Turkish exchange Borsa İstanbul will acquire the London Metal Exchange’s stake in clearinghouse LCH.Clearnet, under an agreement that will also see Hong Kong Exchanges and Clearing (HKEx), LME’s parent company, partner with Borsa İstanbul on the dissemination of market data, according to an LME statement. “Under the terms of the agreements, the LME will license… Read More >>
New Chief Information Officer for the OCC
Chicago-based OCC, the equity derivatives clearing organization also known as the Options Clearing Corp., reports that Luke Moranda has joined as senior vice president and chief information officer (CIO). He will replace Raymond Tamayo, who had previously announced his intention to retire in 2015, and will report to Michael McClain, OCC president and chief operating… Read More >>
New Report Urges CCP Changes
A new report released by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) outlines proposed changes to disclosure standards for central counterparty clearinghouses (CCPs), officials say. The paper, “Public Quantitative Disclosure Standards for Central Counterparties,” argues that “to help ensure that the risks of using central counterparties… Read More >>
ISDA Targets CCP Default Resolution
The International Swaps and Derivatives Association (ISDA) has issued a position paper setting out a proposed recovery and continuity framework for central counterparty (CCP) clearinghouses. The position paper, “CCP Default Management, Recovery and Continuity,” outlines a “framework for recovery and sets out tools that can be used to re-establish a matched book following the default… Read More >>
Virtu Financial to Provide Liquidity for GMEX
Global Markets Exchange Group (GMEX) reports that Virtu Financial, an electronic market maker, will become a liquidity provider for its GMEX Exchange. Virtu will participate in the exchange, to be operated by GMEX, and will “offer liquidity” in GMEX’s interest rate swap constant maturity future (CMF) contracts, according to a GMEX statement. “Orders will be… Read More >>
Will CCPs Be Too Big To Fail?
The Dodd-Frank requirement that standardized OTC derivatives contracts be cleared through regulated central counterparty clearing houses (CCPs) is causing many to ask if the reform will backfire and lead to a new concentration of risk among CCPs, rendering them “too big to fail.” The issue was a key point of Andrea Kramer, a… Read More >>
Q&A: CME Group Readies Open OTC Clearing Solutions
Mark Cox has served as director of clearing solutions and services at the CME Group since February 2010. His team is responsible for the design and delivery of clearing services for interest rate swaps (IRS), credit default swaps (CDS), foreign exchange (FX) and commodity over-the-counter (OTC) clearing initiatives globally. He also is responsible for all… Read More >>
FTF Panel: Start Preparing Now for OTC Clearing
Financial services firms trading in listed and over-the-counter (OTC) derivatives should start preparing their operations and IT systems now for the new clearing regime to come as a result of the regulators’ mandate for OTC clearing, according to panel participants at FTF’s 3rd Annual Chicago OTC & Exchange Traded Derivatives Ops conference.The Dodd-Frank Act of… Read More >>
Q&A: Bruel Says OTC Clearing May Cause Financial Burdens
As part of his role as research director at TowerGroup’s Capital Markets practice, Stephen Bruel has focused on the operational and risk management challenges of over-the-counter (OTC) derivatives, including IT, collateral management and market structure issues. Bruel joined TowerGroup from State Street’s Wealth Manager Services group, helping expand the technology solutions for the firm’s global… Read More >>
Dangerously Exposed?
The rise of the Swaps and Derivatives Market Association (SDMA) is the story of many Davids taking on several Goliaths over a powerful idea—democratizing clearing for over-the-counter (OTC) derivatives such as credit default and interest rate swaps. In its first year, the SDMA has garnered more than 20 public and private members, engaged powerful Congressional… Read More >>
