In EU-US turf war, Heath Tarbert says US CCPs should be ‘exclusively supervised’ by US regulators
Proposal includes explicit public backstop for key functions and private provision of other services
After Nasdaq auction failed, some see need for traders in process; others can’t afford to lose them
Risk appetite should be factor in selecting auction participants – Wasserman
FCA head also highlights shortfall on Mifid trading venue equivalence
In this paper, the authors develop a conceptual framework to examine whether the regulatory changes since the Pittsburgh Summit could be a catalyst for reconsidering the structure of clearing houses.
Recognition of intra-group trades boosts leverage exposure measure and CCP charges
Total derivatives notionals up 25% year-on-year
CPMI-Iosco preps discussion paper as banks warn further guidance needed after Nasdaq default
Concerns that valuation changes will scare some off adoption may be accelerating Isda timeline
Users opt for one-step switch to new US dollar regime, as long as CCP cooks up compensation scheme
Six supervisors – from Bafin to the MAS – downplay idea of mandatory increase in futures MPOR
Thin current trading may lead to poor fallback choices, and dim SOFR’s appeal ahead of Libor’s death
CCP’s risk analytics head will replace Laux in July
Central counterparty wrangled more money market repo cash than banks did by end-2018
CCPs added $20.8 billion to their liquidity buffers in the third quarter of 2018
In total, 55 margin breaches reported at end-September 2018
Clearing member says it is giving notice to quit bourse, citing concerns over concentration of risk on venue
This paper studies the effect of less procyclical margin models on cleared volumes and risk taking in a stylized CCP.
The centrally cleared interest rate derivatives market: how are clients changing the risk perspective?
This paper analyzes counterparty relationships within both direct (house) and client clearing in the interest rate derivatives market in the European Union.
As rates rise and trade tensions grow, CCPs must be prepared for higher volatility
US clearing members divided on whether NDLs are CCPs’ responsibility or a mutual risk