April 2013

'News' HKeX builds a Consortium for OTC Clear 08 April 2013 | Bill Hodgson

A group of banks have signed up to a consortium to sponsor & guide development of clearing for OTC products with Hong Kong Exchange. Press Release here

'News' Markit buys out DTCC from MarkitSERV 07 April 2013 | Bill Hodgson

The JV between DTCC & Markit which combined the original confirmation / affirmation business of SwapsWire & DerivSERV has now become solely owned by Markit.

'News' Is a Chart worth a hundred words or more? | Clarus Financial Technology 05 April 2013 | Amir Khwaja

We have all heard the adage “a picture is worth a thousand words”, well today I am going to postulate that "a chart is worth a hundred words or more” and also “a chart is a hundred times quicker in conveying key information”.

'Articles' Markit and Traiana? Is there room for both? 05 April 2013 | Maria Leontiou

As SEF rules will come into force later this year, CreditLink by Traiana and

'News' PWC on EMIR | Key Requirements and Impacts 05 April 2013 | Maria Leontiou

PWC has published a six page summary on EMIR, its requirements, the potential impact on the Industry and the areas PWC can offer services in, titled "

'Articles' MF Global Failure and the Benefit of Integrated Collateral Management | 4sight.com 05 April 2013 | Bill Hodgson

Some interesting analysis on the demise of MF Global: http://dealbreaker.com/2013/04

'News' Swapclear Check-o-matic 05 April 2013 | Bill Hodgson

If you have some rate swaps sitting idle, why not use the new service from SwapClear to check whether they are mandated for clearing? Click here

'News' ISDA sees risk of contagion if derivatives clearing member defaulted 04 April 2013 | Bill Hodgson

The story below reported at the Investment and Pensions Europe website relates to this PDF Capital Treatment for Exposure to CCP Default Funds (post

'News' Putting Things Into Perspective | Swaps vs. Swap-Futures 04 April 2013 | Ben Larah

It looks as though some market participants could do with a couple of words of advice from

'News' Catalyst issue guidance on CCP margining 03 April 2013 | Bill Hodgson

Putting a spotlight on the challenges presented by Initial Margin algorithm changes at SwapClear and Eurex In recent months, both SwapClear and Eurex have indicated that they will overhaul their margining algorithms, posing signif

'News' FTT and its impact on corporate and sovereign debt 03 April 2013 | Maria Leontiou

A new report is out on the Financial Transaction Tax (FTT) and its impact on corporate and sovereign debt, written by London Economics on behalf of the Regulatory Strategy Group (RSG) and sponsored by the City of London. You can either get the pdf

'News' The Volatility of Low Rates | Raphael Douady | Riskdata Working Paper 03 April 2013 | Bill Hodgson

A paper for the quants, about how markets behave in a low interest rate environment, and how this relates to VaR, and therefore margin exceptions in clearing (or outside for that matter).

'Articles' Pro-Cyclicality, CVA and CCDS 03 April 2013 | Ben Larah

There's been some recent news surrounding EU legislators exempting corporates, sovereigns and pension funds from mandatory CVA capital requirements under CRD IV (see

'News' LCH to 'verticalise' their General Default Fund 03 April 2013 | Bill Hodgson

A note from LCH below explains that they intend to complete the process of aligning the default fund of each clearing business vertically, and end the horizontal approach of having a general default fund.

'News' LCH Default Waterfall Update | Invoicing Back 03 April 2013 | Bill Hodgson

LCH published a member note (here) regarding "invoicing back" which is component of resolving a default.

'News' Insight Investment Pioneers its own Client Clearing Agreement | Derivsource 03 April 2013 | Bill Hodgson

Insight have built their own legal framework to give their customers the best possible service once in clearing, read about it over at Derivsource.com.

'Articles' Finadium: Guide to Margining for Cleared Swaps vs. Futures | Securities Finance Monitor 03 April 2013 | Bill Hodgson

The post below is a trailer for a paid report, which itself looks interesting, but you need to be a subscriber.

'News' OTC Space Website Hacked | Fake Posts on April 1st 02 April 2013 | Bill Hodgson

I really don't know what happened on April 1st but a whole lot of fake posts reached the site, it's a mystery. Apologies to anyone who saw the stories below and might have used them believing them to be legitimate.

'News' Davis Polk | Swap Reporting Who and When? 02 April 2013 | Bill Hodgson

From DP: One key provision of the Dodd-Frank Act requires reporting of swap transactions. The Commodity Futures Trading Commission has finalized detailed regulations in this area that are being implemented in phases.

'News' Global Futures Volume Report | OTC Clearing and Regulations 02 April 2013 | Bill Hodgson

Global Futures Volume Report | OTC Clearing and Regulations. See page 22 of the PDF for volume change by exchange, quite interesting.