End-user Angst in Munich

In the years since the financial crisis, an important point about derivatives has often been overlooked: they serve a genuine need by helping real companies to hedge very real risks. ISDA derivatiViews: End-user Angst in Munich.

Frontloading on the Backburner?

On 8 May 2014, ESMA wrote a letter to the EU Commission, seeking its views on a possible solution to the thorny issue of frontloading. The frontloading requirement is triggered by the authorisation of a CCP under EMIR (of which there are now four).  If ESMA concludes that any of the products offered by that CCP are suitable for mandatory clearing, the frontloading requirement demands that all trades executed since theauthorisation of the CCP (and not just the decision regarding suitability) be subject to mandatory clearing requirements.

• DRS: Frontloading on the Backburner?
• Reuters: EU Watchdog Proposes Breathing Space on Derivatives Clearing
• Risk: Esma Frontloading Fix Leaves Risks, Dealers Warn
• The OTC Space: EMIR Front-Loading Move from ESMA
• FOW: Frontloading Rules Still a Major Concern Despite Delay.

Germany Spotlight: KVGs Preparing for CCP Clearing under EMIR

In a DerivSource podcast, I spoke to two experts about KVGs and the challenges these organisations face as they prepare for central clearing under EMIR.

• DerivSource: Germany Spotlight: KVGs Preparing for CCP Clearing under EMIR
• DerivSource: KVGs and Complying with EMIR.

LSEG Looking to Compete with CME Deliverable Swap Futures

A story over at FOW Intelligence suggests that Bill Templar has been hired to boost efforts within LSE Group to bring a product/service to market to allow combining OTC Swaps (in SwapClear) with Exchange Traded Futures in a single margin pot. The OTC Space: LSEG Looking to Compete with CME Deliverable Swap Futures.

Recordkeeping Requirement Irks OTC Industry

The derivatives industry is pushing back against a proposal by the Commodity Futures Trading Commission that would require all participants on a swap execution facility or a derivatives exchange to record all pre-execution trade information. Markets Media: Recordkeeping Requirement Irks OTC Industry.

Recordkeeping Woes Approach Buyside

A set of onerous recordkeeping requirements connected to over-the-counter swap transactions are set to hit asset managers on May 1 unless the CFTC extends relief or modifies the rule as industry participants have requested. IFR: Recordkeeping Woes Approach Buyside.

Trade Reporting: The Lack of Standards is Hurting the Industry’s Efforts to Comply

Two months in and the industry is still struggling to comply. FOW: Trade Reporting: The Lack of Standards is Hurting the Industry’s Efforts to Comply.

Asia Clearing Mandates to Go Live Before European and US Regulators Approve CCPs

Several Asia markets are set to mandate central clearing but European and US banks face the dilemma of whether to join onshore CCPs before they receive approval from their domestic regulators – potentially leaving them exposed to onerous capital charges. Risk: Asia Clearing Mandates to Go Live Before European and US Regulators Approve CCPs.