{"id":14315,"date":"2013-03-19T13:45:51","date_gmt":"2013-03-19T13:45:51","guid":{"rendered":"https:\/\/wordpress-693215-2610341.cloudwaysapps.com\/index.php\/2013\/03\/19\/otc-derivatives-news-digest-18-3-2013\/"},"modified":"2013-03-19T13:45:51","modified_gmt":"2013-03-19T13:45:51","slug":"otc-derivatives-news-digest-18-3-2013","status":"publish","type":"post","link":"https:\/\/theotcspace.com\/otc-derivatives-news-digest-18-3-2013\/","title":{"rendered":"OTC Derivatives &#8211; News Digest &#8211; 18.3.2013"},"content":{"rendered":"<p>Dear Reader, Starting this week you receive a compilation of news items (thus &quot;News Digest&quot;) from the week that just went. A short summary of highlights precedes the article abstracts and corresponding links. A number of those are from sources like Risk or FT, which obviously require a subscription. Some of the items are abstracts of your most favourite blog site &#8211; this is due to the fact that (a) The OTC Space is a great website :) and (b) you&#39;re not the only recipients of this&#8230; [so leading to a recursion much like in the film Inception where you can click but you can&#39;t escape this website.] <span><strong>I would be glad to hear if you find this helpful and if you have any suggestions going forward, email me here:&nbsp;<a href=\"mailto:thomas.riesack@capco.com\" target=\"_blank\" title=\"Tom\" rel=\"noopener\">thomas.riesack@capco.com<\/a><\/strong><\/span><span><b> <\/b><\/span> So, let&#39;s get started for this week! It has begun &#8211; clearing that is &#8211; in the US since March 11th for Swap Dealers, Major Swap Participants and Active Funds. And, of course, the regulatory technical standards of ESMA have entered into force on March 15th! <strong>Last week&#39;s highlights include:<\/strong><\/p>\n<ul>\n<li>\n\t\tESMA Chairman Steven Maijoor says regulation needs to be phased in gradually well into next year<\/li>\n<li>\n\t\tMarket participants are fearing that they are shut out of non-European CCP markets if such CCP&#39;s do not apply for recognition with ESMA in the next six months<\/li>\n<li>\n\t\tAnd&#8230; A spokesman for Esma told the publication &quot;Asia Risk&quot; that the third update to the FAQs will likely be published early next week, after the March 15 start<\/li>\n<li>\n\t\tWith the start of clearing in the US analysts predict (and some broker dealers openly confirm) that revenues and profits in the so-far profitable OTC market will decline &#8211; and steeply so&#8230;<\/li>\n<li>\n\t\tOn March 15th &quot;timely confirmation&quot; becomes a necessity under EMIR &#8211; are you prepared?<\/li>\n<li>\n\t\tThe Regulatory Oversight Committee (ROC) has presented its first progress report on the LEI implementation<\/li>\n<li>\n\t\tISDA emphasises the importance of non-cleared <a class=\"zem_slink\" href=\"http:\/\/en.wikipedia.org\/wiki\/Over-the-counter_%28finance%29\" rel=\"wikipedia noopener nofollow\" target=\"_blank\" title=\"Over-the-counter (finance)\">OTC derivatives<\/a>:&nbsp;<a href=\"http:\/\/wp.me\/p1PSzi-Ob\" target=\"_blank\" rel=\"noopener nofollow\">http:\/\/wp.me\/p1PSzi-Ob<\/a><\/li>\n<li>\n\t\tThe last article features the GFMA&#39;s effort on LEI:&nbsp;<a href=\"http:\/\/gfma.org\/lei\/\" target=\"_blank\" rel=\"noopener nofollow\">http:\/\/gfma.org\/lei\/<\/a><\/li>\n<\/ul>\n<p><strong>THE ARTICLES<\/strong> <strong>SEFs Seek Level Playing Field<\/strong> The &lsquo;futurization&rsquo; of swaps, or the importing of constructs from the&nbsp;exchange-traded world into the world of OTC swaps place swap execution&nbsp;facilities [SEFs] at an unfair disadvantage to futures exchanges,&nbsp;according to some market participants. <a href=\"http:\/\/marketsmedia.com\/sefs-seek-level-playing-field\/\" target=\"_blank\" rel=\"noopener