Tag Archives: Cleared derivatives

3 reasons initial margin & leverage ratio are unrelated

3 Reasons Initial Margin is Unrelated to BASEL III’s Leverage Ratio

3 Reasons Initial Margin is Unrelated to BASEL III’s Leverage Ratio

APPLES AND ORANGES BASEL III plans to apply the leverage ratio to all collateral, including initial margin on cleared derivatives transactions (cleared at a clearinghouse).  Swap Market participants are looking at cost increases estimated at 60%.  A decision such as this will mean sell side will have to add on that capital charge, giving sell

Derivatives Cheat Sheet

Derivatives Cheat Sheets

These Derivative Cheat Sheets will help make sense of derivatives reform Cleared & Bilateral Haircuts & Collateral  The attached file shows it all on three pages The attached PDF file includes 3 resources: Page 1 – matrix of the various aspects and differences between Clearing a swap and entering into a bilateral swap (OTC)  

Swap Execution Facilities

Swap Execution Facilities & End Users

ISDA’s new Survey of Issues & Trends in the End User Community offer interesting insights into Swap Execution Facilities and End Users.  Respondents point to fragmentation along geographical lines due to regulatory ambiguities in cross border transactions. The survey’s respondents were asset managers and non-financial corporate, with a total of 125 respondents.  89% of those respondents are

Swap Execution Facilities Go Live

Swap Execution Facilities Go Live!

Swap Execution Facilities – Oct. 2 Launch Report The age of the swap execution facility was launched on Oct. 2 was a success in that trading was largely uninterrupted and trade sizes remained in line with the OTC market. But many believe that overall swaps liquidity was negatively impacted, and the majority of buy-side firms

Offsetting Bilateral Swap Positions

Offsetting Bilateral Swap Positions

Buy side firms required to submit swaps to their elected clearinghouses by one or more of four dates: March 11, April 11, May 11 or June 11, 2013.  The fifth and final date is February 18 2014.  Offsetting Bilateral Swap Positions The decision to submit a swap to a CCP has much to do with the collateral (and haircut)

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