The OTC Space | Category Archive

Negative Interest on IM Cash at LCH

August 29, 2012 by Bill Hodgson 1 Comment

Did anyone else notice this? I assume this means that posting bonds would be preferable, otherwise you will have an additional amount of cash to fund. The note also says the LCH pricing structure for cash and non-cash collateral is being reviewed. LCH.Clearnet Group – Member Notices – Circulars – 2012-07-31 Changes to interest structure […]

SwapClear

New integration standard for CCPs & FCMs

August 15, 2012 by Bill Hodgson 0 Comments

Not to be confused with Cross Currency Swaps, the Clearing Connectivity Standard developed for SwapClear & CME by Sapient will speed up and lower the cost for firms such as FCMs to connect to CCPs, and outwards to their clients. Story here, Sapient’s own page on CCS here

CCP Volumes and Notionals as of June 5th

June 5, 2012 by Bill Hodgson 0 Comments

Here’s how the clearing score sheet looks as of today using notionals (or open positions) and volumes , and below the same chart as of end of 2011.

Analysis of the new SwapClear – the membership gates are wide open

April 27, 2012 by Bill Hodgson 4 Comments

The membership framework at SwapClear has been in place in the early 2000s, linking the entry criteria to the default management procedure tightly. The announcement yesterday of a heavily revised framework opens the door to many more direct members, provided they can live with the new approach to default. Below I’ve done a rough comparison […]

ccp, clearing houses, clearing member, cme, credit exposure, default fund, eligible collateral, lch clearnet, otc products, rate swaps, swap dealer

Massive change at SwapClear – new Default Fund, Open Access

April 26, 2012 by Bill Hodgson 2 Comments

UPDATE (Friday 27th): I wrote a longer before/after comparison here. Segregated Default Fund of between £1bn and £5bn Requirement for an ‘A’ rating dropped Requirement for a minimum $1trn portfolio size dropped Minimum contribution to the Default Fund of £10m Too much to read after a couple of glasses of wine – but big change […]

Featured, LCH.Clearnet, SwapClear

Dan Maguire, Head of SwapClear US, talks CCP competition in the US

March 8, 2012 by Bill Hodgson 0 Comments

Inteview by Telis Demos at the FT in New York, subscription required: view here. He talks about LSOC, about segregation and handling of collateral for US clients, risk standards, Early part of November LSOC is applicable LCH being UK based – are the rules different? LCH is a registered DCO in the US since 2001. […]

risk standards

CME vs LCH vs SGX, IRS Client Clearing Face Off

March 5, 2012 by Bill Hodgson 2 Comments

Press release from CME on client notionals: http://www.cmegroup.com/trading/cds/online-marketing/otc_update_021312.html CME last week in IRS: $44bn Latest update from LCH on client notionals: http://www.swapclear.com/knowledge/news/press-releases/2012-02-06.html LCH in January: $34bn SGX update: http://www.sgx.com/wps/wcm/connect/sgx_en/home/higlights/news_releases/sgx+market+activities+continue+to+grow+in+february SGX in February: $5bn Interesting – the whole buy-side has yet to on-board in large numbers, CME advertise 1300 client accounts, which is a small proportion of the number […]

CME, LCH.Clearnet, SwapClear

client accounts, cme, investment funds

SwapClear T4 and T2 models

February 15, 2012 by Bill Hodgson 4 Comments

For some reason there are people out there who keep googling T2 and T4 and hitting my blog. To satisfy their curiosity, here’s what there is to know. T2 model The T2 model is now the only way trades are booked in SwapClear. This means a client trade is booked into a client account, facing […]

LCH.Clearnet, SwapClear

house account, isda, swaps, t2, t4

State Street Global Markets Intends to Join LCH.Clearnet’s SwapClear Service

February 13, 2012 by Bill Hodgson 0 Comments

LCH.Clearnet Group – Media Centre – Press Releases – 2012-02-13 State Street Global Markets Intends to Join LCH.Clearnet’s SwapClear Service. I wonder when the announcement from BoNY will come?