nofollow\">http:\/\/marketsmedia.com\/sefs-seek-level-playing-field\/<\/a> <strong>CFTC Announces Mandatory Clearing of Swaps<\/strong> Today, the CFTC announced today that swap dealers, major swap&nbsp;participants, and private funds active in the swaps market, are&nbsp;required to begin clearing certain index credit default swaps (CDS) and interest rate swaps that they entered into on, or after March 11,&nbsp;2013. <a href=\"http:\/\/www.cftclaw.com\/2013\/03\/cftc-announces-mandatory-clearing-swaps\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.cftclaw.com\/2013\/03\/cftc-announces-mandatory-clearing-swaps\/<\/a> <strong>Phase-in of EU derivatives rules may drag on into 2014<\/strong> (Reuters) &#8211; Implementing new European Union rules to reduce risks in&nbsp;the $640 trillion (428.5 trillion pounds) derivatives business could&nbsp;stretch into next year, because the regulation needs to be phased in&nbsp;gradually, a senior EU regulator said on Monday. <a href=\"http:\/\/uk.reuters.com\/article\/2013\/03\/11\/uk-eu-derivatives-idUKBRE92A0WO20130311\" target=\"_blank\" rel=\"noopener nofollow\">http:\/\/uk.reuters.com\/article\/2013\/03\/11\/uk-eu-derivatives-idUKBRE92A0WO20130311<\/a> <strong>The Net-Net on Netting&hellip; and Risk<\/strong> We&rsquo;re the first to admit it: accounting isn&rsquo;t easy&hellip; and that includes&nbsp;derivatives accounting. But it&rsquo;s not exactly rocket science, either. <a href=\"http:\/\/isda.mediacomment.org\/2013\/02\/25\/the-net-net-on-netting-and-risk\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/isda.mediacomment.org\/2013\/02\/25\/the-net-net-on-netting-and-risk\/<\/a> <strong>Uncertainty over Emir may force European banks from some Asia OTC markets<\/strong> The deadline is approaching for regulators to establish what European&nbsp;banks can clear and where on Asian CCP platforms ahead of OTC market&nbsp;standards going live from March 15 <a href=\"http:\/\/www.risk.net\/asia-risk\/news\/2253689\/uncertainty-over-emir-may-force-european-banks-from-some-otc-markets\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/asia-risk\/news\/2253689\/uncertainty-over-emir-may-force-european-banks-from-some-otc-markets<\/a> <strong>Swap futures margins may be underestimating risk exposures<\/strong> A difference in margin approach between swaps and futures may mean the&nbsp;latter are not assessed on their level of riskiness <a href=\"http:\/\/www.risk.net\/asia-risk\/news\/2242146\/swap-futures-margins-may-be-underestimating-risk-exposures\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/asia-risk\/news\/2242146\/swap-futures-margins-may-be-underestimating-risk-exposures<\/a> <strong>SEC&#39;s last-minute CDS margin fix sparks buy-side anger<\/strong> Stop-gap margin solution would force most firms to post twice as much&nbsp;collateral as CCP members <a href=\"http:\/\/www.risk.net\/risk-magazine\/news\/2254027\/secs-lastminute-cds-margin-fix-sparks-buyside-anger\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/risk-magazine\/news\/2254027\/secs-lastminute-cds-margin-fix-sparks-buyside-anger<\/a> <strong>Buy-side hit with surprise initial margin levels on CDS right before&nbsp;mandatory clearing starts<\/strong> A rule on cross-margining released just a couple days before the March&nbsp;11th start of mandatory clearing for derivatives caught the attention&nbsp;of a lot of people. It came from the SEC and impacted single name CDS&nbsp;and CDS indexes &mdash; and could have far ranging impact on collateral. <a href=\"http:\/\/www.secfinmonitor.com\/sfm\/buy-side-hit-with-surprise-initial-margin-levels-on-cds-right-before-mandatory-clearing-starts\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.secfinmonitor.com\/sfm\/buy-side-hit-with-surprise-initial-margin-levels-on-cds-right-before-mandatory-clearing-starts\/<\/a> <strong>Bloomberg threatens to sue CFTC over swap futures margining<\/strong> Futurisation sparks struggle between exchanges and Sefs. Bloomberg&nbsp;fears &quot;irreversible harm&quot; <a href=\"http:\/\/www.risk.net\/risk-magazine\/news\/2254229\/bloomberg-threatens-to-sue-cftc-over-swap-futures-margining\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/risk-magazine\/news\/2254229\/bloomberg-threatens-to-sue-cftc-over-swap-futures-margining<\/a> <strong>Will Collateral Management be the New Custody?