Standard-setter decides trades can still qualify for hedge accounting when voluntarily novated to a CCP, but experts warn wider stance on novation could cause trouble
Trades cleared voluntarily would not be protected by hedge accounting under IASB proposals
The adjustment bureau
This three-part series looks at the various factors that firms across the ecosystem of global FX markets - from the buy-side, the sell-side, and the supporting community of technology vendors and service providers - should consider in order to, not just survive, but to thrive in this dynamic and ever-changing environment.
More Novation articles
Middleware provider MarkitServ now in line with industry standard - two months after initially planned and more than three months after rival Ice Link.
Revised rules replace laborious consent-then-confirm novation process
As the US Congress moves to boost derivatives clearing requirements, an industry panel has called for regulators to investigate a move towards clearing and netting across US power markets and to cla...
The problems facing pension funds that want to novate – or alter – their longevity swap arrangements as part of a subsequent buyout gives established players such as Legal & General a distinct advantage,...
Mark Beeston explains the evolution of novation processing from an email-based system to fully automated consent through T-Zero, which combines front-office connectivity, workflow for all novation operations...
The International Swaps and Derivatives Association today launched its updated Novation Protocol II (NPII).
This whitepaper reviews the fundamental changes of Liquidity Risk Management under Basel III. It discusses how institutions can meet the regulatory requirements on liquidity risk management by enhancing their liquidity risk analytics, funds transfer pricing methodologies, liquidity stress testing frameworks, and enterprise risk management platforms.