Risk USA: handling the consequences of reform

Flagship risk event focuses on the post-crisis regulatory universe

This week in New York, over 200 risk management professionals from across the US and around the world gathered at the Marriott Marquis for the 21st annual Risk USA conference.

Discussions focused on the swathe of regulatory reforms brought in since the financial crisis, and on how their implementation will affect the markets. Federal authorities are likely to take a hands-off attitude to two key areas: high-frequency trading and support for central counterparties.

Meanwhile, senior regulators acknowledged the need to keep abreast of changes in risk management practice: the growing use of XVAs and the introduction of speculative position limits will both receive attention in the months ahead. And while new rules are likely to remove the capital advantage swap futures carry, the effort to bring innovation to the swaps market through agency trading has not been a success, the conference heard.

 

Agency trading 'has not picked up' on Sefs – Tradeweb
Platform says agency volumes are at 0.5% of daily swap trading

Supervisors need to understand XVAs – OCC official
Benhart confirms OCC examiners are looking at valuation adjustments

CFTC to finish position limits rule in 2016, Massad says
Controversial rule on commodity derivatives set to miss year-end target

Fed support high on wish list for buy-side repo clearing
Risk USA panellists want liquidity support for planned new services

Swap futures face loss of capital edge
SA-CCR likely to treat swaps and swap futures equally, says Barclays' Kahn

FSOC in 'no rush' to regulate HFTs
More work to be done in understanding market structure changes, says Pinschmidt