<\/strong> Custodians are stepping up their collateral management capabilities in&nbsp;anticipation of the increased margin needs of clients who will soon&nbsp;have to centrally clear and may opt to outsource instead of manage&nbsp;in-house. Lynn Strongin Dodds explores how collateral management may&nbsp;be evolving to look more like custody as asset servicer&rsquo;s capabilities&nbsp;and client needs converge. <a href=\"http:\/\/www.derivsource.com\/articles\/will-collateral-management-be-new-custody\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.derivsource.com\/articles\/will-collateral-management-be-new-custody<\/a> <strong>Mandatory Clearing of Swaps has arrived!<\/strong> The Dodd-Frank clearing mandate for swaps came into effect yesterday&nbsp;on 11th March 2013. <a href=\"http:\/\/singledealerplatforms.org\/2013\/03\/12\/mandatory-clearing-of-swaps-has-arrived\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/singledealerplatforms.org\/2013\/03\/12\/mandatory-clearing-of-swaps-has-arrived\/<\/a> <strong>Swaps-Clearing D-Day Set to Trim Dealer Profits: Credit Markets<\/strong> The $639 trillion over-the-counter derivatives market begins the&nbsp;largest transformation in its 30- year history today with rules&nbsp;intended to contain another financial crisis, trimming profits for Wall Street banks. <a href=\"http:\/\/www.bloomberg.com\/news\/2013-03-11\/swaps-clearing-d-day-set-to-trim-dealer-profits-credit-markets.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.bloomberg.com\/news\/2013-03-11\/swaps-clearing-d-day-set-to-trim-dealer-profits-credit-markets.html<\/a> <strong>The brave new world of derivatives regulation will trim investment&nbsp;bank&rsquo;s profits<\/strong> Not that this is big news or surprising at all &ndash; but a good summary&nbsp;over at Bloomberg combined with a recent shareholder presentation of&nbsp;JP Morgan shows the significant impact that regulations (especially in&nbsp;the derivatives market) has on bank&rsquo;s bottom lines. <a href=\"https:\/\/theotcspace.com\/2013\/03\/13\/the-brave-new-world-of-derivatives-regulation-will-trim-investment-banks-profits\/\">https:\/\/theotcspace.com\/2013\/03\/13\/the-brave-new-world-of-derivatives-regulation-will-trim-investment-banks-profits\/<\/a> <strong>Conforming to EMIR Confirmations<\/strong> Article 11(1) of EMIR requires all financial counterparties (&ldquo;FC&rdquo;),&nbsp;non-financial counterparties which have exceeded the clearing&nbsp;threshold (&ldquo;NFC+&rdquo;) and non-financial counterparties which have not&nbsp;exceeded the clearing threshold (&ldquo;NFC-&rdquo;) to establish &ldquo;appropriate&nbsp;procedures and arrangements&rdquo; to ensure the timely confirmation of the&nbsp;terms of all non-cleared OTC derivative contracts. <a href=\"http:\/\/regulatoryreform.wordpress.com\/2013\/03\/12\/conforming-to-emir-confirmations\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/regulatoryreform.wordpress.com\/2013\/03\/12\/conforming-to-emir-confirmations\/<\/a> <strong>Banks&rsquo; Debt Addiction Said to Face Scrutiny at Basel Group<\/strong> A planned international limit on bank indebtedness will be on the&nbsp;agenda of every meeting of theBasel Committee on Banking Supervision&nbsp;this year as regulators seek to wean lenders off their addiction to&nbsp;debt, according to three people familiar with the talks. <a href=\"http:\/\/www.bloomberg.com\/news\/2013-03-12\/banks-debt-addiction-said-to-face-scrutiny-at-basel-meetings.