The OTC Space | Category Archive

CFTC’s Gensler on Libor | Is it the end?

April 23, 2013 by Maria Leontiou 1 Comment

It seems that what until now has only been an open sceptisism on Mr Gensler’s side, is now considered to be the strongest indication that regulators are more than eager to replace LIBOR with an alternative benchmark. As Mark Carney, the future Bank of England governor who heads the Financial Stability Board, said last week “regulators hope […]

gary gensler, Libor

Javelin Capital Markets goes to London | Market infrastructure

April 20, 2013 by Maria Leontiou 1 Comment

New kid on the block (of SEFs)…. Javelin Capital Markets has announced that it has opened an office in London and will register as a SEF once the SEF rules are finalized. It was founded in 2009 by derivative trading and technology professionals and offers low cost, real time trade execution for Interest Rate Swaps […]

Credit default swap, interest rate swap

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 […]

Tradeweb proves that SEFs have a chance

April 16, 2013 by Tom Riesack 4 Comments

According to this RISK article Tradeweb was able to pick up as much as 80% of the interdealer volume in index credit default swaps (CDSs). Obviously, swap execution facilities have the ability to pick up a significant amount of business even though not mandated by the CFTC yet. As one London-based trader said: “The effect […]

OTC Derivatives, SEF, TradeWeb

cds, Credit default swap, SEF, Tradeweb

Markit and Traiana? Is there room for both?

April 5, 2013 by Maria Leontiou 5 Comments

As SEF rules will come into force later this year, CreditLink by Traiana and Credit Centre by MarkitSERV, both prepare themselves for launch even though both concede there may only be room for one, and dealers have been pressing for a single hub. One more link in the central clearing chain is the need to ensure that […]

Dodd Frank, infrastructure regulation, SEF

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 […]

Global Futures Volume Report | OTC Clearing and Regulations

April 2, 2013 by Bill Hodgson 2 Comments

Global Futures Volume Report | OTC Clearing and Regulations. See page 22 of the PDF for volume change by exchange, quite interesting.

Avoiding the BCBS / IOSCO Margin Requirements for Bilateral Portfolios

April 1, 2013 by Bill Hodgson 7 Comments

As everyone keeps saying, there will be unexpected outcomes from the new regulations, and one of them is about to turn the ISDA CSA upside down. Given the severe margin requirements for bilateral (non-cleared) trades, a 10 days 99% VaR segregated by asset class, this has driven research into exposure management much harder than before, […]

Easter Egg | LSE applies to be a Trade Repository | UnaVista

March 30, 2013 by Bill Hodgson 0 Comments

Easter seems to be the time to announce new TRs under ESMA, LSE got in on the act too. See story via link below. London Stock Exchange Group applies to be a Trade Repository | UnaVista.