Jockeying for position

A slew of market participants are hoping regulatory scrutiny of the derivatives industry will enable them to gain new footholds in the derivatives clearing and settlement value chain. Georgina Lee reports

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US and European proposals to clean up counterparty credit risk in the over-the-counter (OTC) derivatives business have focused heavily on pushing less complex transactions onto central counterparty (CCP) clearings. But regulatory pressure supporting the establishments of CCPs in Asia is much lower, creating opportunities for post-trade and settlement service providers. Post-trade service providers, such as Omgeo, and the two major international central securities depositories (ICSDs)

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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