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.bloomberg.com\/news\/2013-03-12\/banks-debt-addiction-said-to-face-scrutiny-at-basel-meetings.html<\/a> <strong>Letter from Boca Raton: Futures industry faces stark choices<\/strong> Florida may be the Sunshine State but the outlook for delegates at the&nbsp;38th annual International Futures Industry Conference, to be held in&nbsp;Boca Raton over the next few days, is decidedly mixed. <a href=\"http:\/\/www.efinancialnews.com\/story\/2013-03-12\/boca-raton-nicolas-breteau-newedge-letter-futures-industry-faces-stark-choices\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.efinancialnews.com\/story\/2013-03-12\/boca-raton-nicolas-breteau-newedge-letter-futures-industry-faces-stark-choices<\/a> <strong>Swap Traders Seeking Help in Exiting Positions Under Dodd-Frank<\/strong> New rules mandating that swaps be backed by clearinghouses and&nbsp;executed on regulated systems are complicating investors&rsquo; ability to&nbsp;exit the derivatives trades, according to money manager AllianceBernstein Holding LP. <a href=\"http:\/\/www.bloomberg.com\/news\/2013-03-12\/swap-traders-seeking-help-in-exiting-positions-under-dodd-frank.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.bloomberg.com\/news\/2013-03-12\/swap-traders-seeking-help-in-exiting-positions-under-dodd-frank.html<\/a> <strong>LEI Regulatory Oversight Committee Details First Decisions on LEI&nbsp;Relationship Data and Interim LEI System<\/strong> The Regulatory Oversight Committee (ROC) of the global legal entity&nbsp;identifier (LEI) initiative has endorsed the accounting consolidation&nbsp;approach as a first step for the development of much needed relationship data for the LEI. It has also provided more detail on the&nbsp;selection of board members for the LEI Foundation that will operate&nbsp;the Central Operating Unit and given credence to pre-LEIs issued by&nbsp;pre-Local Operating Units. <a href=\"http:\/\/www.referencedatareview.com\/blog\/lei-regulatory-oversight-committee-details-first-decisions-lei-relationship-data-and-interim-le\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.referencedatareview.com\/blog\/lei-regulatory-oversight-committee-details-first-decisions-lei-relationship-data-and-interim-le\/<\/a> <strong>The LEI experiment begins&#8230;<\/strong> Allan D. Grody, of Financial InterGroup Holdings Ltd., looks at the&nbsp;conflict between federated and centralised models of handling and&nbsp;storing data. <a href=\"http:\/\/www.fow.com\/Article\/3167130\/The-LEI-experiment-begins.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.fow.com\/Article\/3167130\/The-LEI-experiment-begins.html<\/a> <strong>LEI ROC publishes first progress report<\/strong> On 8 March 2013, the Financial Stability Board (FSB) published the&nbsp;first progress report of the Legal Entity Identifier (LEI) Regulatory&nbsp;Oversight Committee (ROC). <a href=\"http:\/\/regulatoryreform.wordpress.com\/2013\/03\/14\/lei-roc-publishes-first-progress-report\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/regulatoryreform.wordpress.com\/2013\/03\/14\/lei-roc-publishes-first-progress-report\/<\/a> <strong>New market structures emerge to address collateral crunch<\/strong> New industry efforts are in the offing to tackle the much-lamented&nbsp;shortage of global collateral, triggered by tighter regulation and&nbsp;strong structural demand for perceived safe assets. One such innovation is the Liquidity Alliance, which brings together central&nbsp;security depositories in Australia, Brazil, Spain and South Africa &ndash;&nbsp;but it&rsquo;s an uphill battle. <a href=\"http:\/\/www.euromoney.com\/Article\/3153869\/Category\/15797\/ChannelPage\/203876\/New-market-structures-emerge-to-address-collateral-crunch.