Clearing & Collateral

Global Collateral Risk Tool Davis Polk has a new portal chock full of tools for Risk Managers. They've included one of the best one-stop resources I've seen online in their global collateral risk tool.  Posting Collateral Around the World Now that we've finally got Europe and the US on...

What Revisions Did the CFTC Propose? The CFTC proposed revisions to swaps processing and reporting (Section 21 of the CEA (Commodity Exchange Act). The goal of Dodd-Frank is to make the swaps market transparent and liquid.  Therefore, we need to apply a certain number of identifiers to keep...

These Derivative Cheat Sheets will help make sense of derivatives reform. The attached PDF file includes 3 resources: Page 1 - matrix of the various aspects and differences between Clearing a swap and entering into a bilateral swap (OTC)   (Source: MHDS LLC) Page 2 - Haircuts suggested...

Last month, US Banking Regulators presented a new proposal for the collection, calculation and segregation of margin for bilateral derivatives. The new US proposals are quite different from their original 2011 proposal, in light of the BCBS/IOSCO issuance of their 2013 final policy framework on margin requirements...

The exact impact of increased collateral requirements as the derivatives market shifts from bilateral to cleared contracts is unknown but widely estimated. Moody’s has made a guess of $700 billion to $1.2 trillion, which doesn’t sound too outlandish. Initial Margin Requirements for Swaps Initial margin (expected to be...