Job displacement by automation is already sizable on a per capita basis in the US (concentrated on labour intensive manual work) and the rise of an Asian middle class with the rising wages they demand may have set the time bomb ticking for these trends to be repeated in Asia.
The team at Sernova Financial provide a detailed insight into the major challenge of moving the entire OTC market away from LIBOR in a relatively short space of time.
The ISDA AGM generated a wave of content last week which we've assembled into one handy place. Most of the material is focussed on margin for non-cleared products given the changes due in 2019.
Using R5-SHCH Connect domestic banks in China now have access to the London FX market, recognised as the leading centre for global FX trading. The new service is a partnership between London's R5 and the Shanghai Clearing House, announced by UK Chancellor Philip Hammond in December as part of the 9th UK China Economic Dialogue.
Bond yields have been falling since 1982. Many sovereign bonds have ultra-low yields today. Ultra-low yields generate ultra-high liability values since the time value of money does not apply when there is too much debt in the system. Pension schemes that were comfortably funded a few years ago at 5% now have huge deficits.
The annual Bürgenstock meeting in 2017 is a three day event run by ICDA, the second oldest futures industry association in the world. OTC Space Registered Readers can access a 15% discount to this event.
The OTC Derivatives Summit of the Global Fixed Income Institute is an annual event which has now been running for over ten years. Those in the know refer to the Summit informally as the Pennyhill Park event – where a group of the most senior buy- and sell-side individuals debate (in private) the latest challenges running an OTC derivatives business.
Following the 2008 Financial Crisis, multiple regional sets of regulations (EMIR, Dodd-Frank) mandated OTC markets migrate from bilateral to cleared processing. As rules were written and regulations in the U.S. and Eurozone have come into effect over the past 7 years, the Basel Committee on Banking Supervision threw a levered wrench into mandatory client clearing for FCMs which has lead us to a crossroad in derivative market clearing infrastructure.
Razor Risk will also provide high level demonstrations of their “off the shelf” solution that will sit between existing Market Risk and Front Office pricing tools so that the firm can maintain BAU processes whilst preparing for the Fundamental changes that BCBS 352 will require. The Webinar is targeted at all involved stakeholders, bringing together the major drivers behind Business Users (Risk Managers), Front Office Capital Consumers, FRTB Programme Managers and Technology Implementation Teams whether the firm is going for a Standardised Approach (SA) or a combination of SA and Internal Model Approvals (IMA).
The team here at The OTC Space are pleased to announce the availability of the downloadable PDF edition of Rocket 9 featuring four articles on Uncleared Margin Regulation plus 8 articles on a regulation, trading, clearing and post-trade. Get your free copy here, and send one to your colleagues.