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.euromoney.com\/Article\/3153869\/Category\/15797\/ChannelPage\/203876\/New-market-structures-emerge-to-address-collateral-crunch.html<\/a> <strong>Remarks of Chairman Gary Gensler before the FIA&rsquo;s 2013 &#8211; 38th Annual&nbsp;International Futures Industry Conference<\/strong> Good morning. Jeff, I appreciate that kind introduction. I thank the&nbsp;Futures Industry Association (FIA) for inviting me to speak for my&nbsp;fourth time at this conference. <a href=\"http:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/opagensler-135\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/opagensler-135<\/a> <strong>Economic Value Adjustment &ndash; The Intersection of CVA, FVA, OIS, &amp; CSAs&nbsp;for OTC Derivatives<\/strong> In this video blog, Tom Davis, Ph.D. Vice President of the Numerix&nbsp;Client Solutions Group joins Numerix CMO, Jim Jockle to discuss the&nbsp;historical context and interconnectivity between OIS discounting,&nbsp;cheapest-to-deliver, funding valuations adjustments, CVA, DVA, and&nbsp;CSAs &ndash; and why the entire Economic Value Adjustment is now critical&nbsp;for both buy and sell-side market participants to take into&nbsp;consideration. <a href=\"http:\/\/blog.numerix.com\/public\/2013\/03\/todays-economic-value-adjustment-taking-stock-of-cva-fva-csas-ois.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/blog.numerix.com\/public\/2013\/03\/todays-economic-value-adjustment-taking-stock-of-cva-fva-csas-ois.html<\/a> <strong>ESMA publishes practical guidance for the recognition of Third Country&nbsp;CCPs Under EMIR<\/strong> On 12 March 2013, ESMA published &ldquo;Practical guidance for the&nbsp;recognition of Third Country CCPs by ESMA&rdquo;. <a href=\"http:\/\/regulatoryreform.wordpress.com\/2013\/03\/13\/esma-publishes-practical-guidance-for-the-recognition-of-third-country-ccps-under-emir\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/regulatoryreform.wordpress.com\/2013\/03\/13\/esma-publishes-practical-guidance-for-the-recognition-of-third-country-ccps-under-emir\/<\/a> <strong>ISDA Makes Case for Non-Cleared OTC Derivatives<\/strong> Just two days after the CFTC&rsquo;s mandatory clearing rules for OTC&nbsp;derivatives went into effect, sparking a litany of industry commentary&nbsp;and a threat from Bloomberg to file suit against the CFTC over swap&nbsp;collateral rules, ISDA is out with a paper making the case for the&nbsp;role of non-cleared OTC derivatives in the global economy. <a href=\"http:\/\/www.derivalert.org\/blog\/bid\/87434\/ISDA-Makes-Case-for-Non-Cleared-OTC-Derivatives\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.derivalert.org\/blog\/bid\/87434\/ISDA-Makes-Case-for-Non-Cleared-OTC-Derivatives<\/a> <strong>ISDA publishes a paper on Non-Cleared Swaps: rumors of its demise are&nbsp;greatly exaggerated<\/strong> On March 12th ISDA released a paper &ldquo;Non-Cleared OTC Derivatives:&nbsp;Their Importance to the Global Economy&rdquo;. It is worth a look. <a href=\"http:\/\/www.secfinmonitor.com\/sfm\/isda-publishes-a-paper-on-non-cleared-swaps-rumors-of-its-demise-are-greatly-exaggerated\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.secfinmonitor.com\/sfm\/isda-publishes-a-paper-on-non-cleared-swaps-rumors-of-its-demise-are-greatly-exaggerated\/<\/a> <strong>CFTC Chairmen Gensler at the FIA Boca Raton conference on extraterritoriality<\/strong> Gary Gensler spoke at the FIY Boca Raton conference &ndash; among other&nbsp;things about swaps reform (obviously). One thing to note was the&nbsp;following