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.
CFTC proposals leave cloud over FIA-Isda clearing contract
Grey skies over give-ups
Q&A: Myron Scholes on LTCM, crisis lessons and the value of intermediation
Quants' golden age
Standard CSA: Industry's solution to novation bottleneck gets nearer
New CSA, new challenge
NYSE Liffe: one pot to rule them all
One pot to rule them all
CME Chilean peso clearing service awaits first trade
The CME blames FCMs for the delay in offering its clearing service of non-deliverable forwards in USD/Chilean peso
LCH to become more commercially driven, says Axe
Commercially driven
New standard CSA could be rolled out in Q2 2012
An implementation plan for the new standard CSA is set to be reviewed by the Isda board in September, with a first-phase roll-out expected as early as the second quarter of 2012
CFTC's Sommers: Blocking FIA-Isda document was "huge waste of resources"
A proposal prohibiting an Isda-FIA clearing document highlights rift within CFTC, with Republican appointees claiming they were kept in the dark
LCH.Clearnet looks to expand CDS offering
Clearing house looks to extend its Paris-based CDS offering, rebranding it CDSClear to sit alongside SwapClear and the forthcoming ForexClear
EMCF joins push for central clearing interoperability
All four Bats Europe and UBS MTF central counterparties now allow interoperability
Wave of new regulation brings inconsistencies and loopholes
Divergent paths
Morgan Stanley and Credit Suisse choose EuroCCP under interoperability
Banks such as Morgan Stanley and Credit Suisse have chosen EuroCCP to clear their trades under new system of interoperability
US tax fix smoothes way for back-loading buy-side portfolios
US tax fix to aid buy-side portfolio back-loading
Risk waterfall at CME, Ice makes porting harder, dealers say
The need to provide portability could pressure CCPs to lean more heavily on initial margin than default funds to absorb losses
The CCP race is on down-under
Australia blue
Ignoring the perils of portability
The perils of portability
The product no-one wants to sell: portability held up by lack of rules
Under-the-counter derivatives
ASX vs LCH in race to be Australia's OTC clearer
Home-town blues
Launch of interoperability not perfect
Interoperability has launched in cash equities with a system that is good, but not perfect
Lamb discusses CME Clearing Europe's goals
A clear goal
EC's CRD IV says dealers can ignore portability risks
While Basel Committee deliberates, EC proposes 'value of zero' for contingent risks associated with clearing portability
Forex options clearing complicated by guaranteed settlement requirements
CPSS-Iosco guaranteed settlement requirements make foreign exchange options clearing more difficult, say participants