Space Readers

Will include topics such as market risk, regulatory spotlight, credit risk, stress testing, liquidity risk, and operational risk. Registered OTC Space readers can make use of a 10% discount on registration for the event.

Insights Enhances Razor Risk™ to Meet New Market Risk Standards

Razor Risk™ now supports the FRTB – minimum capital requirements for market risk capital reforms. The solution offers financial institutions the ability to calculate and manage market risk capital and performance across desks, business lines or top of house.  

Rocket 7 Magazine - Blast Off Approaching

Our magazine Rocket 7 is coming soon, packed with inside viewpoints and expert knowledge. Save or update your address to be eligible to receive a copy now.

Compression Comes to Client Clearing via ClearCompress

Compression for Clients of Clearing Members Becomes Available to Release Capital

Saving Capital Under FTRB | Did You Know There Are Choices?

FRTB isn't just a bag of maths, like any regulation it gives firms choices to make about how they organise and run their trading desks. David Chen from TMX explains how in this free webinar.

The impact of Brexit on your next cleared swaps margin call

In the run-up to the Brexit vote, many firms trading OTC interest rate swaps were understandably worried about the impact of short term market volatility on the margin that they would need to post to their clearing houses. Our aim in this post is to share some of the analysis that we did prior to the vote, and are continuing to run on an hour by hour basis, with the objective of helping firms to assess the liquidity impact and to understand the key drivers of changes in margin.

BREXIT – The Impact on Swap Margin

Given the large moves in Swap rates that we highlighted in our BREXIT Day One and Day Two blogs, I thought it would be interesting to look at the impact on Swap margins. Cleared IRS 10Y Lets start by using CHARM to calculate the IM of 10Y par vanilla swaps in EUR, GBP and USD. Showing that on 23 […]

POSTPONED: Breakfast Briefing : How Does Risky Compression For Cleared Trades Create Value For Clients of Clearing Members?

Clear Compress has created an innovative, on-demand approach to trade compression, offering an exciting new alternative for clearing members and clients of clearing members alike that can benefit from reducing gross notional and associated costs. In this interactive breakfast meeting we aim to address the barriers to compression and demonstrate whether the benefits are achievable.

Compressions Shrinking the OTC Space

New regulatory measures start to deliver benefits as efforts to reduce outstanding derivatives have achieved brilliant results in the last 18 months. By June 2015, the derivatives market had shrank to USD 553 trillion from its peak of USD 711 trillion in the first half of 2014. Aggregate compressions over the same period was of USD 265 trillion, three times as much as in the previous 18-months.

The Economics of Collateral and Making a Profit - Free Webinar

Going back ten years or more, Collateral Management was in many firms seen as an adjunct to their Operations or Credit risk teams. Given the easy profits from trading, little attention was made to the flow of margin assets or their cost, as these were a side-line in the overall profits of a firm. The first step change for a CM team was the arrival of SwapClear in 1999, and the take up of clearing by a core group of banks in 2000 with the drive to automate the clearing process. SwapClear requires Initial Margin which was a new idea for OTC products.