Clearing

Brexit, Clearing, Eurex, LCH

London will remain a big part of Europe’s financial market plumbing well beyond Brexit as the coronavirus pandemic has thwarted Frankfurt’s ambitions to grab billions of euros worth of derivatives…

How clearing technology firms are adapting amid regulatory and cost pressures (Premium)

July 29, 2020

Automation, CCP

automation, AWS, Clearing, cloud, Kynec, Microsoft Azure, Sernova Financial, topstory, Torstone

Tier one banks are being challenged to provide clearing access to buy-side and other clients, while at the same time sponsored and direct clearing is getting attention. We talk to…

Turquoise NYLON on the move to clearing for Total Return Swaps (Premium)

April 8, 2020

Collateral Management, OTC Derivatives Clearing, Total Return Swaps

Clearing, LCH, topstory, Total Return Swaps, UMR

In equity swaps markets, initiatives for reducing processing costs are moving up the priority list for both sell- and buy-sides. We speak with Shaun Miell, Turquoise NYLON’s global head, and Sean…

LSEG’s tech arm deploys new clearing platform for LCH EquityClear

April 7, 2020

Clearing, EquityClear, LSEG

LSEG Technology, London Stock Exchange Group’s technology solutions provider, announced it’s successfully implemented a new clearing platform for LCH’s EquityClear service. EquityClear, which connects to 16 trading platforms and 19…

BIS describes how tokenization could upend clearing and settlement

March 3, 2020

BIS, Clearing, settlement, tokenization

Incumbent financial institutions as well as new entrants are investing heavily in projects seeking to transform securities into digital tokens – digital representations of value that are not recorded in…

DTCC Sponsored Service Achieves Key Milestone in Treasury Market Clearing with Citadel Activity

June 24, 2019

Citadel, Clearing, DTCC, FICC, Repo, US Treasuries

Transactions completed by Citadel in both cash and repo highlight the potential of the Sponsored Service to significantly increase centrally cleared US Treasury activity, reducing the risks of bilateral clearing…

Reuters: blockchain needs to reconcile with settlement finality

June 15, 2019

blockchain, Clearing, DTCC, settlement

One area that has been often cited as a natural home for blockchain has been the clearing and settlement process in equity markets. Proponents have argued that the process could…

Bank of England working paper: The Cost of Clearing Fragmentation

May 31, 2019

Staff Working Paper No. 800 By Evangelos Benos, Wenqian Huang, Albert Menkveld and Michalis Vasios Fragmenting clearing across multiple central counter-parties (CCPs) is costly. This is because dealers providing liquidity…

Fintech weekly deals and partnerships round-up

May 21, 2019

blockchain, Clearing, Commonwealth Bank of Australia, DLT, Fnality, JSE, Nasdaq, settlement tokens, UBS, utility settlement coin, World Bank

ABN AMRO, ING, OCBC and Macquarie among banks launching digital blockchain platform Together with top commodity industry players and financial institutions, ABN AMRO is exploring the options to launch Forcefield,…

Report: The Future of Clearing, from the World Federation of Exchanges and Oliver Wyman

April 2, 2019

Clearing, World Federation of Exchanges

The World Federation of Exchanges (“WFE”), the global industry group for exchanges and central counterparties (CCPs), today published a joint report with Oliver Wyman examining the post-crisis developments that have…

ESMA issues statement on managing risks of a no-deal Brexit for central clearing

November 23, 2018

Brexit, Clearing, ESMA

The European Securities and Markets Authority (ESMA) is publishing this Public Statement to address the risks of a no-deal Brexit scenario in the area of central clearing. The ESMA Board…

Reuters: UK derivatives clearers may get no-Brexit deal reprieve – EU document

October 25, 2018

Brexit, CCPs, Clearing

The European Union might grant temporary permission for clearing houses in Britain to continue serving EU customers if there is a no-deal Brexit next March, an EU document seen by…

FIA: Mapping Clearing Interdependencies and Systemic Risk

October 2, 2018

CCPs, Clearing, network theory

Global regulators are becoming increasingly aware of the importance of market infrastructures in the systemic risk topography. In particular, regulators are recognizing the need to understand the interconnections between clearinghouses…

