Clearing

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Member Compression with SwapClear: Unmatched Efficiency and Freedom.

Catastrophe Prevention Drives Insurance Pitch to Clearinghouses

A group of insurers is for the first time offering to shoulder risk for clearinghouses backing hundreds of millions of derivatives trades, proposing more protection in markets where a collapse could cripple the global financial system.

• Bloomberg: Catastrophe Prevention Drives Insurance Pitch to Clearinghouses
• DRS: Insurers to Sit at the End of the CCP Waterfall?

CCP Insurance for Armageddon Time

Matt Leising has an interesting story in Bloomberg about a consortium of insurance companies that will offer an insurance policy to clearinghouses that will address one of the most troublesome issues CCPs face: what to do when the waterfall runs dry. Streetwise Professor: CCP Insurance for Armageddon Time.

LCH.Clearnet Introduces €GCPlus Central Clearing Service in Collaboration with Euroclear and the Banque de France

The new service will enable fixed income trading desks, treasurers and other market participants to efficiently manage Eurosystem eligible collateral and to generate liquidity in a cleared environment, while benefitting from balance sheet netting and capital efficiencies. ISS-MAG: LCH.Clearnet Introduces €GCPlus Central Clearing Service in collaboration with Euroclear and the Banque de France.

Overnight Heroes: Central Banks Weigh Loans for CCPs

If a clearing house runs into trouble, its first phone call will be to commercial providers of liquidity. Its second – and last – option is to turn to the central bank. That is an arrangement some central banks have been willing to formalise. But not others. Risk: Overnight Heroes: Central Banks Weigh Loans for CCPs.

Traders Get to Grips with Swap Market Changes, UBS Survey Finds

In the UBS’ fourth annual survey of participants in the OTC derivatives markets, 29% of respondents said they had already or were likely to direct swaps business towards the variety of similar products listed on CME Group, Intercontinental Exchange’s Liffe or Eurex Exchange. 84% expected that up to 30% of their OTC derivatives trading could be done via such products in the future.

• Eurex: Traders Get to Grips with Swap Market Changes, UBS Survey Finds
• Financial News: Traders Turn to Swap Alternatives as Regulation Bites.

Collateral Management

Lombard Risk and Broadridge form Strategic Alliance in the Collateral Management Sector

Lombard Risk Management plc, together with Broadridge Financial Solutions, Inc. have formed a global alliance to address changing industry needs in the collateral management sector. ISS-MAG: Lombard Risk and Broadridge form Strategic Alliance in the Collateral Management Sector.

Collateral Management: Outsource, Insource or Cloud. Which Way to Go?

An article in Institutional Investor dated February 10, 2014 “Outsourcing Collateral Management Can Be a Mixed Blessing,” by David Turner was interesting. It got us thinking….

• Securities Finance Monitor: Collateral Management: Outsource, Insource or Cloud. Which Way to Go?
• Institutional Investor: Outsourcing Collateral Management Can Be a Mixed Blessing.

Collateral Management | The Next Big Challenge

Now that Reporting for Europe has come into effect I am looking further into the next challenges that await for us just around the corner and I would like to share some thoughts in this post and in others coming soon on what I believe will be one of our major headaches the years to come. The OTC Space: Collateral Management | The Next Big Challenge.

BNY-BAML Tri-party Link Eases Buy-side Collateral Pressure

Asset managers will be able to use corporate bonds as collateral for centrally cleared interest rate swaps (IRS) after a link-up between custodian bank BNY Mellon and Bank of America Merrill Lynch (BAML) through CME Clearing. The Trade News: BNY-BAML Tri-party Link Eases Buy-side Collateral Pressure.