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Tag Archives: central counterparty clearing

Cloudy with clearing: What the next clearing house looks like Blog,Commentary,Feature,Options

John Davidson joined OCC as president and chief operating officer in May with a firm focus on ushering in the next generation of clearing technology for the world’s largest clearing organization. Davidson is one of several recent executive team hires tasked with executing the switch from one established technology platform to something new. This is no small task for Davidson, who reports to OCC Chairman and CEO Craig Donohue and works closely with Scot Warren, OCC’s executive vice president and chief administrative officer. OCC’s ENCORE system now stands at about 20 years old, and while there have been many upgrades,…

Now Fed Officials Are Starting to Wonder If the VIX Is Too Low; Don’t Be Afraid of the Market’s Fearlessness; Brent bulls and bears play options tug-of-war Newsletter,Options

Observations & Insight MarketsWiki Education World of Opportunity Top Videos 1. Donald Wilson, DRW Trading Group – Reminiscences (and Prognostications) of a Futures Operator 2. Blair Hull – Getting the Edge: Blackjack and the S&P 500 3. Haim Bodek, Decimus Capital Markets – A Flash Course on Market Structure 4. Peter Borish, The Quad Group – Trading Traps: Too Many to Count 5. Ray Cahnman, chairman, Transmarket Group – Me, Us & You: How Trading Works / ***** According to the number of plays on Youtube, here are the top videos from the MarketsWiki Education series through the years. The…

Oil Options Traders Buy Record Bullish Contracts Amid OPEC Moves; Options Back in Vogue as Uncertainty Permeates Global Markets; SEC Approves Consolidated Audit Trail to Detect Market Manipulation Newsletter,Options

Lead Stories Oil Options Traders Buy Record Bullish Contracts Amid OPEC Moves Javier Blas, John Deane and Brian Wingfield – Bloomberg Oil investors traded a record number of bullish options contracts for benchmark U.S. crude, a signal that the market is positioning for a potential OPEC deal to limit production and boost prices. The total volume of calls giving investors the right purchase West Texas Intermediate crude rose to the equivalent of 303 million barrels on Tuesday, according to preliminary CME Group Inc. data compiled by Bloomberg. That far exceeded a prior record of 221 million, set five and a…

ISDA’s Robert Pickel Discusses the State of Cross-Border Regulation of Swaps (Part 1) Interview,Regulation,Video

Robert Pickel

After the financial crisis in 2008-09, regulators across the globe set in motion a complete overhaul of the financial markets, with the ultimate goals being transparency in the previously unregulated swaps market, and ensuring that there is adequate collateral backstopping the sector in the event of financial shock. The top items on the list were central counterparty clearing of swaps, the exchange of initial and variation margin among parties to non-cleared swaps, and the reporting of trade data to central repositories, so that market overseers can identify risks that may be building in the system. See part 2 of our…

Collateral Update from Ted Leveroni of Omgeo Interview,Regulation,Video

Ted Leveroni

After the 2008 financial crisis, national and international regulators laid the groundwork for new capital requirements for banks, dealers, funds and investors. From margin requirements on the $624 trillion swaps market to the stringent bank capital requirements in Basel III, early estimates predicted a shortage of eligible collateral upwards of a few trillion dollars. We have now reached the implementation phase, with mandatory clearing of interest rate and credit default swaps having begun on March 11, 2013 for swap dealers and major swap participants (“Category 1”) and on June 10 for much of the buy-side (“Category 2”). Thus far, the…

John Lothian Newsletter: India Options Trade Grows Fastest in World; New clearing rules spell stark choice over hedging strategies; Korea gears up for OTC clearing John Lothian Newsletter,Newsletter

India’s options market is growing at the fastest pace in the world, bringing a much-needed piece of good news to a region still trying to recover from the global financial crisis. New swaps regulation for central counterparty clearing puts pressure on hedge investors to either greatly increase collateral or switch to higher-risk products. And speaking of swaps, in Korea, KRX exchange plans to launch won-denominated interest-rate swaps next year.

An Intro to IDBs and SEF Regulation from ICAP’s Chris Ferreri Interview,Regulation,Video

Chris Ferreri

During 2012 SEFCON III John Lothian News interviewed five key members of the WMBA. Click here to see all the interviews. Chris Ferreri is a managing director at ICAP North America, where he oversees ICAP ETC, the company’s hybrid brokered OTC solution. He was the first chairman of the Wholesale Markets Brokers’ Association Americas Inc. (WMBA Americas), and served again as chairman in 2012. Ferreri spoke with John Lothian News Editor-at-Large Doug Ashburn at 2012 SEFCON III about the history of the interdealer broker (IDB) market, swap execution facilities (SEFs), and current issues surrounding SEF regulation related to the Dodd-Frank…

Byron Baldwin of Eurex Discusses OTC Clearing, Portfolio Margining and Individual Segregation Interview,Regulation,Video

Byron Baldwin is senior vice president of buyside relations for Eurex. He moved to New York from Eurex’s London office to in February 2011 in order to promote the firm’s listed products, connectivity for high frequency trading firms, and to promote Eurex’s move into OTC clearing. Baldwin spoke with John Lothian News Editor-at-Large Doug Ashburn about regulatory changes across jurisdictions, mandatory clearing of OTC derivatives, margin and collateral efficiency and Eurex’s individual segregation model.

Ted Leveroni of Omgeo Discusses Collateral Requirements Under Dodd-Frank Interview,Regulation,Video

Ted Leveroni is the Executive Director of Derivatives Strategy and External Relations for Omgeo, a financial services company specializing in post-trade operations such as trade allocation, confirmation and settlement for investment managers, broker/dealers and custodians. John Lothian News Editor-at-Large Doug Ashburn spoke with Leveroni about collateral requirements under new regulations, and how firms are responding with innovation in collateral efficiency.