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Conflict's end

The second phase of the International Swaps and Derivatives Association's collateral dispute resolution protocol prescribes a market polling mechanism for settling disputes involving illiquid and complex transactions. How will the market poll work and…

Net results

A master agreement for over-the-counter Islamic derivatives is in the final review stages and could be published as early as next month. After years of debate, the difficult issue of close-out netting appears to be close to resolution. By Alastair Marsh

Custody battle

Following the losses suffered in the wake of the collapse of Lehman Brothers last September, hedge funds are increasingly looking to place initial margin with bankruptcy-remote third-party custodians. But prime brokers are staunchly refusing to surrender…

Sharia and sharia alike

Opinion on whether derivatives comply with sharia has split scholars in Islamic financial markets. Mohamad Nedal Alchaar, secretary-general of the Accounting and Auditing Organization for Islamic Financial Institutions, talks to Alastair Marsh about its…

Going electronic

Collateral management functions currently exchange margin call notices and confirmation of interest payment by email, but the need for automation is becoming more urgent. The industry is looking to define the sequence of messages that would need to be…

The wa'ad on the Street

The Islamic concept of wa'ad has been used as a linchpin for a variety of structured products in recent years. Priya Uberoi, Rahul Chatterji and Dany Bidar consider the role of wa'ad in the evolution of Islamic derivatives, outlining the essential…

Into account

The US Financial Accounting Standards Board has released new rules on off-balance-sheet exposures, which will compel US companies to consolidate billions of dollars of assets previously kept in special-purpose entities on to their balance sheets. How…

Remake/remodel

The credit downturn has coupled with unprecedented fear over counterparty risk to stymie opportunities for credit derivatives product companies. Some market participants are investigating restructuring, but is there a way forward? By Mark Pengelly

Higher ground

Plans are afoot among global regulators to impose tougher regulatory requirements on large and systemically important firms, including higher capital charges. Will they succeed in curtailing systemic risk? Mark Pengelly investigates

Spreading fear

As credit spreads on financial institutions widened in the second half of 2008, some banks registered substantial gains on their own debt. The International Accounting Standards Board has subsequently ignited a debate over the inclusion of credit risk in…

PPIP blip

Mortgage-backed securities purchases will begin in August under the US Treasury's Public-Private Investment Program. But analysts say holders of the paper may be unwilling to part with their toxic assets at any price. Peter Madigan reports

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