Collateral
State Street beats JP Morgan as second-biggest custodian
BNP Paribas sees highest growth as Custody Risk's 2014 Global Custody Survey reveals quickening growth of global assets under custody
US energy firms cheer regulators’ shift on margin rule
In an about-face, the Fed and other bank regulators exempt non-financial end-users from requirement to post margin on non-centrally cleared swaps
A bill of goods: central counterparties and systemic risk
Volume 2, Issue 4 (2014)
SuperDerivatives: Asia favoured by OTC regulatory arbitrage
Asia-Pacific posited as an attractive location for OTC derivatives as the costs of doing business in the US and Europe begin to mount following regulatory intervention
Sponsored video interview: RiskVal's Jordan Hu
RiskVal Financial Solution talks to Custody Risk on being nominated in the Post Trade Technology Vendor of the Year and Technology Innovation of the Year categories at the Custody Risk Americas Awards 2014
Dealers charging FVA on collateralised swaps
Dealers say even swaps collateralised with liquid government securities could incur an FVA charge
Euroclear criticises non-neutral industry utilities
Clearing houses in vertical exchange-owned silos are less likely to deliver collateral and margin management business to a collateral agent or custodian that is part of a competitor’s vertical model
Sponsored video interview: Multifonds' Oded Weiss
Multifonds talks to Custody Risk on being nominated for the Post Trade Technology Vendor of the Year at the Custody Risk Americas Awards 2014
US eases leverage ratio impact on swaps
The US SLR eases the criteria for netting cash variation margin and derivatives exposures – boosting JP Morgan's ratio by up to 20bp – and European banks hope their own regulators will follow suit
Split reaction to international firms' Asia clearing plans
Ice, CME and Eurex have all staked a claim on the Asian clearing markets via a range of methods including buyouts, tie-ups and new ventures – but it’s not clear if their moves will be successful
Benchmarking European repo markets
The International Capital Market Association task force on repo indexes is evaluating new benchmarks for European repo markets. In a roundtable forum convened by Risk and sponsored by Stoxx, a panel of experts discusses the evolution and development of…
Collateral thinking – The impact of central clearing on insurers’ assets
A panel of experts, convened by Insurance Risk and sponsored by BNY Mellon, discusses the impact of central clearing on asset allocations and opportunities to generate returns from high-quality collateral.
Nomura books ¥10 billion FVA loss
Japanese bank follows JP Morgan and Deutsche Bank by incorporating funding costs into derivatives valuation
Isda forced to rework year-old standard CSA
Regulation hits key element of landmark collateral contract - but planned revisions will reintroduce settlement risk
Basel leverage ratio may force CSA restructuring
Cash collateral can only reduce derivatives exposure if it matches the currency of the underlying swap, threatening existing CSAs and even the new standard CSA
Interest rate derivatives house of the year: Goldman Sachs
An expected rise in interest rates will leave many entities facing hefty collateral calls, potentially creating a liquidity squeeze. Goldman Sachs has worked to help clients deal with this potential problem
Insurance risk manager of the year: Axa
Axa moved early to address lapse risk concerns – now a pressing issue for the French insurance sector – and has also been vocal on regulatory change
VAB’s Winter: Collateral rules risk derivatives and liquidity
Stefan Winter, chairman of the board of directors of the Association of Foreign Banks in Germany (VAB), asks how new regulation affects the future of collateral management
Pension funds and the collateral crisis
Rising interest rates could leave pension funds facing huge margin requirements, creating an acute liquidity crisis
Ucits derivatives use hamstrung by collateral rules
Asset managers call on regulators to amend Ucits rules
Fed discount window could resolve CCP collateral liquidity concerns, say clearers
US regulatory concerns about liquidity of government securities collateral could be resolved by access to the Fed’s discount window, CCP officials say
Bank initial margin posting raises liquidation concerns
Derivatives dealers are starting to voluntarily post initial margin to each other, in an attempt to reduce the capital they hold for derivatives counterparty risk. The savings can be significant, but some observers are worried about the liquidity of the…
Fatca fears reach swaps market
US tax rules could leave compliant foreign firms out of pocket unless swap documentation is amended