Netting
Ashurst non-netting opinion on China splits lawyers
EU banks using opinion for margin exemption, at possible cost of capital savings
Lawyers divided over Isda’s China netting memo
New legal guidance spells out how close-out netting may be achieved, but critics say it’s impractical
Margin rules spur Middle East netting upgrades
Bahrain, Qatar, UAE seek to bolster swaps safeguards
LCH set to launch repo client clearing service
Project will allow buy-side firms to access CCP through sponsor banks in coming months
Dealers crack down on clients with dual netting sets
Pricing adjustments for posting non-cash collateral can run to 100bp
Dealers struggle with VM in non-netting jurisdictions
EU exemptions from margin posting are either hard to obtain or face client resistance
Derivatives funding, netting and accounting
Christoph Burgard and Mats Kjaer expand their semi-replication framework to multiple counterparties
US inflation traders consider swap methodology change
Banks weighing up move to non-interpolated standard to cut capital costs
Dealers grapple with netting valuation adjustments
Some banks are expressing netting uncertainty as a fair value adjustment to CVA
Banks take flexible approach to pricing netting risks
Dealers are adjusting CVA prices, depending on their view of the legal netting opinion
Netting risks create pricing and operational headaches
Oversight of legal risks is not always robust
Accounting puts brake on move to daily settled swaps
New margin approach threatens hedge accounting status, could hurt effectiveness
Energy firms urge EC to ease Emir clearing rules
Review highlights concerns over impact of clearing on nonfinancials
Proposed margin rule to hurt global banks’ trades with China
Industry dislikes HKMA rule on initial margin for uncleared trades with non-netting countries
Interoperability between central counterparties
The authors investigate interoperability from the perspective of the multilateral netting property of central clearing.
Global banks support 5% threshold for margining uncleared swaps
A lack of netting statutes and low volumes make requirements excessive for emerging markets
Russia to de-link derivatives reporting and netting
Corporates may be drawn into reporting regime, however
India to become netting friendly on bankruptcy law reform
Different treatment of public and private banks stymied netting – but this could now change
Eurex vs LCH.Clearnet: clash of the titans
German exchange woos big clearing members with promise of capital savings
Banks call for CCPs to act on compression
Revamped service at LCH.Clearnet has $200 trillion target for 2014
China still a 'dirty' netting jurisdiction for banks
Lack of certainty over close-out netting continues in China
Legal clouds hang over RWA-driven netting push
New capital requirements are making it more difficult for banks to trade with counterparties that are not covered by a netting opinion. That is spurring attempts to expand coverage, but can leave banks and lawyers on uncertain ground. By Lukas Becker
UniCredit hit by ‘dangerous’ ruling in Russian swap dispute
Court sets "dangerous precedent" in allowing local corporate to walk away from swap without compensating UniCredit