Central counterparty (CCP)
Traiana pitches for LCH's FX clearing flow
Post-trade technology provider Traiana has made a bid for banks and buy-side firms to use its central counterparty (CCP) connectivity service to clear non-deliverable forwards (NDFs) through LCH.Clearnet's ForexClear, after announcing the addition of...
Asian CCPs left to apply 'in the dark' for Esma recognition
Asian central counterparties (CCPs) looking to meet the September 15 deadline in applying for European Securities and Markets Authority (Esma) recognition will, for the most part, have to apply without knowing if their jurisdiction is deemed equivalent...
Eurex warns explicit CCP recovery plans could be "very dangerous"
It could be dangerous to require a central counterparty (CCP) to set out in advance the steps it would take to recover from a severe loss, Eurex has warned – a stance at odds with emerging international policy – because the recovery plans may not work...
CCP 'Armageddon' could lead to sovereign default, warns HSBC exec
Mandatory clearing of over-the-counter derivatives could jeopardise policy-makers' hopes of a no-bailout financial system, according to Gary Dunn, senior manager for regulatory and risk analytics at HSBC.
SEC's last-minute CDS margin fix sparks buy-side anger
Buy-side firms have reacted angrily to temporary portfolio margining provisions rushed out by the Securities and Exchange Commission (SEC) late on Friday as the clock counted down towards the start of mandatory clearing in the US.
Operational risk part and parcel of OTC regulatory response, say Fiserv's Simon Garwood and Andy Mellor
Simon Garwood, Investment Services at Fiserv and Andy Mellor, Risk and Compliance, say that those considering a response to OTC regulations must also address operational risk issues.
CCP model secrecy is 'wrong and unjustifiable', says BoE official
Central counterparties (CCPs) should make full details of their risk and margin models publicly available, and any attempt to withhold information on the basis it is proprietary is wrong and unjustifiable, according to a senior Bank of England official....
No need to panic about OTC collateral supply, says Bank of England
The possibility that mandatory central clearing of over-the-counter derivatives, coupled with margin requirements for uncleared trades, could create a drain on the supply of eligible collateral has been overestimated and should not be a cause for panic,...
IMF: CCP structure increases systemic risk
The failure to establish either a single global central counterparty (CCP) or a viable approach to interoperability means the move to central clearing has simply increased the number of institutions in the global financial system that are too big to fail,...
Korea to miss OTC clearing deadline
South Korea is set to miss the deadline to start clearing derivatives through a central counterparty (CCP) by the start of 2013 because of delays in passing new legislation to formalise central clearing through parliament.
Advent Software offers view on centralised clearing changes
Liam Huxley, vice president of Product Strategy at Advent Software, has discussed the introduction of centralized clearing and how a company such as his is talking to market participants, particularly the clearing houses and regulators, to develop solutions....
OTC Derivatives Clearing Summit: Nearly a third of clearing-eligible CDS go uncleared
Almost a third of non-cleared North American single-name credit default swaps (CDSs) could be cleared by central counterparties (CCPs) today, according to new analysis conducted by the Securities and Exchange Commission (SEC).
Attempts at CDS portfolio margining in regulatory limbo
Central counterparties (CCPs) are facing regulatory delays in efforts to provide margin efficiency between single-name and index credit default swaps (CDSs). This is an issue that could cause liquidity in the CDS market to evaporate unless it is resolved,...
Central counterparties wary of covered bonds despite ESMA proposal
LCH.Clearnet and Eurex will not accept clearing members' own-name covered bonds as collateral despite a proposal to allow it from the European Securities and Markets Authority (ESMA).
Risk & Return Canada: CCPs won't stop future crises, says academic
Legislators have put too much faith in central counterparties (CCPs), but they are not certain to prevent future crises, an academic has warned.
