Central counterparty (ccp)
CLS Bank-style regulatory council could be applied to trade repositories and CCPs to avert market fragmentation, but French regulators are not convinced
In a world where central clearing and bilateral collateral posting are mandatory, margin efficiency will be a big draw, and one obvious way to achieve it is through cross-product margining. Unfortunately,...
Of all the derivatives asset classes destined for central clearing, the outlook for foreign exchange has arguably been subject to most change over the past 12 months – and clearing house offerings have...
This handy guide reviews the various steps banks are taking to improve their risk management techniques, looking at the benefits and pitfalls of each one.
More Central counterparty (ccp) articles
With a range of foreign exchange products expected to move towards clearing, several central counterparties are jockeying for a slice of the business. But regulation, technical obstacles and lacklustre demand from market participants are getting in their...
Regulators are struggling to ensure they have oversight of over-the-counter market infrastructure without losing the benefits of centralisation. CLS Bank’s council of supervisors could be the precedent they follow. By Michael Watt
Jefferies is suing International Derivatives Clearing Group over claims the central counterparty’s futures contracts would replicate over-the-counter swaps – a case that turns on collateral and margin differences in the cleared and uncleared markets....
Big asset managers face some challenges in the move to central clearing – specifically, executing block trades and then allocating them across tens of sub-funds. Not all clearing members or central counterparties are set up to facilitate this, but progress...
Clients are currently able to agree with their clearing members to receive portfolio benefits on initial margin across cleared and uncleared positions. Proposed new rules would prevent such arrangements with respect to cleared swaps. Mariam Rafi of Citi...
Build or buy? It’s a key decision in every big IT project, and the shift to over-the-counter clearing is one of the biggest the industry has ever faced. Many dealers are adapting existing in-house systems, but vendors are also pushing off-the-shelf...
Swap futures have had some bad press in recent weeks, but Eris Exchange insists it can make them work - and add diversity to the OTC market as a result
Technology can provide a competitive advantage in banking. How it is applied by Tier 1 and Tier 2 institutions, to the benefit for their risk management systems, is discussed.
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