The value of early termination clauses in derivatives depends crucially on the type of close-out value used and on the counterparty risk, and embeds optionality in even the most vanilla swap contracts....
More Aaron Woolner articles
Single bank default could affect multiple CCPs, leading to crippling default contribution for existing members and a chain of bank failures
The cost of reducing systemic risk is too high for the real economy, says Isda deputy chief executive
Initial margin requirements could increase liquidity strain on firms in smaller markets
Planned one-basis-point charge will be levied multiple times in cleared trades – and could “kill the market”
The large number of trade repositories planned globally will reduce the quality of data, panellists warn
A variety of clearing houses are emerging in Asia – in some cases, backed by domestic clearing requirements for local currency derivatives. That poses some difficult questions for participants active across the region. Should they sign up to all of...
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.