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The World Federation of Exchanges (“WFE”), the global industry group for exchanges and central counterparties (CCPs), has published a joint report with Oliver Wyman examining the post-crisis developments that have shaped the current clearing landscape, along with forward-looking recommendations on how to build the CCP of the future.
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LCH faced with issuing a 'notice of retirement' for its UK clearing services will benefit from the European Commission granting a temporary equivalence status to UK CCPs.
A new patent covering the risk monitoring of multiple cleared CCP accounts may conflict with CCPs and other FinTech vendors from providing similar functions.
Get on down to the FIA IDX show in London, amongst the biggest capital markets events in the year. OTC Space and Brandex Publishing will be there, come and chat about our future plans.
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The ISDA AGM generated a wave of content last week which we've assembled into one handy place. Most of the material is focussed on margin for non-cleared products given the changes due in 2019.
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The costs of clearing come from many drivers, John explains when a porfolio meets a threshold for IM optimisation and options for bringing cost down.
Feedback from early registrations is that funding IM, CCP fees and operational costs are a concern. Join us to find out how to manage down all of those drivers.
Notionals in IRD have increased since January, some from OIS which has a larger gross notional than IRS. The uncleared margin rules have boosted FX Clear, and the exchange rate from EUR to USD has appreciated increasing the values. SGX appears to be out of FX clearing, notional dropping to zero, the biggest swing is HKEX who quadrupled their IRD notional.
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The team here at The OTC Space are pleased to announce the availability of the downloadable PDF edition of Rocket 10 (in the attachments section below). Formatted in landscape to fit your computer or portable device screen, this edition contains inside information on what's happening in the industry. The PDF is attached below, and contains a great set of articles from previous and new authors.
A new ISDA survey explain the flows of margin for cleared and uncleared OTC products
Back when CCPs had to achieve reauthorisation under EMIR, their segregation offerings were a subject of much discussion and jargon. One key offering that was floated was the idea that your assets are held in an account over which you have joint control with the CCP, rather than held in an account for the CCP solely. The idea being that should the CCP default or be unable to service your requests to access your assets, you would have the possibility of moving assets out of your cover account.
On November 28th, 2016, the European Commission (EC) has published a proposal for a framework for the recovery and resolution of central counterparties and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, and (EU) 2015/2365l1. This regulation is based on the work at the international level of the Financial Stability Board (“FSB”), the Basel Committee, Committee on Payments and infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO). FSB published in August 2016 a discussion note on “Essential Aspects of CCP Resolution Planning” and jointly with the Basel Committee, CPMI and IOSCO, a progress report on the work plan to enhance the resilience, recovery planning and resolvability of CCPs2.