The OTC Space | Category Archive

OTC Derivatives, Bilateral Trading and Central Clearing | David Murphy | Palgrave Macmillan

May 15, 2013 by Bill Hodgson 5 Comments

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. OTC Derivatives, Bilateral Trading and Central Clearing | David Murphy | Palgrave Macmillan.

Book, Clearing, News

SEF rules vote on May 16th – FT.com

May 10, 2013 by Bill Hodgson 0 Comments

The CFTC have said they (the commissioners) will vote on SEF rules on the 16th, which includes a minimum of two quotes rather than five for the first 12 months, then rising to three. Should the vote be in favour of the SEF rules, there will be an almighty rush to win business for SEFs, […]

CFTC, FT, OTC Derivatives

Some traders expect OTC volumes dip from CFTC KYC rule | IFR report

May 2, 2013 by Mihir Vaidya 3 Comments

The documentation protocols for buy-side accounts under the CFTC regulations went into effect on May 1, 2013. Despite warnings from dealers in the months leading up to the May 1st timeline, it appears that a significant percentage of buy-side firms did not sign up to the protocols (requiring them to disclose detailed information to their […]

Dodd Frank, IFR, News

buy-side, cftc, kyc, otc, swaps

ISDA AGM: Asian Clearing Houses to dominate | Risk.Net

April 23, 2013 by Mihir Vaidya 0 Comments

An interesting article in Risk.Net on the future of Clearing in Asia. The article covers the results of a survey by Celent with findings that close to 50% of all OTC participants in APAC are expected to clear through local clearing houses with around 38% opting for Global CCPs, creating a potential liquidity fragmentation and […]

Clearing, ISDA, News, Risk

APAC, Asia, ccp, Clearing

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 […]

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 […]

IOSCO publishes comments to Feb 15 Consultative Paper on Margin for Un-cleared Derivs

April 3, 2013 by Mihir Vaidya 0 Comments

IOSCO yesterday published the comments received on the second consultative paper for uncleared derivatives on their website. All responses from industry participants are available under ‘View Comments’ here. Michael Beaton from Regulatory Reform has published a summary of some key industry responses here. There are some very interesting comments, especially from ISDA on the issue […]

bilateral, collateral, consultative document, consultative paper, derivatives, hypothecation, Initial Margin, isda, otc

Davis Polk | Swap Reporting Who and When?

April 2, 2013 by Bill Hodgson 0 Comments

From DP: One key provision of the Dodd-Frank Act requires reporting of swap transactions. The Commodity Futures Trading Commission has finalized detailed regulations in this area that are being implemented in phases. In the March issue of Futures Industry magazine, Annette L. Nazareth and Gabriel D. Rosenberg outline the CFTC’s OTC reporting compliance timeline. Read more >