Clearing for the buy-side

As the market in Europe prepares for the commencement of mandatory clearing, new clearing structures are being devised by CCPs (central counterparty clearinghouses) to make the process smoother, more cost efficient

Posted on: 26 May, 2016
Posted in: Buy-Side Features

To Clear or not to Clear?

08 Jul, 2015

European pension funds enjoy a temporary exemption from the rigours of mandatory clearing of their OTC derivatives. That exemption could stretch to 2018 but a growing number reckon the costs and risks of delay now outweigh the costs and risks of clearing at a central counterparty. Why?

FICC seeks regulatory approval to offer clearing in tri-party repo market

The Fixed Income Clearing Corporation (FICC) is seeking regulatory approval from the Securities and Exchange Commission (SEC) and Federal Reserve to provide centralised clearing for the $1.6 trillion institutional tri-party repo market.

Posted on: 15 Oct, 2014
Posted in: Regulation

IBOR could help avert a collateral squeeze

Buy-side firms have been urged to embrace the Investment Book of Record (IBOR), a single source of portfolio calculations across asset classes, if they are to avoid a potential collateral squeeze once the mandatory clearing of over-the-counter (OT

Posted on: 01 Sep, 2014
Posted in: Technology

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

BNP Paribas warns of unintended consequences on Ucits collateral upgrade restrictions

The European Securities and Markets Authority (ESMA) needs to clarify its position on limiting Ucits managers from collateral re-use, as it could face unintended consequences, a senior executive at BNP Paribas Securities Services has warned.

Posted on: 11 Jul, 2013
Posted in: Regulation

Transition to swap trading looks messy, SEF report suggests: By Dominic Hobson

The accelerating transition of swaps to a new world of centralised clearing has obscured the concomitant regulatory push towards electronic trading.

Posted on: 02 Oct, 2012

Momentum Trading Partners shuts raising doubts about future of mini primes

Momentum Trading Partners, a New York-based mini prime, has shut raising further questions about the future of mini primes.

Posted on: 31 Jul, 2012

Eurex urges managers not to panic about regulatory arbitrage with swaps clearing

The regulatory arbitrage between the US and EU on mandatory clearing is not as acute as widely assumed and buy-side firms should not panic needlessly, advised Eurex, the Frankfurt-based clearing house.

Posted on: 17 Jul, 2012

ESMA warns mandatory clearing could lead to collateral shortage

ESMA has acknowledged that mandatory clearing of OTC derivatives could lead to a collateral scarcity although added it was imperative a right balance be found between “safety” and “speed.”

Posted on: 26 Jun, 2012
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