The OTC Space | Tag Archive

Nov 13th: Eurex IRS goes live

October 30, 2012 by Bill Hodgson 0 Comments

Long PDF (582 pages) here which is mainly a black-line version of their rules and regs. IRS, FRAs, OIS, Basis Swaps. Eurex will be aiming to capture European business with their market leading individual segregated account solution and aiming at the many buy-side firms who will need a way into clearing as the EMIR / […]

Central Counter Party, Eurex

ccp, clearing houses, derivatives, irs, otc derivatives, rate swaps

CCP Score Sheet as of October 2012

October 16, 2012 by Bill Hodgson 10 Comments

It’s been a while since I updated my popular chart with the current notionals at the various CCPs. New entrants to this months chart include: JSCC for IRS off to a quick start with $42bn Data for CME and LCH on NDFs IDCG became SwapClear US KDPW with concrete plans to launch next month Eurex […]

clearing houses, cme, derivatives, eurex, irs, lch clearnet, murex, otc derivatives, progress report, rate swaps, software platform

Polish OTC Clearing Planned for Nov 2012

October 16, 2012 by Bill Hodgson 3 Comments

KDPW CCP plans to launch clearing of OTC products on the 19th November 2012, having worked with MarkitSERV and SWIFT for trade acceptance. KDPW have an impressive list of launch products: Forward Rate Agreements Interest Rate Swaps Overnight Index Swaps Basis Swaps REPO With more to come in Jan 2014 including: FX Swaps FX Options […]

Central Counter Party, KDPW

ccp, clearing houses, derivatives, EMIR, otc derivatives, rate swaps

Russian CCP for OTC products is coming / Русская КПК для OTC продуктов идет

June 5, 2012 by Bill Hodgson 0 Comments

I came across this PDF (on the right of this page) showing details of the creation of a CCP in Russia. The early chart on the domestic product mix shows IRS as a small proportion of their OTC market, but even so the plans will include IRS and also move into the FX market. The plan […]

ccp, clearing houses, derivatives, otc derivatives, rate swaps, repositories

A&O Seminar on Dodd Frank and EMIR

May 23, 2012 by Bill Hodgson 2 Comments

Allen and Overy provided one of their lunchtime seminars on Monday with a comparison between Dodd Frank and EMIR. Below are my notes from their presentation and a PDF of the slides. You should follow up with the very knowledgeable A&O staff on this: EU: damian.carolan@allenovery.com US: deborah.north@allenovery.com US: john.williams@allenovery.com Key points: Entity definitions for […]

cftc, derivatives, dodd, Dodd Frank, EMIR, rate swaps, research

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

Survey on the the changing landscape for Sell/Buy Side by Rule Financial

April 5, 2012 by Bill Hodgson 1 Comment

In case you didn’t spot it, Rule did a survey which sets out how firms are reacting to regulatory change, you can request your copy via their page here, or download here. Key findings: 90% of dealers intend to offer client clearing within 12 months 90% of dealers intend to offer a cross-asset margin call […]

Publication, Research

collateral management, rate swaps

Happy trainees

February 29, 2012 by Bill Hodgson 0 Comments

Last week I successfully delivered a three day course on central clearing to 11 individuals, with modules on Legal and Risk provided by Anna Iversen & Adam Ward at Amunet Partners, and Ed Selby at Lothbury Associates, respectively. You too can enjoy a full understanding of Clearing for OTC products, plus FpML or Rate Swaps […]

adam ward, otc products, rate swaps, shield bug

Margin on not-clearable OTC trades

February 20, 2012 by Bill Hodgson 0 Comments

Most people are focussed on the need to move to clearing, but the elephant in the room is the change in margin requirements for trades which won’t be eligible for clearing. Dividing Rates products into the possible and improbable we begin to see the challenge ahead. Vanilla trades (clearable now, or maybe in the short […]