Between the contributors to this website we ought to be able to answer any question on OTC derivatives and the post-trade space – go ahead and see if you can ask a question we can’t answer. Add your question to the comments below or email me direct using the Contact page.Read more
If you want to avoid RSS, and also avoid individual emails, I have setup a daily summary of the days posts, sent out at 5pm each week day. An example is shown below (truncated), the email is brief and can be scanned quickly. Sign up using this URL to visit the list: http://eepurl.com/xkKtT each email will […]Read more
Here is the status of CCPs and SDRs for OTC products. Data for the CCPs is from the respective websites, data for the SDRs is from the recent FSB (mid-2012) progress report. Click on the charts to enlarge. Update on Feb 13th Fixed ICE EU numbers, not linked properly, now showing latest numbers Labelled numbers […]Read more
UPDATE 18th March: New timeline from ESMA: Source: http://www.esma.europa.eu/page/European-Market-Infrastructure-Regulation-EMIR Also: EMIR Q&A EMIR Q&A_2013-03-20 (2013-324) UPDATE Mar 4th: ESMA made another timeline update, here’s the corresponding timeline courtesy of Tom Riesack at Capco (Twitter: here LinkedIn here). Download the accompanying PDF by clicking here: EMIR Timeline (Update as of 4.3.2013) v2 UPDATE 27th Feb: A new cleaned up chart provided by Tom […]Read more
A way through the fog of CFTC Title VII final rules, exemptive orders and no action letters is offered by Commissioner O’Malia’s speech to Energy Risk 2013. He uses a Rumsfeld-like categorization of known unknowns and unknown unknowns to sum up what’s still to be done and to be discovered as a result on reporting, clearing […]Read more
All this debate on the appropriate holding period for futures, swaps or their hybrids, would be avoided if the CFTC and other regulators developed an approach that obliged each DCO (CCP) to provide empirical evidence for the product and market they wish to clear. This evidence would include trading data, portfolio data from market markers, the default process description, and dry runs of the default process off-line.
It is entirely wrong for the holding period for a market/product to be set without such evidence, either from a DCO, or from the CFTC themselves. The current approach by the CFTC is opaque – how did they arrive at their current (arbitrary) decisions for futures versus swaps? Lets see their method, their data and their explanation and prove to the market, the results make sense.
Yesterday, the CFTC met to vote on final rules for swap execution facilities (SEFs). The Commission’s five members voted in a public meeting on new platforms for swaps that will bring bilateral trading to an end, and transfer trades to centralized, transparent marketplaces. A lot of criticism on these decisions is already loudly expressed from some of the commissioners themselves, stated at the vote in their prepared statements and also SIFMA that released a statement arguing that the new rules ‘will negatively impact investors and hinder the ability of American businesses to manage risk.’
You can find more details in the links below:
- http://www.derivalert.org/blog/bid/91240/CFTC-Votes-SEF-Rules-Forward (also has links to Q&As and fact sheets)
Almost unbelievably, the CFTC has voted in favor of the trade execution rules.
The CFTC voted 3-2 to pass the Swaps Blocks Rule. The CFTC also voted 3-2 to approve the Made Available to trade rule. The agency voted 4-1 to pass the SEF rules. Lastly, the Commissioners voted unanimously to approve the Interpretive Guidance and Policy Statement on Disruptive Practices.
Under EMIR, parties to OTC derivative transactions are classified as either:
- financial counterparties (“FC”);
- non-financial counterparties which have exceeded the clearing threshold (“NFC+”); or
- non-financial counterparties which have not exceeded the clearing threshold (“NFC-”).
Whilst primarily used to determine whether a counterparty is subject to the obligation to clear, in reality a number of different EMIR requirements can apply depending on the exact counterparty classification.
Allen & Overy published a short summary of EMIR key points and make some noteworthy comments. “Structured finance vehicles” part caught my eye in particular, where it’s more than obvious that these entities will give their compliance departments lots of headaches….
Check this out here.
I have an iPhone 4 for sale, it’s a UK phone, currently on O2, but not locked to a network as it came from Apple originally. It’s in good condition, fully working. I think I’ve got a box somewhere, and a charger if you need it. Looking at completed successful eBay sales, it appears to be worth £225.
On the 26th of July, open your wallet for the next book with a chapter by myself on the mechanics of clearing, plus a whole lot from David Murphy too.