Abuse of power?
Temporary rules for portfolio margining by clients are set to expire in December. Hedge funds say they will stay on the sidelines until they know what happens next
More Derivatives articles
A change in CFTC rules could lead to clearing members having to increase default fund contributions at CME and other US CCPs
HM Revenue & Customs "does not wish to discourage" client clearing business, which is caught by UK balance sheet tax
Liquidity and political risk considerations hinder Thai rice producers' attempts to hedge out looming downside risk
Easing of documentary requirements increases onshore renminbi hedging
Baringa Partners survey suggests firms may struggle to cope with European financial regulation
Eleven CCPs say they will apply to Esma for approval – sparing European members a capital hit – but Canada's CDCC has no plans to go through the process
Third-party collateral requirements not acknowledged in current standard clearing broker contracts
Two different sets of master agreements cause stalemate between banks and securities firms
Are insurers prepared for central clearing of OTC derivatives?
Multi-dealer platforms have to register as Sefs - but clients could choose to use other venues and avoid extra legal work
Pension funds look for alternatives to OTC inflation swaps, as clearing services remain on the drawing board
Court will rule on compromise agreement between bankrupt city and swaps counterparties
Delta-one desks say their arbitrage business has been cut back – contributing to an unprecedented collapse in implied equity index repo rates. Inventory pressures created by bank regulation are be...
Going forwards (checking backwards)
The two biggest clearing houses for interest rate swaps, CME and LCH.Clearnet, have different margin models – which may affect the prices charged to clients by clearing members. It could also affe...
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.