Risk magazine - Volume 23/Number 2

Counterparty charge an act too far?

The Basel Committee shocked many bankers in December by unleashing proposals to significantly increase capital requirements for counterparty risk exposures. But industry participants argue the measures overlap with each other and could hike up capital to…

Unrealised gains out of their hands

Some regulators have suggested profits based on uncertain valuations of complex products should not be allowed to flow into earnings and be distributed in the form of dividends and bonuses – a move that potentially has massive implications for the…

Paying by the rules

As the US Treasury’s special master for executive compensation, Kenneth Feinberg has the task of overseeing pay for the top 100 employees at firms receiving exceptional government aid. In an exclusive interview, he discusses progress on pay reform,…

Commodity rankings 2010: Energy

The 2010 Risk/Energy Risk commodity rankings reveal which companies have been able to prosper despite the difficult conditions of 2009. Lianna Brinded analyses the results and talks to key market participants about their views

Commodity rankings 2010: Metals

HSBC topped the precious metals categories of this year’s commodity rankings, swapping places with runner-up and last year’s winner UBS in a gold-dominated 12 months. Société Générale maintained its dominance in base metals, while Goldman Sachs climbed…

Copenhagen or bust

Carbon trading volumes boomed in 2009, but price declines meant the total value of trades was down modestly. Following the disappointing Copenhagen summit, what hope is there for new life in the carbon markets? Peter Madigan reports

To be clear on OTC regulation

The US House of Representatives passed a bill on December 11 requiring all standardised derivatives contracts traded between dealers and major swap participants to clear through a registered clearing organisation. The Senate is preparing to debate its…

Return to variance?

Banks and investors were hammered on short single-stock variance positions during the crisis, causing many dealers to pull back from the variance swap market altogether. Instead, some have been pushing volatility swaps as an alternative, but not everyone…

Now you PRDC them...

Power-reverse dual-currency notes proved a bonanza for dealers when markets were tame, but risk-managing the product has become a drain on resources and cash in recent years. As a result, some firms have decided to exit the market. Mark Pengelly…

The hedge costs explosion

High volatility in foreign exchange markets over the past year has forced many corporates to reassess their hedge books. A number of banks have increased their advisory services to help companies conduct an in-depth analysis of their exposures as a…

The algorithm method

Algorithmic trading was once the preserve of the equity market, but is winding its way into foreign exchange trading. However, some question whether these services can be properly provided by dealers acting as principal. By John Ferry

Signed and sealed?

A lawsuit filed by two major dealers against Bank of America alleges the firm failed in its role as custodian to prevent the loss of $1.7 billion held by a special-purpose entity. What impact could the case have on the future of custodial agreements?…

The liquidity gap

Regulators are increasing their focus on liquidity risk in response to the financial crisis, but there are questions about whether capital is an effective mitigant for liquidity risks and the nature of the relationship between liquidity risk and bank…

The CME Icebreaker

The Chicago Mercantile Exchange launched a clearing service for credit default swaps on December 15, with several major dealers and buy-side firms as founding members. Will it capture market share from rival IntercontinentalExchange? By Alastair Marsh

Liquidity flow charting

New rules on liquidity risk from the Basel Committee and the UK Financial Services Authority have left banks scrambling to get the necessary risk and reporting systems in place. Clive Davidson looks at the challenges they face

Hammers and nails

Excess regard for the techniques we know can lead to these methods being misapplied. Risk managers too often fall into this trap, argues David Rowe

Clearing up

Roger Liddell, chief executive of LCH.Clearnet, talks to Alexander Campbell

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here