Collateral management
Isda working group to draw up new, standardised CSA
Derivatives market set for shake-up as confusion over how to price multi-currency CSA trades drives a push towards a standardised collateral agreement
Market endorses 'elegant' CFTC proposal on margin
The Commodity Futures Exchange Commission (CFTC) tabled four proposals on segregation for client margin in cleared over-the-counter derivatives trades, and early feedback from the industry indicates a clear front-runner.
Lehman opts to settle over Dante flip-clause transactions
The Lehman Brothers Holding Inc (LBHI) administration has decided to reach an out-of-court settlement with Australian investment services group Perpetual Trustee over disputed collateral in a series of credit-linked notes issued by Saphir Finance - a…
Concern over scarcity of high-quality assets forces CCPs to broaden eligible collateral
Ice Clear Europe accepts gold for margin, while LCH.Clearnet is also working on extending eligible collateral
Dealer concern over proposed change to client margin segregation
Ice Trust estimates it might have to increase initial margin by 63% to cover risk.
Insurers, not banks, driving liquidity trade
Insurance sector's hunger for high yields, rather than banks' thirst for short-term funding, driving liquidity trade
Cash variation margin requirements worry pension funds
Having to post cash as variation margin to central counterparties (CCPs) will cause substantial yield losses for pension funds that conduct liability-driven investment (LDI) strategies, according to fund managers.
Ban on rehypothecation could increase derivatives costs
Investors have become more aware about the security of collateral since the collapse of Lehman Brothers. A number of hedge funds are now insisting margin posted on derivatives trades is not rehypothecated – a trend that could drive up costs. By…
Emeap: Cross-border collateral may alleviate dollar funding strains
Executives’ Meeting of East Asia-Pacific Central Banks says crisis revealed shortcomings in regional money markets; swaps deals, cross-border collateral could alleviate some problems
Questions raised about CCP collateral
Bank collateral managers raise concern about wrong-way risk in clearing house collateral
Bilateral collateral agreements up in 2010
SAN FRANCISCO - Bilateral collateral agreements make up 83% of all collateral agreements in circulation in the over-the-counter derivatives market this year, versus 75% last year, according to a survey by the International Swaps and Derivatives…
Ten dealers sign up for India's FX CCP
CCIL soft launches with group of early adopters
Finra tightens margins requirements
US regulator raises bar on leveraged investments.
CME accepts gold as trade collateral
LONDON - The clearing house of CME Group, CME Clearing, began accepting gold as collateral for trades on the exchange last Monday (October 19).
Prime brokerage best for individual investors
Individuals who want to trade FX may find a prime broker will promote confidentiality, cut out settlement difficulties and help resolve credit issues, says Peter Wakefield, MD of research and product development at Record Currency Management in the UK
Credit ratings come into FX focus
LONDON/NEW YORK -- Credit ratings are becoming increasingly significant to FX market players, with downgrades increasing in the current economic downturn, market participants told FX Week .