Steel producers remain sceptical of the benefits of hedging with futures contracts. Now interest in iron-ore derivatives could offer another way for steel players to hedge risk, finds Katie Holliday
Data is fundamental to enterprise risk management systems. Some banks have looked to build single, consistent central sources of information for risk analysis, but how are they tackling this task? Is this goal even achievable? By Clive Davidson
Banks are increasingly aware of the speed and efficiency that is required to process data when creating and dealing in structured products. Calls for transparency and liquidity mean it is vital to choose systems that can cope with the products'…
Meant to minimise counterparty risk, the idea of clearing for credit derivatives has been riddled with questions from the outset. But new research suggests the plans might actually increase counterparty exposures. Mark Pengelly investigates
Daily news headlines
London-based clearing house LCH.Clearnet discusses with Risk its plans to make the SwapClear over-the-counter interest rate swaps clearing platform available to buy-side clients in the fourth quarter of this year.
The International Accounting Standards Board (IASB) has sought to simplify its standards on fair-value measurement, bringing International Financial Reporting Standards (IFRS) further into line with US Generally Accepted Accounting Principles (Gaap).
The Australian Securities and Exchange Commission (Asic) lifted its ban on covered short selling on May 25, just over seven months after it was originally imposed.
Optimal Investment Services, the Switzerland-based asset management arm of Banco Santander, has agreed to pay $235 million to the trustee responsible for liquidating Bernard Madoff's investment management firm, Bernard Madoff Investment Securities (BMIS).
The merger of London-based Markit's and New-York-based Depository Trust & Clearing Corporation's (DTCC) trade-processing services is expected to become official within six weeks.
Daily news headlines
A number of presidents of regional Federal Reserve banks and senior staff have recently expressed dissent from the official line taken by the US authorities in managing the banking crisis.
The derivatives industry is working towards formalising the resolution process for collateral disputes after existing resolution methods proved inadequate during the financial crisis.
EOX Holdings has added OTC fixed natural gas price swaps and swap spreads to its EOXLive trading platform. EOX Holdings is owned by independent interdealer broker OTC Global Holdings (OTCGH), which uses the platform.
The municipal bond market in the US is still largely in a state of disarray, well over a year after the collapse of the auction rate securities (ARS) sector, though signs of recovery are visible in the fixed-rated debt market, congressmen have heard.
Mario Nava, head of the financial markets infrastructure unit at the European Commission in Brussels, updates Risk on progress towards central clearing of credit default swaps (CDSs) and the move towards a central trade repository for over-the-counter…
The US government's bank stress tests appear to have been successful in stabilising financial markets, but some market observers believe they are obscuring broader systemic problems and could hamper efforts to deal with toxic assets.
Financial authorities in the US and Europe have advocated the introduction of a central trade repository to gather data on the over-the-counter (OTC) derivatives market, but there is concern that multiple repositories could do more harm than good.
The total outstanding notional of over-the-counter (OTC) derivatives contracts fell 13.4% to $592 trillion at the end of December 2008, from $683.7 trillion at the end of June 2008, according to statistics released by the Bank for International…