from his speech (bold highlighting mine): <a href=\"https:\/\/theotcspace.com\/2013\/03\/14\/cftc-chairmen-gensler-at-the-fia-boca-raton-conference-on-extraterritoriality\/\">https:\/\/theotcspace.com\/2013\/03\/14\/cftc-chairmen-gensler-at-the-fia-boca-raton-conference-on-extraterritoriality\/<\/a> <strong>Businesses Unready For Friday EMIR Deadline<\/strong> The first compliance deadline of the European Markets and&nbsp;Infrastructure Regulation (EMIR) comes into force this Friday,&nbsp;catching many financial and non-financial firms unaware. &nbsp;EMIR fulfils several of the European Union&rsquo;s (EU) G20 commitments to reform the&nbsp;global $630 trillion over-the-counter (OTC) derivative markets. <a href=\"http:\/\/www.iss-mag.com\/documents\/home\/businesses-unready-for-friday-emir-deadline\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.iss-mag.com\/documents\/home\/businesses-unready-for-friday-emir-deadline<\/a> <strong>Esma says national regulators must decide product eligibility for&nbsp;third-country CCP transition period<\/strong> The European Securities and Markets Authority has addressed some of&nbsp;the concerns over which third-country CCP platforms and products are&nbsp;eligible for the transitional period, which begins on March 15. <a href=\"http:\/\/www.risk.net\/asia-risk\/news\/2254019\/esma-says-national-regulators-must-decide-product-eligibility-for-thirdcountry-ccp-transition-period\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/asia-risk\/news\/2254019\/esma-says-national-regulators-must-decide-product-eligibility-for-thirdcountry-ccp-transition-period<\/a><\/p>\n<div>\n\t&nbsp;<\/div>\n<div>\n\t<strong>House Lawmakers Circulate Cross-Border Swaps Bill<\/strong> WASHINGTON &mdash; A bipartisan group of lawmakers on the House Financial&nbsp;Services and Agriculture committees is drafting a bill to address&nbsp;ongoing concerns with a series of cross-border swaps provisions. <a href=\"http:\/\/www.americanbanker.com\/issues\/178_50\/house-lawmakers-circulate-cross-border-swaps-bill-1057530-1.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.americanbanker.com\/issues\/178_50\/house-lawmakers-circulate-cross-border-swaps-bill-1057530-1.html<\/a><\/div>\n<div>\n\t&nbsp;<\/div>\n<div>\n\t<strong>LCH.Clearnet Group &ndash; CDSClear &ndash; Regulatory Updates<\/strong> Interesting if it affects you&hellip; <a href=\"https:\/\/theotcspace.com\/2013\/03\/14\/lch-clearnet-group-cdsclear-regulatory-updates\/\">https:\/\/theotcspace.com\/2013\/03\/14\/lch-clearnet-group-cdsclear-regulatory-updates\/<\/a><strong>CFTC&#39;s Gensler defends swaps vs futures margin disparity<\/strong> Forthcoming Sef rules will not address margin concerns raised by Bloomberg http:\/\/www.risk.net\/risk-magazine\/news\/2254644\/cftcs-gensler-defends-swaps-vs-futures-margin-disparity <a href=\"\/CapInTouch\/pages\/groups\/view\/363\/blog\/30420\">https:\/\/innovate.mycapco.com\/CapInTouch\/pages\/groups\/view\/363\/blog\/30420<\/a><strong>Banks claim &euro;300 billion hole in margin study<\/strong> Banks call for Basel Committee and Iosco to re-run study on impact of&nbsp;uncleared margin rules after errors emerge <a href=\"http:\/\/www.risk.net\/risk-magazine\/news\/2254600\/banks-claim-eur300-billion-hole-in-margin-study\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/risk-magazine\/news\/2254600\/banks-claim-eur300-billion-hole-in-margin-study<\/a><strong>New Life for Exchange Traded Derivatives<\/strong> While the roadblocks of low volatility and low interest rates that&nbsp;stymied the global ETD market in 2012 will likely continue in 2013,&nbsp;the regulatory overhaul in the OTC space will allow for unprecedented innovations in derivatives, providing new avenues to hedge risk and&nbsp;source liquidity. <a