A new study has found that while electronic and algorithmic trading in fixed income markets are delivering many benefits, they also may create new settlement and clearing risks, and put a strain on liquidity conditions. These findings are from a study group established a year ago by the Markets Committee of the Bank for International… Read More >>
Calpers to Provide Liquidity to the OCC
The Options Clearing Corp. (OCC), a Chicago-based equity derivatives clearinghouse, has reached an agreement with the California Public Employees’ Retirement System (Calpers), the largest pension fund in the U.S., to establish a liquidity facility that will allow the OCC to tap Calpers for cash in the event of a default at one of its counterparties,… Read More >>
How Much Skin Should You Put in the CCP Game?
Two new high-profile contributions to the debate over how to handle central counterparty (CCP) clearinghouse default risks reveal how far apart CCPs and their members remain on the issue of how much money each side should be responsible for, underscoring the fact that the debate is likely to remain open for some time. This week white paper were released… Read More >>
Derivatives Markets Fear Fragmentation as Regulators Clash
Financial services firms that participate in derivatives markets on both sides of the Atlantic have found themselves treading difficult water for the past year or so, as regulators have struggled to harmonize cross-border market structure rules and regulations. Industry observers say European and U.S. regulators are on the same page as to the importance of… Read More >>
JPMorgan Targets ‘Too Big To Fail’ CCPs
Do central counterparty clearing houses (CCPs) take seriously enough the suggestion — made by many analysts and market participants — that they might become “too big to fail?” That question has hung in the air for years now, ever since post-crisis regulatory reforms assigned CCPs a key role in derivatives markets. Attempts to provide an… Read More >>
CFTC to Revamp SDR Push as Aite Predicts CCP Woes
CFTC Calls for Comments for New SDR Rules The CFTC is taking its first major step in an overhaul of its swap data recordkeeping and reporting requirements with a call for public comment. The swaps data gathering is mandated by provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This step follows the… Read More >>
Q&A: A Polish Clearing House Reaches Out
FTF News was able to ask Iwona Sroka, president and CEO of KDPW_CCP, a few questions about the services of its new arrangement with NASDAQ OMX, and how working with NASDAQ OMX might facilitate U.S. links to Polish trading markets. The Warsaw-based clearing house, created by the National Depository for Securities (KDPW) in 2011, recently… Read More >>
State Street and OTC Processing
State Street is spreading the word about its end-to-end package for processing over-the-counter (OTC) derivatives—which includes middle and back office services—just as OTC reforms are likely to cause buy-side firms to choose between a best of breed or an integrated suite approach for the operational tapestry to come for executed and cleared OTC instruments. As… Read More >>
