The OTC market's complex new structure will lead to operational glitches, conference participants warn
FCMs do not have capacity to sign up all category 2 firms, market participants warn – and swap futures stand to benefit
Some client trades have not been cleared within 60 seconds
Insurance Risk and BNY Mellon have conducted a survey to look at how insurance companies are preparing for the new regime and the opportunities and challenges that the changes will bring.
More Joe Rennison articles
Swap futures have been pitched as economically equivalent to over-the-counter swaps, but with a much lighter regulatory burden. But some over-the-counter participants claim the rules create an unfair and unjustified arbitrage opportunity. Joe Rennison...
The days either side of the first US clearing deadline saw last-minute decisions by clients and regulators, operational niggles and some illegality. The industry expects breaches of the rules to get a pass for now, so the first phase of the new regime...
Different block trading thresholds for economically equivalent swaps and futures could hand exchanges a decisive advantage in the ongoing futurisation fight. But some market participants argue the disparity is fair, as do some regulators. Joe Rennison...
Firms that trade index and single-name CDSs will see margin requirements increase
Stop-gap margin solution would force most firms to post twice as much collateral as CCP members
Only registrants to date are MBIA and Cournot Financial Products – firms that have not traded derivatives since 2008
This paper discusses a number of diverse considerations that risk managers need to incorporate into their thought processes and recurring procedures if they are to fulfill their role more effectively in the future