With new regulations on central clearing, margining and collateral segregation coming into effect, the role of the custodian is arguably more important than ever. Custody Risk includes news, analysis and research on the latest industry developments.
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Cash collateral can only reduce derivatives exposure if it matches the currency of the underlying swap, threatening existing CSAs and even the new standard CSA
Funds cite inability to post non-cash variation margin as grounds for further relief
Industry sources have welcomed CFTC decision to extend no-action relief for its non-US swap dealer requirements and to consult on definitions
In this white paper, Gordon Russell, Global Head of Risk at Broadridge Investment Management Solutions argues that the chances of survival in this new environment will be greater for funds that implement solutions to efficiently and cost-effectively manage data and risk.
More Custody risk articles
Current netting statutes only apply to clearing members and not the CCP itself
CFTC rule potentially captures legacy trades novated to CCPs
CFTC ruling comes a week after it granted qualified substituted compliance to three Asian regulatory regimes
Custody Risk European Awards 2013: Post-trade Technology Vendor of the Year
Custody Risk European Awards 2013: Transfer Agent of the Year
Custody Risk European Awards 2013: Asset Servicing Technology Vendor of the Year
Custody Risk European Awards 2013: Fund Administrator of the Year: Luxembourg
Australian market will broadly be able to follow domestic rules to comply with Dodd-Frank
Atlanta-based derivatives exchange Ice's decision to scoop up SMX gives the firm on-the-ground presence for clearing and trading in Asia
News will "come as a surprise" to market participants - and also the UK's FCA, which has misinterpreted Esma rules on its website
A poll of Risk readers finds that 56% agree the CFTC should require CCP holdings of US Treasuries to be backed by committed liquidity facilities
Quotes of the quarter
Market is too concentrated to cope with a default, participants warn
Competitive pressures will impact CCPs but not with respect to margins
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.