Infrastructure/Regulation
Software Survey 2009
Software Survey 2009
Islamic inroads
Cover story
A model approach
Technology
Bypassing Basel
Risk management
Forex freefall
Funding risk
FOMC holds rates as spectre of quantitative easing looms
The Federal Open Market Committee (FOMC) has kept its target for US interest rates at between 0-25 basis points as the Federal Reserve reiterated its commitment to use new tools to fight the worsening economic downturn.
Quantitative tests pointed to Madoff fraud, says Riskdata
Sophisticated investors expressed shock at the alleged $50 billion fraud by New York-based broker and fund manager Bernard Madoff, yet even relatively simple quantitative analysis should have raised red flags, according to research by London-based…
Cash-settlement auctions working, says Isda
The auction process for cash-settling credit derivatives trades has been tested recently but is working well, said Bob Pickel, chief executive of the International Swaps and Derivatives Association, at a symposium held by the organisation in New York on…
UBS exits exotic structured products business in FICC
UBS is fully exiting its exotic structured products business within its fixed income, commodities and currencies (FICC) division, the bank has confirmed. As part of the restructuring, four senior managing directors have left the bank: Todd Morakis, head…
Buy-side firms scramble to meet novation deadline
Derivatives technology vendors have reported a significant upturn in activity among buy-side firms, looking to meet a February 28 deadline for processing all credit derivatives novation consents through electronic platforms.
Banks tighten conditions on revolving credit extensions
More stringent terms and conditions are being attached to revolving credit facilities (RCFs), although banks are still extending them to investment-grade corporates. Analysts and bankers agree that RCFs are becoming more expensive and smaller and will…
Liffe prepares for CDS clearing launch in US
London-based derivatives exchange Liffe, which launched its joint central clearing solution with LCH.Clearnet for credit default swaps (CDSs) in Europe on December 22, will roll out the service to US customers in the next few weeks.
WEF backs calls for reverse stress tests
"Glaring gaps in risk management" represent one of the biggest dangers facing the world in 2009, and financial institutions must improve their modelling and testing as a matter of urgency, according to a World Economic Forum report launched today.
European Commission initiates legal action against Standard & Poor's
Daily news headlines
JP Morgan wins Risk's derivatives house of the year award
JP Morgan has won Risk magazine's derivatives house of the year award for the second successive year. In a 12-month period that saw the collapse of Bear Stearns and Lehman Brothers, unprecedented volatility in the market and capital injections into…
S&P creates ombudsman role
In an effort to "strengthen its ratings process, increase transparency and better serve capital markets", rating agency Standard & Poor's has appointed Ray Groves to the newly created position of ombudsman, effective February 16.
Uruguayan pension fund goes supranational for second time
Uruguayan pension fund, Republica Afap, has invested in a EUR/USD-linked participation note with the intent to hedge its portfolio against the depreciation of the euro against the dollar. The structured product, issued in October 2008, is the second such…
European talks stall on CDS clearing
The European Commission's initiative to move the majority of over-the-counter credit default swaps (CDS) onto central clearing facilities has stalled after failing to get written commitments from certain parties.
CME awaits SEC approval for CDS clearing
The launch date for the Chicago Mercantile Exchange (CME) Group's credit default swap (CDS) clearing platform remains unclear, almost two weeks after it received the green light from two US financial regulators.