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CCPs

How estimating CCP margins could save you millions

It’s All About the Risk

If you want proof that big changes have occurred in the derivatives market, look no further than our regular SwapsInfo trading statistics. The latest figures show that 88% of interest rate derivatives trading volume reported to US swap data repositories was cleared in 2018.

ISDA Publishes Best Practice Recommendations for CCPs

ISDA has published a set of best practices for central counterparties (CCPs), aimed at ensuring greater consistency in risk practices at CCPs across the globe.

The recommendations follow a default at Nasdaq Clearing last September, which exceeded the defaulting member’s margin and default fund contribution and required the use of mutualized resources – the second such event in five years. The paper highlights steps that can be taken to minimize the potential for a member default to impact other members and the financial system as a whole, except in an extreme stress event.

CCP Best Practices

Welcome to 2019 - The OTC Space has been busy with other projects, but I couldn't miss passing on this one from ISDA. Does anyone else find it interesting that ISDA has taken on the role of reminding CCPs how to do their job properly?

I would think regulators themselves should be reminding CCPs of these sensible guidelines. Given the flood of clearing regulations, is there some doubt that CCPs can do their job?

Letter to EC on Temporary Equivalence and Recognition for UK CCPs

The International Swaps and Derivatives Association (ISDA), Futures Industry Association (FIA), Association for Financial Markets in Europe (AFME) and International Capital Markets Association (ICMA) welcome the statement regarding temporary equivalence for the purpose of recognition for UK central counterparties (CCPs) in the European Commission’s (EC) communication regarding Brexit Contingency Planning published on November 13, and the statement by the European Securities and Markets Authority on November 23.

The Case for CCP Supervisory Cooperation

Significant progress has been made in moving standardized derivatives trades to central counterparties (CCPs), in line with commitments made by the Group of 20 (G-20). Approximately 77% of interest rate derivatives notional outstanding is now cleared, according to the Bank for International Settlements.

The Case for CCP Supervisory Cooperation

Significant progress has been made in moving standardized derivatives trades to central counterparties (CCPs), in line with commitments made by the Group of 20 (G-20). Approximately 77% of interest rate derivatives notional outstanding is now cleared, according to the Bank for International Settlements.

Trimming the Hedge: How can CCPs efficiently manage a default?

Fernando Cerezetti, Emmanouil Karimalis, Ujwal Shreyas and Anannit Sumawong

Banks still pose the risk of being “too big to fail”

On 18 August 2016, the Financial Stability Board (FSB) published two final guidance papers for authorities and firms as part of the agenda to end the “too big to fail” risk. Some progress is being made, and the FSB has said that “banks have begun to develop issuance strategies to meet new total loss-absorbing capacity

Updates to clearing obligations under EMIR- the phase-in begins

The phase-in for central counterparty clearing (CCP) for certain Over-the-Counter (OTC) derivative contracts began in 21 June 2016 for certain contracts, with many more soon to follow, until all in-scope contracts are subject to the obligations by 9 August 2019. The European Market Infrastructure Regulation (EMIR) requires certain classes of OTC derivative contracts to be

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