Risk magazine - Aug 2025
Cover detail:
Robert Bennett, Untitled, Acrylic on canvas
Contact: rjbarts88@gmail.com
Articles in this issue
Is the Netherlands the EU’s main source of counterparty risk?
Experts surprised by results of exploratory scenario in 2025 ECB stress-test
ECB may force banks to rethink cloud just months after Dora
EU regulator pushes multi-cloud strategy for banks, but guidance will not be binding
FCMs report client queries after Marex short-seller allegations
Chief executive rebutted Ningi Research charges of opaque accounting on quarterly results call
Regulators urged to keep specials out of repo haircut debate
Industry experts say negative haircuts on scarcer collateral shouldn’t be seen as alarming
EGB basis trades make electronic push
Bloomberg, MTS and Tradeweb add bond and futures combos after Eurex booking upgrade
Tribunal upholds spoofing decision despite no ‘smoking gun’
Decision shows trading patterns alone can be enough for UK regulators to demonstrate market manipulation
More than arb: the short signals behind Jane Street’s India troubles
Prop trader ran parallel strategies, source says. That mix may have given rise to manipulation claims
Fed’s new leverage ratio: the horse that never left the gate
Most of the biggest dealers aren’t leverage constrained now, and experts are sceptical that banks will use the extra capacity for Treasuries
How to solve the Fed’s $300bn FRTB problem
A sacrifice will have to be made to ensure new market risk rules meet demands for capital neutrality
Speedy onboarding: the push for faster model approvals
Europe’s banking watchdog is planning to streamline how it authorises credit model updates. Not a moment too soon, say bankers
Industry doubts pausing the EU reg machine will offer relief
Market participants are sceptical that a proposal to halt certain rulemaking will reduce compliance costs or boost growth
Saved by the Byrd? The fight over the OFR’s future
Dodd-Frank made it the premier data-grabber, and the financial world doesn’t like it
Untangling corporate actions data complexity
LSEG is developing AI capabilities and leveraging expert validation to bring structure and speed to corporate actions data
Glass houses: US agencies urged to shore up cyber defences
Email hack at OCC raises concerns over more widespread frailty at regulators
The Bank of England’s four pillars for a new CCP rule book
Executive director urges feedback on margin transparency, broader collateral and aiding innovation
Crypto’s predictable path from central books to OTC discretion
Demand for bilateral trading as seen in FX is fuelling crypto’s institutional take-up, finds BridgePort
Basel III overhaul doubles Nomura’s credit risk
Surge reflects asset migration and new equity treatment
Nomura’s FRTB models reap 33% saving on debut
Trading desks cleared for new IMA’s use win ¥225 billion relief on end-March capital requirements
EU banks face €500bn RWAs surge from full output floor
Risk charges to rise 8% on average under fully phased-in rules by 2033
Barclays logs five VAR breaches amid tariff turmoil
Bank’s regulatory VAR model loses green status for the first time since 2018
Double VAR breach in Q2 adds $4.1bn to JP Morgan’s market RWAs
Sixth regulatory backtesting exception in nine months lifts the multiplier above minimum for the first time since Q3 2022
Deep learning alpha signals from limit order books
An analysis on network architectures applied to limit order book data is presented
Multi-factor Gaussian model calibration: swaptions and constant maturity swap options
A novel closed-form method delivers a new way to calibrate interest rate models
Podcast: Muhle-Karbe on the maths behind broker selection
Imperial College’s mathematical finance head introduces new tool to measure slippage and trade quality
