Collateral
Custody Risk Global Awards 2018 winners announced
Custody, securities services, fund administration and technology providers gather for Custody Risk Global Awards in London
CFTC finds harmony harder than it sounds
James Schwartz and Chrys Carey, of counsels at Morrison & Foerster, explore the impact of a recent Commodity Futures Trading Commission white paper – including how its author’s suggestions would affect cross-jurisdictional application of its regulations …
The initial margin challenge – Why the bang just got bigger
With uncertainty abounding as the industry heads into the final phases of implementation of the uncleared margin rules (UMR), Jean‑Paul Botha, delivery lead of financial trade documentation at Thomson Reuters Legal Managed Services, explores the…
Lessons from two commodity defaults
Regulators and exchanges need to learn from the Greenhat/PJM default in the US as well as the Norwegian Nasdaq blowout
Ibor transition valuation and risk management considerations
The impending move from interbank offered rates to alternate reference rates will require important changes to many valuation and risk management processes and infrastructure. EY Financial Services’ Shankar Mukherjee, Michael Sheptin and John Boyle…
RFR valuation challenges
A new system of interest rate benchmarks for all major currencies is emerging. These new benchmarks will replace interbank funding rates with risk-free rates (RFR). This article by LPA focuses on valuation challenges during the transitional period to new…
Collateral manager of the year: BNY Mellon
Asia Risk Awards 2018
Preparing for the initial margin phase-in
Requirements for the mandatory exchange of initial margin are expected to be time‑consuming and laborious to implement. David White, head of sales at triResolve, discusses the lessons learned from in‑scope firms, obstacles to achieving compliance and how…
US LCR cash inflows dominated by secured loans
Median US systemically important bank counts secured loans as 73% of total cash inflows
OCC swells liquidity after reinforcing clearing fund
Further changes expected following September clearing fund revamp
Industry seeks smaller ‘big bang’ for margin
New study supports sixfold hike in 2020 compliance threshold to avoid “dormant” margin accounts
Initial margin – Preparing for the buy‑side ‘big bang’
Video Q&A: David White, triResolve
Eonia woes hold up euro swaptions switch
Eleventh-hour derailment for project that has been in the works for a year
CCPs must step up cyber risk efforts, says EU legislator
Policymakers want more focus on non-default loss resources; Eurex Clearing’s Mueller flags investment risk
Safeguarding liquidity in a changing environment
Nick Gant, head of fixed income prime brokerage for Europe, the Middle East, Africa and Asia-Pacific at Societe Generale Prime Services, discusses banks’ evolving responsibilities for providing liquidity in a post-financial crisis environment in which…
The rapid evolution of compression: Keeping pace with optimisation activity
It has been 15 years since compression emerged, and it continues to evolve at a rapid rate. At a forum convened by Risk and sponsored by Capitalab, our panel discusses current hurdles, upcoming challenges and whether innovation is keeping pace with the…
The case for draining excess reserves
The financial system can operate efficiently with $500 billion or less in reserves after normalisation
The battle for the back office
Post-trade incumbents at risk as Isda and others search for standards
A floored plan: Europe’s CCP recovery rules draw fire
CCPs and clearing members both unhappy with proposed allocation of non-default losses
European legislators to exempt CCPs from new bank rules
Support in Council and Parliament suggests leverage ratio, NSFR exemptions will be in final text
Breaking the collateral silos – Navigating regulation with a strategic alternative
Emmanuel Denis, head of tri‑party services at BNP Paribas Securities Services, discusses why financial institutions must rethink old practices of collateral management and instead adopt a tri-party approach, with which equities can be managed as…
Initial margin with risky collateral
This paper explores the complication of calculating the IM amount requirement when collateral comprises risky assets in a parametric VaR framework. The authors show that the required IM amount can be calculated by solving a quadratic inequality.
VM rules sound death knell for forex swaps in Europe
Market participants claim instrument was a “mythical creature” that never really existed