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.
Having a buy-side voice heard on the Isda board
Having a voice on the Isda board
Isda 27th Annual General Meeting Chicago 2012
End in sight?
Challenges and opportunities for Isda in 2012
Challenges and opportunities
Cross-border confusion between domestic clearing houses
Cross-border confusion
Tentative on G-20 timelines for OTC derivatives clearing
Tentative on G-20 timelines
To clear or not to clear? Corporates urged to weigh options
Despite hard-won exemptions, corporates should consider the pros and cons of clearing, according to panellists at an ACT event - but treasurers remain unconvinced
Treasurers highlight unintended consequences of regulation
Corporate treasurers complain about the unintended consequences of the proposed financial transaction tax, as well as clearing rules for OTC derivatives
CPSS-Iosco lifts cloud on forex options clearing
CCPs do not have to guarantee settlement, CPSS-Iosco rules - but issue could still have some way to run
New regulations could cause $7 trillion "collateral shock"
Trio of rules - on liquidity, clearing and margin for uncleared trades - will hoover up vast amounts of collateral, market participants fear
US dealers breathe easier as global uncleared margin rules take shape
The extraterritorial scope of US margin rules would have left US banks’ overseas swaps business in tatters, but an international working group looks set to deliver a reprieve by endorsing similar rules
Regulators look out for clearing dodges
Out of the clear?
Despite MF Global, firms face weaker OTC safeguards
Segregated thinking
Risk Annual Summit: Central clearing divides buy side
A hammer to crack a nut, or a chance for everybody to win? Buy-side panellists disagree on the merits of central clearing
Mitigating op risks for CCPs post-crisis
To the rescue
Risk Annual Summit: Buy-side firms call for clearing changes
Eligible collateral for CCP margin needs to be reviewed – and regulators also need to ensure the clearing exemption for some end-users is not negated by Basel capital rules, say buy-side firms
Risk Annual Summit: CVA rethink needed, says HSBC risk specialist
Market risk hedges should be recognised when calculating CVA capital charge, says HSBC market risk modelling head
Risk Annual Summit: No answers on how to cope with CCP default, says Pearson
Regulators are looking at how financial markets could be proofed against the collapse of a CCP – but there are more questions than answers at the moment, says the EC’s Patrick Pearson
CFTC rule sounds death knell for FIA-Isda trilateral give-ups
Final rule forbids documentation revealing identities or limiting counterparty choice
Dealers worry about risk of $500bn overnight liquidity drain
Dealers are concerned that intra-day margin call guidelines, which they claim could drain up to $500 billion from financial markets, could make it into final CPSS/Iosco principles
Lack of clarity over buy-side derivatives reporting responsibilities
New derivatives regulation will require all derivatives trades to be reported to trade repositories – but some confusion exists over who has the responsibility to report
US banks could lose competitive edge in Europe, says EIB
US regulations on mandatory clearing and uncleared margin could put US dealers at a competitive disadvantage in Europe, says EIB
South African banks will struggle with CCP default fund requirements, say participants
Default fund contributions will be too onerous for South African banks, say conference participants
Ability to use custodial accounts worries OTC clearing members
Custodial accounts worry OTC clearers
Despite MF Global, firms face weaker OTC safeguards
Segregated thinking