href=\"http:\/\/tabbforum.com\/opinions\/new-life-for-exchange-traded-derivatives\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/tabbforum.com\/opinions\/new-life-for-exchange-traded-derivatives<\/a> <strong>Extraterritorial clash continues for clearing houses<\/strong> While the Group of 20 nations want to see progress with financial&nbsp;regulatory reforms, individual authorities around the world are&nbsp;reluctant to relinquish domestic sovereignty over standards for&nbsp;central counterparties. Luke Clancy reports <a href=\"http:\/\/www.risk.net\/risk-magazine\/feature\/2254350\/extraterritorial-clash-continues-for-clearing-houses\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.risk.net\/risk-magazine\/feature\/2254350\/extraterritorial-clash-continues-for-clearing-houses<\/a> <strong>EMIR: ESMA publishes revised draft regulatory technical standards on&nbsp;colleges for central counterparties<\/strong> The European Securities and Markets Authority (ESMA) has published its&nbsp;revised draft regulatory technical standards on colleges for central&nbsp;counterparties under the regulation on over-the-counter (OTC)&nbsp;derivative transactions, central counterparties and trade repositories&nbsp;(EMIR). On 19 December 2012, the EU Commission endorsed the other draft&nbsp;regulatory and implementing technical standards developed by ESMA&nbsp;under EMIR. It did not endorse ESMA&rsquo;s draft regulatory technical&nbsp;standards on CCP colleges at that time because of concerns as to the&nbsp;legality of some of the provisions. ESMA has now redrafted these&nbsp;technical standards on the basis of the Commission&rsquo;s proposed&nbsp;amendments. <a href=\"http:\/\/www.esma.europa.eu\/content\/Regulatory-technical-standards-colleges-central-counterparties-supplementing-Regulation-EU-N\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.esma.europa.eu\/content\/Regulatory-technical-standards-colleges-central-counterparties-supplementing-Regulation-EU-N<\/a> <strong>European politicians &#39;reflect&#39; on legislative process<\/strong> The European Parliament this morning took the unusual step of issuing&nbsp;a consultation on the EU financial services legislative process as&nbsp;part of a broader &quot;programme of reflection&quot; on the region&#39;s reform agenda. <a href=\"http:\/\/www.efinancialnews.com\/story\/2013-03-15\/european-politicians-reflect-on-legislative-process\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.efinancialnews.com\/story\/2013-03-15\/european-politicians-reflect-on-legislative-process<\/a> <strong>All Quiet on the Clearing Front<\/strong> A milestone week for OTC derivative clearing has come &ndash; and almost&nbsp;gone. Unless you are immersed in Dodd-Frank (like we are) you probably&nbsp;didn&rsquo;t even notice. <a href=\"http:\/\/isda.derivativiews.org\/2013\/03\/15\/all-quiet-on-the-clearing-front\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/isda.derivativiews.org\/2013\/03\/15\/all-quiet-on-the-clearing-front\/<\/a> <strong>Dodd-Frank End-User Clearing Exception: Practical Considerations for&nbsp;Preparing Your Board<\/strong> The initial election of the end-user clearing exception represents a&nbsp;unique opportunity for boards to comply with Dodd-Frank and meet their&nbsp;fiduciary duties. Matthew E. Hoffman and Christina Norland Audigier,&nbsp;both of Chatham Financial explain how boards can establish a proper&nbsp;foundation of robust policies, processes, and procedures that will&nbsp;position their companies to hedge efficiently while evolving with the&nbsp;rapidly changing post-regulatory regime. <a href=\"http:\/\/www.derivsource.com\/content\/dodd-frank-end-user-clearing-exception-practical-considerations-preparing-your-board\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.derivsource.com\/content\/dodd-frank-end-user-clearing-exception-practical-considerations-preparing-your-board<\/a> <strong>Trade