July 2013

'News' Foxeye the front office experts | Not any more 04 July 2013 | Bill Hodgson

It appears the company is now out of business, here A shame for the employees. Bill.

'News' CVA and CDS | Proxy Problems 04 July 2013 | Ben Larah

As CDS contracts continue to be perceived as the 'bad guys' in global finance, regulators are limiting their availability to be used as hedging tools, even when it's perfectly OK to use derivatives from other asset classes for a similar purpose.

'News' Margin Rules for Non-Cleared Derivatives to be Finalised in July 03 July 2013 | Bill Hodgson

Sometime this month we'll find out exactly how killed the non-cleared OTC market might be, with the new margin rules.

'News' Financial Transaction Tax: wide scope and attention to pension funds and SMEs 03 July 2013 | Bill Hodgson

With a twist of the knife the EU parliament has added salt to the wound: any firm not paying the FTT will be legally not-entitled to 'own' the receipt of any securities, therefore making the trade null and void.

'News' Cost of Clearing | View the Webinar 02 July 2013 | Ben Larah

To those of you who weren't able to make it to the Cost of Clearing webinar I hosted last Tuesday, a link to the video and audio presentation is available

'News' Dealers ask Esma to bless Lsoc-based clearing - Risk.net 02 July 2013 | Bill Hodgson

Tom Osborn at Risk covers the continued push by dealers to open the door to an ISA model which allows for a single collateral account (rather than one per ISA), keeping operations simpler and cheaper for the Clearing Members, and ultimately the Cl

'News' End of a 30 year era | LIFFE switch over complete 01 July 2013 | Bill Hodgson

The futures business at LIFFE has now switched from LCH to ICE over the weekend, bringing to a close a 30 year relationship. At the same time a new chapter opens with the NLX business aiming to capture exchange business to be cleared at LCH.

'News' ISDA 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol | ISDA 01 July 2013 | Maria Leontiou

On 25th June 2013, ISDA has sent its members the pre-publication draft of the ISDA 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol, asking them to provide their comments by Tuesday, 9 July.

June 2013

'News' Swaptions clearing proves tall order | Derivatives | IFRe 27 June 2013 | Bill Hodgson

Pushing exotic interest rate products through central counterparties is proving to be a tall order and could even endanger financial stability, industry participants have warned, as they wrestle with the complexity of clearing more bespoke over-th

'News' Clearing IRS at Eurex Incentive | Free Until Jan 2016 27 June 2013 | Bill Hodgson

Eurex have laid down an offer that any Member or Client who signs up by Dec 31st this year, then gets clearing largely free for two years.

'News' The OTC Space Leads the Way | FSB to consider One Repository to Rule Them All 25 June 2013 | Bill Hodgson

In a tribute to an idea first raised on this very website on April 1st this year, the FSB has agreed:

'News' ISDA to Develop Standard Model for Margining Non-Cleared Trades… 21 June 2013 | Bill Hodgson

An interesting move by ISDA - one for all Risk managers to get involved with, as the margin approach for non-cleared trades may (or will) have a massive impact.

'News' Close Out Risk Evaluation (CORE) | 20 - 70% Better Than VaR 21 June 2013 | Bill Hodgson

Bovespa in Brasil have developed an approach to calculating margin which considers portfolio hedges and the timing of close-out to produce a model which more easily integrates multiple assets classes in clearing.

'News' A broken model | Time to Nationalise Retail Banks 20 June 2013 | Bill Hodgson

Frances Coppola argues that provision of banking for regular people on the high street is fundamentally broken, and must require government guarantees to survive, hence the implication that a government sponsored entity (GSE) to provide basic curr

'News' ISDA Year End 2012 Analysis of OTC Derivatives 20 June 2013 | Bill Hodgson

ISDA produces its Market Analysis to correspond with the release of the Bank for International Settlement’s (BIS) semi-annual statistical release. The BIS’s most recent release covered the period ending December 31, 2012.

'News' Cross margining benefits. Are they for all? 20 June 2013 | Maria Leontiou

A really comprehensive paper by CME was published this month (June), which amongst others, emphasises the benefits of cross margining, saying that $1 billion in initial margin savings have been achieved.  It also shows examples of savings achieved

'News' Rehypothecation – good or bad ? | OTC Clearing and Regulations 19 June 2013 | Bill Hodgson

Rehypothecation can be very bad and be the devil which cannot be controlled and can become a monster which can eat up every one.

'News' Costs of Clearing | Free Webinar 18 June 2013 | Ben Larah

On Tuesday 25th June, 2013, at 9am EST, I shall be hosting a webinar on the study "The Cost of Clearing: A Buy-Side Investiga