CCP
WHAT IS THIS? A central counterparty (CCP) manages default risk by collecting initial and variation margin from both parties to a trade. Spill-over losses are absorbed via a default fund to which all members contribute – introducing a degree of mutualised risk – and by the CCP’s own capital. The concept is an old one that was extended to over-the-counter derivatives in the aftermath of the financial crisis.
Collateral clawback fears leave US pension funds unable to clear
Banks and pension plans are waiting for the US Department of Labor to clarify whether initial margin counts as plan assets
BoE will consult dealers over CCP risk standards
The Bank of England will listen to the views of the dealer community and other participants on CCP risk standards, says Schooling Latter
Four of five largest Australian banks look to clear with LCH
LCH.Clearnet makes inroads into the domestic Australian market with its SwapClear service
Pimco: Cleared for take-off
Pimco: Cleared for take-off
HKMA mulls over charging for mandatory trade reporting service
The Hong Kong Monetary Authority has begun discussions with OTC derivative market players on whether to charge for use of its trade reporting service
Collateral Management Survey 2012: insurers unprepared for OTC cleared regime
The move to central clearing of OTC derivatives trades will have a dramatic impact on the insurance industry’s use of collateral. A survey, conducted by Insurance Risk in conjunction with BNY Mellon, finds many insurers have yet to assess fully the…
Lack of certainty over OTC clearing location a problem for Asia asset managers
Asset managers in Asia are being hindered in preparing for OTC clearing by a lack of clarity over location
Lack of inflation clearing could hit LDI community
A different track
CCP competition poses counterparty risk: CIMB video interview
Speaking at the Asia Risk Congress, CIMB head of rates, funding and structuring Chu Kok Wei sets out his concerns over the move to central clearing in the region
New rules designed to kill OTC market, says European regulator
Central Bank of Ireland adviser says reforms will cause an "Ice Age" in the derivatives market
OTC Derivatives Clearing Summit Europe: CCP model secrecy is ‘wrong and unjustifiable’, says BoE official
CCPs should be required to make details of their models public, says the Bank of England’s payments and infrastructure division head
Segregation clash could stop European firms using US CCPs
Segregation clash
KDPW_CCP: Trying to find a niche in OTC clearing
Finding a niche
OTC Derivatives Clearing Summit Europe: EU clearing mandates unlikely before August 2013
The first clearing mandates are unlikely to be in place in Europe before August 2013, says Bank of England’s head of payments and infrastructure division
IMF: CCP structure increases systemic risk
The likely increase in the number of central counterparties will create more 'pockets of risk', says senior economist
Rule changes make it harder for small firms to use CCPs - Risk.net poll
Esma's decision to make indirect clearing an optional service could leave smaller firms without clearing access, according to a poll of Risk.net readers
Korea to miss OTC clearing deadline
It is ‘highly unlikely’ that Korea will meet the deadline to start clearing OTC derivatives by January 1, 2013 due to legislative delays, according to market participants
Time running out for buy-side clearing docs negotiation, dealers warn
Buy-side firms need to begin negotiating OTC clearing documentation now or risk being forced to adopt one-size-fits-all standard templates
Indirect clearing: The capital conundrum
Draft European Securities and Markets Authority rules on indirect clearing caused uproar when they appeared in June. The regulator removed the most controversial elements in its final text, but dealers are still in the dark about the capital treatment…
Standard docs may not prevent clearing contract crunch
Preventing a clearing contract crunch
Client clearing: Soaring volumes disguise scary workload
Not clear yet
Gazprom Marketing & Trading: Powering up for clearing
Powering up for clearing