Reporting Requirements: EMIR vs. Dodd-Frank and Making Sense of&nbsp;Your Global Obligations<\/strong> As mandatory reporting of OTC derivatives takes effect globally,&nbsp;Andrew Green, Global Head of Derivative Account Management, DTCC&nbsp;Deriv\/SERV LLC, a trade repository group company owned by The Depository Trust &amp; Clearing Corporation (DTCC), explains the&nbsp;differences in reporting requirements under the Dodd-Frank Act (DFA)&nbsp;and EMIR to help financial institutions understand how they can comply&nbsp;with their global reporting obligations. <a href=\"http:\/\/www.derivsource.com\/articles\/trade-reporting-requirements-emir-vs-dodd-frank-and-making-sense-your-global-obligations\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.derivsource.com\/articles\/trade-reporting-requirements-emir-vs-dodd-frank-and-making-sense-your-global-obligations<\/a> <strong>Lombard Risk and AcadiaSoft partner on collateral messaging<\/strong> London, UK &ndash; 15th March 2013: Lombard Risk Management plc (&ldquo;Lombard&nbsp;Risk&rdquo;) and AcadiaSoft Inc (&ldquo;AcadiaSoft&rdquo;) are pleased to announce a&nbsp;successful collaboration for electronic collateral messaging. <a href=\"http:\/\/www.secfinmonitor.com\/sfm\/lombard-risk-and-acadiasoft-partner-on-collateral-messaging\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/www.secfinmonitor.com\/sfm\/lombard-risk-and-acadiasoft-partner-on-collateral-messaging\/<\/a> <strong>Quad Party Segregation in Spotlight for CCP Clearing<\/strong> Quad party segregation is not a new concept but this mechanism is&nbsp;getting much attention with the operational efficiencies it offers for&nbsp;CCP clearing, Lynn Strongin Dodds explains. <a href=\"http:\/\/carlarweir.wordpress.com\/2013\/01\/09\/quad-party-segregation-for-ccps-from-derivsource\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/carlarweir.wordpress.com\/2013\/01\/09\/quad-party-segregation-for-ccps-from-derivsource\/<\/a> <strong>Legal Entity Identifier (LEI)<\/strong> A global standardized Legal Entity Identifier (LEI) will help enable&nbsp;organizations to more effectively measure and manage risk, while&nbsp;providing substantial operational efficiencies and customer service improvements to the industry. <a href=\"http:\/\/gfma.org\/lei\/\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/gfma.org\/lei\/<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dear Reader, Starting this week you receive a compilation of news items (thus &quot;News Digest&quot;) from the week that just went. A short summary of highlights precedes the article abstracts &#8230; <\/p>\n<div><a href=\"https:\/\/theotcspace.com\/otc-derivatives-news-digest-18-3-2013\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":165322,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2876,2885,2856,2862,2923,2857,2863,2850,2851,2894,2892,2846,2855,2935,57,2849],"tags":[3115,3868,3371,3466,3060,3179,3416,3346,3082,3050,3508,3493,3481,3054,3157,3870,3061,3509,3126,3510,3186,3144,3511,3142,3163,3181,3195,3080],"acf":[],"_links":{"self":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/14315"}],"collection":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/comments?post=14315"}],"version-history":[{"count":0,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/posts\/14315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/media\/165322"}],"wp:attachment":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/media?parent=14315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/categories?post=14315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/tags?post=14315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}