Novation
Brexit: banks take the ‘no’ out of novations
Swaps clauses stop end-users blocking counterparty switch, making it easier to move trades to EU affiliates
Euro swaptions market prepares for pricing revamp
Interdealer market to adopt collateralised cash price from July, but some fear impact on legacy books
EU regulators urged to give guarantees on Brexit transition
UK banks and insurers want legal protection in case a political deal breaks down
Unwanted Kingdom: managing no-deal Brexit risks
UK-based dealers must plan now if they are to handle trades that extend beyond Brexit day
Sponsored video: Eric Berdeaux, Oxial
Eric Berdeaux, chief executive officer of Oxial, shares his thoughts on the digital innovation in operational risk and compliance and what the biggest challenges Oxial clients are facing right now within compliance.
All MVA needs is a first-mover
Fair value adjustment for initial margin should be reflected in accounting statement
Banks and clients clash over novation MVA charges
Some banks swallowing new margin funding costs, others forcing clients to pay up
Clients should prepare to pay MVA costs, say dealers
Risk USA: Banks say new trades and novations create real funding costs
End-users face extra unwind costs from CSA rate floors
Dealers demanding compensation for extra funding costs
Isda chair on twin threats facing OTC market
Capital a “sword of Damocles”, says Litvack; cleaner CSAs will fix valuation woes
US derivatives users cheer hedge accounting rejig
Rule change ends years of uncertainty and piecemeal reform
Banks launch drive to crush outsized XVAs
Novations and profit-sharing form part of push to trim derivatives valuation adjustments
Banks work together in effort to reduce XVA costs
Dealers offer rewards to clients and rivals for help in cutting valuation adjustments
IASB eases fears over hedge accounting for CCP novations
Standard-setter decides trades can still qualify for hedge accounting when voluntarily novated to a CCP, but experts warn wider stance on novation could cause trouble
Banks fear loss of hedge accounting for CCP novations
Trades cleared voluntarily would not be protected by hedge accounting under IASB proposals
Profile: Credit Suisse's de Boissard on capital efficiency, Basel III and bank strategy
The adjustment bureau
MarkitServ updates novation process after two-month delay
Middleware provider MarkitServ now in line with industry standard - two months after initially planned and more than three months after rival Ice Link.
The future of the Fed letter commitments
Changing commitments
Updated Isda CDS novation process to boost efficiency while minimising risk
Revised rules replace laborious consent-then-confirm novation process
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
Rocked by counterparty risk
The demise of Lehman Brothers has triggered fresh concerns about counterparty risk, creating a wave of novations and forcing dealers to think harder about the possibility of another major derivatives counterparty defaulting. Mark Pengelly reports