CCP
WHAT IS THIS? A central counterparty (CCP) manages default risk by collecting initial and variation margin from both parties to a trade. Spill-over losses are absorbed via a default fund to which all members contribute – introducing a degree of mutualised risk – and by the CCP’s own capital. The concept is an old one that was extended to over-the-counter derivatives in the aftermath of the financial crisis.
Options clearing pushed to 2014 as solution search begins
As the search for a viable clearing mechanism for FX options begins, market participants suggest clearing won't begin before 2014
First OTC clearing wave to catch 77 fund managers
List reveals 77 managers have funds that will be required to start clearing on March 11 - and dealers say up to a third are not ready to start
JSE eyes OTC market as it revamps futures clearer
South African futures CCP limits member liabilities
Esma chair hits back against regulatory overreach claims
Esma chairman Steven Maijoor denies the supervisor overstepped its authority when drafting clearing rules
Thailand backs cash equity CCP linkage model
Proposal for CCPs to act as clearing members for each other receives backing of Thai regulator
Parliament may decide not to reject Esma standards
Doubt cast over whether a motion to reject two Esma regulatory technical standards will survive a plenary vote on Thursday
Special report: Clearing
In the clear?
FX options clearing analysis in final stages
The GFMA's global forex division is understood to be close to completion of its analysis of five years of options trading data - a project that is intended to lead to a solution for options clearing
OTC infrastructure service of the year: MarkitServ
Risk awards 2013
MexDer: The Mexican swaps wave
The Mexican swaps wave
Central clearing: what obstacles remain for Asia?
Despite the deadline for introducing central clearing already passing, a number of questions are unanswered. Leading figures from around the region voice their concerns
Lack of clarity over clearing provides problems for Asia banks
The deadline set by the G-20 to clear all standardised OTC derivatives has passed but a lack of regulatory clarity over the shape of reform is hampering banks in the region
Collateral clawback fears leave US pension funds unable to clear
Banks and pension plans are waiting for the US Department of Labor to clarify whether initial margin counts as plan assets
BoE will consult dealers over CCP risk standards
The Bank of England will listen to the views of the dealer community and other participants on CCP risk standards, says Schooling Latter
Four of five largest Australian banks look to clear with LCH
LCH.Clearnet makes inroads into the domestic Australian market with its SwapClear service
Pimco: Cleared for take-off
Pimco: Cleared for take-off
HKMA mulls over charging for mandatory trade reporting service
The Hong Kong Monetary Authority has begun discussions with OTC derivative market players on whether to charge for use of its trade reporting service
Collateral Management Survey 2012: insurers unprepared for OTC cleared regime
The move to central clearing of OTC derivatives trades will have a dramatic impact on the insurance industry’s use of collateral. A survey, conducted by Insurance Risk in conjunction with BNY Mellon, finds many insurers have yet to assess fully the…
Lack of certainty over OTC clearing location a problem for Asia asset managers
Asset managers in Asia are being hindered in preparing for OTC clearing by a lack of clarity over location
Lack of inflation clearing could hit LDI community
A different track
CCP competition poses counterparty risk: CIMB video interview
Speaking at the Asia Risk Congress, CIMB head of rates, funding and structuring Chu Kok Wei sets out his concerns over the move to central clearing in the region