European roundup: some weighty news for the end of July (Premium)

August 1, 2018

CCP, Cleared Interest Rate Swaps, Derivatives, ESMA, Europe, Securities Lending

Clearing, Deutsche Bank, Deutsche Borse, ESMA, Europe, FT, Securities Lending, topstory

As July wound down, European market participants released some important news items. We look at Euro clearing moving to Frankfurt, UCITS funds and collateral and the FT’s article on SFTR.…

US Treasury Markets Practice Group sees clearing and IDB risks in the US Treasury secondary market

July 16, 2018

Collateral Management, Investments, Market infrastructure, US

Clearing, collateral, settlement, TMPG, topstory, US Treasuries

The US Treasury Markets Practice Group (TMPG), hosted by the New York Fed, has issued a comprehensive paper on the US Treasury (UST) secondary market. In last week’s “White Paper…

BoE research suggests leverage ratio disincentives client clearing

June 15, 2018

Bank of England, Clearing, Leverage Ratio

As part of the post-crisis regulatory reform, many interest-rate derivative transactions are required to be centrally cleared. Nevertheless, the treatment of this type of transaction under the leverage ratio (LR)…

JPX’s derivatives market using Cinnober for clearing and CCP risk

February 15, 2018

News and Notes, News and Notes – Fintech

CCP, Cinnober, Clearing, Japan Exchange Group

Japan Exchange Group (JPX) launched its new clearing system for exchange-traded derivatives, based on Cinnober’s TRADExpress RealTime Clearing, and a CCP Risk solution. JPX’s new clearing system has more sophisticated…

Do EU margin requirements on anti-procyclicality for CCPs help or hurt risk management?

January 15, 2018

Jonathan Cooper

CCP, Credit Exposure, Derivatives, ESMA, Europe, OTC Derivatives Clearing, Pro-cyclicality, Regulatory, Risk Management

CCPs, Clearing, ESMA, Procyclicality, topstory

EMIR wants CCPs to hold more margin, in effect making CCPs into virtual fortresses. But the costs associated are high and the potential to push risk into markets or firms…

ASX will use DLT for clearing and settlement in 2018

December 7, 2017

News and Notes, News and Notes – Fintech

ASX, Clearing, Digital Asset, distributed ledger technology, settlement

ASX announced that distributed ledger technology developed by its technology partner, Digital Asset, will replace its previous clearing and settlement system. The decision follows the successful build of enterprise-grade DLT…

Risk: London likely to lose all euro repo clearing business

October 11, 2017

Clearing, ECB, LCH, T2S

London’s euro repo market is on the move partly in anticipation of a forced relocation after Brexit. Netting benefits of T2S are also a “pull factor”, as LCH’s London entity…

EC releases post-trade barrier report, issues consultation

August 23, 2017

News and Notes, Uncategorized

AFME, Clearing, collateral management, European Commission, settlement

In February 2016, the European Commission created a European Post-Trade Forum (EPTF) to assess the evolution of the EU post-trade landscape and progress in removing barriers. The EPTF has today…

EU relaxes derivatives rules – smart economic policy or a reaction to global competition?

May 8, 2017

CCP, Collateral Management, Derivatives, EMIR, Europe, Investments

CCPs, Clearing, collateral, derivatives, EMIR, Europe, topstory

The European Union last week proposed simpler and more efficient derivatives rules, a move that is widely accepted as helpful for a wide range of corporations, pensions and smaller banks.…

HKEX: OTC Clear Launches Client Clearing Ahead Of Hong Kong Clearing Mandate

March 22, 2017

Clearing, HKEX, Hong Kong, OTC derivatives

OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX) that provides clearing and settlement services for over-the-counter (OTC) derivative transactions, has launched…

Finadium: Analysis of Eurex and CME Buy-side Direct Clearing Models

October 13, 2016

CCP, Credit Exposure, Derivatives, Investments

buy-side, Clearing, CME, Eurex, topstory

This Finadium report presents the direct clearing plans of Eurex’s ISA Direct and the CME’s Direct Funding Participant model. We look at who wins and who loses, impacts on the…

