The jump of $150bn at ForexClear is believed to be from the introduction of margining for FX products, a sudden enthusiam to clear them. Shanghai CCP are doing well with OTC rate swaps having added $306bn of notional. Both JSCC and LCH actively use compression methods to eliminate notional hence the drops above. All units in millions of USD, so 1000 below means 1 billion of USD.
Following the 2008 Financial Crisis, multiple regional sets of regulations (EMIR, Dodd-Frank) mandated OTC markets migrate from bilateral to cleared processing. As rules were written and regulations in the U.S. and Eurozone have come into effect over the past 7 years, the Basel Committee on Banking Supervision threw a levered wrench into mandatory client clearing for FCMs which has lead us to a crossroad in derivative market clearing infrastructure.
Join us for this free webinar where we will blow you away with the simplicity with which you can setup new procedures, delegate them to team members, and watch as they check off tasks and update the managers dashboard in real time.
The team here at The OTC Space are pleased to announce the availability of the downloadable PDF edition of Rocket 9 featuring four articles on Uncleared Margin Regulation plus 8 articles on a regulation, trading, clearing and post-trade. Get your free copy here, and send one to your colleagues.
Managing client protection in the new regulatory ecosystem can be achieved in a truly cost efficient manner by introducing a direct clearing model. The beauty of a well-designed direct clearing model is that all client driven capital costs for repo transactions are eliminated while clients receive “best-in-class-client-protection”. In other words, Direct Clearing has the potential to benefit the entire financial industry.
Following the Brexit vote, in October 2016 Prime Minister May and the new Brexit secretary confirmed their intention to trigger Article 50 of the Treaty on European Union before the end of March 2017, starting the clock on a two-year process of leaving the European Union. This article comprehensively sets out the issues for CCPs around Europe.
Users have been voting with their clicks as to the most interesting articles, and we've developed a list to show you which 30 articles have been the most popular. This list is as-of January 1st, and shows our all time most viewed articles. We've also provided a list of our most popular articles in November & December 2016, and will continue to update these lists.
New into the chart in this edition is BME and Shanghai clearing. BME covers rate swaps, OIS and FRAs, Shanghai cover rate swaps. Leaving the chart is SwapClear LLC, reported as wound down in the last edition. Overall most CCPs have gained notional, with reductions in IRS at CME and SwapClear, assumed to be a result of compressing gross notional to reduce capital requirements. If you take out the figures in Rates from CME and SwapClear, the total increase in cleared interest rate products is $6.5trn, a big increase, showing that the market continues to turn over large amounts of rate risk globally.
Did you know that a group of senior buy- and sell-side people meet in private each year to freely debate the state of the OTC market, and hear from regulators on the future direction of regulations?
The team here at The OTC Space are pleased to announce the availability of the downloadable PDF edition of Rocket 8. 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.
I've recorded a very short video to explain ClearCompress, including what it does, how it does it, what it costs and how quickly we work. Check it out, and the 3D ending!