Clearing
Energy players voice concerns over Dodd-Frank timeline
US market participants say Dodd-Frank reforms should be phased in, foresee uncertainty and potential market disruption post-implementation
Regulators must distinguish physical and financial energy transactions, says risk manager
Financial risk manager from the US’s largest utility, Southern Company, says regulators should make sure they make a distinction between physical and financial transactions before setting US regulatory changes in stone
CME chief says central clearing house removes 'black swan' threat
Chicago Merchantile Exchange's (CME) Asia energy and metals chief says the group’s central counterparty clearing (CCP) house removes the possibility of a ‘black swan’ incident
Power exchange to launch gas contract
New Nodal Exchange contract to increase options for power traders; anticipates future gas and renewables demand
Isda Asia chief: Forcing energy and commodities into CCPs creates more risk
Forcing energy and commodities contracts into central counterparty (CCP) clearing is “potentially dangerous”, says Isda's Noyes
Regulators kick off derivatives reform discussion
Market participants call for clearing decisions to be left to market forces and caution regulators about clearing house ownership
LCH.Clearnet in a raft of Asia deal talks
Clearing giant LCH.Clearnet strengthens its position in Asia as it looks to seal a number of clearing deals with a raft of exchanges and other market participants
Central clearing a tricky fix for over-the-counter derivatives
Central clearing might solve some of the problems with over-the-counter derivatives, but it is by no means a straightforward solution, and could raise some additional problems
Technology and regulation change game plan for brokers
Technological developments have transformed the face of European energy broking beyond recognition. Now regulatory changes could potentially alter this landscape even further. Alex Davis and Katie Holliday speak to the major brokers about their vision…
Liquidity critical to OTC clearing, argue dealers
Regulators should consider liquidity when deciding which over-the-counter derivatives should be cleared, say market participants
Dealer-led market may be disrupted by Dodd-Frank
Banks could lose margins and competitive edge as a result of derivatives reforms in Dodd-Frank Act
Legal experts identify end-user issues under new US act
As US regulators embark on redefining over-the-counter derivatives trading, energy end-users need to be aware of how they will be categorised and the potential impact on trading costs.
Passage of Dodd-Frank Act heralds start of rule-making process
Financial reform legislation passes in the US Senate, as focus turns to the complex issue of implementation
Reform bill forces energy risk management rethink
New US derivatives regulation is expected to compel companies to redefine their risk management strategies
EFET calls for exemptions from mandatory trade clearing
EFET calls for energy companies to be exempted from mandatory clearing as proposed by the European Commission
Derivatives clearing: a selection of coverage from Risk.net
Derivatives clearing is one of the hottest regulatory topics at the moment around the world.
Experts examine US power clearing and netting needs
As the US Congress moves to boost derivatives clearing requirements, an industry panel has called for regulators to investigate a move towards clearing and netting across US power markets and to clarify the legal uncertainty in the area
NY Fed discourages use of bespoke derivatives
Post-trade reporting and collateral seen as way to push OTC derivatives towards central clearing
LCH.Clearnet re-values $218 trillion swap portfolio using OIS
Changes in valuation were “relatively small”, says clearing house
BIS position on OTC clearing eligibility at odds with EC
BIS top economist suggests all OTC derivatives could be standardised and sent to CCPs, but EC favours a more measured approach to determining clearing eligibility.
Financial reform to be decided in US
US financial reform edges closer as legislators prepare for the reconcilation of the House and Seante bills
Gensler calls for end to financials’ information advantage
CFTC chairman supports trading requirements in both versions of the financial reform bill that would benefit derivatives users rather than Wall Street banks, but calls for tighter exemptions to prevent systemic risk
Valukas' findings challenged by Lehman lawsuit against JP Morgan
Intra-day credit debate re-surfaces as Lehman Brothers Holdings (Inc) (LBHI) accuses JP Morgan of coercing it into agreements that allowed JP Morgan to get hands on collateral
Clearing no panacea for risk mitigation, panellists agree
Participants warn against one solution for all asset classes