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Barclays, IBM test quantum computing for settlement
New research suggests quantum machines will dramatically improve settlement efficiency
Defaults would dent, but not destroy, CCP liquidity buffers
Max payment obligations in event of member default would be sufficiently covered
At bounding MarketAxess platform, a new CRO parses risk
Clarity and communication are basics to Oliver Huggins at one of the biggest US bond platforms
Latest
Quotes
It defeats the purpose of the whole exercise. With this new approach, which feigns convergence, all of a sudden we start having different implementations.
Evan Sekeris, partner at Oliver Wyman, laments policymakers’ failure to implement the new op risk capital framework evenly.
What – CME’s moving away from Span? The Span we use? The Span everyone uses?
A senior risk manager at one CCP learns of CME Group’s plans to stop using its Span margin framework via Risk.
Total remuneration for us is a function of initial margin, as we often charge clients basis points on the IM figure. Secondly, it reduces our risk because it cuts down our economic CVA equivalent, and thirdly, it reduces our cost of capital. All this creates an appropriate tension between CCPs and FCMs
A senior risk manager at one large FCM hopes CME’s new margin model won’t lead to a drop in margins
Editor's Choice
IFRS 9 flings loan-loss provisions haphazardly higher
Under the standard, cash piles for bad loans were expected to ramble. Just not quite so much
Big Figure
Looking for harmony
An effort to harmonise op risk capital rules around the world appears instead to be another case of regulation fracturing into national variants right out of the gate. Critics argue an unco-ordinated approach from different regulators could continue the current disparity in op risk capital levels between banks both within and across jurisdictions, evidenced by the very different percentages of total capital for which operational RWAs account at the moment.
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Comment
A behavioural lens could help manage human risk
Computer says no: combating bias in machine learning models
Our Take
In stress-test window-dressing, timing is everything
Span 2: a fine balance