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.
Margin segregation
In depth: segregation introduction
FSA: facing up to cross-jurisdiction conflicts
Juggling across jurisdictions
More sovereigns edge towards two-way CSAs - and clearing
Towards two-way CSAs
Margin rules for uncleared FX rest with regulatory working groups
Regulators must adopt a calibrated approach to mandated collateral so that short-dated FX swaps and forwards are not caught up in the rules unnecessarily, argue market participants
Futures markets could get OTC-style safeguards
Futures market participants expect tougher - and more expensive - collateral protections to be introduced as a result of the MF Global debacle, and the CFTC is ruling nothing out
Singapore’s FX exemption welcomed as a sign of global consistency
A proposal by the Monetary Authority of Singapore to exempt forex swaps and forwards from mandatory clearing is seen as a positive move to harmonise treatment of foreign exchange with the US
CCPs fear prescriptive Esma standards on margin and risk
Esma could take key risk management decisions out of the hands of CCPs, according to new discussion paper on the technical standards required by European clearing rules
LCH.Clearnet’s ForexClear awaits regulatory approval
Forex clearing platform for NDFs is ready for launch, pending regulatory approval, LCH.Clearnet confirmed in its annual report
European CCP group elects Eurex exec as new chair
Eurex's Marcus Zickwolff elected to chair European clearing house group
European capital rules could squash CVA feedback loop
European capital rules could squash CVA feedback loop
Eurex to offer full segregation in March launch of OTC clearing
Eurex Clearing plans to be the first OTC clearer to offer full segregation of collateral when it launches in March - demand has risen since MF Global collapse
Wells Fargo: late entrant to the OTC clearing race
A credible competitor
Czech central bank concerned over Esma's power
National supervisors should be responsible for their domestic institutions, says Czech National Bank
Asia financial regulators press on with banking reforms
Diverging directions
Buy-side firms in Asia gear up for clearing
Gearing up for clearing
Basel capital rules threaten client clearing
A blow to client clearing
Sponsored forum: OTC derivatives
Addressing the challenges of central clearing for the buy side
Risk.net poll: Basel rules make client clearing uneconomical
Fifty-four per cent of respondents say new capital rules for bank exposures to central counterparty default funds makes it unattractive to offer client clearing services
Energy and Commodities OTC Clearing and Execution under Dodd-Frank Regulation roundtable
Challenges continuously arise regarding energy and commodities OTC clearing, and changes in regulations. This roundtable offers the knowledge, experience and opinions of our elite speakers on some of the key issues the industry currently faces including:
Exemption for forex swaps and forwards should hold, says GFMA’s Kemp
James Kemp, managing director of the global foreign exchange division, talks to FX Week about the biggest regulatory challenges of 2012
Operational uncertainty still a concern in OTC reform
More guidance needed on CCP rules, study finds
OTC clearing service of the year: JP Morgan
Risk awards 2012
Credit portfolio manager of the year: JP Morgan
Risk awards 2012