Mon, Sep 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

State Street takes the pulse of buy-side firms mandated to clear OTC Derivatives

Wednesday, July 31, 2013

Bailey McCann, Opalesque New York:

Buy-side firms are unprepared for new trading mechanisms, costs and increased complexity in the OTC market according to new research commissioned by State Street Corporation. The findings show that buy-side firms may need to work more proactively with providers meet challenges imposed by regulatory changes. The paper – "From Readiness to Revolution: The Implementation and Impact of Derivatives Clearing Regulatory Reform," explains how firms will have to prepare for swap execution facilities (SEFs), central clearing, collateral management and reporting.

State Street already serves as a futures clearing merchant (FCM) and a SEF. The paper highlights developments across the entire trade life-cycle and includes a roadmap to readiness for Category III firms – those firms that have yet to complete the Commodity Futures Trading Commission’s (CFTC) phased implementation of Derivatives clearing.

Changes in the OTC Derivatives requirements have created three types of firms – Categories I, II and III. Category I firms are companies that have completed the transition to mandated clearing. According to the paper, firms that meet this criteria and acted early have had the opportunity to negotiate more advantageous FCM agreements.

Category II firms have also met those requirements but because they were slower to act, found FCMs less willing to negotiate on terms. Category III fi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  2. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  3. Opalesque Exclusive: Modern investor tools (2): A platform that does the job for you[more]

    Benedicte Gravrand, Opalesque Geneva: A new series on technology providers that assist asset allocators. There is disruption in the investor part of the world of hedge funds, coming from platforms that can replace traditionally-run search and analysis. Here is one of them. L

  4. Hedge funds saw four consecutive months of outflows in August, but assets still up by $17.6bn YTD[more]

    Komfie Manalo, Opalesque Asia: Hedge funds witnessed four consecutive months of outflows with investor redemptions totaling $23.8bn as of end of August, data provider Eurekahedge said in its monthly report. But total hedge fund assets grew by

  5. Trend reversals lead to losses as managed futures drops 1.52% in August[more]

    Komfie Manalo, Opalesque Asia: Trend reversals in August have led managed futures traders to lose 1.52% last month according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.62% year to dat