CCP Disclosures 2Q 2017 – What the Data Shows
Central Counterparties recently published their latest CPMI-IOSCO Quantitative Disclosures and in this article I will highlight what the data shows, similar to my article on 1Q 2017 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 […]
Has Swaptions Clearing Begun?
We’ve written quite a bit about swaptions clearing in our blog. I was surprised to see that the first article was over 4 years old – back when the industry (and Gensler!) began talking about it: July 2013 – Swaptions Clearing – Why Is It Important November 2013 – Swaptions Clearing – A More Detailed […]
CME Halts CDS – Where’s The CDS Business?
Last week, CME announced it would end it’s clearing offering for Credit Default Swaps, and instead focus it’s effort on other innovations in clearing services for Interest Rate and FX, including: FX Options launched by 2017 year end Interest Rate swaps for 3 more currencies – CNY, CLP, and COP by early 2018 Further capital […]
FCM Rankings & Concentration: Q2 2017
We have Q2 data for Clearing Brokers, showing any changes in the US clearing landscape. Let’s dig into the data, starting with our count of FCMs by various metrics: Showing 63 firms registered (down 1 from Q1 2017), and 56 firms with any Client Requirements. Other headline metric is total client required margins, which trended […]
CCP Disclosures: How much does it cost to run a trading business?
The latest batch of CPMI-IOSCO CCP disclosures are out for Q1 2017. We look at Initial Margin across Rates and FX. The Top 10 banks post $14bn across three CCPs. This gives us an insight into the cost of funding a trading business. The split of IM illustrates the intrinsic cost of CCP basis. Initial […]
CCP Disclosures 1Q 2017 – What the Data Shows
Central Counterparties recently published their latest CPMI-IOSCO Quantitative Disclosures and in this article I will highlight what the data shows, similar to my article on 4Q 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 […]
EU Commission proposes more robust supervision of CCPs
There has been much recent coverage in the press about whether the EU would require a location requirement for EUR Swaps Clearing. (See City AM, Reuters, Risk.Net). Today the EU Commission put out a press release proposing more robust supervision of CCPs. What have they said pertinent to the debate about Brexit and LCH Clearnet Ltd? Lets extract […]
Clearing Mandates 2017
Which jurisdictions currently have Clearing Mandates in place for Interest Rate Derivatives? There are lots of articles and sources of information about upcoming mandates… …but finding what is already in force is more difficult. We therefore take this opportunity to summarise the Clearing Mandates that are now active across multiple jurisdictions. Sources Before we look […]
BREXIT: Moving Euro clearing conflicts with G20 Market Reforms
Moving clearing of EUR-denominated contracts to the Eurozone is a complicated proposition. Bifurcating cleared portfolios will make bilateral markets more attractive than cleared markets. This raises questions over existing clearing mandates. It also conflicts with the G20 OTC market reforms intended to reduce systemic risk through the promotion of clearing. Enforcing a location policy for a […]
FCM Rankings & Concentration: Q1 2017
Clearing broker data is out for Q1 2017, so I wanted to run the numbers and see if anything has changed. Lets start with a view onto the number of registered FCMs. This shows 64 firms registered (down 1 from Q4 2016), and 55 firms with any Client Requirements (down 2). On the bright side, there […]