Swaps

BIS, dollar funding, dollar liquidity, Swaps

Key takeaways At $13 trillion, the gross dollar liabilities of banks headquartered outside the United States at end-2019 were nearly as high as before the Great Financial Crisis. Most of…

US regulators finalize amendments to margin rules for inter-affiliate swaps and LIBOR legacy swaps

June 25, 2020

collateral management, inter-affiliate swaps, LIBOR, Margin, Swaps, US

Five federal agencies have finalized changes to their swap margin rule to facilitate the implementation of prudent risk management strategies at banks and other entities with significant swap activities. Under…

European banks use Wematch for first EUREX/LCH Basis swap trade

February 18, 2020

Anna Reitman

electronification, LBBW, Societe Generale, Swaps, Wematch

Wematch has hosted a EUREX/LCH Basis swap trade on its electronic trading platform, carried out between Societe Generale and Landesbank Baden-Württemberg (LBBW) and negotiated on a purely electronic basis, making…

EquiLend launches Swaptimization platform

December 10, 2019

Equilend, Swaps, Total Return Swaps

EquiLend, the global technology company for the securities finance, collateral and swaps industries, today launched the Swaptimization platform to automate the total return swaps (TRS) market. Building off of EquiLend’s…

The potential for dollar funding stress at Japanese banks is causing regulatory concern (Premium)

May 23, 2018

Asia, Derivatives, Investments

dollars, Japan, Lehman, Swaps, topstory

Interest rates in Japan have remained at historic lows, as the Bank of Japan continues to hope for inflation of 2% at some time in the future. Meanwhile, both private…

CFTC: Introducing ENNs: A Measure of the Size of Interest Rate Swap Markets

February 1, 2018

CFTC, ENNs, notional, Swaps

Notional amount is not a good measure of the size of the interest rate swap (IRS) market, that is, of the magnitude of risk transfer through IRS. First, since a…

CM2025: the physical market rebounds

It’s the year 2025. Following the passage of Dodd-Frank and related Basel III capital rules, banks did what they were supposed to do: they reduced Shadow Banking risk by cutting…

ISDA via Risk: Swaps market should not rely on repo for collateral

May 12, 2017

ISDA, Repo, Swaps

The future health of over-the-counter derivatives trading is increasingly dependent on the ailing repo market, buy- and sell-side participants have warned. The full article is available with subscription at http://www.risk.net/derivatives/5263741/swaps-markets-health-seen-as-resting-on-sickly-repo

CFTC Acting Chairman Giancarlo at ISDA: “Changing Swaps Trading Liquidity, Market Fragmentation and Regulatory Comity in Post-Reform Global Swaps Markets”

May 12, 2017

CFTC, euro-clearing, Liquidity, Swaps

This morning I’d like to talk about the changing nature of the global swaps market. It’s been almost a decade since the onset of the financial crisis. It will be…

Reuters: China limits OTC business for financing

November 7, 2016

China, Swaps

The China Securities Regulatory Commission (CSRC) has banned the use of over-the-counter (OTC) derivatives as a financing channel, in a fresh move to restrict risky shadow banking businesses, according to…

SEC Adopts Additional Rules Related to Security-Based Swap Transaction Reporting

July 14, 2016

sec, Swaps

Rules Increase Transparency in the Securities-Based Swap Market 2016-139 The Securities and Exchange Commission today announced that it has adopted amendments and guidance related to rules regarding the regulatory reporting…

Comment letters on the SEC's proposed rules for limiting leverage in registered funds (Premium)

April 28, 2016

Derivatives, Investments, Regulatory, SEC, US

18f-4, Leverage, liquid alterantives, mutual funds, sec, Swaps, topstory, VaR

In December 2015, the US Securities and Exchange Commission proposed rule 18f-4 limiting the amount of leverage that registered funds could use. Funds could either use a portfolio limit of…

Reuters: U.S. banks moved billions in trades beyond CFTC’s reach

August 31, 2015

CFTC, Reuters, Swaps

Aug 21 (Reuters) – This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by U.S.…

OFR article on initial margin in centrally cleared swaps: do the CCPs really get it right?

May 13, 2015

Jonathan Cooper

Basel III, CCP, Cleared Interest Rate Swaps, Derivatives, Dodd-Frank, Market infrastructure, OTC Derivatives Clearing, Regulatory, Trade Repositories

CCP, OFR, OTC derivatives, Swaps, topstory

A recent article published by the Office of Financial Research, Hidden Illiquidity with Multiple Central Counterparties, May 7, 2015, by Paul Glasserman, Ciamac C. Moallemi and Kai Yuan caught our…

Unconstrained bond funds vs. securities lending? (Premium Content)

January 7, 2015

Derivatives, Investments, Repo, Securities Lending

investments, OTC derivatives, Repo, securities finance, Securities Lending, Swaps, topstory, unconstrained bond funds

A new and complex dynamic has emerged in securities finance, whereby institutional investors are pulling assets from long-only fixed income portfolios in their agency securities lending programs. These funds are…

Finadium: Guide to Margining for Cleared Swaps vs. Futures

April 2, 2013

CCP, Collateral Management, Derivatives, OTC Derivatives Clearing

CCP, collateral, DCO, Finadium, futures, Margin, OTC derivatives, Swaps

Finadium has released a guide to understanding margin rules for cleared OTC swaps, non-cleared swaps, swap futures and standard futures. This guide is intended for market professionals needing a briefing…

Unlike Banks, This Wall St. Group Embraces Dodd-Frank – NYT

August 31, 2011

Collateral Management

OTC derivatives, SEFs, Swaps