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.
Energy companies face up to clearing requirements
Elimination of a catch-all clearing exemption in US financial reform legislation looks like bad news for big energy companies – the industry warns mandatory derivatives clearing will do untold harm. Peter Madigan reports
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
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.
EC derivatives consultation stops short of detail on corporate exemptions
Long-awaited derivatives proposals focus on standards for central counterparties that clear OTC derivatives.
Asian supervisors look to central clearing
Clearing the way
Funding valuation – a clear and present future
In this roundtable, three leading swaps dealers discuss the changes in derivatives pricing – and in particular, the use of OIS as a discount rate for collateralised derivatives trades.
European derivatives draft to be published for consultation within days
EC derivatives legislation set to be far more detailed than US financial reform bills, and open to industry comment before final adoption.
Financial reform to be decided in US
US financial reform edges closer as legislators prepare for the reconcilation of the House and Seante bills
Dealers and legislators left disappointed by CPSS-Iosco recommendations
Proposals on risk management by CCPs should be more detailed, say participants
Asia plays catch-up on CCPs
While European and US regulators blaze a trail in over-the-counter derivatives reform, Asian supervisors have been much more circumspect. Some are now exploring the use of central clearing but many are still wrestling with how best to implement it. Matt…
Highland Capital boss slams shorting restrictions for exacerbating volatility
Credit fund veteran Mark Okada says Bafin restrictions on short selling have increased market volatility
15 minutes with: Eric Litvack, SG CIB
SG CIB's Eric Litvack talks to Risk about the implications of evolving rules on bank capital and OTC derivatives.
FSA’s Huertas says ending ‘too big to fail’ is the top regulatory issue
Regulators mull over intervention options for systemic risk firms
Industry disappointed by lack of clout in CCP standards
Dealers complain a long-awaited draft of standards for derivatives clearing platforms fails to address key issues.
Sparks fly on regulation during Isda's annual general meeting
Heated debate over financial regulatory reform going through the US Congress was at the forefront of the International Swaps and Derivatives Association’s annual general meeting in San Francisco last month.
Buy side steers clear of CCPs
Regulators have pushed hard to ensure buy-side firms are able to access central counterparties since the crisis began. But despite the launch of several new services, very few buy-side participants are actually using them. By Mark Pengelly
Waiting for CCP standards
Proposed standards for central counterparties clearing over-the-counter derivatives will be published in May, tackling contentious issues such as governance, margin practices and default management. Dealers are anxious to ensure the standards are…
TriOptima releases first rates repository figures
The TriOptima-run interest rate derivatives trade repository has registered $448 trillion notional in transactions, as of the end of March.
Dealers warn of risks of forced allocation in OTC clearing
Clearing houses could cause large losses for their members if they don't put limits on portfolio allocation, dealers think.