Collateral Management

Industry eyes cross-margining for new era savings

An announcement from IntercontinentalExchange (ICE) to offer cross-margining for OTC derivatives trades will push the industry further towards reducing the amount of initial margin required to clear OTC derivatives. The Trade News: Industry eyes cross-margining for new era savings.

Collateral Management Hits the Impenetrable Silos

There has been a huge debate in recent times about collateral management and I am beginning to wonder if the industry is tackling the right problems in the right order. B.I.S.S. Research: Collateral Management Hits the Impenetrable Silos

VAB’s Winter: Collateral Rules Risk Derivatives and Liquidity

Stefan Winter, chairman of the board of directors of the Association of Foreign Banks in Germany (VAB), asks how new regulation affects the future of collateral management. Risk: VAB’s Winter: Collateral Rules Risk Derivatives and Liquidity.

Fear the Repo: Funds Face up to Rate-Contingent Liquidity Risks

As interest rates rise, big fixed-rate receivers such as pension funds will all slide out-of-the-money at the same time, potentially triggering huge margin calls. Some are already trying to soften the blow, rather than relying on a repo market that could be overstretched. Risk: Fear the Repo: Funds Face up to Rate-Contingent Liquidity Risks.

The Real Cost of Centralised Clearing

Creating a competitive advantage through effective collateral management. By Ben Broadley, Advent Software. FTSE Global Markets: The Real Cost of Centralised Clearing.

The Market Readies for MBS Margining

For many professionals, 2014 will be the year that they finally tackle the new MBS margining requirements set out by the TMPG. Despite best-laid plans,  Joseph Kohanik, of Alpha Financial Software, explores the challenges financial institutions face as they aim to adopt new margin requirements to meet new industry recommendations. DerivSource: The Market Readies for MBS Margining.

New MBS Margin Requirements Create Clear and Present Danger

Margin recommendations for all forward-settling agency mortgage-backed securities that go into effect on Jan. 1 could mean a New Year full of operational deficiencies, legal gridlock and a lack of collateral know-how for the asset management industry. DerivAlert: New MBS Margin Requirements Create Clear and Present Danger.

Risk Management

Reg Cap Swaps Trades Evolve

Investment banks are finding it increasingly difficult to secure regulatory sign-off to reduce the vast sums of capital they are forced to hold against derivatives exposures under Basel III. IFR: Reg Cap Swaps Trades Evolve.

Implementation Models for Enterprise Regulatory Change (Part II of III)

In the first part of this three part blog, I looked at the concept of ‘enterprise regulatory change’ and considered whether regulatory change initiatives, at the enterprise level, are even achievable. John Philpott: Implementation Models for Enterprise Regulatory Change (Part II of III).