The OTC Space | Category Archive

US funds fear inability to clear amortising swaps – Risk.net

May 24, 2013 by Bill Hodgson 0 Comments

A prohibition on taking cross-border risk could force some category two participants to stop trading amortising swaps from June 10 An inability to take cross-border risk could mean some US funds are forced to stop trading certain interest rate derivatives once the second over-the-counter clearing mandate comes into force from June 10. Amortising swaps were […]

SwapClear updates their IM calculation methodology

May 23, 2013 by Tom Riesack 5 Comments

A quick note: As of Monday 20 May, LCH.Clearnet have moved their SwapClear SMART tool from the tactical implementation phase to full implementation for their new IM calculation methodology, also meaning that the IM calculation itself has been updated to e.g. reflect the move from a 5 to 10 year look back period. This stems […]

Initial Margin, LCH.Clearnet, SwapClear

Initial Margin, LCH.Clearnet, SMART, SwapClear

SwapClear to Comply with Dodd Frank this weekend | Real-time Registration Goes Live

May 14, 2013 by Bill Hodgson 1 Comment

The new process for registration of trades to meet the CFTC 60 second rule is planned to go live this coming weekend (May 18th). LCH.Clearnet Group – Member Notices – Circulars – 2013-05-13 SwapClear Member Notification.

SwapClear LLC Fees | Nice Price

May 13, 2013 by Bill Hodgson 2 Comments

LCH have published the price for membership of their new SwapClear LLC clearing service, at $250k per direct member. This compares with a special ‘new joiner’ fee of £500k / $750k (plus volume fees) or the basic price of £1.5m / $2.25m per year for the base tariff, of the SwapClear Ltd Global service. Perhaps […]

LCH.Clearnet, SwapClear

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 […]

Swapclear Check-o-matic

April 5, 2013 by Bill Hodgson 3 Comments

If you have some rate swaps sitting idle, why not use the new service from SwapClear to check whether they are mandated for clearing? Click here

Catalyst issue guidance on CCP margining

April 3, 2013 by Bill Hodgson 5 Comments

Putting a spotlight on the challenges presented by Initial Margin algorithm changes at SwapClear and Eurex In recent months, both SwapClear and Eurex have indicated that they will overhaul their margining algorithms, posing significant new challenges for all users of OTC derivative CCPs. Catalyst Development Limited, a specialist consultancy with one of the world’s largest […]

LCH to ‘verticalise’ their General Default Fund

April 3, 2013 by Bill Hodgson 4 Comments

A note from LCH below explains that they intend to complete the process of aligning the default fund of each clearing business vertically, and end the horizontal approach of having a general default fund. This I assume more closely aligns the size of the risk for each service with it’s own DF, and also aligns […]

LCH Default Waterfall Update | Invoicing Back

April 3, 2013 by Bill Hodgson 1 Comment

LCH published a member note (here) regarding “invoicing back” which is component of resolving a default. There are two PDFs, of which the second sets out the order in which assets are used to fund the debts of a defaulting (direct) member, being: Initial Margin of the member in each of SwapClear, RepoClear, FXClear The […]