House Residual Interest

We often monitor the FCM data within the US, primarily to gauge our quarterly FCM rankings (eg Year End 2017). Avid students of the FCM data will also know that besides sheer customer margins and customer funds reporting, these reports also reveal how much excess funds the FCM’s carry alongside the customer funds (aka Residual […]

Final 2016 FCM Rankings

Data is now in for the final month of the year, and we can put together our updated metrics on the FCM industry. If you remember from the previous quarterly reports we do on this topic, the common themes have been: The growth in clearing is in swaps European banks stand out as retreating, or […]

CCP Disclosures 3Q 2016 – Trends in the Data

Central Counterparties recently published their latest CPMI-IOSCO Quantitative Disclosures, so lets look at trends in the data, similar to my article on 2Q 2016 trends. Background Under the voluntary CPMI-IOSCO Public Quantitative Disclosures by CCPs, over two hundred quantitative data fields covering margin, default resources, credit risk, collateral, liquidity risk and more are published each quarter with […]

What percentage of D2C Swap trades are cleared?

We combine BIS and Clarus data sources to provide a holistic view of IRS markets. Almost all of D2D volumes are now cleared, with little variability across the major currencies. Clearing in Dealer-to-Client IRS markets is highly currency dependent. Clearing in D2C markets varies from 27% (CHF IRS) up to 67% (USD IRS). 2016 – It was all […]

Clarus Research cited at UK Parliament Treasury Committee

LSE’s Xavier Rolet cited our research in today’s UK parliament treasury committee meeting. During the session on ‘The UK’s future economic relationship with the European Union’ it was this research on EUR clearing that he referred to; ‘Moving Euro Clearing out of the UK: the $77bn problem?’, in answer to questions from Jacob Rees-Mogg. The […]

Why FCMs Don’t Like Intraday Margin Calls

We keep on hearing how difficult it is to be a clearing broker these days. Case in point – this article discusses how FCMs had to find billions of dollars in the middle of the day after the Brexit vote.  This is because, when the market moves, Clearing Houses can choose to make margin calls […]

FCM Rankings – Q3 2016

The most recent quarter of FCM data is out.  As usual, I’ve pieced together some updated metrics. If you’ve been keeping up to date with our blogs on this topic, you should remember the running themes: Concentration of business in a handful of firms Any growth in the business has been in swaps European firms shrinking, […]

Two Month Update:  Uncleared Margin Rules & Swap Data

Over the past 2 months, my colleagues and I have occasionally studied swaps data for hints of impacts from the September 1 implementation of Uncleared Margin Rules (UMR) effecting behaviors.  There have been a few general themes: Uptick in NDF Clearing Uptick in Inflation Swap Clearing No notable effect on Swaptions Now with 2 months […]

Optimizing Swaps Margin Across Brokers

Back in August I wrote an article about how large, self-clearing firms can reduce the amount of capital required to support their cleared business by wisely choosing to backload margin-reducing bilateral trades. While I wrote that about large banks, there is an analogous case for trading firms that do not self-clear.  In fact, we’ve been […]