The OTC Space | Category Archive

DTCC sues CFTC over trade repositories

May 3, 2013 by Mihir Vaidya 1 Comment

DTCC yesterday filed a suit against the CFTC over its March ruling (CME Rule 1001 and ICE rule 211) that sided with exchanges, calling the CFTC ruling as ‘anti-competitive’. The statement from General Counsel Larry Thompson on this matter can be found here, along with the soft copy of the filing. Coverage from FT can […]

CFTC, CME, ICE, News, SDR

cftc, cme, DTCC, ICE

CME SDR data leak

April 22, 2013 by Bill Hodgson 2 Comments

The CME SDR sprang a leak,story here affecting DE Shaw & others. Update: more from Reuters, it was futures data not OTC, 500 trades. Story here

CME, IRS, Swap Data Repository

Standardised OTC swaps (TrueEx) to launch within weeks – Risk.net

April 19, 2013 by Bill Hodgson 18 Comments

Sunil Hirani who created CreditEx, now part of ICE, has built a new trading market TrueEx, and registered as a Designated Contract Market (DCM) with the CFTC. TruEx will offer trading in rate swaps but using standardised terms: Standard tenors: 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 15, 20, 25, 30 years […]

Bloomberg sues CFTC over derivatives rules – FT.com

April 16, 2013 by Bill Hodgson 2 Comments

What’s the difference if you take interest risk wrapped in a bond, a swap or a a future? BBG starts the process of exploring the sense in the CFTC deciding what’s liquid in a default, and therefore how long the IM holding period should be. It will be interesting to see whether the CFTC or […]

Swapfutures vs. swaps – buy-side views

April 15, 2013 by Jon Skinner 1 Comment

Some comments from buy side firms and SEFs on the CFTC’s and CCP’s differential treatment of economically equivalent swaps and swapfutures are contained here (Risk mag, subs). The gist is that margin advantage alone won’t make a sudden large scale shift from OTC swaps to swapfutures happen overnight but will play out over a longer period […]

Basel III, sefs

IDBs shifting from SEFs to futures exchanges?

April 8, 2013 by Jon Skinner 1 Comment

The attached article from FOX news indicates IDBs are making initial moves to set up new futures exchanges including: – GFI filed to set up the GFI Futures Exchange LLC (just filed with CFTC for approval) – BGC is reviving their 2009 start up ELX Futures LP (current open interest 37,846 eurodollar contracts) – ICAP […]

futures exchange, futures exchanges

Putting Things Into Perspective | Swaps vs. Swap-Futures

April 4, 2013 by Ben Larah 5 Comments

It looks as though some market participants could do with a couple of words of advice from Harry Enfield’s Scousers: “Calm Down!” The Initial Margin (IM) calculation differences between swaps and swap-futures have already been covered in some depth on The OTC Space (see posts here and here). But, for convenience, here’s a quick summary: Cleared […]

Optimizing the Cost of Customization for OTC Derivatives End Users

March 28, 2013 by Jon Skinner 0 Comments

Optimizing the Cost of Customization for OTC Derivatives End Users For those of you who haven’t seen it I recommend the article with the above title in the paper at the attached link (starts on page 69) published by the Institute for Financial Markets and written by Sean Owens from Woodbine Associates (a research-based consulting […]

Basel III, bilateral, cftc, cleared, Initial Margin, o malia, otc, otc derivatives

Do current client clearing volumes indicate the outcome of the IRS CCP race?

March 25, 2013 by Jon Skinner 1 Comment

On client clearing notional outstanding, Swapclear has so far outcleared CME in IRS so far by a factor of more than 4 fold ($4.62 trn vs. $1.01 trn as of March 13th). Note: CME client clearing will be less than $1.01trn to the extent of their dealer to dealer clearing volumes. Where are the figures published? On […]