Criteria for Fund Managers to consider when selecting an OTC derivatives CCP

The time to choose a CCP for Europe is now. The transition to mandatory clearing of OTC derivatives in Europe begins in the spring of 2016. With limited transparency into the differences between the operating models of the various CCPs, it is difficult for fund managers to make informed choices. At a COO Connect event in London on 20 October, Jaki Walsh (managing director of Derivati Consulting) and Phil Simons (head of clearing sales and relationship management at Eurex Clearing) explored the factors they think fund managers should take into account when choosing a CCP.

Posted on: 06 Nov, 2015

ESMA grants equivalence to 10 APAC CCPs

The European Securities and Markets Authority (ESMA) has granted equivalence to 10 Asia-Pacific (APAC) central counterparty clearing houses (CCPs), thereby allowing third country CCPs to provide clearing services to EU clearing members and trading venues.

Posted on: 30 Apr, 2015
Posted in: Regulation

Skin in the game at CCPs

The announcement by Intercontinental Exchange (ICE) that it is to infuse a chunk of its own capital into some of its default funds across the world is welcome news as a growing percentage of the notional $700 trillion over-the-counter (OTC) derivatives market is pushed onto centralised clearing houses (CCPs) as mandated under the Dodd-Frank Act in the US and the European Market Infrastructure Regulation (EMIR).

Posted on: 19 Mar, 2015
Posted in: Feature

Regulators must take preventative not reactive approach to mitigate CCP failures

Global regulators and financial institutions should focus on preventative rather than reactive measures to mitigate the knock-on effects of a central counterparty clearing house (CCP) running into difficulty if one of its clearing members defaults

Posted on: 16 Oct, 2014
Posted in: Regulation

Collateral squeeze unlikely to materialise

The so-called collateral shortfall is unlikely to be as severe as some market participants initially believed although obtaining high-grade eligible collateral to post as initial and variation margin to central counterparty clearing houses (CCPs)

Posted on: 06 Oct, 2014
Posted in: Operational Risk

Collateral shortage unlikely with clearing, says LSE/DTCC paper

A collateral shortage is unlikely to materialise although firms could struggle to obtain collateral, according to a study by the London School of Economics (LSE), in conjunction with the Depository Trust & Clearing Corporation (DTCC). 

Posted on: 18 Jun, 2014
Posted in: Operational Risk

SEC to review asset managers' safeguards against cyber-crime

The Securities and Exchange Commission (SEC) is to review the policies and safeguards asset managers have in place to mitigate the risks of cyber-attacks.

Posted on: 03 Feb, 2014
Posted in: Technology

Smoot and Hawley are alive and well and living in Brussels

The European Union (EU) was founded on the principle of free trade. In practice, however, it has preferred to confine free trade to its own members, and even among them a wide variety of informal barriers have persisted.

Posted on: 13 Jan, 2014
Posted in: Regulation

COOConnect Summary of 2013: Part 3

Here is the third instalment of COOConnect’s five part series summarising the key events to impact the hedge fund industry in 2013.

Posted on: 17 Dec, 2013
Posted in: Investors

Regulatory fragmentation is increasing, not decreasing, and costs are rising with it

The publication this week by the Securities and Exchange Commission (SEC) and four other Federal regulatory agencies of the final version of the Volcker Rule is a bludgeoning reminder of the parallel universe inhabited by regulators.

Posted on: 16 Dec, 2013
Posted in: Regulation


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