April 2015

'News' IG launches trading app for Apple Watch 10 April 2015 | Feed
The Apple Watch is due to launch in April
'Articles' What if the Doctors of OTC Derivatives themselves fall Sick? 08 April 2015 | Pat Aditya

After the 2008 financial crisis, more emphasis was given to OTC Derivatives market in order to make it more transparent and fail proof. To achieve the same, new laws and regulations were introduced and implemented in various parts of the world.

'Articles' Trading rules need to work together 08 April 2015 | ISDA Feed

Cross-border fragmentation is one of biggest concerns for ISDA and its members.

'Events' CCP Clearing and Risk Management Insights 07 April 2015 | Samantha Hodgson

Clearing Houses are a huge concern among the largest banks in Europe and America having been deemed "too big to fail" by The Financial Times since the Clearing Houses became risk managers for global markets in the post 2007-crisis era. Leading up to Risk EMEA 2015, CFP spoke to Ricky Maloney, Buy Side Sales and Relations Manager, Eurex and Nick Chaudhry, Head of OTC Clearing, Commerzbank about the evolving concerns.

'Articles' Will the Bubble Burst be revisited? 05 April 2015 | Pat Aditya

The debacle of financial system in the United States in 2008 has been attributed to the subprime lending in mortgage sector, securitization of these subprime mortgage loans and taking aggressive positions in the resulting mortgage backed securitie

'Articles' Another Shot Across the Bow for Proprietary Trading Groups, and By Association, HFTs and Algorithmic Trading Strategies 03 April 2015 | Derivatives Law Feed
Since the financial crisis of 2007-2010, proprietary trading has been in the cross hairs of regulators seeking to address excess risks in the financial system.  Perhaps the best known example of this can be seen in the implemen
'News' Centralised solutions for Reporting | ESMA 03 April 2015 | Maria Leontiou

Here comes a press release from ESMA announcing the launch of centralised data projects for MiFIR and EMIR.

'Articles' Pure Agency: Reducing Client Clearing Bank Capital Burdens 02 April 2015 | Jon Skinner

With adjustments to Basel III nearing completion, it's not clear whether client clearing ROE can be rendered sustainable by clearing fee increases alone.  Here I look at a way to reduce capital burdens of bank clearing members by eliminating client-driven exposures whilst keeping banks providing client clearing - the Pure Agency client clearing model.

'News' Looking at ACER’s “REMIT Quarterly” 02 April 2015 | Energy Trading Regulation Feed

ACER recently issued their first “REMIT Quarterly” (here) which is a newsletter giving updates about progress and issues around the REMIT Initiative.

March 2015

'News' ESMA updates list of authorised CCP and Public Register – LCH.Clearnet Ltd extends services 31 March 2015 | ESMA Feed

The European Securities and Markets Authority (ESMA) has published today an update of its list of central clearinghouses (CCPs) which are authorised under the European Markets Infrastructu

'News' Collateral Management Whitepaper - Is Collateral Optimisation a Big Data Problem? 31 March 2015 | Samantha Hodgson

There is currently something of a big data revolution taking place as processing speeds increase and hardware costs decrease. Many banks already perform pre-trade data runs, generating millions of scenarios when performing Monte Carlo simulations to calculate CVA.

'Articles' Targeted clearing mandate exemptions could reduce systemic counterparty risk 31 March 2015 | Jon Skinner

With regard to systemic counterparty risk reduction the bank regulators' minimum capital, liquidity reserve and margin levels are a major incentive.  The current fine-tuning debate and regulatory rule adjustment are understandable given the financial implications.  

By contrast the lack of discussion of clearing mandates might imply they are a straight systemic counterparty risk win through promotion of consolidation, netting and margining in CCP facing portfolios.  Unfortunately it is not that simple - clearing mandates also entrenching bilateral counterparty risk by limiting key risk reduction techniques.

Here I explore these limitations and suggest some solutions.

'News' ESMA publishes updated EMIR Q&A - No 12 31 March 2015 | ESMA Feed

The European Securities and Markets Authority (ESMA) has today issued the 12th update of its Q&A document on the implementation of the European Markets Infrast

'News' Comet 1 | The Photos 27 March 2015 | Bill Hodgson

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