Latest on Risk management
Archegos, LME show swaps data blindspots – CFTC chair
Regulator is actively looking to beef up reporting and data aggregation capabilities for index swaps
After nickel-gate, Esma may seek data from more non-EU CCPs
Supervisor concerned lack of granular data on exposures could leave it flat-footed on LME-style risk events
Inflation scenarios, pt II: end of the party
Whether inflation rises or falls, crowd-sourced scenarios forecast huge range of outcomes
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If you were sitting on the side of the technology vendor, essentially what you do is you try to understand the decision dynamics of your client. The other thing you try to understand [is] who can be influenced. You build a little Venn diagram … then you go after these people.
Former UBS chief technology officer Stefan Murer on policing the boundary between vendors, end-users and technologists
Why should central banks or regulators step in and save them from losses? That’s not how the market should work. What they’re asking for is a bailout. I understand that it could cause a disruption and have a knock-on effect, but it creates a moral hazard.
A source at a large FCM warns that central banks offering emergency liquidity to energy companies to help meet margin spikes would raise unique risks.
We’ve had two years of people working from home, doing God knows what – doing what they might not have been able to do in an open-plan office. If there has been mis-selling, for example, that is unlikely to crystallise in the next 12 months. If it’s something big, we will see that in two or three years’ time.
A veteran op risk manager fears the slow burn nature of conduct risk issues could mean banks are unknowingly sat on large potential losses.
Editor's Choice
LME could revamp margining after nickel kerfuffle
Bourse could move to end permitted netting of IM and VM calls, says Chamberlain
Big Figure
Top 10 op risks for 2022
Although votes were cast in this year’s Top 10 operational risks survey in the advent of Russia’s war in Ukraine – within a climate of deteriorating relations and troops massing on the border – the invasion and its aftermath cast a horrible shadow over this year’s results. As banks brace for an escalation in hacking attempts from Russia-linked groups, op risk managers have never been more aware of the hazards posed to their institutional infrastructure by malevolent actors. Click to read the analysis and expert views behind the risk categories that rose up the agenda for risk managers this year, from climate litigation to talent retention.
Read the full articleInvesting
Index vol has been a poor hedge for equity rout, traders say
Single stock ‘micro’ hedges have offered more protection in this year’s sell-off
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A new metric for liquidity add-ons: easy as ADV, but better
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Our Take
Only regulators can clear up Credit Suisse’s Archegos mess
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