CFTC Expands Interest Rate Swap Clearing Requirement

September 29, 2016

CFTC, Clearing, interest rate swaps

Washington, DC — The U.S. Commodity Futures Trading Commission (Commission) today expanded the existing clearing requirement for interest rate swaps. The Commission voted unanimously to approve an amendment to Commission regulation…

How Eurex’s new buy-side membership model (ISA Direct) helps to address structural problems resulting from the changing structure of the marketplace

June 21, 2016

Philip Simons

CCP, Derivatives, Europe, Regulatory, Technology

CCPs, Clearing, Eurex, Eurex Clearing, ISA Direct, topstory

Market structure results from a wide range of inputs, from the preferences of individual firms to the rules that govern each trading venue. At no time in the past however…

Regime Change! The democratization of the clearing landscape

June 15, 2016

Michael Cyrus

CCP, Collateral Management, Credit Exposure, Derivatives, Europe, Prime Brokerage, Regulatory

Balance sheet, Clearing, credit intermediation, derivatives, topstory

Banks will see their clearing business become bifurcated by tail–risk and credit intermediation, part of which will stay on their balance sheet, alongside a service and infrastructure piece that will…

Eurex’s ‘special membership’ for buy side shifts counterparty risk

April 14, 2016

CCP

Clearing, Deutsche Borse, Eurex, Eurex Clearing, insurance companies, ISA Direct, pension funds, topstory

Deutsche Borse’s derivatives clearing house, Eurex Clearing, is set to provide direct access to the buy side with a new category of clearing membership called ISA Direct. Until July, the…

IFR: blockchain could help buy-side direct clearing efforts

March 1, 2016

Efforts to create a model for buyside firms to access derivatives clearinghouses directly – without the aid of a bank intermediary – may be on the verge of success with blockchain technology…

The biggest change in US securities lending in the last twenty years

February 23, 2016

Richard Stinchfield

Cash management, Market infrastructure, Operations, Securities Lending, Settlements

Clearing, DTCC, settlement, topstory

This Presidents Day marked the 20th anniversary of the changeover to Same Day Funds from Clearinghouse Funds settlement at DTCC, a day that marked the definitive end of an era…

Utilities in securities finance: taking an old dog for a new walk (Premium Content)

August 5, 2015

Collateral Management, Derivatives, Investments, Liquidity Management, Market infrastructure, Operations, Repo, Securities Lending, Technology

Clearing, collateral management, financing, outsourcing, topstory, utilities

This is no slight on utilities – they are a very good idea to share industry resources with a pay as you go model. Rather, this article looks at the…

Finadium: Realities of Repo Clearing for the Buy-side

June 18, 2015

CCP, Investments, Repo

buy-side, CCPs, Clearing, Finadium, Repo, topstory

Finadium has released a new research report, “Realities of Repo Clearing for the Buy-side.” This report offers a realistic evaluation of what repo clearing offers the buy-side, who is participating…

Finadium announces June events on clearing for repo and funding; T2S, Collateral and Liquidity

April 29, 2015

CCP, Collateral Management, Europe, Liquidity Management, Repo, US

CCPs, Clearing, Clearstream, collateral management, Finadium, Frankfurt, Global Collateral Ltd, Liquidity, London, Market infrastructure, New York, OCC, Paris, Repo, T2S, topstory

Finadium is pleased to announce four events coming up in June. We’re coming to New York, Frankfurt, London and Paris, with compelling programs on new and innovative topics in securities…

Our key takeaways from Clearstream’s GSF Summit 2015 (Premium Content)

February 2, 2015

CCP, Collateral Management, Derivatives, Europe, Market infrastructure, Repo, Securities Lending

Clearing, Clearstream, Clearstream GSF, Eurex, OTC derivatives, Repo, Securities Lending, topstory

Clearstream held its 19th annual Global Securities Finance Summit in Luxembourg last week. Once again it was a huge event with some 850 registrants. There were some important takeaways in…

