APPLES AND ORANGES BASEL III plans to apply the leverage ratio to all collateral, including initial margin on cleared derivatives transactions (cleared at a clearinghouse). Swap Market participants are looking at cost increases estimated at 60%. A decision such as this will mean sell side will...
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Confusion reigns in the Derivatives World: New terms and acronyms; Swaps Clearinghouses; This cheat sheet will clear up the confusion. ...
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Issues & Trends in the End-User Community ISDA’s new Survey of Issues & Trends in the End User Community offers interesting insights into Swap Execution Facilities and End Users. Respondents point to fragmentation along geographical lines due to regulatory ambiguities in cross-border transactions. The survey’s respondents were...
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Pre-Onboarding To-Do List There are many tasks that need to be completed to migrate swap positions to a clearinghouse. This article speaks of three items which should be decided and determine whether to onboard the position into a clearinghouse. At a minimum, these tasks will shed...
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October 2nd Launch Report The age of the swap execution facility launched on October 2nd was a success in that trading was largely uninterrupted and trade sizes remained in line with the OTC market. But many believe that overall swaps liquidity was negatively impacted, and the majority...
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This article speaks about reducing notional by offsetting swaps by using compression. The success we've seen and expect to see as counterparties phase-in to CCP clearing has been a testament to firms working together to get things done. Collapsing Swaps Positions Compression has proven an enormously successful...
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Basel III has decided on a 2% capital charge for cleared derivatives, and 2-5% risk weighting for Uncleared Derivatives. This article covers the Basel III Capital Charges for derivatives ...
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