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.
Exemption clarity allows market participants to prepare for new regime
Banks, market infrastructures and industry associations prepare to move forward with regulatory preparation, now that fx swaps and forwards are set to be exempt
Collateral: look, but don’t touch
Collateral: look, but don’t touch
Inconsistency could lead to arbitrage
Consistency is key
SEC has flexibility on Dodd-Frank implementation, says Schapiro
Collaborating for change
Shift to clearing presents CCP system challenges
A clear challenge
Video: Industry executives consider future of derivatives market
Isda's Conrad Voldstad, along with Credit Suisse's Eraj Shirvani and Stephen O'Connor of Morgan Stanley discuss the near future for the derivatives industry
CFTC and SEC could diverge on rules, says Schapiro
SEC chair says Dodd-Frank Act should be adapted to fit markets
Video: Algorithmics' Michael Zerbs on the ‘unintended consequences’ from Basel III
Algorithmics' president and chief operating officer Michael Zerbs talks about the long-term impact of moving from Basel II to Basel III, including some 'unintended consequences' likely to emerge from the move to central clearing as well as the specific…
Isda AGM: dealers, CCPs debate risks of lowering bar to entry
Weaker clearing members could be overstretched by a crisis, dealers warn - but LCH.Clearnet and CME differ on the risk of wider access
Isda AGM: Esma committed to G-20 clearing deadline, says Maijoor
New authority will conduct cost-benefit analysis to decide which derivatives should be cleared - but G-20 deadline is not negotiable, says Esma chair in first public speech
Isda AGM: clearing regionalisation comes with costs, warn Shirvani and O'Connor
Outgoing and incoming Isda chairs warn multiple CCPs with divergent standards will threaten market liquidity
Isda AGM: regulators must work together to avoid fragmented market, warns Credit Suisse’s Rohner
Institutions will be weaker and markets will be riskier if new rules vary between jurisdictions, Credit Suisse vice-chair warns
Isda AGM: industry getting to grips with nuts and bolts of reform
No-one’s talking about existential threats to the derivatives market any more – but the more practical questions that have now taken centre stage may prove harder to resolve
Risk Europe: More clearing members preferable, say buy-side panellists
A wider universe of clearing members could help reduce risk, say buy-side representatives – who add they would consider joining
Risk Europe: Tweaks to Basel III will raise deadline pressure for banks
Changes to the detail of Basel III will make timely implementation a challenge, say attendees at Risk Europe
Multi-currency CSA chaos behind push to standardised CSA
The evolution of swap pricing
Funding and pricing OTC derivatives proves treacherous in Australia
Treacherous path ahead
OpRisk North America: Moving OTC trades onto CCPs will increase op risks
Moving OTC trades onto CCPs will increase op risks
European politicians row over scope of Emir
Challenging Emir
European legislators squabble over Emir
The derivatives catch-all
Unlevel playing field for CCP members concerns banks
Under the bar, over the top?
Dealers resigned to CCP competition in Asia
Gaining interest