Clearing

Articles

Blockchain Credit Suisse
14 Apr 2021 — Bill Hodgson

A post-trade trial between Credit Suisse and Nomura indicates the future for equities clearing, if blockchain technology can be scaled to meet the needs of a global equities market. Gillian Tett from the FT explains more.

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21 Jan 2021 — Bill Hodgson

Incentives are at the heart of CCP’s robust risk management. Our newly published paper delves into the key CCP concept of skin-in-the-game (SIG), considers its purpose as an incentive for CCPs’ risk management, analyse SIG requirements across different jurisdictions and compares it to the rest of the default management resources available at CCPs to deal with market stresses.

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30 Oct 2020 — Bill Hodgson

ASX had flagged a delay to the project, which was scheduled for 2021, amid market turmoil in March. A proposed target of April 2022 has now been moved to 2023 after consulting market participants, ASX said in a statement.

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16 Sep 2020 — Deputy Editor

LCH has cleared the first Israeli Shekel-denominated interest rate swaps.

ILS is the latest currency to be cleared at SwapClear, which offers clearing for interest rate derivatives in 27 currencies. Clearing brokers supporting ILS include Citi, Goldman Sachs, HSBC and J.P. Morgan.

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10 Jul 2020 — Bill Hodgson

ISDA has published a paper illustrating the wide variety of terms in cleared IRS. ISDA suggest that there may be a perception that by mandating clearing for OTC products they have become 'standard' rather than their variable nature in the wild. Those of us on the inside of the market know this not to be the case, but just to prove a point, ISDA and DTCC have assembled the data to show how variable cleared OTC IRS can be.

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03 Jul 2020 — Deputy Editor

Quantile has completed its first cleared interest rate initial margin (IM) optimisation run with LCH. Clients accessing this new service benefit from superior risk management and reduced margin funding costs, increasing the efficiency and liquidity of derivatives markets.

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3 MINS
28 May 2020 — Bill Hodgson

The BIS have conducated a rigorous study using public metrics to look for a relationship between the amount of CCP capital at risk in the default waterfall, and the behaviour of CCP risk models. I won't spoil the surprise on the outcome, but this appears to be the first quantitative study into the possibility that if a CCP is likely to lose money, they operate more conservative risk models.

The paper covers:

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27 May 2020 — Bill Hodgson

Since 2005 the Monetary Authority of Singapore has been publishing the SORA benchmark each day. The Singapore Overnight Rate Average (SORA) is the volume-weighted average rate of unsecured overnight interbank SGD transactions in Singapore between 9:00 am and 6:15 pm. 

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21 Apr 2020 — Bill Hodgson

Learn more about how European CCPs have adapted to the COVID-19 pandemic via the EACH resource page

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07 Apr 2020 — Bill Hodgson

RBC becomes the first Canadian bank to join the cleared repo platform

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24 Mar 2020 — Bill Hodgson

LCH provides assurance on their continuity during the Pandemic

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23 Mar 2020 — Bill Hodgson

Eurex can now offer clearing services onshore in Japan.

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