Risk magazine - January 2014
Articles in this issue
Pension fund risk manager of the year: PKA
After moving to Eonia discount rates for its swaps in 2011, Denmark's PKA decided to make Eonia the benchmark for its hedge portfolio at the end of 2012. It's a smart move, dealers say - but one with some risks of its own
Hedge fund derivatives house of the year: Deutsche Asset and Wealth Management
Deutsche Asset and Wealth Management has launched a number of new initiatives in 2013, while continuing to build its core managed account platform
Insurance risk manager of the year: Axa
Axa moved early to address lapse risk concerns – now a pressing issue for the French insurance sector – and has also been vocal on regulatory change
Corporate risk manager of the year: Microsoft
The first US clearing mandates came into force last year in three separate phases. While most corporates looked to take advantage of the corporate hedging exemption, Microsoft decided right from the start to voluntarily clear everything
OTC infrastructure service of the year: eClerx
Collateral agreements are the foundation of the over-the-counter market. But, sometimes, those foundations are shaky
Deal of the year: Arqiva/HSBC
Deal of the year: Arqiva/HSBC
OTC trading platform of the year: Tradeweb
Two platforms appeared to take an early lead in the first few months of the Sef regime, but one – Tradeweb – won high praise from users for its responsiveness, customer services and technology
Hedge fund of the year: Chenavari Investment Managers
With around $1 billion deployed in capital relief trades and the same amount in direct lending, Chenavari has found a sweet spot for investors - but a danger area for regulators
Currency derivatives house of the year: Bank of America Merrill Lynch
Currency derivatives house of the year: Bank of America Merrill Lynch
EBA: Common credit risk definitions vital
European regulators have overhauled bank reporting standards to ensure comparability, with new Finrep and Corep templates to be rolled out from this month. The latest step has been to agree common definitions for forborne and non-performing exposures…
Trading technology product of the year: Nasdaq OMX
Trading technology product of the year: Nasdaq OMX
Inflation derivatives house of the year: Barclays
Inflation derivatives house of the year: Barclays
Equity derivatives house of the year: Morgan Stanley
Equity derivatives house of the year: Morgan Stanley
Back-office technology product of the year: SmartStream
The old process of reconciliation has been made newly complex by regulation. Banks want technology to solve the problem
Structured products house of the year: Société Générale
Structured products house of the year: Société Générale
Bank risk manager of the year: Deutsche Bank
Bank risk manager of the year: Deutsche Bank
Risk management system of the year (vendor): Markit Group
Capital and funding efficiency is a new discipline for derivatives desks, and there is a shortage of comprehensive systems - so Lloyds Banking Group teamed up with Markit to build one
Law firm of the year: Davis Polk and Wardwell
Australian trading platform Yieldbroker was snared by the notorious footnote 88 last year. Its lawyers, Davis Polk, found the way out
The white elephant of the trading book review
The Basel Committee’s fundamental review of the trading book raises some serious issues, but David Rowe argues its central proposed revision to the market risk capital regime is little more than a costly distraction
Risk management system of the year (bank): Barclays
Hedge fund clients of Barclays can use the bank's own margin calculator to construct their portfolios - while the bank uses it to manage net counterparty exposures. Both sides benefit
Clearing house of the year: LCH.Clearnet
According to LCH.Clearnet Ltd's chief executive, what clearing houses do is akin to landing planes. Last year, the firm focused on keeping its safety record spotless
Quant of the year: Michael Pykhtin
The banking rulebook is becoming increasingly complex, so regulators need good quants to design and explain it - but they must also tackle the big questions of the crisis
Emerging markets dealer of the year: Standard Bank
Standard Bank is a big player in its home market, with good international ties - now, the idea is to use those strengths to support the development of sub-Saharan Africa
Lifetime achievement award: Wilson Ervin
Lifetime achievement award: Wilson Ervin
Exchange of the year: Ice
It took Ice six years to find a way into the interest rate futures market. Its arrival - via the $8.2 billion acquisition of NYSE Euronext - will intensify competition in over-the-counter derivatives clearing
Credit portfolio manager of the year: HSBC
HSBC has attempted to improve the accuracy of its credit portfolio economic capital forecasting by extending its model beyond a one-year horizon
Derivatives house of the year: HSBC
Derivatives house of the year: HSBC
CFTC cross-border guidance 'has the feel of a rule', lawyers agree
A rule by any other name
Credit derivatives house of the year: Credit Suisse
Credit derivatives house of the year: Credit Suisse
Interest rate derivatives house of the year: Goldman Sachs
Interest rate derivatives house of the year: Goldman Sachs
Cutting Edge introduction: another FVA?
Including funding costs and benefits in derivatives prices is a controversial topic, closely tied up with the credit and debit valuation adjustments of counterparty risk. But new research suggests that, even with no default risk, differences in the…
Not too big to fail: Has US crossed bank resolution Rubicon?
Not too big to fail?
OTC client clearing service of the year: Barclays
Barclays has retained its leading market share in client clearing, despite the onset of mandatory clearing in the US and the entrance of new players. It also found time to score a few market firsts
People: Brevan Howard hires HSBC’s forex derivatives chief
Vincent Craignou moves to Brevan Howard, Gavin Wells takes responsibility for CDSClear, and Thomas Poppensieker takes Deutsche risk role
In depth: Has the US succeeded in its OTC reforms?
The bulk of the Dodd-Frank reforms were implemented last year. Now it is Europe's turn. Is there anything Europe can learn from across the Atlantic?
Avoid one-size-fits-all capital approach, says Osfi’s Zelmer
Regulators have increasingly been pushing for less reliance on bank internal models, but Osfi’s deputy superintendent of the regulation sector, Mark Zelmer, thinks internal models have a place
Risk awards 2014: The winners
Derivatives users had a lot on their plate last year with the rollout of new Dodd-Frank rules on clearing, reporting and trading. Firms have had to adapt to the new reality – and some have been more successful than others. This year’s Risk awards…
Too early to declare victory on TBTF?
Too early for TBTF call
