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

Managers need to take a new look at how they manage collaterals

Tuesday, November 26, 2013

Benedicte Gravrand, Opalesque Geneva:

Advent, a firm that designs and delivers software and services for investment managers, urges those that trade in OTC derivatives to take a proactive stance ahead of the full implementations of the new rules.

"The switch to centralized clearing of derivatives is proving to be more complicated than anticipated, but fund managers ignore this change at their peril," says Advent in a new White Paper called The impact of centralized derivatives clearing. "Fortunately, greater transparency and competition in this market stands to benefit all parties."

Mandated by both the US Dodd-Frank Act and the European Market Infrastructure Regulation (EMIR), the clearing of over-the-counter (OTC) derivatives through central counterparties (CCPs) was meant to take effect at the end of 2012. However, it turned out to be more complicated than expected.

In the US, centralized clearing became mandatory for interest rate swaps in March 2013, through a three-phased approach for different types of participants. In Europe, it is still work in progress, and should be completed during 2014. Under the new rules, firms that trade 
in OTC derivatives will be required to make larger margin commitments and
 will be subject to more frequent margin calls, maybe on a daily basis. Moreover, CCPs will have different asset valuation method......................

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