Feature
Enron and systemic risk
Regulators worry that concentrating derivatives market-making in a few major dealers poses severe systemic risk issues. Could one big player’s failure break the whole system? David Rowe says Enron is an ideal test case, with some encouraging indications
Barra launches Risk Factor
Barra, the California-based risk management systems vendor, has launched an equity volatility software programme, Risk Factor. Aimed at retail brokers, Risk Factor is designed to compare the relative volatility and likely performance risk of more than 10…
Brokers allocate $4.6 million WTC disaster relief
The world’s seven leading interdealer brokers have determined which charity funds will receive the $4.6 million they raised as disaster relief for victims of the World Trade Center terrorist attacks on September 11.
Dealers' VAR increases during 2001, says BofE report
Average value-at-risk (VAR) levels among leading dealers has increased over 2001, but despite increased vol across equity and rates markets post-September 11, large trading losses appear to have been avoided, according to the Bank of England’s Financial…
Kiodex set to lose EnronOnline deal
Kiodex, the Web-based risk management solutions firm, is steeling itself to lose its co-marketing agreement with EnronOnline, following the US energy company's filing for bankruptcy protection.
Pacific Exchange selects Radianz extranet
Pacific Exchange (PCX), the US-based stock options market-place, has signed a contract with US e-network services supplier Radianz to connect PCX's electronic trading system to RadianzNet, an internet protocol-based global financial extranet.
Barclays Capital to gain Thai foothold
Barclays Capital, the investment banking arm of the UK's Barclays Bank, plans to gain a strong foothold in the Thai derivatives market through its purchase of DBS Thai Danu Securities.
DBS selects DerivaTech for FX trading
The Development Bank of Singapore (DBS) has announced a deal with DerivaTech, the Chicago-based provider of FX derivatives pricing solutions, as part of its strategy to update its FX derivatives pricing systems.
NY Fed notes high variations in stress testing across institutions
The magnitude of shocks used in stress testing by financial institutions varies substantially, the Federal Reserve Bank of New York (NY Fed) has said in a paper.
ICE moves into UK gas and power market
Atlanta-based electronic energy and commodities trading exchange, the Intercontinental Exchange (ICE), is introducing its trading platform into the UK gas and power markets.
Japan's non-performing loans undermining economy
Tokyo could be in danger of losing its standing as a top financial centre, unless efforts are made to restructure the economy and cure Japanese banks' vast non-performing loans problem, warned Bank of Japan official Hiroshi Nakaso, speaking at Risk…
S&P states over $3 billion of credit derivatives written on Enron
Direct credit derivatives exposure to Enron, which has filed for chapter 11 bankruptcy, could total $3.3 billion, according to rating agency Standard & Poor’s.
BOTCC strikes metals derivatives deal with CMXchange
Chicago's Board of Trade Clearing Corporation (BOTCC) has entered an agreement to process and guarantee the forward and over-the-counter derivatives transactions of internet-based metals exchange, CMXchange, located in Northfield, Illinois.
A major improvement
In May, David Rowe wrote that the Basel Committee ‘could do better’ with respect to the inclusion of operational risk in the capital Accord. Here, he says the working paper the committee published in late September outlines a major and valuable…
Stepping up for Basel
South Korea’s banks stand to be the hardest hit by the new Basel recommendations, forcing institutions to focus on improving risk management operations. Vikki Kunz reports from Seoul.
Algo includes S&P for Basel II
Algorithmics is strengthening its credit risk management offering as demand grows for more comprehensive credit solutions. It is integrating a number of Standard & Poor’s credit data products with its analytical tools and developing a new module to help…
Will Germany scupper Basel II?
How real is Germany’s threat to veto the proposed Basel II bank capital accord if the country fails to get the concessions it wants on the accord’s treatment of bank lending to small to medium-sized companies (SMEs)?
Regulators looking at possible changes to Basel II credit risk plans
Basel - Global banking regulators are studying possible changes to the credit risk proposals of the complex Basel II bank capital accord, after seeing evidence that banks face higher capital charges under Basel II than they do under the current Basel I…
SAP makes play for risk territory
German software giant SAP is making a firm move into the risk management industry with the further development of its range of industry solutions. The Waldorf-based firm has already developed credit and market risk components for the financial services…
Could the Basel II op risk charge be cut again?
BASEL - Might banking regulators agree again to lower the capital charge for operational risk proposed under the controversial Basel II bank capital accord as part of horse-trading over the credit risk charge?