The International Swaps and Derivatives Association (ISDA) is setting forth in a new white paper a set of best practices for central counterparty clearinghouses (CCPs) in a bid to prevent troubling defaults that have to then be absorbed by CCP participants. Citing two recent defaults, ISDA says that they represent “the weaknesses in some CCP… Read More >>
BNP Paribas, Société Générale & Others Launch LiquidShare
Major European Players Back LiquidShare A European blockchain startup with a post-trade focus, LiquidShare, is being created via the support of BNP Paribas, CACEIS, Caisse des Dépôts, Euroclear, Euronext, S2Iem, Société Générale and Paris Europlace. The financial technology venture is the result of a partnership launched by its shareholders in June 2016 to develop a… Read More >>
CME Clearing Europe Gets DCO Green Light
CME Clearing Europe (CMECE), the London-based derivative clearinghouse, was granted registration as a derivatives clearing organization (DCO) by the CFTC, making it the seventh such foreign organization to receive the designation and the 16th overall. As both an authorized central counterparty clearinghouse (CCP) under the European Market Infrastructure Regulation (EMIR) regime and a registered DCO,… Read More >>
ESMA Explores Blockchain’s Risks and Promise
It was only a matter of time before regulators wanted to lift the lid on blockchain and look deeper into the potential opportunities and challenges in the financial services sphere. The European Securities and Markets Authority (ESMA), an EU financial services watchdog, is throwing down the gauntlet with its recent discussion paper for public consultation… Read More >>
CME to Offer CCP Services in Europe
CME to Offer Clearing for Global Firms The Chicago Mercantile Exchange Inc. (CME) has gotten the approval of the European Securities and Markets Authority (ESMA) to operate in the European Union as central counterparty clearinghouse (CCP). The notice came as part of an ongoing update of approved CCPs based in third countries, according to ESMA… Read More >>
LSEG & Boat to Launch Combined Reporting Services
TRADEcho to Hit Early Next Year The London Stock Exchange Group (LSEG) and Boat Services Ltd. will be offering TRADEcho, a combination of the two vendors’ existing and complimentary trade reporting services, officials say. TRADEcho is slated to be available by the first quarter of 2017 and will offer a single trade reporting venue and… Read More >>
ESMA Pries Open Derivatives Clearing
Although not all clearinghouses will be happy, the European Securities Market Authority Association (ESMA) decision to allow more choice in trading and clearing was welcomed by the London Stock Exchange Group (LSEG) and Nasdaq Stock Market, which have long championed greater competition in derivatives clearing. The so-called open access rule, set out under Markets in… Read More >>
Hong Kong Clarifies Rules for OTC Derivatives Trading
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) proposals on introducing mandatory clearing and expanding mandatory reporting for the second stage of the over-the-counter (OTC) derivatives regulatory regime is only the next stage of the territory’s staggered approach to implementing new derivatives rules. The actions were expected and sell- and… Read More >>
CFTC, EU Finally Agree on a Clearing Deal
After three years of often bitter political squabbling, the European Commission and its U.S. counterpart the commodities regulator CFTC finally reached an agreement on a common approach to equivalent recognition of central clearing counterparties (CCPs). The two sides, which oversee around 90 percent of the $553 trillion derivatives market, have been at loggerheads over mutual… Read More >>
CFTC Authorizes Eurex Clearing for U.S. Swaps Markets
CFTC Blesses Eurex Clearing U.S. regulator CFTC has authorized Eurex Clearing’s registration as a derivatives clearing organization (DCO), which will allow Eurex Clearing to provide clearing services for swaps for U.S. clearing members, officials say. The authorization makes Eurex Clearing the 16th DCO registered with the CFTC and the sixth registered DCO based outside the… Read More >>
