June 2015

'Articles' Synthetic Finance Whitepaper: Target Operating Models and Technology Challenges 24 June 2015 | Martin Seagroatt

4sight Financial Software and consultancy The Field Effect have published a complimentary whitepaper on Synthetic Finance using equity swaps such as total return swaps and portfolio swaps.

'News' Hasenpusch to take helm at CME Europe 24 June 2015 | The Trade News Feed

CME Clearing Europe has appointed Tina Hasenpuch as its new CEO, taking over from Lee Betshill who is moving to its US arm.

Bill: Well done Tina...

'Articles' EurexOTC Clear - Enhanced Netting & Compression Services for the Buy Side & Sell Side 24 June 2015 | Byron Baldwin

EurexOTC Clear Enhanced Netting & Compression Services - Buy Side and Sell Side alike will be able to benefit from the introduction of Fee Netting and Rate Blending compression functionalities to bring down the gross notional position of an IR

'Articles' BoE archives reveal little known lesson from the 1974 failure of Herstatt Bank 24 June 2015 | Bank Underground Feed

Bill: If you haven't studied that mystical subject of Herstatt risk, or understand why CLS came into being, then this blog post from the BoE might help explain it:

'Articles' ESMA Gets Semi-Serious About Swaps Reporting - the CFTC, Not So Much 19 June 2015 | George Bollenbacher

As I have said in past articles, and since every swaps market participant and every swaps market regulator recognizes that transaction reporting has been something of a disaster, we are all waiting to see what the regulators will do about it. Recently, two swaps regulators went in somewhat different directions on this subject.

'News' Bank (of England) Underground Blog 18 June 2015 | Bill Hodgson

Get the secret 'underground' views of Bank of England staff

'Articles' The Big Questions About Regulatory Reform 18 June 2015 | George Bollenbacher

The recent publication by the Volcker Alliance of a series of papers on reforming the financial regulatory structure makes interesting reading. You may or may not agree with their conclusions, but I, for one, can’t help but think that there are some important questions about structural reform lurking just under the surface, that were either not asked or were subsumed in these papers. So let’s get them out on the table and see where they lead us.

'Articles' LCH Makes Gains vs CME in USD IRS (8-12 Jun 2015) 16 June 2015 | ClarusFT Feed

Following my blog on CME and LCH: What Happened on May 19 and Jun 12, I wanted to re-visit the data now that we have another week of published volumes.   Weekly Volumes Using CCPView lets look at weekly volumes of gross notional…

'News' The Global Fix for OTC Trade Reporting 16 June 2015 | Bill Hodgson

In an announcement from ISDA, a wide range of trade associations have put forward a framework of principles to guide the development of a better approach to trade reporting. In summary these are:

'Articles' EMIR margin rule changes not marginal 11 June 2015 | DRS LLP Feed

The EBA/ESAs have launched a second consultation on the draft RTS on rules for uncleared margin under EMIR. The consultation contains a number of material changes as a consequence of industry feedback from its April 2014 predecessor.

'Articles' Strategies for securities finance businesses: A Sungard Whitepaper 11 June 2015 | Tom Dibble

The securities finance industry is currently digesting the heavy meal that has been Basel III, CRD-IV, Dodd-Frank and related regional regulatory initiatives impacting the global market.

'News' EMIR : Latest news on IRS Clearing Obligation 11 June 2015 | Benjamin Baron

Dear All,

'News' ESAs consult on margin requirements for non-ce‎ntrally cleared derivatives 10 June 2015 | ESMA Feed

The European Supervisory Authorities (ESAs) launched today a second consultation on draft Regulatory Technical Standards (RTS) outlining the framework of the European Market Infrastructure Regulation (EMIR).

'Articles' Bourses turn to Asia amid rules deadlock 10 June 2015 | Financial Times | Clearing and Settlement Feed

Derivatives markets eye international expansion from China as dispute holds up US and Europe

'Articles' EU revisions to uncleared margin rules address industry fears 10 June 2015 | Risk Magazine Feed

European commission

'News' FIA review of regulatory reform in Europe 10 June 2015 | Energy Trading Regulation Feed

The Futures Industry Association(FIA) have just published this review of regulatory reform in Europe, covering rule sets such as EMIR, MiFID and others.

'Articles' Asymmetry of CSAs Causes FVA Costs 09 June 2015 | Ben Larah

There has been some confusion recently over Funding Value Adjustment (FVA). On April 29th, Risk Magazine reported that dealers were charging clients for FVA on collateralised trades, due to the quality and fungibility of collateral being posted by the client. To appreciate why this is happening, one needs to understand dealers’ funding operations when making derivatives markets.