Risk Management

This blog on how swap risk is calculated is the conceptual view of how firms and CCP's calculate the Initial Margin on Interest Rate Swaps. While the numbers reflect a real at-market swap given the terms and conditions described they made vary widely from what your firm or...

SIFI DESIGNATION FOR NON-BANK FINANCIAL COMPANIES (NFC) A veritable pot of alphabet soup was put together by the FSOC to handle the task of designating nonfinancial companies as SIFIs. Eight regulators: OCC, FDIC, CFPB, FHFA, FRB, NCUA, CFTC & SEC, one independent member with insurance “expertise” and...

Dodd-Frank (Title VII) of 2010 moves forward with revisions and final rules. But forward movement is better than no movement at all.  Progress by July 2012: Dodd-Frank by numbers: Dodd-Frank's Progress to date:   Out of 398 total required rulemakings 221 Dodd-Frank deadlines have passed. 140 (63%) passed without a final...

Tongue firmly in cheek I've entitled this blog, "CDS & JPM: Is my Slippage Showing" to explain why JP Morgan's losses could not have been caused by slippage alone.  Slippage is used to describe the spread between the bid and ask.  Knowing slippage a trader...