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Global capital standard raises calibration and consistency questions
International efforts to develop a global capital standard are gathering pace, but the plans are controversial, raising fears that the competitiveness of international insurance groups could be damaged. There are also questions over how any global…
Optimism as Omnibus II trilogues recommence next week
Over the summer, Omnibus II discussions picked up speed at the EU Council. Draft papers reveal a more generous volatility balancer and extended transitional measures are in the pipeline. Industry representatives believe an agreement is within reach…
WGMR rehypothecation rules unclear and confusing, say lawyers
Final WGMR rules allow collateral on uncleared derivatives to be rehypothecated under strict conditions, but lawyers say they are unclear on how the rules will work in practice
Insurers grapple with model complexity pressures
Insurers’ risk and investment models are becoming more sophisticated – but will greater complexity limit their usefulness? Blake Evans-Pritchard reports
EU Council cooks up Solvency II volatility balancer revamp
New volatility adjustment proposed as optimism of trilogue agreement grows
US industry at odds over future of XXX captives
Competing solutions to A/XXX reserving proposed as Moody’s warns use of special-purpose vehicles ‘credit negative’
Dealers call for ban on downgrade triggers
Banks struggling to price the risk that downgrade triggers may be exercised, leading to calls for regulators to prohibit their use in derivatives documentation
FX swaps and forwards off initial margin hook
Working Group on Margining Requirements has confirmed the exemption of FX swaps and forwards from initial margin, as well as a more restricted exemption for cross-currency swaps
Replacement costs add to OTC pricing upheaval
Down the rabbit hole
Room for improvement in Remit reporting, say power traders
Lack of renewables data means an increasingly vital part of the market is being excluded, say traders
Dealers split on market-making constraints - Risk survey
Just over half of dealer respondents to a Risk survey believe post-crisis rules are constraining their ability to make markets
SEC: critical business continuity tests lacking in run-up to Sandy
Investment advisers accused of lack of preparation in face of Sandy
Solvency, GRC and surviving storms at The Hartford
US insurer's op risk head Kay Rahardjo discusses solvency regulations and the lessons learned from 2012's superstorm
Banks could quit CCPs that miss Esma deadline
A world of confusion
Barclays and JP Morgan among first to centralise ‘XVA’ desks
Dealers are looking to consolidate desks that manage adjustments for credit, debit and funding valuation
Insurers spur changes in commercial real estate loan market
Firms cherry-pick opportunities as they step in to fill the hole opened by capital-strapped banks
Clearing certainty: Hubs hit heavy weather
Unclear over clearing hubs
Critics assail industry-sponsored study on HFT
Critics say industry-sponsored study into impact of high-frequency trading in futures markets is flawed
The slow growth of cross-product margining
The slow growth of cross-product margining
Agency desks hopeful new protocol will solve Dodd-Frank issues
A preliminary protocol to enable four-way FX prime brokerage involving agency desks has been agreed ‘in principle’ and could allow agencies to scale up their activities, having been largely reduced to spot since May
Leverage ratio changes threaten European clearing model, industry warns
Proposed revisions appear to catch back-to-back trades that are used to get exposure into European CCPs
RVA proving a struggle for derivatives counterparties
In this video discussion, Duncan Wood, editor of Risk, talks to Nick Sawyer, Risk’s editor-in-chief, about attempts to price in a replacement valuation adjustment on derivatives trades
Bail-in tool required to resolve systemic insurers, says Bank of England
UK supervisor needs extended powers to fulfil FSB attributes for resolution of systemic institutions
Nasdaq failure underlines worries over infrastructure resilience
The loss of service at one of the biggest US exchanges emphasises the risk of a failure at key service providers