Opinion
Cutting edge introduction: Monetising out-of-the-money
Out-of-the-money options contain a hidden premium, says one quant
Fundamentally fraught: the chaotic last weeks of the FRTB
Quick fixes should have no place in a sweeping three-year reform project
7 days in 60 seconds – FRTB, clearing and TP Icap
The week on Risk.net, November 27-December 3, 2015
Operational risk: what do the regulators expect?
Ariane Chapelle offers some advice on how to avoid unnecessary scrutiny from supervisors
G-Siis must get used to regulatory pressure on two fronts
Contradictions between systemic risk rules and solvency regulations seem unavoidable
Europe's new supervisory toolkit
Data and transparency remain challenges for EBA
Comparing alternative mixing models for external operational risk data
Mixing, not scaling, best approach for using external losses
7 days in 60 seconds – Emir, spoofing and central clearing
The week on www.risk.net, November 20–26, 2015
Indos: hedge funds switch from depositories affiliated to administrators
Conflict of interest poses operational risk if one part of group oversees affiliate
US spoofing crackdown is a case of misplaced priorities
There are worse HFT practices than spoofing, yet only spoofers go to jail
ISSA standards seek to stamp out cross-border custody crime
Principles also target misdeeds in settlement and distribution of securities
Time to get back to the real business of stress testing?
Bank supervisors should focus on improving internal stress-testing all year round
Regulators should beware structured product bubbles
Closer scrutiny as they emerge could help avoid nasty surprises
In manipulation cases, "everybody's doing it" is no excuse
From natural gas scandal of 2000s to Libor-rigging, troubling patterns persist
Cutting edge introduction: Jumpy wrong-way risk
Quants propose easy approximations for modelling wrong-way risk in CVA frameworks
To breach or not to breach: Mifid II and the reporting wrangle
Rules double down on existing clash with national privacy laws
And so, farewell: David Rowe's final risk analysis column
After 16 years as our risk analysis columnist, David Rowe looks back at a recurring challenge
Obsession with competition isn't healthy for exchanges
Market operators should focus on customer needs
Why multi-asset investing calls for 3G factor models
Factor models can be helpful in identifying unseen risks in investor portfolios
Note to Brussels: energy firms are not banks
Extending capital requirements to commodities firms is a mistake
'Have your cake and eat it': efficient op risk reporting
Cakes and candles can help risk managers get flavour right, argues Ariane Chapelle
Potential for catastrophe lurks in complex systems
Human failings can subvert well-intentioned efforts to avoid disaster
Reining in capital models is bad for risk management
AMA's likely demise is latest sign of worrying trend in bank capital rules
Data quality: improving to survive
Wipro's Sukant Paikray offers advice on how firms can better address the increasing demand for higher data quality