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.
LCH.Clearnet splits default fund
LCH.Clearnet splits default fund
New ratings paradigm requires careful handling
The rate escape
Clearing certainty
In depth: clearing certainty introduction
Push, ping or hub: industry tackles risk of clearing fails
Push, ping or hub
Isda AGM: Gensler confident clearing location requirements will not be imposed
Regulators are unlikely to insist local currency trades be cleared domestically, says CFTC chair
Isda AGM: CCPs invited to join determinations committees
Central counterparties have been invited to join the Isda credit determinations committees – but they will not have a vote
Isda AGM: CCPs fear clearing stampede
Market participants now have months, rather than years, until the Dodd-Frank clearing mandate takes effect - and CCPs are worrying about a last-minute rush
Isda AGM: Margin regime ups liquidity risk, buy-side firms warned
Collateral demands will be pro-cyclical - rising as markets become stressed - and will be generated by uncleared as well as cleared trades, DE Shaw treasurer tells Isda conference
Isda AGM: Euro crisis drives up collateral, finds survey
Trouble in the eurozone is increasing collateral in over-the-counter derivatives market, according to Isda
Isda AGM: ‘Life as we know it will change,’ says O’Connor
New regulations will help reduce systemic risk, but changes need to be made to certain parts of the rules, Isda chairman says
US Treasury’s FX exemption hangs in the balance
A year after the US Treasury's proposed regulatory exemption for FX swaps and forwards, the position has never been confirmed - and some believe it may be reconsidered
Having a buy-side voice heard on the Isda board
Having a voice on the Isda board
Isda 27th Annual General Meeting Chicago 2012
End in sight?
Challenges and opportunities for Isda in 2012
Challenges and opportunities
Cross-border confusion between domestic clearing houses
Cross-border confusion
Tentative on G-20 timelines for OTC derivatives clearing
Tentative on G-20 timelines
To clear or not to clear? Corporates urged to weigh options
Despite hard-won exemptions, corporates should consider the pros and cons of clearing, according to panellists at an ACT event - but treasurers remain unconvinced
Treasurers highlight unintended consequences of regulation
Corporate treasurers complain about the unintended consequences of the proposed financial transaction tax, as well as clearing rules for OTC derivatives
CPSS-Iosco lifts cloud on forex options clearing
CCPs do not have to guarantee settlement, CPSS-Iosco rules - but issue could still have some way to run
New regulations could cause $7 trillion "collateral shock"
Trio of rules - on liquidity, clearing and margin for uncleared trades - will hoover up vast amounts of collateral, market participants fear
US dealers breathe easier as global uncleared margin rules take shape
The extraterritorial scope of US margin rules would have left US banks’ overseas swaps business in tatters, but an international working group looks set to deliver a reprieve by endorsing similar rules
Regulators look out for clearing dodges
Out of the clear?
Despite MF Global, firms face weaker OTC safeguards
Segregated thinking
Risk Annual Summit: Central clearing divides buy side
A hammer to crack a nut, or a chance for everybody to win? Buy-side panellists disagree on the merits of central clearing