Weekly Roundup | Clearing | 18 November 2013
Push, Ping and Charm
Last week we announced our CHARM product with a press release titled, Swap Margin Check in 10 milliseconds. In this article I will provide the detail behind our thinking. ClarusFT: Push, Ping and Charm.
Ice Members Split Over New Client Clearing Model
Dealers fear mutualised exposure in 'sponsored principal' model. Risk: Ice Members Split Over New Client Clearing Model.
Fund Segregation: Multiple Models Increases Complexity in Europe
The second part of our series on the OTC clearing mandate in Europe explores the variety of segregations models and why discussions on portability are largely academic. Futures & Options World: Fund Segregation: Multiple Models Increases Complexity in Europe.
Client data “Compromised” in CME Cyber Attack
An unfortunate example of how the world’s CCP infrastructure needs the highest standards of data security.
- The OTC Space: Client data “Compromised” in CME Cyber Attack
- The Trade News: Client data “Compromised” in CME Cyber Attack.
Onboard with EurexOTC IRS in 2013 and Pay No Fees Until 2016
As we approach the end of the year, many of our Clearing Members and their clients have asked us to clarify what is the quickest and easiest way to onboard before the end of 2013 so that they can take advantage of our fee waiver taking into consideration that market standard client clearing documentation and in particular the respective netting opinions are not completed yet. Eurex Clearing: Onboard with EurexOTC IRS in 2013 and Pay No Fees Until 2016.
Lending CCP – 10 Things You Should Know
Eurex Clearing’s Lending CCP was developed in conjunction with industry-leading market participants around the globe, offering its users an increase in capital efficiency and reduction of counterparty risk. The Lending CCP reduces the operational burden for all market participants. Here are the ten facts about our offering. Eurex Clearing: Lending CCP – 10 Things You Should Know.
Treasury Bond Rule will be Costly for Clearing Houses
According to Businessweek, the Commodity Futures Trading Commission will be voting today on a new rule that will result in Treasury collateral being subject to a “prearranged and highly reliable funding arrangement.” Should the rule be passed, clearinghouses will be forced to back Treasury bonds with credit lines.
- CFTC Law: Treasury Bond Rule will be Costly for Clearing Houses
- Businessweek: Treasuries Not Good Enough as Swaps Collateral in CFTC Rule.
Treasuries Face Harsher Collateral Treatment – Does This Make Sense?
Forcing clearinghouses to back up their US Treasury positions with letters of credit backed by US financial institutions in US dollars seems silly. DerivAlert: Treasuries Face Harsher Collateral Treatment – Does This Make Sense?
Barclays Launches LSOC with Excess Model
Hedgeweek is reporting that Barclays and CME Clearing have launched an enhanced version of LSOC margining for OTC derivatives clearing clients – “LSOC with Excess”. Regulatory Reform blog: Barclays Launches LSOC with Excess Model.
ICE Boss Has Eye on Interest Rate Swaps
Jeff Sprecher has long sought an interest rate derivatives business. FT: ICE Boss Has Eye on Interest Rate Swaps.
Market Divide Deepens on Clearing House Recovery
Buyside firms have labelled the use of their assets to support troubled clearing houses as “unfair and unpredictable”, deepening the divide among market participants on the issue of so-called “living wills”. Financial News: Market Divide Deepens on Clearing House Recovery.