Webinar poll results on OTC derivatives end-users, clearing and collateral

July 25, 2013

Collateral Management, Derivatives, OTC Derivatives Clearing

Calypso, Clearing, collateral, Finadium, OTC derivatives

Finadium and Calypso held our webinar on OTC derivatives, end-users, clearing and collateral yesterday with an excellent attendee turnout. As part of the webinar we asked four poll questions on…

Webinar invitation: OTC derivatives end-users on clearing and collateral, Wed July 24 11:00 EST/16:00 GMT

July 15, 2013

Collateral Management, Investments, OTC Derivatives Clearing, Repo, Securities Lending

Calypso, Citibank, Clearing, collateral, End-Users, Finadium, OTC derivatives, Repo, Securities Lending, Webinar

Please join Finadium, Calypso and Citibank to discuss results of a new survey on OTC derivatives end-users on clearing and collateral. Continue reading

Finadium: Large OTC Derivatives End-Users on Clearing and Collateral (free via Calypso)

July 10, 2013

CCP, Collateral Management, Derivatives, OTC Derivatives Clearing, Technology

Calypso, Clearing, collateral management, collateral optimization, collateral transformation, End-Users, Finadium, OTC derivatives

Finadium has released a new report, Large OTC Derivatives End-Users on Clearing and Collateral: A Finadium Survey. This report looks at the opinions of large OTC derivatives end-users as clearing…

Comments on BNY Mellon and Rule Financial's "To Clear or not to Clear…Collateral is the question"

December 18, 2012

Jonathan Cooper

CCP, Collateral Management, Derivatives, Dodd-Frank, OTC Derivatives Clearing, Pensions, Regulatory

CCP, CCPs, Clearing, collateral, collateral management, collateral transformation, Collateral upgrade, Finadium, OTC derivatives

A paper published by BNY Mellon and Rule Financial earlier this month caught our eye. It is called “To Clear or not to Clear….Collateral is the question”. We want to…

Cross-infection in financial regulations: tracking down the consequences

November 28, 2012

Basel III, Europe, Regulatory

CAS-WG, Clearing, Regulation

A working group in the UK is now focusing on the myriad consequences of financial regulation being imposed in the clearing and settlement sector. The regulation subject group of the…

The UK Investment Management Association wants to talk about clearing and segregation of client assets

August 9, 2012

CCP, Collateral Management, Derivatives, Europe, Money Market Funds, Regulatory

CCPs, Clearing, collateral management, ESMA, ETFs, Investment Management Association, UCITS

The UK’s Investment Management Association released today a response to ESMA’s recent guidelines on UCITS and ETFs. Aside from the technical points, they brought up some new issues regarding the…

Does the recent NYPC/LCH.Clearnet deal inch towards a global CCP?

April 23, 2012

Derivatives, OTC Derivatives Clearing, Regulatory, Repo, Technology

CCPs, Central Securities Depositories, Clearing, DTCC, LCH.Clearnet, NYPC

Last month four market actors, LCH.Clearnet Limited (LCH.Clearnet), New York Portfolio Clearing LLC (NYPC), The Depository Trust & Clearing Corporation (DTCC) and NYSE Euronext (NYX), announced that they had signed…

The battle of the clearinghouses is on: LCH.Clearnet versus the CME

March 19, 2012

Jonathan Cooper

CCP, Collateral Management, Derivatives, OTC Derivatives Clearing, Regulatory, Repo

Basel III, CCP, Clearing, CME, collateral management, Dodd-Frank, LCH.Clearnet, OTC derivatives, Regulations, Repo

The battle of the clearinghouses is on. The key to success is the ability to minimize collateral dislocation by managing margin exposure by portfolio. To do this, clearinghouses must go…

CFTC hearing on custody of collateral and segregation of client accounts

February 29, 2012

OTC Derivatives Clearing, Regulatory

Clearing, collateral, futures, OTC derivatives

The CFTC held a hearing today on several issues including segregation of client accounts and alternative methods of custody for customer collateral. While the “elephant in the room” (their words,…

Eurex Clearing gets two key ingredients right for seclending CCP

September 23, 2011

OTC Derivatives Clearing, Securities Lending, Tri-Party Repo

CCPs, Clearing, Eurex, Securities Lending