Over-the-counter (OTC) derivatives
Isda AGM: Rate of decrease in CDS notional falls
The rate of decrease in notional volumes of credit default swaps (CDSs) has slowed, according to the International Swaps and Derivatives Association’s year-end 2009 market survey, which was unveiled at its annual general meeting in San Francisco on April…
Buy-side CDS clearing 'not really happening'
Despite regulatory calls for buy-side clearing of credit derivatives, few client trades are being cleared.
EU derivatives experts suggest threshold system for corporates
Legislators at the European Commission will today move a step closer to determining whether non-financial users of over-the-counter derivatives should be forced to clear trades through central counterparties (CCPs) – a possibility corporates have…
Clearing exemption too close to call
Exempting commercial hedgers from mandatory clearing could create a loophole for the institutional investors often blamed for driving up commodity prices, according to the chief lawyer for the Commodity Futures Trading Commission (CFTC).
Future options
Tomorrow’s derivatives market looks likely to shift away from exotic products to focus more heavily on centrally cleared vanilla trades. Dealers hope to see a big jump in volumes, which will offset a smaller decline in margins. They also have an eye on…
Capital increase
Exposures to counterparty credit risk have been scrutinised by the Basel Committee on Banking Supervision, which published proposals designed to increase capital requirements in the middle of December. The measures will be completed and implemented by…
Gensler calls for tighter regulation of dealers
Commodity Futures Trading Commission (CFTC) chairman Gary Gensler refused to detail a timetable for imposing position limits on energy traders today, but called for tighter regulation of dealers in over-the-counter derivatives.
Derivatives onshoring
New rules coming into force in many jurisdictions in Asia are challenging the ability of global financial institutions to operate a hub-and-spoke business model for their derivatives businesses.
Out of wedlock
Western dealers and their Chinese counterparts have fundamentally different views on how the use of collateral agreements should underpin repurchase agreements and financial derivatives transactions. This culture clash is causing acute problems for China…
Unwrapping Russian structures
Since the 1998 stock market crash, Russia’s financial sector has evolved to play host to a derivatives industry sophisticated enough to support the development of retail structured products. As well as introducing offshore products to the local market,…
Jockeying for position
A slew of market participants are hoping regulatory scrutiny of the derivatives industry will enable them to gain new footholds in the derivatives clearing and settlement value chain. Georgina Lee reports
Derivatives users fear cost burden of reforms
Greater clearing of over-the-counter derivatives prompts concerns that corporates will ultimately bear the cost