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Non-cleared margin logjam looms after squandered delay
Fewer than half of phase five firms have submitted documentation necessary to open custody accounts
Top 10 operational risks for 2021
The biggest op risks for the year ahead, as chosen by senior industry practitioners
State Street to look after bitcoin, just don’t call it custody
The second-biggest custodian will provide “record-keeping services” for the unregulated asset
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Risk Quantum
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Risk Quantum finds insights in data. The service tracks the public disclosures of over 120 banks, funds, insurers, corporates, and central counterparties – as well as reports from prudential and markets regulators – in Asia, Europe and North America.
Editors' choice
CFTC urged to take lead on CCP margin models
Advisory committee unable to agree steps on margin period of risk, model transparency
Big Figure
JPM’s CVA hit
JP Morgan deducted $401 million from trading income in 2020 to cover valuation adjustments linked to its derivatives portfolio – the most since the bank expanded its accounting framework to capture all of these in 2013. In its annual filings, the New York-based bank said it lopped $337 million off principal transactions revenue for credit valuation adjustments and $64 million for funding valuation adjustments, though this didn’t taken into account the effect of hedging activities.
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Regulation
What lies beneath: Nomura’s iceberg balance sheet
Collateral received by the Japanese bank exceeds its total on-balance-sheet assets – does it matter?
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Comment
My kingdom for the right copula
Op risk data: Chronic corruption charges cost Deutsche dear
If stablecoins are money, they should be backed by reserves
Repair the leverage ratio, revive the repo market
Our Take
Italian job: the real UK stock trading heist
A European watchdog with more bark than bite
March’s clearing failures give new life to an old idea
Putting the H in XVAs