ISDA CEO Scott O’Malia Guest Remarks at Exchequer Club Luncheon in Washington, DC

Exchequer Club Luncheon

Mayflower Hotel, Palm Court Ballroom, Washington, DC

January 16, 2019

Scott O’Malia, CEO, ISDA


Thank you for that kind introduction.

Good afternoon – it’s a real privilege to be here today and to share ISDA’s perspective on financial policy developments and future challenges.

Time for Recalibration – IQ January 2019

It’s traditional to start the New Year with a few predictions. When it comes to forecasting the priorities for derivatives markets, however, this year’s list is easier than most to put together: Brexit, benchmark reform, margin, cross-border issues and technology.

What makes your initial margin volatile?

If you run a ‘buy and hold’ strategy you don’t expect your initial margin requirement to change much. You would even hope that margin would progressively fall over time as the duration decreases. But, this isn’t always the case…sometimes you will see big step changes in margin that can be as much as 100% –  a lot of potential capital to […]

The post What makes your initial margin volatile? appeared first on OpenGamma.

Aussie IM Phase 4 double whammy

Bill: More work for Phase 4 UMR, if we're unlucky.

Opinions obviously vary, but for me there are very few opportunities to be glad not to be Australian. Here is one for already punch-drunk IM lawyers and compliance personnel. The largest four banks in New Zealand are Australian-owned- ANZ, ASB, BNZ and Westpac. New Zealand is not a G20 member and has therefore been (relatively) […]

CFTC nod and a wink for IM phase 5 depopulation

The CFTC’s Office of the Chief Economist (OCE) has responded to industry petitions to mitigate the widely-forecasted IM Phase 5 oncoming storm. Readers will recall the July 2018 ISDA/SIFMA white paper previewing the phase 5 population explosion and recommending various reduction strategies: • Raising the in-scope AANA threshold from $8bn. to $100bn. • Postponing mandatory […]

Clearing Incentives, Systemic Risk and Margin Requirements

Central clearing of standardized derivatives and margin requirements for non-cleared derivatives are two of the basic tenets of global financial regulatory reform. They are also inter-related: the purpose of margin requirements is to both reduce systemic risk and promote or incentivize central clearing.

Recent studies and research into clearing incentives and margining raise questions about whether certain aspects of the requirements do in fact support these key policy goals. These questions include:

U.S Hedge Funds can save millions as new rules threaten cost escalation

Hedge funds facing perplexing regulations can make significant margin savings. According to our new findings, a hedge fund moving 10 positions between dealers can save a huge 25% in initial margin – which equates to hundreds of millions of dollars. These savings free assets for fund managers to scale up positions to drive additional returns. The findings will come as welcome […]

Guide: How you can reduce your initial margin by 70% under uncleared margin rules

Charles River Forms Business Alliance with Cassini Systems to Automate Margin Estimation

ISDA Chairman Eric Litvack’s Remarks at ISDA Europe Conference, London

ISDA Europe Regional Conference

September 26, 2018

Chairman’s Remarks – Eric Litvack

Good morning.

The timing of this conference means that, in recent days and weeks, you will have seen and heard a great deal of retrospective analysis on the financial crisis. Ten years ago, the markets were in a very uncertain place. Lehman had just gone under, triggering a shockwave that turned what had until then been a gradually building credit crisis into a full-blown financial panic.