April 2013

'Articles' InteDelta InSight on Specific Wrong-way Risk | InteDelta 30 April 2013 | Bill Hodgson

A briefing on avoiding the wrong correlation between your counterparty and your exposures.

'News' At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World (Hint: Not JPMorgan) | Zero Hedge 30 April 2013 | Bill Hodgson

Yet another news article scaring the pants off ordinary people by suggesting that Notional = Value, and that Collateral = Zero. It's a shame, the comments show how taken-in people are when the underlying facts aren't presented properly.

'News' 2013 Glossary of Financial Terms | Sapient Global Markets 30 April 2013 | Bill Hodgson

Stuck to find a definition of "altiplano" ? Look no further, 130+ pages of home grown definitions making you walk and talk like Jamie Dimon ;-)

'Articles' Bank of England | Financial Stability Paper No 20: Central counterparty loss-allocation rules 29 April 2013 | Bill Hodgson

A paper explaining how CCPs allocate losses to members in a default.

'Articles' Bank of England| Financial Stability Paper No 19: Central counterparties and their financial resources 29 April 2013 | Bill Hodgson

Interesting paper on how a CCP achieves protection.

'News' UniCredit to shun US derivatives trading - FT.com 28 April 2013 | Bill Hodgson

UniCredit, plus DBS in Singapore and Nordea in Sweden have all adopted a "don't trade with the US" approach to Dodd Frank. TJ Lim, Head of Capital Markets at UniCredit announced their strategy at the ISDA AGM last week.

'News' Isda AGM: Industry to address negative interest rates under CSA - Risk.net 27 April 2013 | Bill Hodgson

With OIS rates below low, in some cases the interest on your cash posted under a CSA can go negative, i.e. you pay to post. ISDA has been working on a clarification on this, and might issues a protocol.

'News' NASDAQ's horizontal fixed income push 26 April 2013 | Jon Skinner

Three separate items which together indicate a concerted strategic move by NASDAQ into fixed income electronic execution partnering with "horizontal" derivatives CCPs:

'Articles' Do clearing mandates actually work? 26 April 2013 | Jon Skinner

In an environment where bilateral and cleared trades are more appropriately risk mitigated through bilateral margin, CCP margin and guarantee funds and Basel III capital, fragmentation costs and increases in systemic risk due to regulatory clearin

'News' US banks begin to support European peers over Fed onshore capital and liquidity proposal for foreign banks 26 April 2013 | Jon Skinner

Goldman and JP have started to support EU banks lobbying against the Fed proposal to require US banks to hold more capital

'News' ISDA AGM 2013 | Virtually There 25 April 2013 | Bill Hodgson

For the many who couldn't attend this years ISDA AGM, below is a round up of the key stories. If any of the attendees have anecdotes, incriminating pictures or gossip, please send it over.

'News' MacIRS: SIFMA/ISDA standardized swaps initiative 24 April 2013 | Jon Skinner

The following articles describe the announcement made by ISDA and SIFMA jointly at the Singapore ISDA meeting today: Risk.net

'News' CFTC’s Gensler on Libor | Is it the end? 23 April 2013 | Maria Leontiou

It seems that what until now has only been an open sceptisism on Mr Gensler's side, is now considered to be the strongest indication that regulators are more than eager to replace LIBOR with an alternative benchmark. As Mark Carney, the future Ban

'News' CME SDR data leak 22 April 2013 | Bill Hodgson

The CME SDR sprang a leak,story here affecting DE Shaw & others. Update: more from Reuters, it was futures data not OTC, 500 trades.

'News' It's all about data | Mark Davies, Head of Avox speaks 21 April 2013 | Maria Leontiou

A really good piece on the importance of data and their critical role to the efforts of regulators and market participants to ensure that the financial markets are underpinned by a robust infrastructure in order to monitor and offset risk effectiv

'News' Is there a way to avoid regulatory arbitrage? Vol 2 21 April 2013 | Maria Leontiou

A few days ago I did this post on Elisse Walter's speech on regulation of cross-border OTC derivatives. On A

'News' Javelin Capital Markets goes to London | Market infrastructure 20 April 2013 | Maria Leontiou

New kid on the block (of SEFs).... Javelin Capital Markets has announced that it has opened an office in London and will register as a SEF once the SEF rules are finalized.

'News' Standardised OTC swaps (TrueEx) to launch within weeks - Risk.net 19 April 2013 | Bill Hodgson

Sunil Hirani who created CreditEx, now part of ICE, has built a new trading market TrueEx, and registered as a Designated Contract Market (DCM) with the CFTC.