Clearing
Development of LME Clear proves a test of mettle
A change of ownership and an evolving regulatory landscape have thrown up big challenges for the London Metal Exchange in its quest to clear its own trades. Trevor Spanner, the chief executive of LME Clear, speaks to Mark Pengelly about the project
MF Global demonstrates the need to keep collateral onshore says ASX chief
Australian market increasingly important as AUD IRS volumes overtake yen
JSCC to be first Asian CCP to clear single-name CDSs
Second-quarter start date slated by the Japan-based clearing house
Asian clearing houses waiting for CFTC to outline DCO exemption process
SGX still the only Asian exchange with US regulatory approval
European CCPs overhaul futures margin models
Some clearing houses are pushing up margin requirements to address procyclicality concerns - but no change is planned at CME or Eurex
HSBC deregisters Asian arm as a swap dealer due to lack of US person trades
Unlikely that any Japan or Australia banks will follow suit
Shanghai Clearing House becomes fifth in Asia to start OTC clearing
First CNY interest rate swaps cleared in China
OTC client clearing service of the year: Barclays
Barclays has retained its leading market share in client clearing, despite the onset of mandatory clearing in the US and the entrance of new players. It also found time to score a few market firsts
Corporate risk manager of the year: Microsoft
The first US clearing mandates came into force last year in three separate phases. While most corporates looked to take advantage of the corporate hedging exemption, Microsoft decided right from the start to voluntarily clear everything
Pension funds call for clearing exemption extension
Funds cite inability to post non-cash variation margin as grounds for further relief
Clarification needed on CCP close-out netting in India
Current netting statutes only apply to clearing members and not the CCP itself
HMRC excludes client clearing from UK bank levy
UK tax authorities exclude client collateral received as a result of clearing activities from bank levy, after complaints it would act as a disincentive to clearing
Japan dealers stop back-loading to CCPs due to de minimis uncertainty
CFTC rule potentially captures legacy trades novated to CCPs
Trading OTC may be costlier than you think
Debate continues to rage about the merits of clearing, with some market observers arguing that the benefits of using central counterparties are outweighed by the precipitous costs involved. But such criticisms fail to take the full burden of over-the…
Liquidity not margins will determine clearing house success: SGX
Competitive pressures will impact CCPs but not with respect to margins
Europe looking 'dysfunctional and extreme' over Esma equivalency procedure
No guarantee of equivalence being granted to Asian clearing houses
Pension funds and the collateral crisis
Rising interest rates could leave pension funds facing huge margin requirements, creating an acute liquidity crisis
Footnote 513 exceeds CFTC's statutory brief: O'Malia
Failure to define a "significant or direct" threat to the US economy has brought regulatory overreach
Standard Chartered to offer client clearing for non-US persons
UK bank looks to offer clearing option outside US regulatory requirements
SwapClear to restart compression in leverage boon for banks
Banks hope for leverage exposure relief after interest rate swap clearer fixes clash with CFTC rules
Initial margin to significantly impact development of Asian derivatives markets: Asifma
Asifma head Austen wants exclusion of initial margin from Asian jurisdictions’ derivatives market regulation
CCPs face $161 billion liquidity shortfall to clear FX options, GFXD finds
Results of an industry study reveal the scale of the liquidity burden that would fall on CCPs clearing physically delivered forex options – but a net settlement mechanism could reduce the number by 73%
Pooled funds in clearing limbo
Pension funds will not have to clear in Europe until at least mid-2015, but what about the vehicles some use to scale up their hedging transactions? As things stand, lawyers are giving different answers – and the industry wants regulators to clarify the…